Industry Update

Debenhams says it has struck deals with landlords to keep most of its 142 stores open after it fell into administration last week. It has agreed terms on 120 branches and is in "advanced" talks on the remainder of its estate, it added. But seven stores will not reopen when the government lifts coronavirus restrictions on non-essential shops. However, the department store chain acknowledged a "handful" more sites could be at risk. Chief executive Stefaan Vansteenkiste said: "I'm delighted with the progress we are making with our landlord discussions, which reflects the pragmatic view the vast majority of them are taking of the current market conditions.

Source: https://www.bbc.com/news/business-52330268

Dubai-based Shuaa Capital has revealed a net profit of AED47 million ($12.8m) in its annual results. The company, which was created by the merger of Shuaa Capital and Abu Dhabi Financial Group (ADFG) last year, held its first general meeting virtually where it reported an EBITDA of AED186m ($50.6m), including merger costs. Jassim Alseddiqi, chief executive officer of Shuaa Capital, said: “Shuaa’s management team is committed to continuing to deliver on the synergies and sustainable value arising from the merger with ADFG.

Source: https://www.arabianbusiness.com/banking-finance/445264-dubais-shuaa-capital-announces-128m-annual-net-profit

U.K. Chancellor of the Exchequer Rishi Sunak extended a government program that pays most of the wages of employees furloughed because of the coronavirus, averting potentially thousands of job losses. The three-month Coronavirus Job Retention Scheme will now run until June 30, Sunak said in an e-mailed statement on Friday. The extra month could add an extra 14 billion pounds ($17 billion) to the program’s expected cost of 42 billion pounds. Business leaders had warned that unless the program was extended, companies would have to start to process of laying off workers as soon as Saturday because employers are required by law to hold a 45-day consultation period before making redundancies. Carolyn Fairbairn, director general of the Confederation of British Industry, said on Friday “thousands” of jobs were at risk.

Source: https://www.bloomberg.com/news/articles/2020-04-17/u-k-extends-virus-job-retention-program-to-avert-mass-firings?srnd=economics-vp

Sir Philip Green's Arcadia group is serving notice on landlords to walk away from more than 100 stores by the end of the summer. The fashion group owns brands such as Topshop and Dorothy Perkins and has 550 stores across the UK, but all are shut due to coronavirus restrictions. Arcadia was struggling before the pandemic. In 2019 it did a deal to survive with landlords to cut rents and close 23 stores - and 12 more closed this year. Like other retailers grappling with the fallout from deserted high streets and a collapse in sales, Sir Philip's retail empire has been thrown into turmoil.

Source: https://www.bbc.com/news/business-52333380

The world's biggest carmakers will gradually reopen plants in Europe starting next week, but with a focus on health and safety rather than production volume, as lockdown measures are eased in one of the regions hit hardest by the coronavirus pandemic. Volkswagen (VLKAF) said in a statement Wednesday that production of its passenger car brands will resume at plants in Zwickau, Germany and Bratislava, Slovakia starting the week of April 20, after a month-long shutdown. Other plants in Germany, Portugal, Spain, Russia and the United States will restart production the following week, with South Africa, Argentina, Brazil and Mexico expected to follow in May, the company said.

Source: https://edition.cnn.com/2020/04/16/business/volkswagen-restarting-production/index.html

Walt Disney World plans to stop paying wages to 43,000 workers in about a week while allowing them to keep their benefits for up to a year in what is the largest wave of furloughs since the theme park resort closed in mid-March because of the new coronavirus spread. Workers will be able to keep their medical, dental and life insurance benefits for the length of the furlough period, or up to a year. Seniority and wage rates will remain unchanged for the workers whose furloughs start April 19, according to a statement from the Service Trades Council, the coalition of unions representing the Disney World workers.

Source: https://gulfnews.com/business/disney-world-furloughing-43000-more-workers-due-to-virus-1.70937621

WeWork is suing SoftBank for abandoning a $3 billion share buyout and accusing the Japanese company of inventing reasons to back out of the plan, as financial pressure mounts and the Covid-19 pandemic worsens. The tender offer was part of a rescue package agreed to late last year, when WeWork's botched IPO left it teetering on the edge of insolvency — until SoftBank stepped in with the bailout, worth roughly $10 billion at the time. In a lawsuit filed in the Delaware Court of Chancery on Tuesday, the special committee of WeWork's board said SoftBank (SFTBF) and CEO Masayoshi Son are now suffering from "buyer's remorse."

Source: https://edition.cnn.com/2020/04/08/tech/wework-softbank-lawsuit/index.html

Bahrain-based Investcorp has announced that its European-based tech business has acquired German cybersecurity firm Avira Holding for $180 million. Investcorp Technology Partners acquired Avira, a multinational cybersecurity software solutions firm that services the OEM (Original Equipment Manufacturer) and consumer end markets, with over 500 million endpoints protected globally. Over its 30-plus year history, the Avira has developed particular strengths in anti-malware, threat intelligence and IoT solutions. Its software provides next generation security for users’ online identity, finances, and private data, protecting against viruses, malware, ransomware and other threats.

Source: https://www.arabianbusiness.com/technology/444852-baharins-investcorp-acquires-german-cybersecurity-company-firm-avira

Abu Dhabi headquartered NMC Health will come under administration. This means that a UK Court appointed administrator will oversee the immediate future of the troubled hospital operator. This follows breakdown in talks between NMC's new management and ADCB, the bank which has got exposures Dh3.6 billion with it. In a statement late on Wednesday, Faisal Belhoul, newly appointed Executive Chairman of NMC, said: “The Board of NMC Health has written to the [UK] court indicating that, notwithstanding strenuous efforts to address creditors’ concerns, it has not been able to secure their alignment and support and has been advised by its counsel that it is not in a position to oppose the application. “Accordingly, the board expects the company to be placed into administration in due course."

Source: https://gulfnews.com/business/banking/uaes-nmc-health-to-go-into-administration-1.1586364593583

The People’s Bank of China has raised its stake in Housing Development Finance Corp. to just over 1%. China’s central bank held about 17.5 million shares at the end of March, according to quarterly data filed by India’s biggest mortgage lender to exchanges. It is mandatory for companies to disclose shareholding of more than 1% at the end of every quarter. The PBOC held about 0.8% stake at the end of March 2019, Keki Mistry, vice-chairman and chief executive officer at the lender told BloombergQuint by phone. It has since raised its stake to more than 1% as of March this year, Mistry was cited as saying.

Source: https://www.bloomberg.com/news/articles/2020-04-12/china-central-bank-holds-1-stake-in-india-s-top-mortgage-lender