Closing summary
Time for a recap.
More than 12,000 jobs are at risk after discount retailer Wilko fell into administration today.
PwC took control of the business after rescue talks with prospective suitors failed. Wilko will continue to trade from its 400 stores “without any immediate redundancies”, but there may be job losses if a rescue can’t be found.
Mark Jackson, the chief executive, said:
“We left no stone unturned when it came to preserving this incredible business but must concede that, with regret, we’ve no choice but to take the difficult decision to enter into administration.
“We’ve all fought hard to keep this incredible business intact but must concede that time has run out and now, we must do what’s best to preserve as many jobs as possible, for as long as is possible, by working with our appointed administrators.”
Zelf Hussain, joint administrator and PwC partner, said:
“It is incredibly sad that a well-loved, family business that has been on the high street for over 90 years has had to go into administration today.
“As administrators, we will continue to engage with parties who may be interested in acquiring all or part of the business.
“Stores will continue to trade as normal for the time being and staff will continue to be paid.”
The GMB union claimed that the collapse could have been avoided with “better management”.
Here’s the full story:
In other news…
British house prices saw the most widespread falls since 2009 last month as interest rates hit a 15-year high, surveyors warned.
Rics also reported that rents surged last month.
More borrowers have fallen into arrears on their mortgages, data shows, including a large rise in buy-to-let landlords missing payments.
And court proceedings for no-fault evictions in England have reached their highest level in six years, ahead of new legislation being passed to ban the practice.
In the US, inflation has risen to 3.2% per year in July.
ING says the data boosts the case for no further US rate hikes:
A second consecutive benign set of inflation prints adds to optimism that the Fed rate hike cycle is at an end and a soft landing is achievable for the US economy.
The summer of disinflation continues.
— Nick Timiraos (@NickTimiraos) August 10, 2023
The consumer price index rose 0.17% in July from June, or 3.18% from a year ago.
The CPI was up 1.9% over the three months thru July at an annualized rate and up 2.6% over the last six months at an annualized rate. pic.twitter.com/sJxsTbV8zH
The British government is considering tightening rules on investment in China after the US president announced new measures aimed at limiting the dollars and expertise flowing into sensitive technologies in the country.
Here’s the rest of today’s news:
A local newspaper publisher facing a staff exodus and a strike ballot over low pay has announced it is considering a bid for the Daily Telegraph.
National World, which owns regional titles including the Scotsman and the Yorkshire Post, told the stock market it was a “possible participant” in the bidding for Telegraph Media Group.
The company said owning the Telegraph would fit with its policy of making acquisitions and then “implementing its new operating model”. This approach includes using artificial intelligence to automate the process of creating newspapers and reduce the need for human involvement.
More here:
