Weekend Round-Up October 26, 2009
The Mail on Sunday
Business failure rate rise set to continue
The number of failed businesses has risen on last year's figures by 19.1 per cent. The failure rate is predicted to rise further still over the next three years due to a combination of rising inflation, VAT and interest rates. The worst affected industries include leisure and hospitality, property, printing and publishing, construction and business services. A further 5,800 businesses are expected to become insolvent by the end of 2009.
New mothers returning to work early
Job competition and scarcity brought on by the recession appears to be prompting new mothers to return to work earlier than planned, despite recent legislation that entitles them to up to a years leave. In a survey carried out by management consultancy, Talking Talent, one in ten mothers said they planned to return to work early. Experts fear many working mothers could be squandering their right to maternity leave, and have even suggested that some employers will welcome the time off as a way of reducing the company wage bill.
Google throws down gauntlet to Microsoft with "cloud system"
Google's challenge to Microsoft's digital domination took another step forward as carmaker Jaguar Land Rover's decision to sign up to the former's online business services. Google claims to have already attracted over two million companies into adopting its online web services. The success has been attributed to Google's cloud computing network allowing for being easily accessible through a variety of digital devices including mobile phones and palm top computers.
The Independent on Sunday
Carpeting company set to receive new lease of life
Birmingham based flooring retailer, Floors-2-Go is set to agree a fresh injection of capital from new backers. The company is looking to for as much as £5m of capital growth to fund expansion. The company was rescued from administration by flooring entrepreneurs Robert and Richard Hodges.
The Sunday Telegraph
Twitter "costs" economy £1.38 per year.
Websites such as Twitter cost businesses collectively around £1.38 billion a year due to the time employees waste using them. A survey carried out by IT and Technology Company Morse admitted the true total cost could be even higher. The survey highlights growing concerns about the use of social networking sites in the workplace. Workers at PC World and Currys were reprimanded last month after it was discovered they had posted insulting comments about customers on a number of employee Facebook groups.
The Observer
The Royal Mail may lose out to smaller competitors once the dust from the Communication Workers Union Strike (CWU) has settled. A survey undertaken by IMRG (Interactive Media in Retail Group) revealed that large retailers such as Amazon and Tesco are to resort to using new wave organisations such as myHermes, Useyourlocal.com and the Home Delivery Network (HDN) as well as traditional rivals such as DHL and TNT.
Matalan up for sale
Matalan Chief Executive, Alistair McGeorge has revealed that the discount clothing chain has received several unsolicited approaches, but insists no deals will be done until the New Year. The announcement comes amid speculation that a number of private equity firms had expressed an interest in the company, and that any sale might come with a £1.5bn price tag. The private equity firm CVC Capital Partners, who have a history of investing in the retail sector, have so far been unavailable for comment.
Sunday Times
Beautifulpeople.com has identified a possible antidote to the expectation of free content by internet users. This dating site, which scrapes a profit from revenues of £5.2m a year in Japan, the US and UK is using the idea of exclusivity to net 180,000 subscribers, anxious to meet dates that come up to an exacting standard of physical beauty.
You have to be voted on to the site by existing subscribers, based on how attractive they find you. The site's owners are aiming to reach revenues of $100m within three years.
Exclusivity is a selling point of another venture, Little Emperors.
This discount card company started by Elizabeth Sieff, former director of a City of London headhunting firm is targeted at the employees in the financial world who are faced with diminished salaries and bonuses and need a little help to mainain their former lifestyles. At launch, the card costs over £500 and you have to submit an application, describing your lifestyle and job and provide a letter stating why they want the card.
The price of the card will nearly treble after the first year of operation, but Sieff claims the discounts available will easily pay for the fee.
Carl Icahn in dramatic resignation from board at Yahoo!
Activist investor Carl Icahn has quit the board of Yahoo!, saying other projects have left insufficient time to devote to the search engine company. Icahn led a boardroom coup attempt at Yahoo!, after the company leaders rejected a takeover bid froom Microsoft in May 2008. As a result, co-founder Jerry Yang resigned as CEO at the end of that year.
Camelot bosses consider buyout
Lottery operator Camelot is in play as the management team considers a private equity buyout of the company. The management team will receive a minority shareholding in the company, which has a 10-year licence to operate the UK lottery with an option to extend it by a further five years.