/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/201217.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Thursday, December 17, 2020, Vol. 21, No. 252 Headlines I R E L A N D INA'S KITCHEN: Judge Dismisses Examinership Petition I T A L Y [*] ITALY: Wants to Extend State Guarantee Scheme by 12 Months S W I T Z E R L A N D ARYZTA: Shareholders Elect Urs Jordi as Chairman U N I T E D K I N G D O M DEBENHAMS PLC: Frasers Group Acquires Foyleside Store DEBENHAMS: ABG in Talks With Administrators GOURMET BURGER: Boparan Restaurants Buys Business for GBP6MM MOSS BROS: Creditors Approve Company Voluntary Arrangement - - - - - ============= I R E L A N D ============= INA'S KITCHEN: Judge Dismisses Examinership Petition ---------------------------------------------------- Roisin Burke at Business Post reports that an examiner is not an appropriate remedy for the issues at chocolate snack maker Broderick's, a High Court judge said in his dismissal of a bid to put the business in examinership. In his written judgement delivered last week, Justice Michael Quinn said court protection was not a remedy for the concerns raised in the examinership petition brought by a member of the company's founding family. Barry Broderick had petitioned for an examinership at Ina's Kitchen Desserts, trading as Broderick's. ========= I T A L Y ========= [*] ITALY: Wants to Extend State Guarantee Scheme by 12 Months -------------------------------------------------------------- Valentina Za and Giuseppe Fonte at Reuters report that Italy is working to extend by 12 months a state guarantee scheme designed to help banks shed problem loans, two sources familiar with the matter said on Dec. 15, as the industry braces for a surge in pandemic-driven defaults. According to Reuters, authorities are focusing on how best to help banks deal with the fallout from the coronavirus crisis, once governments unwind extraordinary measures they deployed to support businesses. One of the sources said Rome planned to engage in talks with European Union competition authorities in January to renew the scheme, which would otherwise expire in May, Reuters relates. Italy introduced the "GACS" state guarantee in 2016 to help banks deal with unpaid debt left behind by a deep economic slump, Reuters notes. It renewed it in May 2019 for a further two years, which could extend to three years with clearance from the European Commission, the EU's executive, Reuters recounts. Under the GACS scheme, banks can buy a guarantee from the Treasury to wrap the least risky notes when repackaging bad loans as securities to sell them, Reuters discloses. The scheme, which reduces the losses banks are exposed to when shedding bad debts, has proven a success, prompting Greece to replicate it under a program dubbed Hercules, Reuters states. Consultancy KPMG said in April the GACS scheme had helped Italian lenders complete 25 transactions since it was introduced, freeing the sector of a gross EUR71 billion (US$86 billion) in bad loans, Reuters relays. A market source, as cited by Reuters, said that figure would rise to EUR80 billion by the end of the year, accounting for more than a third of the overall reduction in problem loans held by Italian banks over the past four years. Alessandro Rivera, the Italian Treasury's director general who helped to devise the GACS scheme, recently forecast the pandemic would turn sour between EUR60 billion and EUR100 billion in bank loans over the next 18 months, Reuters relates. Economy Minister Roberto Gualtieri has urged Brussels to update state aid rules to give EU member states leeway to strengthen state-backed companies, such as Italy's AMCO, that buy soured debt off banks, Reuters discloses. ===================== S W I T Z E R L A N D ===================== ARYZTA: Shareholders Elect Urs Jordi as Chairman ------------------------------------------------ Oliver Hirt and John Revill at Reuters report that shareholders of baking goods maker Aryzta have elected a chairman who has previously spoken out against a takeover, after a deadline on an CHF800 million (US$902.53 million) approach from Elliott Advisors expired last week. Urs Jordi was elected as chairman of the struggling company, which produces McDonald's burger buns, at its remotely held annual general meeting, Reuters discloses. According to Reuters, Mr. Jordi has said now is not the time for Aryzta to consider selling up, instead favoring a restructuring of the company, whereas some previous board members favored a takeover. American private equity firm Elliott launched its latest takeover bid for the company at the beginning of December, attaching conditions to the offer and setting a deadline for the deal to be agreed, which expired last week, Reuters relates. Elliott has not commented on its intentions since, but Aryzta is expected to decide on its own position soon, Reuters notes. The Swiss-Irish company, which owns Cuisine de France, has endured a tough few years, with falling sales made worse by the COVID-19 pandemic, Reuters relays. It has also been weighed down by a huge debt pile from a acquisition spree in Europe and the United States, Reuters states. =========================== U N I T E D K I N G D O M =========================== DEBENHAMS PLC: Frasers Group Acquires Foyleside Store ----------------------------------------------------- BBC News reports that Mike Ashley's Frasers Group has bought the anchor building at Foyleside Shopping centre in Londonderry previously occupied by Debenhams. According to BBC, the off-market deal will see the opening of a new Frasers department store next year -- similar to its anchor store at Victoria Square in Belfast. Debenhams has been in administration since April, BBC notes. It has been unable to find a buyer putting hundreds of NI jobs at risk, BBC states. Debenhams has five outlets which are all large tenants in shopping centres in Belfast, Craigavon, Newry, Ballymena and Derry, BBC discloses. Frasers Group is owned by Sports Direct's Mike Ashley who had shown interest in buying Debenhams on a number of occasions, BBC relays. According to BBC, Paul Wilson, Director of Retail at Savills who brokered the deal said: "Knowing the limited pool of end-users for this space and that Debenhams' business was likely to enter a company voluntary arrangement (CVA), we pursued Frasers and successfully struck a deal to sell the freehold interest. "The Debenhams CVA gave Frasers the ability to secure vacant possession from a landlord break clause, but a liquidation will speed the process". He said bringing Frasers to Foyleside was "a massive positive for the centre and the city as a whole". "Employing some 200 staff, this will replace the Debenhams with a new relevant retail offering to the centre together with a huge investment to refit the property which we hope will include the stores aspirational Flannels fashion hall." DEBENHAMS: ABG in Talks With Administrators ------------------------------------------- PYMNTS reports that Authentic Brands is said to be in talks with Debenhams and Arcadia Group administrators, with unnamed sources claiming that the retail company is mulling a bid for the Sir Philip Green retail empire and the retailer, Retail Gazette reported. Events that unfold at Arcadia Group will have a secondary impact on Debenhams since the company is the largest operator of concessions in the retailer's locations. The fashion labels of Arcadia Group comprised an estimated GBP75 million (approximately $100 million) of Debenhams' yearly sales prior to COVID-19. Arcadia Group went into administration at the end of November 2020, putting more than 13,000 employment positions in jeopardy. Joint administrators at Gavin Maher, Daniel Butters and Deloitte were enlisted to supervise Arcadia Group. Arcadia Group is the owner of Evans, Dorothy Perkins, Burton, Topshop and others. Authentic Brands, which is based in New York, has high-end retailers Juicy Couture and Barneys in its group. The news comes as Frasers Group said it was in discussions to buy Debenhams from administrators, according to a past published report. Frasers said it hoped a deal can be reached and jobs at Debenhams can be kept. But it cautioned that "there is no certainty that any transaction will take place, particularly if discussions cannot be concluded swiftly," according to the published report. Administrators for the department store retailer previously said that it would be wound down and that all stores would be closed after 242 years in operation. In March, a report surfaced that Debenhams was seeking relief from landlords for five months of rent as it expects trouble from the ongoing pandemic. The chain underwent two insolvency events last 2019, and it foresaw that the virus would adversely impact trading. In October 2020, news surfaced that coronavirus cases were beginning to jump in the U.S. and across the globe – bringing with them a new tide of limitations and closures in throughout Europe as leaders aim to contain the virus. About Authentic Brands Group Headquartered in New York, NY, ABG Intermediate Holdings 2 LLC is the borrowing entity for holding company Authentic Brands Group, LLC (dba Authentic Brands). Authentic Brands is a brand management company with a portfolio of 28 brands - 31 pro forma for Nautica and two global accessories fashion brands - including Jones New York, Juicy Couture, Spyder, Aeropostale, and Hickey-Freeman. The company also has control over the use of the name, image and likeness of Marilyn Monroe, Elvis Presley, Muhammad Ali, and Shaquille O'Neal among other celebrities. The company is majority owned (about 70% in aggregate) by two private equity firms, with affiliates of Leonard Green & Partners, L.P. being the largest shareholders, followed closely by General Atlantic. Lion Capital and management own the remaining equity. Authentic Brands is privately owned and does not publicly disclose its financial information. The company generated revenue for the twelve-month period ended December 31, 2017 of approximately $340 million, pro forma for the pending acquisition of Nautica and two global accessories fashion brands. GOURMET BURGER: Boparan Restaurants Buys Business for GBP6MM ------------------------------------------------------------ Katherine Price at The Caterer reports that Boparan Restaurants acquired Gourmet Burger Kitchen for GBP6 million as part of a pre-pack administration, according to documents filed with Companies House. More than 600 employees are understood to have been transferred through the acquisition while 355 roles were made redundant, The Caterer discloses. Of the group's sites, 35 were sold and 27 were closed, The Caterer notes. Former parent company Famous Brands announced shortly after the mandatory closure of hospitality in the UK earlier this year due to coronavirus that it would provide no further financial assistance to the group, The Caterer relates. According to The Caterer, the lack of future financial support from the group's parent company put significant pressure on the business to secure a new funding partner. Gourmet Burger Kitchen appointed Gavin Maher and Rob James Harding of Deloitte as administrators on Oct. 14, The Caterer recounts. Gourmet Burger King generated GBP65 million in revenue in its 2020 financial year, down GBP10.5 million from 2019, although its earnings before interest, tax, depreciation and amortization (EBITDA) improved due to ongoing restructuring measures as a result of its company voluntary arrangement (CVA) in 2018, The Caterer states. MOSS BROS: Creditors Approve Company Voluntary Arrangement ---------------------------------------------------------- Joanna Bourke at Evening Standard reports that Moss Bros has got the green light for a company voluntary arrangement that will allow the menswear retailer to "reset the cost base" of the business. The chain, which was founded in 1851 and is known for its suits, last month said it was pursuing a CVA, Evening Standard recounts. The model is a way of seeking rent cuts, changes to leases, or closures, Evening Standard states. At that point, it said it was looking at potentially exiting up to 24 sites and moving a number of branches to a turnover-based rent model, Evening Standard notes. Moss Bros has 128 stores and has suffered from a lack of events, such as weddings, this year due to the pandemic, Evening Standard discloses. That has dented demand for formalwear, according to Evening Standard. The creditors of Moss Bros have now approved the proposed CVA, Evening Standard says. The vote saw more than 80% of all voting creditors choosing to approve the CVA, Evening Standard relays. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Europe is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA. Marites O. Claro, Rousel Elaine T. Fernandez, Joy A. Agravante, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman, Editors. Copyright 2020. All rights reserved. ISSN 1529-2754. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Europe subscription rate is US$775 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter Chapman at 215-945-7000. * * * End of Transmission * * *