Today’s credit crunch spotlight is shining on high street department store group Debenhams.
The firm is seeking to raise more money from investors to aid cash flow, reported the Financial Times. Trading problems are on the agenda for the next Debenhams board meeting on January 6.
Also struggling to cope with the bills is the Globe Pub Company, which is appointing ‘restructuring consultants’ after admitting difficulties in meeting payments and is close to breaching loan agreements.
In a quarterly update to bondholders, Globe, which owns 424 pubs, said operating profits for the 12 weeks to 29 November had plunged to £5.3m, down 20% on the same period last year. Meanwhile the cost of servicing debt had risen 2% to £4.4m.
Thousands of families are waiting to hear from photographers Olan Mills whether they have lost portraits and gift boxes they have already paid for. The chain, with 34 outlets mainly in Mothercare stores has collapsed and ceased trading.
An administrator will be appointed and the company says it was “endeavouring” to fulfil all outstanding orders and post photographs direct to customers’ homes during January.
People who have bought a gift box or voucher from Olan Mills become unsecured creditors who need to register claims with the administrators – giving a slimmer chance of a refund. Customers who paid by credit card should contact their credit card company.
Parity between the Pound and Euro is becoming more of a reality as sterling values ebb on the back of low interest rates and fears for the state of the British economy.
The Bank of England is expected to reduce interest rates to 1% or less next week, which will put more pressure on the currency markets.
The Pound closed at 1.0389 Euros, down ever so slightly from 1.0390. The Pound remained at US $1.457.
The FTSE was up 102.8 points from 4216.6 to 4319.4 and the DOW closed down 319.4 points at 8483.93from 8515.87.