Croydon Council claims it has been forced pull funding from dozens of local charities as it works to balance its books after the borough had to declare bankruptcy. The authority said it will not renew its community fund when it comes to end in March 2023, MyLondon.com reported. Documents from 2020, when the fund was rolled out, shows the £2.6 million fund gave cash to more than 50 organisations and projects.
Read more
The U.K. arm of Sanjeev Gupta’s steel empire has struck a preliminary deal with major creditors that could let it stave off insolvency proceedings by restructuring its debts, BM Magazine reported. Liberty Steel Group has reached a preliminary agreement with Credit Suisse Asset Management, Greensill Capital and Greensill Bank to restructure its debts, the steelmaker said in a statement. If finalized, the agreement in principle would see Liberty’s creditors adjourn their petitions to wind up Gupta’s embattled steelmaking firm.
Lisa Osofsky, director of the U.K.’s Serious Fraud Office, will leave her job in August 2023 after completing her five-year tenure with the white-collar crime prosecuting agency, the Wall Street Journal reported. The U.K. attorney general’s office will start its search for her successor immediately, the person said in an email, adding that Ms. Osofsky will remain in her job for a short period after her tenure ends if needed. The leadership of the SFO by Ms. Osofsky, a former U.S.
Joules Group Plc is set to file for insolvency after the British retailer failed to secure bridge financing or raise equity, putting around 1,600 jobs at risk, Bloomberg News reported. The clothing chain, known for its colorful coats and Wellington boots, said it will appoint Interpath Advisory as administrators to protect the interest of creditors. Shares have been suspended. Joules warned last week that it would struggle to repay a £5 million ($5.9 million) loan due at the end of this month amid weaker-than-expected sales and reduced cash flow.
Read more
The U.K. economy contracted in the three months through September, as high energy prices and rising interest rates mark the beginning of what policy makers expect will be a long-lasting recession, part of a downturn that is likely to affect much of Europe in the coming months, the Wall Street Journal reported. The country’s gross domestic product was 0.7% lower on an annualized basis in the third quarter compared with the three months through June, the U.K.’s Office for National Statistics said Friday.
Read more
Life doesn’t get much easier for troubled EV maker Arrival: Shares in the Nasdaq-listed, but UK-based, company have continued to slide – falling from $0.42 to $0.38, following a worrying third quarter trading update from the company, capital.com reported. Arrival revealed a loss for the period of $310.3m, compared to a loss of $30.6m in the third quarter of 2021. This Q3 loss in 2022 included non-cash impairment charges and write-offs of $232m. Adjusted EBITDA loss for the period was $73.3m, compared to an adjusted EBITDA loss of $45.9m in third quarter of 2021.
The American owners of Liverpool F.C., one of soccer’s most storied teams, have hired Goldman Sachs and Morgan Stanley to explore a sale of the club, a six-time European champion, according to two people with direct knowledge of the team’s plans, the New York Times reported. Word that Liverpool’s owners are mulling a potential sale comes only months after a group led by the California-based investment fund Clearlake paid a record $3 billion for Liverpool’s Premier League rival Chelsea.
Croydon Council has hired a firm to investigate the leaking of a long-awaited report about the authority’s financial collapse in 2020, MyLondon reported. The Penn Report was completed 18 months ago and was written by Local Government Association’s Richard Penn. He looked into the financial mismanagement of the council before it was forced to issue a Section 114 notice, declaring effective bankruptcy. Despite being completed 18 months ago, the damning report has remained unpublished officially.
British finance minister Jeremy Hunt will seek to fill a 50 billion pound ($57 billion) hole in the country's public finances with around 30 billion pounds of spending cuts and 20 billion in tax rises, two government sources said on Monday, Reuters reported. Hunt is due to present a fiscal statement to parliament on Nov. 17, in a bid to restore financial market confidence after his predecessor Kwasi Kwarteng's Sept. 23 tax cutting plan pushed sterling to a record low against the U.S. dollar and ultimately forced Liz Truss to resign as prime minister.
Read more
Britain's banks were slow to start passing on increases in central bank interest rates to savers and consumers should consider switching to another UK lender, the Financial Conduct Authority said on Monday, Reuters reported. Banks have been quick to pass on higher interest rates to their mortgage customers, but savers are also keen to get better returns after years of record low central bank interest rates. "It was a slow start," FCA Chief Executive Nikhil Rathi told parliament's Treasury Select Committee. "I would also encourage consumers to actively consider switching," Rathi said.
Read more