cityam--2020-04-03--Shareholders may push Debenhams into administration

Debenhams is set to plunge into administration as shareholders attempt to keep the historic retailer out of creditors ’ hands during the coronavirus outbreak , it is reported .
Debenhams is poised to announce its intention to appoint administrators next week , with KPMG in the running , Sky News reported today .
Investors could push for the move to prevent Debenhams ’ lenders making legal claims on the department store chain amid the UK coronavirus crisis .
Read more : Coronavirus : Debenhams seeks landlord support for new restructuring plan Having shuttered 142 stores across the UK during the @ @ @ @ @ @ @ on the government ’ s job retention scheme .
That means the government will pay up to 80 per cent of their wages for at least the next three months .
But it has ordered hundreds of millions of pounds worth of inventory from suppliers that it will not be able to sell .
A source said this meant suppliers could take legal action against Debenhams for delaying invoice payments .
Read more : Debenhams denies lenders ’ support is wavering over debt restructuring But another source said putting Debenhams into administration would @ @ @ @ @ @ @ “ It would be a way of protecting the balance sheet during a period of vastly reduced revenue , ” they said .
A Debenhams spokesperson told Sky News : “ Like all retailers , Debenhams is making contingency plans reflecting the extraordinary current circumstances .
“ Our owners and lenders remain highly supportive and whatever actions we may take will be with a view to protecting the business during the current situation .
“ While our stores remain closed in line with government guidance , and the majority of our store-facing colleagues @ @ @ @ @ @ @ to trade and we are accepting customer orders , gift cards and returns.
” “ This one has been on the cards for a while , ” Nigel Frith , a senior analyst at online trading platform Ask Traders , said .
“ We aren ’ t quite at the administration stage , but it is definitely an option on the table to protect Debenhams from legal claims from creditors that it owes money to during the coronavirus outbreak .
Next week will be judgement week for Debenhams.
” “ Debenhams was already @ @ @ @ @ @ @ coronavirus outbreak , ” he added .
“ [ So ] 2020 was going to be its make or make year .
However , Covid-19 has brought all the retailers ’ problems to head a little earlier than expected .
“ After 242 years on the high street there is a good chance that many , if not all of the department stores ’ doors won ’ t be opening after the UK wide lock down ends .
“ What we are seeing here is simple – if a firm was in a @ @ @ @ @ @ @ , there is a good chance that it won ’ t come out the other side .
In recent years fast fashion and online businesses have thrived , whilst our more traditional brands have struggled to transform .
”

Shareholders may push Debenhams into administration
Debenhams has closed all stores in the UK coronavirus lockdown, and now shareholders may put it into administration to protect it from legal claims
Debenhams is set to plunge into administration as shareholders attempt to keep the historic retailer out of creditors’ hands during the coronavirus outbreak, it is reported.
Debenhams is poised to announce its intention to appoint administrators next week, with KPMG in the running, Sky News reported today.
Investors could push for the move to prevent Debenhams’ lenders making legal claims on the department store chain amid the UK coronavirus crisis.
Having shuttered 142 stores across the UK during the lockdown, Debenhams has placed most staff on the government’s job retention scheme.
That means the government will pay up to 80 per cent of their wages for at least the next three months.
Sources told Sky News Debenhams’ online operations could continue.
But it has ordered hundreds of millions of pounds worth of inventory from suppliers that it will not be able to sell.
A source said this meant suppliers could take legal action against Debenhams for delaying invoice payments.
Administration ‘would protect’ Debenhams
But another source said putting Debenhams into administration would not necessarily lead to its collapse.
“It would be a way of protecting the balance sheet during a period of vastly reduced revenue,” they said.
A Debenhams spokesperson told Sky News: “Like all retailers, Debenhams is making contingency plans reflecting the extraordinary current circumstances.
“Our owners and lenders remain highly supportive and whatever actions we may take will be with a view to protecting the business during the current situation.
“While our stores remain closed in line with government guidance, and the majority of our store-facing colleagues have been furloughed, our website continues to trade and we are accepting customer orders, gift cards and returns.”
Debenhams on ‘shaky ground’
“This one has been on the cards for a while,” Nigel Frith, a senior analyst at online trading platform Ask Traders, said.
“We aren’t quite at the administration stage, but it is definitely an option on the table to protect Debenhams from legal claims from creditors that it owes money to during the coronavirus outbreak. Next week will be judgement week for Debenhams.”
“Debenhams was already on very shaky ground prior to the coronavirus outbreak,” he added. “[So] 2020 was going to be its make or make year. However, Covid-19 has brought all the retailers’ problems to head a little earlier than expected.
“After 242 years on the high street there is a good chance that many, if not all of the department stores’ doors won’t be opening after the UK wide lock down ends.
“What we are seeing here is simple – if a firm was in a weak position going into the coronavirus lockdown, there is a good chance that it won’t come out the other side. In recent years fast fashion and online businesses have thrived, whilst our more traditional brands have struggled to transform.”


cityam--2020-04-03--UK coronavirus death toll jumps 684 to 3,605

The UK ’ s coronavirus death toll jumped 684 today to 3,605 , the Department of Health said .
As of 9am today , a total of 173,784 people have been tested of which 38,168 tested positive , the department said .
Read more : UK to open two more Nightingale hospitals to deal with coronavirus cases As of 5pm yesterday , 3,605 of those hospitalised who tested positive in the UK for coronavirus have died , the biggest daily increase in the UK so far .
Public Health England said 11,764 tests had been carried out in England , @ @ @ @ @ @ @ Testing capacity for inpatient care currently 12,799 tests per day .
Sign up to City A.M. ’ s Midday Update newsletter , delivered to your inbox every lunchtime In the daily press conference yesterday , health secretary Matt Hancock said he hopes 100,000 tests are carried out every day by the end of the month .
The government has come under fire for the level of rates compared to other OECD countries .
Hancock said the reason the UK is far behind countries like Germany is because the UK “ didn ’ t @ @ @ @ @ @ @ diagnostics industry.
” The increase in coronavirus-related deaths in the UK comes as the Nightingale Hospital at London ’ s Excel Centre opened today .
The facility , which was established in under a fortnight , has capacity for 4,000 patients .
Similar hospitals are due to open at Birmingham ’ s National Exhibition Centre and Manchester ’ s Central Complex .
The UK is due to open two more hospitals in Bristol and Harrogate , which will provide 1,500 extra peds for those afflicted by coronavirus .
Read more : Labour asks @ @ @ @ @ @ @ will be met Earlier today Boris Johnson said he will remain in self-isolation after continuing to exhibit coronavirus symptoms first diagnosed last week .
“ Although I feel better and I ’ ve done my seven days of self-isolation , alas I still have one of the symptoms , a minor symptom .
I still have a temperature , ” Johnson said in a Twitter video .
Get the news as it happens by following City A.M. on Twitter .

UK coronavirus death toll jumps 684 to 3,605
The UK’s coronavirus death toll jumped 684 today to 3,605, the Department of Health said.
As of 9am today, a total of 173,784 people have been tested of which 38,168 tested positive, the department said.
As of 5pm yesterday, 3,605 of those hospitalised who tested positive in the UK for coronavirus have died, the biggest daily increase in the UK so far.
Public Health England said 11,764 tests had been carried out in England, and 7,651 people had been tested. Testing capacity for inpatient care currently 12,799 tests per day.
Sign up to City A.M.’s Midday Update newsletter, delivered to your inbox every lunchtime
Hancock sets target of 100,000 tests a day
In the daily press conference yesterday, health secretary Matt Hancock said he hopes 100,000 tests are carried out every day by the end of the month.
The government has come under fire for the level of rates compared to other OECD countries. Hancock said the reason the UK is far behind countries like Germany is because the UK “didn’t go into this crisis with a huge diagnostics industry.”
The increase in coronavirus-related deaths in the UK comes as the Nightingale Hospital at London’s Excel Centre opened today. The facility, which was established in under a fortnight, has capacity for 4,000 patients.
Similar hospitals are due to open at Birmingham’s National Exhibition Centre and Manchester’s Central Complex. The UK is due to open two more hospitals in Bristol and Harrogate, which will provide 1,500 extra peds for those afflicted by coronavirus.
Earlier today Boris Johnson said he will remain in self-isolation after continuing to exhibit coronavirus symptoms first diagnosed last week.
“Although I feel better and I’ve done my seven days of self-isolation, alas I still have one of the symptoms, a minor symptom. I still have a temperature,” Johnson said in a Twitter video.
Get the news as it happens by following City A.M. on Twitter.


cityam--2020-04-03--US unemployment surges as coronavirus lockdown takes toll

US unemployment surged in March as coronavirus sent the economy into a tailspin , official data has shown .
US employers laid off 701,000 workers in March after hiring 275,000 in February , the Labor Department ( DoL ) said .
Analysts had been expected a fall of 100,000 .
Read more : Coronavirus : US jobless claims soar to new record of 6.6m The figures represent an abrupt end to the US labour market ’ s winning streak , which has seen it add jobs for 113 straight months .
However , things are in fact much worse than @ @ @ @ @ @ @ .
Jobless claims figures from the Labor Department have shown that 10 million Americans have claimed for unemployment insurance in the last two weeks .
For today ’ s non-farm payrolls data , the department surveyed companies in the middle of the month .
This was before coronavirus lockdown measures took hold .
The unemployment rate shot up to 4.4 per cent in March from 3.5 in February , the DoL said .
But that figure is likely to surge in the coming months .
Today ’ s reading “ has not even @ @ @ @ @ @ @ impact covid-19 is having on the US economy , ” said James Ingram , investment manager at stockbroker MB Capital .
Gregory Daco , chief US economist at consultancy Oxford Economics , said April ’ s report “ will reveal the full magnitude of the virus ” .
“ We expect payrolls will drop by a staggering 20m and the unemployment rate will spike to over 10 per cent , with further job losses into May.
” The job figures came with the US in the middle of a “ very difficult two @ @ @ @ @ @ @ US President Donald Trump .
The US now has the most cases of any country , with more than 240,000 confirmed infections .
Read more : Trump and Congress reach deal on $ 2 trillion coronavirus stimulus Whole swathes of the country are on lockdown to limit the spread of coronavirus .
Fitch Ratings yesterday said it thinks the US economy as a whole will shrink by 1.9 per cent in 2020 .

US unemployment surges as coronavirus lockdown takes toll
Businesses have been shuttered across the US as coronavirus spreads
US unemployment surged in March as coronavirus sent the economy into a tailspin, official data has shown.
US employers laid off 701,000 workers in March after hiring 275,000 in February, the Labor Department (DoL) said. Analysts had been expected a fall of 100,000.
The figures represent an abrupt end to the US labour market’s winning streak, which has seen it add jobs for 113 straight months.
However, things are in fact much worse than the non-farm payrolls figures out today suggest.
Jobless claims figures from the Labor Department have shown that 10 million Americans have claimed for unemployment insurance in the last two weeks.
For today’s non-farm payrolls data, the department surveyed companies in the middle of the month. This was before coronavirus lockdown measures took hold.
The unemployment rate shot up to 4.4 per cent in March from 3.5 in February, the DoL said. But that figure is likely to surge in the coming months.
Job losses soon to surge
Today’s reading “has not even illustrated the full extent of the devastating impact covid-19 is having on the US economy,” said James Ingram, investment manager at stockbroker MB Capital.
Gregory Daco, chief US economist at consultancy Oxford Economics, said April’s report “will reveal the full magnitude of the virus”.
“We expect payrolls will drop by a staggering 20m and the unemployment rate will spike to over 10 per cent, with further job losses into May.”
The job figures came with the US in the middle of a “very difficult two weeks,” in the words of US President Donald Trump.
The US now has the most cases of any country, with more than 240,000 confirmed infections.
Whole swathes of the country are on lockdown to limit the spread of coronavirus.
Fitch Ratings yesterday said it thinks the US economy as a whole will shrink by 1.9 per cent in 2020.


cityam--2020-04-03--BAE predicts 'significant disruptions' from Covid-19

Defence firm BAE Systems today said it expects “ significant disruptions ” due to coronavirus as it moves into the second quarter of the financial year .
It comes after an opening three months where the Covid-19 pandemic had a minimal impact on the London-listed company .
Read more : Boris Johnson to stay in self-isolation with coronavirus symptoms The firm today said it was assessing the situation and would update shareholders on whether to expect a dividend in July when it releases half-year results .
BAE also said it would decide on how much to pay its directors at @ @ @ @ @ @ @ assess the impact on our business of the measures announced by national governments , together with the actions the Group has taken to support customers and suppliers , ” the company said .
“ In parallel , cost control measures have been implemented to help limit the financial impact of disruptions to the business.
” The announcement came as many London-listed companies have cut pay for their top management and boards for the duration of the crisis .
Primark owner ABF today sanctioned a 50 per cent pay cut for the retail chain @ @ @ @ @ @ @ directors volunteered to take a 20 per cent pay cut , while their bonuses were scrapped .
Read more : Coronavirus : ITV bosses take 20 per cent pay cut as bonuses scrapped BAE added it had recently won contracts to build self-propelled howitzers and a missile-defence system , and repair US ships .
Proposed acquisitions of the Collins Aerospace Military Global Positioning System business and Raytheon ’ s Airborne Tactical Radios business are also expected to go ahead in the coming months , the firm said .
It said the company ’ @ @ @ @ @ @ @ held in person , since gatherings of more than two people have been banned .
Instead , shareholders will vote online and in the post .
BAE said : “ Whilst the Covid-19 pandemic will impact our previous guidance for 2020 , at this stage it is not possible to predict either the duration of the disruption or its impact on the 2020 outturn .
“ A further update will be provided when appropriate.
” Read more : UK to open two more Nightingale hospitals to deal with coronavirus cases Meanwhile , the @ @ @ @ @ @ @ for ventilators as part of the UK ’ s ventilator challenge consortium .
The consortium is aiming to produce thousands of ventilators for the NHS at full speed .

BAE predicts ‘significant disruptions’ from Covid-19
Defence firm BAE Systems today said it expects “significant disruptions” due to coronavirus as it moves into the second quarter of the financial year.
It comes after an opening three months where the Covid-19 pandemic had a minimal impact on the London-listed company.
The firm today said it was assessing the situation and would update shareholders on whether to expect a dividend in July when it releases half-year results.
BAE also said it would decide on how much to pay its directors at that point.
“We continue to assess the impact on our business of the measures announced by national governments, together with the actions the Group has taken to support customers and suppliers,” the company said.
“In parallel, cost control measures have been implemented to help limit the financial impact of disruptions to the business.”
The announcement came as many London-listed companies have cut pay for their top management and boards for the duration of the crisis.
Primark owner ABF today sanctioned a 50 per cent pay cut for the retail chain’s top directors. And ITV directors volunteered to take a 20 per cent pay cut, while their bonuses were scrapped.
BAE added it had recently won contracts to build self-propelled howitzers and a missile-defence system, and repair US ships.
Proposed acquisitions of the Collins Aerospace Military Global Positioning System business and Raytheon’s Airborne Tactical Radios business are also expected to go ahead in the coming months, the firm said.
It said the company’s annual shareholder meeting will not be held in person, since gatherings of more than two people have been banned.
Instead, shareholders will vote online and in the post.
BAE said: “Whilst the Covid-19 pandemic will impact our previous guidance for 2020, at this stage it is not possible to predict either the duration of the disruption or its impact on the 2020 outturn.
“A further update will be provided when appropriate.”
Meanwhile, the firm is continuing to provide essential parts for ventilators as part of the UK’s ventilator challenge consortium.
The consortium is aiming to produce thousands of ventilators for the NHS at full speed.