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Jo Whitfield, the former Co-op supermarkets chief, is the frontrunner to become the next boss of Matalan after the homewares chain’s takeover by a group of its lenders.

Sky News has learnt that Ms Whitfield, who left the mutual last year after missing out on the top Co-op Group job, is in detailed talks with Matalan’s new owners about becoming its next chief executive.

She is understood to be vying with Nigel Oddy, Matalan’s interim CEO, for the permanent role.

Appointing her would represent something of a corporate and personal homecoming for Ms Whitfield, who hails from St Helens, which is just 11 miles from Matalan’s Skelmersdale head office.

She was previously a finance executive at Matalan in the early 2000s.

The talks about appointing a new boss follow a recapitalisation which resulted in founder John Hargreaves relinquishing control of the chain last month.

A group of institutional investors including Invesco, Man GLG and Tresidor agreed to sanction a £257m debt-for-equity swap and inject up to £100m of new capital into the business.

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Matalan employs more than 11,000 people and trades from 230 UK stores.

It also operates an e-commerce platform and has more than 50 overseas franchise stores.

The company claims to have 11 million customers.

A spokesman for Matalan declined to comment.

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Advisory firm Teneo hunts new backers at $2bn valuation

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 Advisory firm Teneo hunts new backers at bn valuation

The advisory firm which managed the insolvency of Bulb Energy in 2021 is kicking off a hunt for new backers in a process that could value it at about $2bn (£1.5bn).

Sky News has learnt that Teneo, which is based in the US, has begun approaching prospective investors in recent days to gauge their appetite to buy a major stake in the company.

One private equity source said Teneo was working with advisers, said to be Guggenheim Partners, on the process.

Teneo has become a sprawling advisory firm, spanning public relations, restructuring and other areas of corporate consulting and strategic advice.

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It employs hundreds of people in London, with clients including Saudi Arabia’s sovereign wealth fund, the DIY retailer Kingfisher and Clayton Dubilier & Rice, the global buyout firm.

The company has been backed by CVC Capital Partners, the private equity backer of Six Nations Rugby, since 2019.

Prior to that, BC Partners, another investor, owned a stake in the business.

Teneo has grown rapidly through a string of acquisitions, the most notable of which was the purchase in 2021 of Deloitte’s UK restructuring arm.

Since then, the division has worked on the special administration of the collapsed energy retailer Bulb – the first such process of its kind in the UK – and the insolvency of the UK arm of Russian bank VTB, which was hit by the imposition of sanctions following Vladimir Putin’s invasion of Ukraine.

Teneo has also bought a number of smaller restructuring firms, including Goldin Associates in the US and Credo in the UK.

CVC is understood to own a majority stake in Teneo, and it was unclear on Friday whether it would seek to offload all of its interest or remain as a shareholder after any new investor backs the business.

A number of parties are understood to have begun being sounded out, with one of those approached saying that Teneo’s growth trajectory meant that it was likely to attract a significant level of interest.

The process is unlikely to conclude until sometime next year, they said.

Teneo is understood to be on track for a record year in financial terms, with its financial advisory business driving a significant proportion of its improvement in revenue and profit.

It is chaired by Ursula Burns, the former chairwoman of Xerox Corporation and one of the most prominent Black businesswomen in the US.

The company was founded by Declan Kelly, an influential adviser to numerous American CEOs who was forced to resign in 2021 following allegations of drunken misconduct at a concert in California.

News of the search for new backers to aid Teneo’s continued international growth comes amid a hot streak for deals involving professional services firms.

In Britain, Grant Thornton, the accountancy firm, is exploring the sale of a big stake, with a small number of bidders still in talks.

Evelyn Partners is in discussions to sell its accountancy arm, while Cooper Parry, another player in the sector, is also up for sale.

CVC declined to comment.

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Baby formula market needs shake-up amid price concerns, says watchdog

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Baby formula market needs shake-up amid price concerns, says watchdog

The baby formula market needs a shake-up to help parents struggling to afford it, according to the UK’s competition watchdog.

There are “limited incentives” for the industry to compete on price and parents have suffered the consequences of high prices, said an interim report by the Competition and Markets Authority (CMA).

The watchdog has previously reported a 25% increase in prices over the past two years, with just two companies, Nestle and Danone, controlling 85% of the market.

Among its recommendations is a call for better public health messaging and clarity for parents trying to choose between different brands.

The CMA also confirmed it is examining the effect a price cap would have, but said it is not currently recommending one.

The report said: “The CMA has provisionally found that – unlike in many other grocery categories – there is little pressure on manufacturers or retailers to shelter customers from increases in manufacturing costs, which have largely been passed on quickly and in full.”

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The baby formula market needs to be shaken up

Sarah Cardell, the CMA’s chief executive, said: “This is a very important and unique market.

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“We’re concerned that companies don’t compete strongly on price and many parents – who may be choosing infant formula in vulnerable circumstances and without clear information – opt for more expensive products, equating higher costs with better quality for their baby.

“We have identified options for change, but now want to work closely with governments in all parts of the UK, as well as other stakeholders, as we develop our final recommendations.”

The CMA expects to publish a final report in February. Earlier this year, the regulator announced that it would inspect baby formula prices amid concerns that they remain “historically high.”

Its decision to launch a market study gave it the authority to require suppliers to disclose detailed information on pricing and other practices.

Previously, the CMA relied on voluntary submissions from suppliers.

In 2023, the World Health Organization (WHO) urged governments to act over soaring baby formula prices, which it said was “exploiting” families in the UK.

In an interview with Sky News, WHO criticised multinational manufacturers for “manipulating prices” to boost profits on baby formula.

Research at the time showed that formula prices in the UK had risen by 24% over the previous two years, with the lowest-cost brands seeing a 45% increase during that period.

Packs of Aptamil baby milk, a Danone brand
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Packs of Aptamil baby milk, a Danone brand

WHO is calling on governments to step in and help ease the burden on struggling families by finding ways to lower prices in stores.

Sky News has previously reported on the extreme measures some parents are taking to feed their infants, including stealing formula, purchasing it on the black market, diluting bottles, or using condensed milk as a substitute.

Laurence Grummer-Strawn, WHO technical officer, told Sky News, “It’s shocking to see a high-income country like the UK facing situations where mothers can’t afford to feed their babies.”

When asked if this situation constituted exploitation, Grummer-Strawn said: “Yes, I think we can say that when you see that these prices are being driven down to the consumers and having to pay extremely high prices.”

You can receive breaking news alerts on a smartphone or tablet via the Sky News app. You can also follow @SkyNews on X or subscribe to our YouTube channel to keep up with the latest news.

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Interest rate cut – but budget means inflation will rise, Bank says

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Interest rate cut - but budget means inflation will rise, Bank says

The Bank of England has forecast Rachel Reeves’s first budget as chancellor will increase inflation by up to half a percentage point over the next two years, contributing to a slower decline in interest rates than previously thought.

Announcing a widely anticipated 0.25 percentage point cut in the base rate to 4.75%, the Bank’s Monetary Policy Committee (MPC) forecast that inflation will return “sustainably” to its target of 2% in the first half of 2027, a year later than at its last meeting.

“Since the MPC’s previous meeting, the market-implied path for the Bank rate in the United Kingdom has shifted up materially,” the MPC said in its minutes.

Interest rate falls – latest updates

The Bank’s quarterly Monetary Policy Report found Ms Reeves’s £70bn package of tax and borrowing measures will place upward pressure on prices, as well as delivering a three-quarter point increase to GDP next year.

Governor Andrew Bailey stressed however that the underlying trend was “continued progress in disinflation”.

The MPC, whose members voted 8-1 in favour of the cut, with the single opponent favouring a hold at 5%, maintained its view that rates will need to fall “gradually” as it monitors the economic response to falling inflation.

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“Inflation is just below our 2% target and we have been able to cut interest rates again today,” said Mr Bailey.

“We need to make sure inflation stays close to target, so we can’t cut interest rates too quickly or by too much. But if the economy evolves as we expect it’s likely that interest rates will continue to fall gradually from here.”

Why will inflation rise?

The Bank forecasts that the upward pressure on prices will begin in the first half of next year, with the addition of VAT to private school fees and the £1 increase in the bus fare cap to £3.

The increase in employer national insurance to 15%, the largest single measure in the budget, is “assumed to have a small upward impact on inflation,” offset by the freeze in fuel duty rates.

Together these will push inflation up by 0.3 percentage points next year, with the near-half point peak coming in 2026 only after the removal of the fuel duty-freeze, a measure the Bank is compelled to assume will happen, despite successive chancellors, including Ms Reeves, maintaining it for 11 years.

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The Bank found that the national insurance increase and the uprating in the national living wage “is likely to increase the overall costs of employment”, and will be passed on by employers through a mix of higher prices, marginal costs and wages, but the balance between those is not yet clear.

“The combined effects of the measures announced in the autumn Budget 2024 are provisionally expected to boost the level of GDP by around three-quarter per cent at their peak in a year’s time, relative to the August projections,” the minutes read.

“The budget is provisionally expected to boost CPI inflation by just under half of a percentage point at the peak, reflecting both the indirect effects of the smaller margin of excess supply and direct impacts from the budget measures.”

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