JD Sports says car park meeting not suspicious after footage published
JD Sports has said it is not “suspicious or illegitimate” for its executive chairman Peter Cowgill to meet his opposite number at rival Footasylum – as it responds to the publication of footage in a newspaper.
The Sunday Times said the footage showed Mr Cowgill meeting Barry Bown in a car park near Bury in July this year.
JD Sports has been involved in a protracted regulatory battle over its 2019 takeover of Footasylum, a smaller rival, for £90m and was last week ordered by the Competition and Markets Authority (CMA) to sell it.
Peter Cowgill, executive chairman of JD Sports, has known Mr Bown for more than 25 years, the company said
An enforcement order bans the two firms from integrating Footasylum into JD Sports.
JD Sports said the CMA was “fully apprised” of the meeting between Mr Cowgill and Mr Bown.
The CMA is understood to be investigating whether there has been a breach of its enforcement order.
A spokesperson for the watchdog said: “These rules are put in place to protect consumers and other businesses operating in that market as we investigate a merger.
“We take compliance very seriously and thoroughly investigate any potential breaches.
“Where there is clear evidence that a breach has occurred we do not hesitate to take action.”
The takeover of Footasylum has been the subject of a prolonged battle with regulators
In a statement to the stock market on Monday, JD Sports said Mr Cowgill and Mr Bown had known each other “on a business and personal basis” for more than 25 years.
“As a result, it is not unusual, or in any way suspicious or illegitimate, for them to meet from time to time, including in relation to the ongoing review by the Competition and Markets Authority of JD’s acquisition of Footasylum.”
It said the newspaper report omitted to mention JD’s obligation under the enforcement order to take steps to ensure key staff – ensuring Mr Bown – remain with the business.
“The CMA has already been fully apprised of the content of the meeting on 5 July 2021 and the reasons for it and JD firmly believes that its actions in participating in this meeting do not amount to wrongdoing or a breach of the order and does not see how it would be reasonable to accuse JD of such,” the statement added.
It also raised concerns about the “highly irregular” way the footage was obtained.
JD Sports added: “Any suggestions with regard to corporate governance breaches are totally refuted.
“JD’s stakeholders are very aware that the chairman and the board treat governance matters extremely seriously and with the utmost transparency.”
The company said it had previously committed to divide the roles of chairman and chief executive – with Mr Cowgill effectively responsible for both at present and that “this process is progressing with a view to optimising the outcome for all stakeholders”.
Shares were 1% lower in morning trading.
JD Sports last week said, after the competition watchdog’s final ruling in its probe into the Footasylum takeover, that the decision “defied logic” and it was considering its options.
Business
‘Knock-back for London’ as AstraZeneca sells shares directly on rival New York Stock Exchange
One of the UK’s most valuable listed companies is to sell its shares directly on the rival New York Stock Exchange, in a move described as a “knock back for London”.
While AstraZeneca will maintain its headquarters in the UK and its primary stock listing on the London Stock Exchange, the news can be seen as a move away from London.
“Although there has been no suggestion that AstraZeneca is imminently going to up sticks and move its primary listing from London, there may be some nervousness this morning around the risk that the UK market might lose one of its largest constituents,” said Russ Mould, the investment director of investment platform AJ Bell.
Read more:
AstraZeneca exit is a frightening prospect for the City and the government
The news “does at least hint at the possibility of a more dramatic shift at some point in the future”, Mr Mould said.
There may also be relief that AstraZeneca is not moving from the London Stock Exchange altogether.
“I think there is probably relief that it’s not pursuing a primary listing in New York, but the decision is hardly a ringing endorsement of London,” said Neil Wilson, the UK investor strategist at investment platform Saxo Markets.
“It reflects the fundamental, structural issues in the UK for the largest globally-oriented stocks – the depth and liquidity of its capital markets is falling short of what’s on offer across the pond.”
“It’s also a bit of a knock-back for London”, Mr Wilson said.
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The Cambridge-based pharmaceutical company said the decision to sell shares directly on the New York Stock Exchange – rather than the previous less straightforward system of using American depository receipts – has been made to allow it “to reach a broader mix of global investors” and “make it even more attractive for all our shareholders”.
“The US has the world’s largest and most liquid public markets by capitalisation, and the largest pool of innovative biopharma companies and investors,” the company said in an announcement to investors.
AstraZeneca’s share price was up 0.7% on the news.
Jaguar Land Rover (JLR) has announced it will partially resume manufacturing “in the coming days” after nearly a month in the wake of a cyber attack.
The luxury car-making plants have paused production since 31 August. The cyber attack halted car-making across the supply chain, with staff off work as a result.
Money latest: Five parts of UK defying housing market
More than 33,000 people work directly for JLR in the UK, many of whom are on assembly lines in the West Midlands, with the largest facility located in Solihull, and a plant in Halewood on Merseyside.
Roughly 200,000 more are employed by several hundred companies in the supply chain, who rely on JLR orders as their biggest client.
“As the controlled, phased restart of our operations continues, we are taking further steps towards our recovery and the return to manufacture of our world-class vehicles,” a company spokesperson said.
The shutdown was said to last until at least 1 October.
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Are we in a cyber attack ‘epidemic’?
“Today we are informing colleagues, retailers and suppliers that some sections of our manufacturing operations will resume in the coming days,” the company added, days on from the partial restart of its IT systems, which allowed supplier payments to recommence.
“We know there is much more to do, but the foundational work of our recovery is firmly underway, and we will continue to provide updates as we progress.”
Over the weekend, the government said it would underwrite a £1.5bn five-year loan guarantee to JLR.
The promise came as the head of the influential Business and Trade Committee of MPs wrote to Chancellor Rachel Reeves, warning small firms reliant on JLR, “may have at best a week of cashflow left to support themselves” with “urgent” action needed to support businesses.
JLR was just the latest business to be the subject of a cyberattack.
Harrods, the Co-Op, and Marks and Spencer, are among the companies that’ve struggled in the past year with such attacks.
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