Sears to abandon shoe business
Sears, the troubled retailer, is quitting the shoe business after 75 years with the loss of 550 jobs. The group is to close or sell all 775 shoe shops and take a pounds 150m charge. The fate of the company now rests on whether it can complete the sale of Freemans, its catalogue business, to Littlewoods, and float Selfridges. reports Sameena Ahmad.
Friday 26 September 1997
Speaking as the group announced headline half-year losses of pounds 98m compared to pounds 3.5m profits last time, Sir Bob Reid, chairman, said yesterday that the company would demerge the Freemans catalogue business if the sale to Littlewoods was blocked by Margaret Beckett, President of the Board of Trade. Freemans' book value is around pounds 200m. However, Sir Bob - who expects a decision from the Government on the sale no later than the end of November - said he was confident that the sale would be approved: "I don't see why it will be blocked. The merger of the two would create a strong force in retailing able to compete against the likes of GUS. To disrupt that doesn't make sense."
Sir Bob said that plans to spin off the Selfridges department store were on track for mid 1998, and that the business could be worth pounds 800m. He said that, given the break up of the group, he had decided not to appoint a chief executive to replace Liam Strong who was ousted earlier this year. "We have chief executives for both Selfridges and the clothing business. There is no need for someone to sit on top of them. Since Liam has gone I have taken on a lot of his responsibilities." Sir Bob said he would stay on with the group for around a year after the demerger of Selfridges, but then planned to step down.
Investors had been braced for yesterday's news, and the company's already depressed share price eased 0.5p to 58p.
The party's potential nominations read like a high school race for student body president
- 2 The awkward moment Sarah Palin raised $25,000 for Hillary Clinton's election campaign
- 3 Ball pool for adults opens in London
- 4 Amal Clooney gives excellent response to fashion question at European Court of Human Rights
- 5 Baldness could soon be treated using stem cells, scientists hope
Woman falls to her death as she celebrates marriage proposal at the edge of Ibiza cliff
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
The awkward moment Sarah Palin raised $25,000 for Hillary Clinton's election campaign
Ball pool for adults opens in London
Amal Clooney gives excellent response to fashion question at European Court of Human Rights
9 reasons Greece's experiment with the radical left is doomed to failure
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
Have we reached 'peak food'? Shortages loom as global production rates slow
Greece elections: Syriza and EU on collision course after election win for left-wing party
British grandmother Lindsay Sandiford faces execution by firing squad in Indonesia
Liberal Democrat minister defends comments suggesting immigration causes pub closures
iJobs Money & Business
£13000 per annum: Recruitment Genius: This Pension Specialist was established ...
£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...
£25000 - £35000 per annum: Recruitment Genius: A Technical Report Writer is re...
Competitive salary & benefits!: MBDA UK Ltd: MBDA UK LTD Indirect Procurement...