Companies in the news ... and how they were assessed
BHS: the bones of a pensions deal?
It’s the end of an era on Britain’s high streets, said Kate Palmer in The Daily Telegraph. The last 22 BHS stores pulled down their shutters for the final time at the weekend, ending nearly 90 years of retail history. Meanwhile, the row over some 22,000 staff pensions continues. BHS’S former owner, Sir Philip Green, remains in negotiations with the Pension Protection Fund (PPF) over the fund’s £700m shortfall – amid reports that regulators, “frustrated by delays”, have considered issuing a “contribution notice” to his wife, Lady Green, who controls the companies that own the family’s assets. Sir Philip – who sold BHS for £1 last year and has spent the summer negotiating from his £100m superyacht – has warned that “attempts to browbeat him into agreeing to a larger settlement could jeopardise a deal”, said the FT. He insists he is working towards “a voluntary solution” for stricken pensioners, “but has broken no laws and cannot be forced to pay up”. Pension experts believe “officials may have the power to force Green into a financial contribution” even if no wrongdoing is found – but the amount would be “a fraction” of the overall liability. A negotiated settlement would be preferable, though it would still fall short of the £700m demanded by politicians. Under the latest proposals tentatively agreed by the PPF, the retail tycoon will pay less than half that amount.
Ubereats/deliveroo: gigging protests
Unrest among workers in Britain’s “gig economy” has stepped up a gear, said Rob Davies in The Guardian. Hot on the heels of a pay strike at the food delivery service Deliveroo comes another protest at rival Ubereats. More than 100 couriers descended on Uber’s south London offices last week to protest against “dwindling pay” that has left some earning below the minimum wage. When Ubereats launched in June, the terms looked generous enough, but couriers claim the company has stealthily cut rates of £20 per hour during peak mealtimes to less than £10. Uber insists that many of its drivers earn more than that, said Madhumita Murgia in the FT. But, according to Petros Elias – an official at the United Voices of the World union, which organised the “wildcat strike” – some couriers can end up with as little as £9 “after a full day’s work”. Increased competition among takeaway order app companies is likely to put more pressure on pay. It is also proving disruptive elsewhere in the cheap-eats market, said The Daily Telegraph. Pizza Express last week blamed a 1.3% dip in annual sales on consumers who are forgoing dining out and ordering in instead via mobile apps.
UK builders: brick deficit?
Britain needs 264,000 new houses a year to plug the housing deficit, said Isabelle Fraser in The Daily Telegraph. Yet the latest figures suggest that the number of new builds completed “stuttered” in the last quarter, falling by 2% to 34,920. Who’s to blame? The National Association of Estate Agents cites an acute shortage of bricks, arguing that stockpiles have been dwindling ever since 2008, when many kilns were mothballed owing to the financial crisis. Apparently, 1.4 billion more bricks are needed to plug the shortfall. But the brick-makers are having none of it. “This is a lazy analysis,” said Andrew Eagles of the Brick Development Association. “We can report with absolute authority that there is no shortage.” Keep an eye on developments.