Business borrowing, EasyJet, Greene King, Hovis, Ferrero, H&M, Ola: your commercial news round-up
updated on 08 October 2020
As the days turn colder and we move into the autumn term, the devastating impact of coronavirus continues to sweep through the UK. This commercial news round-up summarises various coronavirus-related stories from the past week, as well as other updates from the legal and business worlds that could serve as excellent starting points to help you build your commercial awareness.
- A recent report from UK Finance (a banking lobby group) revealed that UK businesses borrowed £34.5 billion in the second quarter of 2020 – 50% more than in the whole of 2019 – as the pandemic put pressure on the economy. Government coronavirus lending schemes, including the Coronavirus Business Interruption Loan Scheme (CBILs), received more than one million applications by the end of June, according to UK Finance.
- Following the pandemic’s devastating impact on the travel industry, low-cost airline EasyJet has predicted that it will see a loss of £845 million this year. The airline has indicated that it may require additional government support, after receiving a £600 million loan via the Bank of England’s Coronavirus Corporate Financing Facility. Johan Lundgren, chief executive, said: "Aviation continues to face the most severe threat in its history and the UK government urgently needs to step up with a bespoke package of measures to ensure airlines are able to support economic recovery when it comes.”
- With pubs and restaurants in areas of north England potentially set to face further restrictions as coronavirus cases rise at an alarming rate, Nicola Sturgeon has revealed a ban on indoor drinking in Scotland in a bid to curb this rise. Meanwhile, Greene King – one of Britain’s largest pub operators – has announced plans to close 79 venues, one-third of which are expected to be permanent, and cut hundreds of jobs as the UK government’s 10:00pm hospitality curfew takes its toll and reduces trade. Among the 79 Greene King closures are 11 Loch Fyne restaurants.
- Italian food firm Newlat recently launched a takeover bid to buy Hovis and is currently awaiting a response from shareholders, as it hopes to become of the most important operators in Europe’s food sector. Hovis is based in High Wycombe and is owned by Premier Foods and Gores Group – a US investment firm. In addition, a £246 million deal has been agreed as Ferrero buys Fox’s biscuits.
- Fashion retailer H&M has received a £32.1 million fine for holding on to “excessive” records of its employees’ families, religions and illnesses at its Nuremberg service centre. The fine for this illegal surveillance is the second largest of its kind that a single company has faced under EU GDPR rules.
- Taxi firm Ola, which has been operating in London since February, has not had its licence renewed amid public safety concerns. Transport for London (TfL) raised concerns regarding unlicensed drivers – an issue which Uber has also recently had to address – after more than 1,000 trips were made by such drivers. The company has 21 days to appeal the decision, which it plans to do and can continue to operate in the meantime. Last week rival Uber was granted a new 18-month licence to continue working in the City after TfL rejected its application due to similar safety concerns.
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