The Post Office’s embattled chief executive has been issued with a final chance to submit the 80-page investigation into his conduct before a committee of MPs look to formally summon the report.
After a number of lapsed deadlines to provide the report, Nick Read has been told by the Business and Trade Committee chair he has a deadline of 9am on Tuesday morning.
If it is not submitted by then, the committee will discuss formally summoning the document, an infrequently used and limited power retained by MP committees when they are unsuccessful in their normal requests.
It had been thought that the former Post Office chairman Henry Staunton, sacked earlier this year by business secretary Kemi Badenoch, had been subject to investigation.
But at the committee hearing last week, Mr Staunton said he was only mentioned in one paragraph and the report was “a big investigation into Nick”.
The report was compiled by a former human resources (HR) director and whistle-blower and said Mr Read threatened to resign because he was unhappy with his pay and made accusations of bullying. According to a Sunday Times report, Mr Read sought a £1.1m pay package.
More on Post Office Scandal
Related Topics:
Mr Read has denied he made resignation threats.
Sub-postmaster victims of the Post Office’s faulty Horizon software have been seeking redress after hundreds were convicted of false accounting, theft and fraud and many more lost their businesses and were in financial and personal ruin after the Fujitsu-built accounting software wrongfully documented monetary shortfalls.
Advertisement
The postmasters’ fight for justice had been increasingly overshadowed by corporate wrangling of the Post Office.
After he was removed from his post, Mr Staunton said he had been told by the Department for Business and Trade to slow down the processing of compensation.
In documents exclusively obtained by Sky News, he called for the Post Office to be “removed completely” from the compensation process and for it to be put under the control of postmasters due to the “deep dysfunction” within the organisation.
It’s understood the chair of the Business and Trade Committee, Labour MP Liam Byrne, requested the HR investigation be sent to the committee by last Thursday, and when the deadline passed, by Monday afternoon.
A Post Office spokesperson responded: “Post Office has previously and will continue to correspond with the committee, and any requests that it may have, in a private manner.”
The major backer of Pinewood Studios is among the suitors vying to buy Village Hotels, one of Britain’s biggest mid-market hotel chains.
Sky News understands Aermont, which specialises in real estate-backed investments, submitted an offer last week for Village Hotels, which is owned by KSL Capital Partners.
City sources said KSL was seeking offers worth in the region of £850m or more.
A number of other parties are also understood to have tabled bids ahead of a deadline last week.
Blackstone, the giant private equity firm, is considering making an offer but has yet to do so, according to insiders.
Henry Birch, the former boss of Rank Group, is among the candidates vying to run Entain, the FTSE-100 owner of Ladbrokes.
Sky News has learnt that Mr Birch is one of a small number of candidates being considered by Entain to replace Jette Nygaard-Andersen as its permanent chief executive.
The recruitment process comes at a challenging time for Entain, which has been beset by boardroom upheaval and regulatory difficulties in various international markets.
Its stock has halved in the last year, leaving it with a market capitalisation of just under £5bn.
This weekend, sources close to the company confirmed that Mr Birch was a serious contender for the post, although they said others were also in contention.
An appointment could still be weeks or even a small number of months away, they added.
Mr Birch stepped down as chief executive of Very Group, the online retailer owned by the Barclay family, in 2022.
More from Business
He is an experienced gambling industry executive, having spent four years as chief executive of William Hill Online prior to joining the London-listed multichannel gaming operator Rank Group.
He has also held roles at Leisure & Gaming plc and BettingCorp.
Advertisement
Under Mr Birch, Very Group broke the £2bn annual sales mark for the first time.
Investors in Entain have been pressing its board to recruit a new chief executive with substantial gambling experience as it grapples with a plunging share price and numerous regulatory and strategic challenges.
Industry sources said that Dan Taylor, chief executive of Flutter Entertainment’s international operations, had also been approached, although it was unclear whether he was interested.
Entain has been under siege from activist investors for months.
In January, it announced that Ricky Sandler, who runs Entain shareholder Eminence Capital, would join its board as a non-executive director.
Last month, it said that Barry Gibson, its chairman, would retire later this year and be replaced by interim chair, and former acting CEO, Stella David.
Entain has hired bankers to sell PartyPoker and other non-core operations, which the Financial Times reported could include Netherlands-based BetCity, which Entain bought for £398mn last year.
As well as Ladbrokes, Entain owns Coral and a stake in BetMGM, a major US betting player.
MGM Resorts, the US casino operator behind the Bellagio in Las Vegas, attempted to buy Entain in 2021 but was rebuffed at a much higher valuation than the UK company’s shares trade at now.
A privately owned used-car platform is circling Cazoo Group, its stricken US-listed rival which is on the brink of administration.
Sky News has learnt that Motors.co.uk is a leading contender to acquire Cazoo’s marketplace operation, which would include its brand and intellectual property assets.
The process to auction the used-car platform’s constituent parts comes after it spent tens of millions of pounds on sponsorship deals in football, snooker and darts in a rapid attempt to gain market share.
Earlier this week, Cazoo filed a notice of intention to appoint Teneo as administrator, just three years after it floated in New York with a valuation of $8bn.
The filing was intended to provide protection from creditors while Teneo finalises asset sales.
Since an announcement last month about a restructuring of the group, advisers have offloaded a string of assets and unwound Cazoo’s previous operating model to transform it into a marketplace.
Among those have been the disposal of Cazoo’s vehicle fleet, which sources said had been achieved at higher-than-anticipated values, reflecting a current shortage of used cars in the market.
Teneo is also said to have struck a deal with Constellation Automotive, the owner of Cazoo’s rival, Cinch, involving a handful of sites and dozens of jobs.
Meanwhile, several parties are understood to have expressed an interest in Cazoo’s wholesale operation and other vehicle collection sites.
Advertisement
One industry source said the pivot to a platform model had seen its inventory rise to more than 15,000 cars, with Cazoo now the online vehicle marketplace where consumers can buy and sell cars under a single brand.
If, as expected, the group does fall into administration, it would underline the rapid implosion of a company which once ranked among Britain’s hottest technology start-ups.
Founded by Alex Chesterman, the founder of Zoopla, it raised hundreds of millions of pounds in funding, and rapidly attracted a ‘unicorn’ – or $1bn – valuation.
Mr Chesterman left the business several months ago in the wake of a balance sheet restructuring which saw hundreds of millions of dollars of debt converted to equity.
One insider said the formal triggering of insolvency proceedings was likely to attract wider attention in Cazoo’s assets, including its brand.
It was unclear on Friday how much Motors.co.uk or other suitors for the marketplace were likely to bid for it.
A spokesperson for Cazoo said: “Our new marketplace model, where consumers can both buy and sell cars, is revenue generating and performing ahead of expectations with interest from almost 100 car dealers including many household names wishing to trade on the Cazoo platform.
“Cazoo has successfully restructured and significantly reduced the cash burn of the group, resulting in a cash position in excess of £95m at 30th April 2024 compared to £113m at 31st December 2023, and the platform now has approximately 17,000 cars which is more than double the volume we previously supported and demonstrates the scalability of our technology and the strength of the team.
“We are making efforts to secure the next phase of our business and are grateful to our employees for their hard work and commitment.”
Motors.co.uk did not respond to enquiries, while a spokesperson for Cazoo declined to comment on talks about asset sales.