Eat, Patisserie Valerie, A380 superjumbo jet, German economy: your commercial news round-up
updated on 14 February 2019
It’s hard to keep on top of everything, which is why we summarise the most important and interesting commercial news stories every week. The below stories can be taken at face value, or used as starting points to jump into further research. How could Germany’s economy affect the legal as well as the business world? Where could law firms have been involved in Eat and Patisserie Valerie’s sales? It’s up to you to find out!
- The owners of café chain Eat have put the business up for sale amid fierce competition from the overcrowded fast-food sector. Private equity firm Horizon Capital announced the decision a year after the chain closed several stores. Last year, competitor Pret A Manger’s owners sold the business for £1.5 billion, and in January Coca-Cola’s £4 billion takeover of Costa Coffee was confirmed by EU antitrust regulators. Horizon says that the sales process has not yet begun, and a deal is unlikely to take place this year.
- The battle for Patisserie Valerie is finally over after Irish-based Causeway Capital Partners bought what they called the “heritage brand” for an undisclosed amount. The deal has saved 96 shops from closing and nearly 2,000 jobs. Sports Direct and House of Fraser tycoon Mike Ashley this week offered £15 million for the chain, but was unsuccessful.
- The A380 superjumbo airplane has been scrapped by Airbus as the European aircraft manufacturer says the last aircraft will be made in 2021. The A380 cost around £19.4 billion to develop. The decision comes after airline Emirates, the largest A380 customer, reduced its latest order which mean that maintaining production was no longer viable. The company has taken €463 million in charges for shutdown costs.
- The German economy has narrowly avoided going into recession during the last three months of 2018, registering zero growth during this fourth quarter. Reasons for slow growth include a weaker car sector, confusion over new emissions standards and low water levels affecting the movement of some goods. Germany’s economy is the largest in Europe with unemployment in the country among the lowest in the world at around 3%. Economists have suggested that a strong rebound in 2019 is unlikely.
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