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Top story
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JJB needs time, says Ronnie
Chris Ronnie, chief executive of Wigan-based JJB Sports, has told Insider that his plans to turn the retail giant around remain on track, despite the tumble in share price that followed interim results showing heavy losses in September. He said: “We’ve always said we are looking long term – this is not a two-year play. This business employs 13,400 people and it takes time to turn a big ship round.” Ronnie said the redesigned new era stores were all performing well, with Trafford Centre figures up 30 per cent. He hopes to open 11 fitness centres in 2009 and roll out the £9.95-a-month Mifit dry-gym concept, following its opening in Cardiff last month. He said: “Are we going bust? No. These are the worst retail conditions I’ve ever known, but I’m confident our backers will support us. People would be very brave to write off JJB.”
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Deals
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Wirral landlord expands
Merseyside property developer Richard Webster has secured a £1m funding package from The Royal Bank of Scotland to expand his property portfolio. He is managing director of SA Webster & Son, one of the Wirral’s longest established residential lettings company, and plans to use the funds to increase the number of properties he owns on the peninsular. The company was set up over 30 years ago and has a portfolio of more than 200 properties, most in the Wallasey area. Webster also undertakes construction projects via his Webster Building business, specialising in new-build projects. He said: “The demand for quality residential lettings on the Wirral remains strong and we believe the current market conditions provide a good opportunity to increase the number of properties in our portfolio.”
MBO for NDK
NDK International, the Liverpool-based executive recruitment consultancy, has undergone a management buyout backed by private equity investment through the government’s Enterprise Investment Scheme. The deal has allowed Neil Kelly to exit the business he founded seven years ago. New managing partners Simon Kerevan and Alex Martin plan to rebrand the company and shift its focus onto psychometric assessment, coaching and mentoring and leadership development. “We saw the potential to change the direction of the business and focus on a niche market and we decided it was a great opportunity to acquire the company,” said Kerevan. The business employs six full-time staff and its clients include Dupont, Whirlpool and Merseyrail.
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Business
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Don't walk away from R&D, says Garner
North West businesses need to forge better links with academia and invest in innovation if they are to ride out the economic downturn, according to Cathy Garner, chief executive of Manchester Knowledge Capital. Speaking at Insider’s What Education Can Do For Business event held at the Bridgewater Hall yesterday, Garner told the invited audience that the region should look to the example of Silicon Valley and trust in its ability to innovate. “The difference between Silicon Valley and the rest of the world is that Silicon Valley always invests in a downturn and never walks away from research and development,” she said. “North West universities are globally connected with the likes of China, India and the US market and businesses need to use those connections, work with universities and identify the innovative opportunities that exist.”
Manufacturing base closes
US technology company Photronics is set close its manufacturing base in Trafford Park, which has been operating since the mid 1990s, as it attempts to streamline its global operations and return to profitability in the face of competition from Asia. A customer support and data preparation centre will be maintained in Manchester to ensure a smooth transition for customers to other facilities in the Photronics global network. The Nasdaq-quoted company’s chairman, Constantine Macricostas, said: “The European semiconductor landscape continues to change as segments of our customer base become more reliant on Asian foundries. Our plan to streamline the European manufacturing network is a significant step in our strategy to return Photronics to profitability.”
Peel ups stake in UK Coal
Peel has increased its stake in UK Coal from 20 to 26 per cent, in a move likely to add to speculation about a possible takeover. UK Coal has revealed that Goodweather Holdings, a member of the Peel group of companies, bought 40,883,000 shares in UK Coal at 1p each. However, UK Coal's spokesperson pointed out that Peel has been a significant stakeholder in the business for many years. Peel was last rumoured to be mounting a takeover of UK Coal in 2006, when it held 7 per cent of the company.
Boylan-led task force calls for local power
Today sees the release of the latest report from the government’s Lifting the Burdens independent task force, which looks at the barriers faced by local authorities in economic development and regeneration. The review, led by Manchester City Council deputy chief executive Eamonn Boylan, asks for more streamlined and flexible processes to ensure a more locally responsive approach to regenerating communities. The review focused on barriers, funding and strategic infrastructure, and skills and unemployment. Boylan said: “This report presents an exhaustive review of the barriers that can be faced by local authorities in trying to effectively shape their areas. We welcome the overall thrust of government policy to streamline regeneration and devolve powers, and hope these recommendations will make a positive contribution.”
RDA promises swift payment
Following the government’s announcement yesterday of a further package of support to help small businesses during the economic downturn, the Northwest Regional Development Agency announced that it will aim to pay all invoices to suppliers within ten days, instead of the previous 30 days. This will help those companies contracted to provide goods or a service to the agency to retain a steady cash-flow.
Growth at Turner Parkinson
Manchester-based law firm Turner Parkinson has recruited Carol Isherwood from Eversheds’ commercial law team into the creative industries team. Isherwood, whose creative experience includes work at a music management company, said: “We are working on several exciting projects at the moment including assisting the new Manchester radio station, Radio Republic, to get off the ground.”
PKF hopeful on hotels
Manchester’s hotel market remains strong despite a dip in occupancy, average room rate and rooms yield during August, according to figures released by accountancy and business advisory PKF. Occupancy for the month was down by 2.2 per cent, the average room rate was down by 0.8 per cent and room yield was down by 3 per cent. However, all three remain higher than figures for the same period last year. Jane Jackson, partner and head of North West real estate and construction at PKF, said the poor summer weather and current economic climate may have affected the number of people visiting the city, but “the market still looks strong for the year to date”.
Automotive centre opens
The Automotive Training Centre, a new facility to address the region’s automotive skills shortages by providing vocational training, has been opened at Great Sankey High School in Warrington following a £250,000 funding package from the Northwest Regional Development Agency (NWDA). The centre will offer students the opportunity to gain an Institute of Motor Industry-recognised technical certificate, enabling them to work towards an Engineering Diploma. The North West is home to more than 450 automotive companies with a combined turnover of £9bn.
Dotshops boosts online offer
Online retailer Dotshops, based in Alsager, Cheshire, has launched a new e-commerce site aimed at plumbing and building professionals. Trade Stores will offer kitchen and bathroom accessories from brands such as Franke, Hotpoint and Carron. The company hopes the new site will emulate the success of its Sinks Direct online store.
Entrepreneurs braced for battle
Despite the doom and gloom surrounding the economy, more than two-thirds of entrepreneurs remain determined to ride out the downturn and tough it out with their business, according to a report by Grant Thornton. The firm’s biannual Entrepreneur Insight Report also found that more than three-quarters of business owners surveyed were either as ambitious or more ambitious for their business than six months ago. Alysoun Stewart, head of entrepreneurial advisory at Grant Thornton, said the findings demonstrated “a pragmatic approach” despite the uphill battles that many entrepreneurs face and would be instrumental in driving the coming economic recovery. The owners of 715 UK businesses, with a turnover between £5m and £150m, took part in the survey.
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Property
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Co-op picks Pochin site
Middlewich-based Pochin Developments has secured The Co-Operative as anchor tenant for its redevelopment of the former Leeds Pottery site in Stoke on Trent. The supermarket chain has taken 4,000 sq ft leaving two units of 1,250 sq ft remaining. Pochin is redeveloping the site in a joint venture with Malahat Properties and work is expected to be completed by December.
Ramada plans approved
Manchester City Council has today endorsed a redevelopment strategy for the Ramada Complex in Deansgate. The two-acre complex, which is dominated by a 1970s hotel and consists of two acres, will see the existing buildings demolished to make way for a landmark mixed-use scheme from West Properties that will include: two new streets, pedestrian terraces, a new hotel and a mix of office, retail and residential accommodation. The council estimates that the scheme will almost £90m for the economy.
JD speculation unconfirmed
Following trade press reports yesterday that JD Sports is to take the 600,000 sq ft warehouse applied for by the Kingsway Partnership, agents at the 420-acre Rochdale scheme will neither confirm nor deny that the Bury-headquartered retailer will sign up. JD’s requirement has been in the market for some time, however, and would be likely to find favourable terms at the project, which is being developed by Wilson Bowden, Rochdale Development Agency and the Northwest Regional Development Agency.
Council approves gateway framework
The meeting of Manchester City Council’s executive has sealed the council’s commitment to promoting development in the Whitworth Street West area. The development framework agreed today for the southern fringe of the city centre says that the council is looking to work with investors prepared to bring forward high-quality commercial, residential and leisure schemes, including a budget hotel. Schemes in the area currently include Ask’s First Street and Property Alliance’s Axis.
Seddons lands BMW job
Bolton-based construction company G&J Seddon has secured a £880,000 contract to build a new BMW Mini showroom in Colne, Lancashire. The 500 sq ft showroom, which is being built for Lloyd BMW, will be the third BMW Mini dealership the company has constructed. Work is due to start on site later this month and will take eight months to complete.
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