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Poundworld appoints administrators; Mars Petcare agrees to buy AniCura

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Poundworld appoints administrators; Mars Petcare agrees to buy AniCura

TOP NEWS

* U.K. single-price retailer Poundworld Retail Ltd. appointed administrators, a move similar to a bankruptcy filing in the U.S., after a bid to sell the company reportedly collapsed. Clare Boardman, a partner at Deloitte and a joint administrator, said she believed a buyer could be found for Poundworld, or at least part of it. Poundworld operates 355 stores and employs about 5,100 staff. It is owned by TPG Capital Management LP, which blamed the failure on the decline in U.K. retail and changing consumer behavior. The BBC reported the breakdown of talks with a potential buyer left TPG with no option but to call in administrators.

* Mars Petcare, the pet food unit of Mars Inc., has agreed to acquire AniCura AB, marking the Virginia-based company's entrance into the European veterinary care market. Financial details were not disclosed, but according to a report by the Financial Times, the deal values AniCura at almost €2 billion. AniCura's existing management will continue to lead the business after the deal closes, which is expected in the fourth quarter of 2018.

TEXTILES, APPAREL AND LUXURY GOODS

* Kering SA brand Gucci plans to manufacture its own leather goods and reduce its reliance on independent suppliers to 40% from 75% in order to meet demand in the Chinese market, Reuters reported. Gucci CEO Marco Bizzarri reportedly explained that "scattered" small suppliers slowed lead times between a product's creation and delivery in store. The move comes at a time when Gucci is poised to overtake rival LVMH Moët Hennessy Louis Vuitton SE-owned Louis Vuitton in sales.

* Brand development firm Authentic Brands Group, with a revised bid of approximately $350 million, beat apparel retailer DSW Inc. to win the intellectual property of bankrupt shoemaker Nine West Holdings Inc., Reuters reported, citing people familiar with the matter. Proceeds from the sale reportedly will be used to partially pay off Nine West's debt of approximately $1.5 billion.

E-COMMERCE

* China Labor Watch called on Amazon.com Inc. to compel its suppliers to improve their working environments and to manufacture products "under ethical conditions." The group's statement follows a four-month investigation into a factory that predominantly makes products for Amazon. China Labor Watch said the investigation found a number of rights violations, including longer working hours, inadequate training, mandated overtime and unpaid sick leave.

* Rakuten Inc. said it would simplify its structure in an effort to accelerate decision-making and productivity. The Japanese internet and direct marketing retailer said it would collapse its 10 operating units into five, effective July 1. Card & payments, securities, bank and insurance businesses will form a financial technology group. A commerce group will comprise the e-commerce and life and leisure businesses. The media and communications operations will be split between a new communications and energy unit and a media division, into which the sports company will be folded. An investment and incubation unit will be formed from the investment and new service development businesses.

* Alibaba Group Holding Ltd. pledged that it would support South Korean companies seeking to expand their presence in the Chinese market, Yonhap News Agency reported, citing Alibaba Vice President Angel Zhao during a business briefing session. Alibaba reportedly said South Korea in 2017 was the fourth-largest exporter on its cross-border platform, Tmall Global.

HOUSEHOLD AND PERSONAL PRODUCTS

* Amorepacific Group-owned Innisfree Corp. on June 1 opened its first store in Australia, diversifying its business after it was hurt by a row in 2017 between China and South Korea over a missile-defense system, Yonhap News Agency reported, citing a company statement. The new store, located in a shopping complex in Melbourne, increases the number of Innisfree overseas stores to 12.

FOOD AND STAPLES RETAILING

* Convenience store operator Seven & i Holdings Co. Ltd. reported that total sales in its Seven-Eleven Japan stores rose 3.4% year over year in May. Existing store sales grew 0.3% during the month. Customer numbers went down 1.8%, but average spending per customer rose by 2.1%. Seven-Eleven locations also increased by 48 in May to 20,385 from 20,337 in April.

HYPERMARKETS AND SUPERCENTERS

* French supermarket operators Carrefour SA and Système U signed the five-year partnership agreement it announced in April. Under the partnership, the companies will cooperate on purchasing leading national and international brands and providing increased commitments in favor of French agricultural producers.

HOUSEHOLD DURABLES AND SPECIALTY RETAIL

* Aberforth Partners LLP and FIL Ltd. have raised their stake in British floor covering retailer Carpetright PLC, according to filings to the London Stock Exchange. London-based Aberforth Partners acquired more shares in the retailer, raising its interest to 10.37% from 5.29%, while Bermuda-based FIL increased its holding from below 5% to 5.38%.

* Starboard Restructuring Partners and Apollo Global Management LLC proposed investing in convertible bonds to be issued by Brazilian appliance retailer Máquina de Vendas Brasil Participações SA, Reuters reported, citing sources. The sources reportedly told the news outlet that Starboard has committed to investing 500 million reais into Máquina de Vendas' bonds, which could later be converted into an undisclosed equity stake. Reuters said newspaper O Estado de S. Paulo reported June 8 that Starboard is close to acquiring Máquina de Vendas.

* Ikea expects to open its first store in India in July in Hyderabad, the Financial Times reported, citing deputy country manager Patrik Antoni. The supercenter, which is expected to employ 850 people and includes a restaurant seating 1,000, will sell food items alongside furniture. Ikea applied to open a store in India in 2006, withdrew plans in 2009, then reconsidered the move after New Delhi allowed foreign companies to operate retail outlets without local partners.

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The day ahead

Early morning futures indicators pointed to a mixed opening for the U.S. market.

In Asia, the Hang Seng was up 0.34% to 31,063.70. The Nikkei 225 rose 0.48% to 22,804.04.

In Europe as of midday, the FTSE 100 was up 0.91% to 7,750.65, and the Euronext 100 rose 0.43% to 1,062.12.

On the macro front

No notable reports due out today.

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