Members of scandal hit-CBI begin confidence vote on lobby group’s future

Published

1 year ago

May 31, 2023

admin

CBI members are to begin voting today on the future of the business lobby group, following a series of scandals.

The organisation was plunged into disarray after claims of serious sexual assault were made by CBI employees against colleagues.

Today it will launch what it describes as an “ambitious ‘programme of change'”, with adjustments to its governance, culture, people processes, and refinement of its core purpose.

More than 1,000 business leaders were asked for their thoughts on the organisation’s future in surveys, focus groups, and listening sessions across the UK.

The results of the confidence vote will be revealed at an extraordinary general meeting (EGM) on 6 June.

Rain Newton-Smith, CBI director general, said “radical and rapid changes” were being made, with the organisation “well on the road to recovery”.

She added: “Our society faces serious challenges from a cost of living crisis to climate change, with an urgent need to create truly sustainable growth across regions and nations of the UK, as well as on the global stage.

“We need a strong voice of business, backed by a depth of economic analysis and insights from across the whole economy and entire country.

“A renewed CBI can once again have a voice on the serious economic challenges the UK faces, with a general election approaching at pace.

“The CBI has a unique role.

“We will work in collaboration and partnership with our members on these shared challenges, which is why this programme of change is so important. There is not a moment to lose.”

Sky News revealed earlier this month that the CBI had drafted in Principia, a business ethics consultancy, to aid a review of its culture.

This week, Sky’s City editor Mark Kleinman reported that the CBI’s board had drafted in lawyers to prepare for a prospective insolvency filing.

In April, the UK’s biggest business group suspended most of its activities pending the outcome of a review by law firm Fox Williams – Ms Newton-Smith said on Wednesday that the recommendations from this review have all been “either completed or (are) in progress”.

Listen and subscribe to the Ian King Business Podcast here

But some members decided the damage was already done, and suspended or ended their membership. Among those companies to quit were the Association of British Insurers, BMW Group, Aviva, and the British Beer & Pub Association.

It was all sparked by allegations made by at least a dozen female CBI employees against some of their male colleagues, which included claims of rape, stalking and harassment.

A number of the allegations are being investigated by the City of London Police.

Business

Telegraph bidders given new deadline as £100m Spectator sale looms

Published

13 hours ago

September 8, 2024

admin

Telegraph bidders given new deadline as £100m Spectator sale looms

The remaining bidders for The Daily Telegraph have been given a deadline for revised bids for the right-leaning newspaper as its stablemate, The Spectator magazine, clinches a £100m sale to the hedge fund tycoon Sir Paul Marshall.

Sky News understands that RedBird IMI, the Abu Dhabi-backed entity which was thwarted in its efforts to buy the media titles by a change in ownership law, has asked at least three parties to table second-round offers on 27 September.

It comes after bidders began holding talks with Telegraph bosses last week about the company’s business plan.

Money latest: Best paying jobs after university

The remaining parties are understood to include Sir Paul and National World, the London-listed media group run by newspaper veteran David Montgomery.

At least one other party whose identity has yet to be disclosed publicly is also in contention to buy the newspapers.

A separate bid orchestrated by Nadhim Zahawi, the former chancellor, is the subject of bilateral discussions with IMI, the Abu Dhabi-based venture which wanted to take a controlling stake in the British media assets before being blocked by the government.

Sky News revealed exclusively last month that Sir Paul was the frontrunner to buy The Spectator, which along with the Telegraph titles was owned by the Barclay family until their respective holding companies were forced into liquidation last year.

His deal for The Spectator, which will be implemented through Old Queen Street Ventures, will be announced this week, and potentially as early as Monday.

It will also include the art magazine Apollo.

RedBird IMI, a joint venture between IMI and the American investor RedBird, paid £600m last year to acquire a call option that was intended to convert into equity ownership.

A sale of The Spectator for £100m would leave it needing to sell the Telegraph titles for £500m to recoup that outlay in full – or more than that once RedBird IMI’s fees and costs associated with the process are taken into account.

One source said the price RedBird IMI had secured for The Spectator had exceeded expectations and left it well-placed to break even on its investment.

“The original decision to pre-empt an auction has been vindicated by the level of interest since it started,” the source said.

Of the unsuccessful bidders for the Telegraph, Lord Saatchi, the former advertising mogul, offered £350m, while Mediahuis, the Belgian publisher, also failed to make it through to the next round of the auction.

Lord Rothermere, the Daily Mail proprietor, pulled out of the bidding earlier in the summer amid concerns that he would be blocked on competition grounds.

Sky News recently revealed that Mr Zahawi had sounded out Boris Johnson, the former prime minister, about an executive role with The Daily Telegraph if he succeeded in buying the newspapers.

IMI is controlled by the UAE’s deputy prime minister and ultimate owner of Manchester City Football Club, Sheikh Mansour bin Zayed Al Nahyan.

The Lloyds debt, which totalled more than £1.15bn, was repaid by RedBird IMI on behalf of the family.

RedBird IMI’s attempt to take ownership of the Telegraph titles and The Spectator was thwarted by the last Conservative government’s decision to change media law to prevent foreign states exerting influence over national newspapers.

Spokespeople for RedBird IMI and Sir Paul declined to comment.

Business

Bank of London finalises capital-raising after HMRC winding-up petition

Published

1 day ago

September 7, 2024

admin

Bank of London finalises capital-raising after HMRC winding-up petition

A clearing bank launched just three years ago is raising tens of millions of pounds of fresh funding just days after it was served with a winding-up petition by the UK tax authorities.

Sky News understands that The Bank of London, which attempted to rescue Silicon Valley Bank UK last year, is progressing plans for the capital-raising, which one person close to the company said could secure “up to £50m”.

The precise figure was unclear this weekend.

The new funding is understood to be being lined up from a number of investors including an entity called Aphorism Holding, according to the person.

Nada Hadadi, a wealthy investor who was suggested as being the primary source of the capital, has in fact only contributed a six-figure sum.

News of the company’s capital-raising plan comes days after it announced that Anthony Watson, its founder and chief executive, was stepping down to become a senior adviser and non-executive director of its holding company.

HM Revenue & Customs had issued a winding-up petition against The Bank of London’s holding company over unpaid taxes.

The liability has now been settled, according to an insider.

It described the issue as a “simple administrative handling delay caused by an internal miscommunication, which has been addressed”.

“We spoke with HMRC on Friday morning, and they are currently updating the filing.

“While this update may take a couple of days to reflect online, it is in process.”

The Bank of London claims to have amassed 4,500 clients since its launch but was outgunned last year by HSBC in a weekend race to rescue SVB UK.

Business

Body Shop’s remaining stores saved after rescue deal struck

Published

2 days ago

September 7, 2024

admin

Body Shop's remaining stores saved after rescue deal struck

More than 100 Body Shop stores have been saved from closure after a deal was struck to rescue one of Britain’s best known high street chains.

The well-known retailer was bought out of administration by a consortium led by “Cosmetics King” Mike Jatania.

The millionaire tycoon’s investment firm Aurea announced the completion of the acquisition on Saturday.

Money latest: Best paying jobs after university

Mr Jatania and Charles Denton, former chief executive of beauty brand Molton Brown, will head the new leadership team.

In a statement, Aurea said the deal would “steer the Body Shop’s revival and reclaim its global leadership in the ethical beauty sector it pioneered”.

It is understood there are no immediate plans to shut any of its 116 remaining UK stores.

Sky News revealed earlier this week that Aurea was poised to finalise the buyout as it lined up more than £30m in new financing.

Mr Jatania previously ran Lornamead – the owner of personal care brands including Lypsyl, Woods of Windsor, Yardley, and Harmony haircare – which he sold to rival Li & Fung for around £155m more than 10 years ago.

The Body Shop fell into administration in early February after previous forecasts for how much funding it would need to keep going proved too low.

In the weeks that followed, administrators warned hundreds of jobs would be lost and dozens of shops closed.

The business had employed about 1,500 store workers before its collapse into insolvency.

The company’s administration underlined the decline of the high street stalwart.

It was founded in 1976 by Dame Anita Roddick, trading out of a small shop in Brighton, which made its name selling cruelty-free fair trade products.

Mr Jatania, co-founder of Aurea, said: “With the Body Shop, we have acquired a truly iconic brand with highly engaged consumers in over 70 markets around the world.

“We plan to focus relentlessly on exceeding their expectations by investing in product innovation and seamless experiences across all of the channels where customers shop while paying homage to the brand’s ethical and activist positioning.”

Charles Denton, chief executive of the Body Shop, said: “We believe there’s a sustainable future ahead and working closely with the management team we aim to restore the Body Shop’s unique, values-driven, independent spirit.”