Shop Direct sale now off

Mr Kipling cake maker Premier Foods announced a 3.1% fall in quarterly sales yesterday.

The firm was hit hardest by declining demand for its desserts, especially Ambrosia custard. But Premier’s share price jumped more than 3% as it reported market share gains in other areas.

The billionaire Barclay brothers have scrapped plans to sell online retailer Shop Direct because of post-election nerves. Secretive tycoons Sir David and Sir Frederick Barclay weighed up flogging the former catalogue business for a possible £3billion. But Shop Direct said yesterday: “In recent weeks it has become clear that the appetite of potential bidders has begun to change due to uncertainty created in the post-election UK environment so the shareholders have decided not to pursue discussions at this stage.” A number of private equity firms are thought to have considered snapping up the firm, but a collapse in consumer confidence and a slowing economy are also thought to have scuppered any deal.

Mothercare posted a 1.9% rise in UK sales for the 15 weeks to early July. But shares in the baby and toddler chain fell yesterday after it said it suffered weaker trade abroad, especially in the Middle East.