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| Debenhams chairman out; JLR and Ford cut jobs; M&S and John Lewis's Christmas struggle -as it happened | |
| (35 minutes later) | |
| Time to wrap up for the day. Here’s a quick summary of the main events. | |
| UK retail chief Mike Ashley has tightened his grip on Debenhams, by forcing the struggling retailer’s chairman to resign. | |
| Debenhams chairman ousted by Mike Ashley | |
| The move came hours after Debenhams and Marks & Spencer both reported falling sales over the crucial Christmas period, while Halfords hit shareholders with a profits warning. | |
| John Lewis added to the angst, by warning that its staff bonus might be axed for the first time since the 1950s. | |
| John Lewis may suspend staff bonus as retail slump bites | |
| Halfords blames mild weather and weak demand for profit slip | |
| Britain’s car industry has been hit by two blows -- Ford and Jaguar Land Rover are both cutting jobs, as they try to cope with China’s slowing economy, the diesel crisis, and Brexit. | |
| Jaguar Land Rover and Ford to axe thousands of jobs | |
| Goodnight. GW | |
| The Financial Times points out that Debenhams has lost 90% of its value on Cheshire’s watch: | |
| Sir Ian became chairman in April 2016, having previously been chief executive of DIY conglomerate Kingfisher. He was joined by Mr Bucher later that year. | |
| Since then, the stock has lost roughly 90 per cent of its value amid a series of profit warnings, and pre-tax profit has fallen from more than £100m to £32m last year. | |
| A new strategy, termed Redesigning Debenhams, was launched in April 2017, aiming to increase digital sales, close underperforming stores and reduce reliance on price promotions. | |
| However, a downturn in consumer sentiment after the Brexit referendum and a rapid shift of shopping online left the company fighting for its future. | |
| Over in the eurozone, German chancellor Angela Merkel has paid a visit to Greece - almost 10 years after its debt crisis began. | Over in the eurozone, German chancellor Angela Merkel has paid a visit to Greece - almost 10 years after its debt crisis began. |
| Angela Merkel on ‘victory tour’ visit to Athens | Angela Merkel on ‘victory tour’ visit to Athens |
| Amid high security in Athens, the visit is going smoother than Merkel’s last trip, when there were mass protests, cartoonists portraying her as Hitler and demonstrators donning Nazi garb. | Amid high security in Athens, the visit is going smoother than Merkel’s last trip, when there were mass protests, cartoonists portraying her as Hitler and demonstrators donning Nazi garb. |
| My colleague Helena Smith explains: | My colleague Helena Smith explains: |
| Hailing the progress the debt-stricken had made in the almost ten years since receiving the first of three bailouts, the German leader found it hard to suppress a smile. Tsipras, also smiling broadly, declared that the two-day official visit marked the end “in a difficult cycle of relations between our two countries.” | Hailing the progress the debt-stricken had made in the almost ten years since receiving the first of three bailouts, the German leader found it hard to suppress a smile. Tsipras, also smiling broadly, declared that the two-day official visit marked the end “in a difficult cycle of relations between our two countries.” |
| Both leaders will be addressing the media later this PM before Tsipras treats Merkel to dinner in the picturesque Kastella district in Piraeus. As yet, nobody knows if it will be an austerity meal. | Both leaders will be addressing the media later this PM before Tsipras treats Merkel to dinner in the picturesque Kastella district in Piraeus. As yet, nobody knows if it will be an austerity meal. |
| Yet more news! Donald Trump has just pulled out of attending the World Economic Forum in Davos later this month. | Yet more news! Donald Trump has just pulled out of attending the World Economic Forum in Davos later this month. |
| He had been due to give a keynote address for the second year running, but has now ditched the plan due to the ongoing government shutdown. | He had been due to give a keynote address for the second year running, but has now ditched the plan due to the ongoing government shutdown. |
| Because of the Democrats intransigence on Border Security and the great importance of Safety for our Nation, I am respectfully cancelling my very important trip to Davos, Switzerland for the World Economic Forum. My warmest regards and apologies to the @WEF! | Because of the Democrats intransigence on Border Security and the great importance of Safety for our Nation, I am respectfully cancelling my very important trip to Davos, Switzerland for the World Economic Forum. My warmest regards and apologies to the @WEF! |
| Retail analyst Andrew Busby reckons Mike Ashley has moved a step closer to folding Debenhams into his empire, having already acquired House of Fraser last year. | Retail analyst Andrew Busby reckons Mike Ashley has moved a step closer to folding Debenhams into his empire, having already acquired House of Fraser last year. |
| Debenhams (not so quietly) steadily imploding. Extraordinary goings on at the AGM today but it seems that Mike Ashley's patience has finally all but evaporated. Couldn't really imagine him having a beer with Sir Ian.House of Debs moves a step closer to becoming a reality. | Debenhams (not so quietly) steadily imploding. Extraordinary goings on at the AGM today but it seems that Mike Ashley's patience has finally all but evaporated. Couldn't really imagine him having a beer with Sir Ian.House of Debs moves a step closer to becoming a reality. |
| One odd thing about today’s City bloodletting: Sports Direct doesn’t own enough Debenhams shares to purge the board on its own (just 29.7%). | One odd thing about today’s City bloodletting: Sports Direct doesn’t own enough Debenhams shares to purge the board on its own (just 29.7%). |
| Ashley has been forced to keep his shareholding below 30%, to avoid being forced to launch a full takeover bid for a listed company. | Ashley has been forced to keep his shareholding below 30%, to avoid being forced to launch a full takeover bid for a listed company. |
| Landmark, which also voted against chairman Cheshire and CEO Bucher, owns 7%. | Landmark, which also voted against chairman Cheshire and CEO Bucher, owns 7%. |
| That’s still not enough for a majority...unless other shareholders don’t vote at all, which is what appears to have happened. | That’s still not enough for a majority...unless other shareholders don’t vote at all, which is what appears to have happened. |
| Veteran retail analyst Nick Bubb thinks Debenham’s advisors blundered badly today by not getting enough support for their top brass. | Veteran retail analyst Nick Bubb thinks Debenham’s advisors blundered badly today by not getting enough support for their top brass. |
| Mike Ashley and Landmark only have 38% of Debenhams shares, so they shouldn't have been able to vote down poor old Ian @cheshii This is a shocking result for Debs' advisers, who clearly failed to get enough proxy votes in the bank before the AGM | Mike Ashley and Landmark only have 38% of Debenhams shares, so they shouldn't have been able to vote down poor old Ian @cheshii This is a shocking result for Debs' advisers, who clearly failed to get enough proxy votes in the bank before the AGM |
| Here’s the voting at Debenhams’ AGM: | Here’s the voting at Debenhams’ AGM: |
| Suzy Ross, senior advisor at Accenture Retail says Debenhams woes are a “cautionary tale” for other retailers. | Suzy Ross, senior advisor at Accenture Retail says Debenhams woes are a “cautionary tale” for other retailers. |
| “The dramatic and sustained decline in Debenhams’ fortunes in the last 3 years is not simply down to wider physical retail market challenges. | “The dramatic and sustained decline in Debenhams’ fortunes in the last 3 years is not simply down to wider physical retail market challenges. |
| Department stores are one of the hardest and most complex sectors of retail – and they require deep specialist experience to be successful. In a headlong rush to create new customer experiences - such as prioritising mobile and premium store experiences - losing sight of getting the product and proposition right for loyal, valuable customers has been costly. | Department stores are one of the hardest and most complex sectors of retail – and they require deep specialist experience to be successful. In a headlong rush to create new customer experiences - such as prioritising mobile and premium store experiences - losing sight of getting the product and proposition right for loyal, valuable customers has been costly. |
| Terry Duddy, who is replacing Cheshire as interim chairman, says he recognises that “individual shareholders” (yes you, Mr Ashley) have “wished to register their dissatisfaction”. | Terry Duddy, who is replacing Cheshire as interim chairman, says he recognises that “individual shareholders” (yes you, Mr Ashley) have “wished to register their dissatisfaction”. |
| Duddy adds: | Duddy adds: |
| My first task is to meet with shareholders so that I understand any concerns that they may have.” | My first task is to meet with shareholders so that I understand any concerns that they may have.” |
| Sir Ian Cheshire’s forced departure from Debenhams follows an extremely poor year for the company. | Sir Ian Cheshire’s forced departure from Debenhams follows an extremely poor year for the company. |
| Debenhams issued three (!) profit warnings in 2018, as the high street chain struggled to cope with changes in the retail space. | Debenhams issued three (!) profit warnings in 2018, as the high street chain struggled to cope with changes in the retail space. |
| Its share price has plunged from 36p a year ago to just 4.8p today, driving its market capitalisation below £60m. | Its share price has plunged from 36p a year ago to just 4.8p today, driving its market capitalisation below £60m. |
| The company also owes around £300m, and is trying to hammer out a wide-ranging restructuring plan that will involve store closures, thousands of job losses, and a debt restructuring. | The company also owes around £300m, and is trying to hammer out a wide-ranging restructuring plan that will involve store closures, thousands of job losses, and a debt restructuring. |
| The news that Debenham’s suffered a 3% drop in sales over Christmas may have been the last straw for Mike Ashley, who has built up a near 30% stake in the company. | The news that Debenham’s suffered a 3% drop in sales over Christmas may have been the last straw for Mike Ashley, who has built up a near 30% stake in the company. |
| More reaction to the boardroom putsch at Debenhams: | More reaction to the boardroom putsch at Debenhams: |
| “Your job is on the line, sir,” one shareholder told Sir Ian Cheshire at #debenhams AGM earlier this afternoon. Now he is gone. https://t.co/7gfaTprW6S | “Your job is on the line, sir,” one shareholder told Sir Ian Cheshire at #debenhams AGM earlier this afternoon. Now he is gone. https://t.co/7gfaTprW6S |
| So Mike Ashley's Sports Direct has helped vote to get rid of Debenhams Chairman Sir Ian Cheshire.One of Debenhams longest standing concessions/designers told @bbc5live that he's is a fan of Mike Ashley https://t.co/3LrIItQ56u | So Mike Ashley's Sports Direct has helped vote to get rid of Debenhams Chairman Sir Ian Cheshire.One of Debenhams longest standing concessions/designers told @bbc5live that he's is a fan of Mike Ashley https://t.co/3LrIItQ56u |
| Newsflash: City veteran Sir Ian Cheshire has just been dramatically ousted as chairman of Debenhams. | Newsflash: City veteran Sir Ian Cheshire has just been dramatically ousted as chairman of Debenhams. |
| Just hours after reporting falling sales at Christmas, the struggling retailer has revealed that a majority of shareholders voted AGAINST Cheshire’s reelection at an AGM today. | Just hours after reporting falling sales at Christmas, the struggling retailer has revealed that a majority of shareholders voted AGAINST Cheshire’s reelection at an AGM today. |
| That’s because Sports Direct, controlled by Mike Ashley, used its 29.7% shareholding to oppose Cheshire, and also Sergio Bucher, Debenham’s CEO. | That’s because Sports Direct, controlled by Mike Ashley, used its 29.7% shareholding to oppose Cheshire, and also Sergio Bucher, Debenham’s CEO. |
| Another major shareholder (thought to be Dubai-based Landmark) also voted against the pair. | Another major shareholder (thought to be Dubai-based Landmark) also voted against the pair. |
| Debenhams says: | Debenhams says: |
| Given the decision of two major shareholders who voted against his re-election to the board, Sir Ian has concluded it is no longer possible for him to remain Chairman of Debenhams plc. | Given the decision of two major shareholders who voted against his re-election to the board, Sir Ian has concluded it is no longer possible for him to remain Chairman of Debenhams plc. |
| Huge retail news- Debenhams chairman Sir Ian Cheshire and chief executive Sergio Bucher has been voted off the board; Bucher to stay on as chief executive, however, and report to the board. | Huge retail news- Debenhams chairman Sir Ian Cheshire and chief executive Sergio Bucher has been voted off the board; Bucher to stay on as chief executive, however, and report to the board. |
| Cheshire has fallen on his sword, and will be replaced by director Terry Duddy. | Cheshire has fallen on his sword, and will be replaced by director Terry Duddy. |
| Bucher is staying on as CEO, though, despite only getting 44% of the vote (Cheshire accrued just 43%). | Bucher is staying on as CEO, though, despite only getting 44% of the vote (Cheshire accrued just 43%). |
| Debenhams says: | Debenhams says: |
| The board is mindful of its responsibilities to all shareholders and has full confidence in Sergio and in the management’s plan to reshape the business. As a result, the board and Sergio have agreed that he should continue as CEO of Debenhams plc, reporting to the board. | The board is mindful of its responsibilities to all shareholders and has full confidence in Sergio and in the management’s plan to reshape the business. As a result, the board and Sergio have agreed that he should continue as CEO of Debenhams plc, reporting to the board. |
| This dramatic development puts Debenhams into a fresh crisis. Before Christmas, Ashley revealed he was pushing the company to accept a £40m loan, warning it might not keep operating otherwise. | This dramatic development puts Debenhams into a fresh crisis. Before Christmas, Ashley revealed he was pushing the company to accept a £40m loan, warning it might not keep operating otherwise. |
| Blimey. Late development - Debenhams' chairman Ian Cheshire steps down after shareholders vote against his re-election following a car-crash year for the retailer. | Blimey. Late development - Debenhams' chairman Ian Cheshire steps down after shareholders vote against his re-election following a car-crash year for the retailer. |