The best of the fashion business related headlines from the weekend’s newpapers…
The Sunday Times reported that some high street chains, including Gap, House of Fraser and Selfridges, had failed to pass on the VAT cut to shoppers. It said that the stores were still selling stock at the same prices as before the VAT rate was cut from 17.5% to 15%.
The Sunday Telegraph reported that private equity firm Bridgepoint planned to inject more cash into lifestyle chain Fat Face to help prevent it breaching its banking covenants. Fat Face is expected to use a so-called equity cure, when it faces a covenant test this week, according to the newspaper. Bridgepoint last year bought back some of Fat Face’s loans to help reduce the burden of its borrowings.
The Sunday Express said that Baugur executive chairman Jon Asgeir Johannesson and chief executive Gunnar Sigurdsson, awarded themselves a combined £857,000 pay rise before the company collapsed earlier this month. The newspaper reported that Johannesson boosted his salary to £802,000 from £220,000, and claimed £110,000 in expenses, according to Baugur UK’s accounts for the year to December 31, 2007. Sigurdsson’s pay rose from £200,000 to £475,000.