Superdry boss Julian Dunkerton hits out over Shein's 'unfair tax advantage'
The boss of struggling retailer Superdry is calling on the government to take action after claiming fast-fashion brand Shein has been allowed to "dodge tax". Julian Dunkerton, founder of the Gloucestershire-based clothing chain, told the BBC the rival firm had an "unfair advantage" as it does not have to pay import duties on low-priced parcels sent from abroad. Under current rules, imports under £135 being sent to shoppers in the UK from overseas are not charged any tax. Shein did not comment on the claims by Mr Dunkerton on Tuesday but has previously said it meets all its tax liabilities in Britain. It has also said in the past its success is a result of an "efficient supply chain" rather than being exempt from paying import duties. Meanwhile, the Treasury has insisted UK policies around tax need to balance the interests of shoppers and retailers. “The rules weren’t made for a company sending individual parcels [and] having a billion-pound turnover in the UK without paying any tax,” Mr Dunkerton told the BBC. "We’re allowing somebody to come in and be a tax avoider, essentially. "Personally, I would force them into paying import duty, VAT and possibly even an environmental tax." Superdry stopped trading on the London Stock Exchange in July after months of uncertainty over the brand's future. The beleaguered chain agreed a rescue deal with shareholders in June. The delisting is part of a package of measures that includes a £10m equity raise underwritten by Mr Dunkerton. Superdry, which is headquartered in Gloucestershire, said its plan it will make "material cash savings" over a three-year period.
Care home group expands footprint with acquisition
A family-owned care home operator has acquired a site in Solihull. Nottingham-based Affinity Care Consortium has bought the 50-bed Silver Birches care home in Chelmsley Wood. It said Silver Birches would now undergo a full estate review, with plans to upgrade and modernise the home including a full redecoration and technological advancements. Affinity Care Consortium now operates a total of 48 adult care homes, 100 supported living homes, ten children's homes, one school and 30 homeless housing units. Email newsletters BusinessLive is your home for business news from across the West Midlands including Birmingham, the Black Country, Solihull, Coventry and Staffordshire. Click through here to sign up for our email newsletter and also view the broad range of other bulletins we offer including weekly sector-specific updates. We will also send out 'Breaking News' emails for any stories which must be seen right away. LinkedIn For all the latest stories, views and polls, follow our BusinessLive West Midlands LinkedIn page here. The acquisition comes as part of the provider's plan to open six homes in the West Midlands by 2025, in addition to its existing site in Coventry, and services across Stoke-on-Trent and Staffordshire. As a result, Affinity Care Consortium is forecasting a £2.5 million annual increase in turnover with 60 new permanent roles expected to be created. Co-owner Tanzeel Younas said: "Buying Silver Birches marks a pivotal milestone in our strategic expansion into Birmingham and Solihull. "Our vision is to breathe new life into existing homes through modernisation and enhancement while simultaneously pioneering new services in the region to cater to those in need." The undisclosed purchase was supported by a finance deal with HSBC UK. David Subba, healthcare sector lead for Thames Valley and Solent at the bank, added: "We are very proud to be able to support the growth ambitions of Affinity Care Consortium, particularly as in doing so the care facilities for residents in Solihull are being improved.
New competition offers West Midlands tech firm £1m prize
A new Dragons' Den-style pitching competition is being launched which will net the winner a cool £1 million. The One to Win event will choose a single tech start-up firm from the West Midlands region to claim the mega prize. The capital will be awarded to a business which judges believe demonstrates "game-changing innovation" and is on track for further growth. It is thought to be the largest single prize on offer at any pitch competition in the UK. It has been launched at London Tech Week today by regional trade body TechWM, with applications opening on July 1 and the pitch competition taking place and the winner announced as part of Birmingham Tech Week in October. The initiative will also support those from the region who do not meet the entry criteria for the competition by offering alternative support. Email newsletters BusinessLive is your home for business news from across the West Midlands including Birmingham, the Black Country, Solihull, Coventry and Staffordshire. Click through here to sign up for our email newsletter and also view the broad range of other bulletins we offer including weekly sector-specific updates. We will also send out 'Breaking News' emails for any stories which must be seen right away. LinkedIn For all the latest stories, views and polls, follow our BusinessLive West Midlands LinkedIn page here. This will include opportunities for trade missions, connections with investors, access to mentors and workshops and links to corporate innovation programmes. The initiative has been funded by Stratford-based tech and real estate company The Rigby Group, investor Haatch and the West Midlands Co-Invest Fund. TechWM's chief executive Yiannis Maos said: "The One to Win is the culmination of everything we're doing to nurture, platform and develop the fantastic tech scene here in the West Midlands. "All parties involved share the belief that the region is the sleeping giant of the tech landscape and we've been working incredibly hard to let the world know what it has to offer. "Groundbreaking initiatives and competitions like One to Win are brilliant opportunities to further showcase the wonderful work going on in the region. "Thanks to the generous backing of our fantastic stakeholders, partners and sponsors, we're able to give one talented start-up a once-in-a-lifetime opportunity to receive the biggest pitch competition prize in the UK." Steve Rigby is co-chief executive of The Rigby Group and son of its founder Sir Peter. He added: "We are innovators and entrepreneurs by our very nature and nowhere is that more prevalent than here in our region. The technology sector in the West Midlands is one of the fastest growing in the UK. "It employs 76,000 people and is expected to boost the national economy by almost £3 billion in the coming years. Rigby Group is the largest private sector investor in technology in Europe. "As an organisation, we have never forgotten our roots here in the Midlands and are proud to support the One to Win competition to find game-changing innovation and ambition.
High Street Group set to be wound up, leaving individual investors more than £100m out of pocket
Failed North East development company High Street Group is likely to be wound up after administrators said they could not get any returns for creditors. The company that built Hadrian’s Tower - Newcastle’s tallest building - and a number of other major developments around the country was put into administration in 2021 with debts estimated at more than £200m. That included more than £100m invested by individuals who are now unlikely to recover the sums they put into High Street Group. An earlier report from the administrators revealed that the company had raised funds with loan notes offering high rates of interest, but it was unable to cope when a large number of loan note holders asked for their investments to be redeemed early. There had been hopes that Hadrian Real Estate - a company originally part of High Street Group that was taken over by fresh management - would provide some return by taking on some former High Street Group schemes. But the new administrators’ report says that those projects are unlikely to produce any financial return for “several years”. The administrators say: “Since the last report, there has been further communication with creditors, and as the administration is not capable of achieving its objects, namely, to realise property in order to make a distribution to one or more of the secured creditors or preferential creditors, an application to the High Court for a winding up petition to place the company into compulsory liquidation has been made. “The court has listed the application for a remote hearing on August 16 at which it is expected that the court will make a winding up order to place the company into compulsory liquidation with the Official Receiver appointed as liquidator.” High Street Group is best known for building Hadrian’s Tower, a luxury flats complex in Newcastle city centre, and had also been involved in early efforts to develop land near St James’ Park and the former Brett Oils site on the banks of the Tyne in Gateshead. It had completed schemes in Birmingham and the North West. The company ran into financial difficulties when a number of its projects were delayed during the pandemic. It had also seen one of its subsidiaries being put into administration in 2019 after failing to repay an overseas lender while the company’s accounts were significantly delayed and two separate auditors resigned.
MBO at DSG Chartered Accountants as partners vow to preserve independence
The partners who led a management buyout at DSG Chartered Accountants say they are committed to keeping the firm’s independence despite wider consolidation in the accountancy world. Tax partner Mark Kearsley and corporate partner Laura Leslie have led the buyout at DSG, which describes itself as the largest independent advisory firm in Liverpool. Existing partners Andrew Moss and Jean Ellis will retain a stake in the business and will work closely with the new leadership team. Announcing the MBO, DSG said: “This pivotal move ensures that DSG remains autonomous at a time when many firms are opting for acquisitions or private equity consolidations.” DSG has recently enjoyed steady growth, reporting a fee income of £7.6m for the year ending April 2024, up 12% year-on-year. It now has a team of 110, with services including tax advisory, audit and accounts, corporate finance, and payroll services. Mark Kearsley said the MBO would allow the practice to invest in technology and to nurture the next generation of talent. He said: “Remaining independent is about more than control; it’s about building a business that truly reflects the values and aspirations of our clients. We have ambitious plans for DSG and this is the first step on that journey.” Andrew Moss, corporate partner at DSG, said: “This MBO marks a significant milestone in DSG’s history, and we are proud to remain the largest independent firm in the Liverpool City Region.” Fello corporate partner Jean Ellis said: “We are committed to continuing our legacy of delivering outstanding service to our clients while fostering a dynamic environment for our talented team.” Laura Leslie added: “In an industry where many firms are merging or seeking external investment, DSG’s decision to remain independent speaks volumes about our confidence in the future. This approach allows us to stay true to our clients and continue our growth on our own terms.” HSBC’s Liverpool team supported on the funding for the MBO. Matt Murphy of Watts Commercial Finance provided debt advisory services, while Glenville Walker provided legal advice to the buyer’ side and Lupton Fawcett advised the sellers’ side. Chris Heron, relationship manager at HSBC UK, added: “It’s fantastic to support DSG with this MBO. This decision cements the future of a thriving business that is highly valued by its customers and we look forward to what the future brings as part of this exciting new chapter.”
870 West Country start-ups receive loans from state-owned British Business Bank
A community-based gym and a sewing café are among the hundreds of West Country start-ups to have secured loans from the British Business Bank over the last year, according to the lender. Start Up Loans - an arm of the state-owned bank - has handed out £11m in loans to 874 firms in the region, it said. The money is issued through the bank's business support partners, which is primarily SWIG Finance in the South West. Companies who secure finance are also given business mentoring. Other businesses to receive funding include a mobile cocktail bar, an animal therapist, a baker, green builder, photographer and ceramics studio. Richard Bearman, manging director of small business lending at British Business Bank, said: “We're delighted that the Start Up Loans programme continues to have such a hugely positive impact on entrepreneurs across the South West, helping hundreds of small businesses in the past year." BKW CrossFit, a new community-based gym in East Bristol, was among the businesses to secure a loan. The company was set up by four friends - Adam Facey; his partner Raquel Sanjurjo Doval; and friends Holly Hawkins and Hayden Cotton. The group came together in 2022 after meeting at the gym and bonded over their mutual love of fitness. They all believed they could build on the "community aspect" of CrossFit and acquire a space that allowed for socialising after training. In 2023, the friends took the plunge and each took out a Start Up Loan, amounting to £60,000 between them, via British Business Bank's delivery partner BizBritain. The cash was used to secure a unit with a mezzanine level and the gym, which opened in March 2024, was kitted out with a children’s area, televisions, sofas, and free coffee. BKW CrossFit hosts mum and baby classes as well as social events in which children can take part, such as Easter Egg hunts with food and music around classes. it also are hosts classes aimed at children from ages six to 10 and 11 to 16. “Securing this finance has meant everything to us,” said Mr Facey. “We wanted a trusted loan provider that looked at the business plan, not just at the potential profit behind it. It’s given us the opportunity to purchase all of the equipment instead of renting it and to be able to secure a big unit in the location we wanted.”