•   
  •   
  •   

World Under-threat UK retailer Arcadia rejects emergency loan offer

19:10  30 november  2020
19:10  30 november  2020 Source:   msn.com

A student loan bailout would do almost nothing for the economy

  A student loan bailout would do almost nothing for the economy Pressure from top Democrats and left-wing pundits is mounting on a presumptive Biden administration to make “canceling” student debt a priority (aka, make taxpayers pay it off). The problems with this policy are endless, from its regressive benefits that skew toward the wealthiest citizens to its creation of a moral hazard problem that would encourage future students to make poor decisions. © Provided by Washington Examiner But in a fascinating twist, a new analysis shows that even from a progressive economic perspective, student loan cancellation would be an awful economic “stimulus” policy.

British clothing retailer Arcadia , ravaged by coronavirus lockdowns and fierce online competition, remains on the brink of bankruptcy despite an "Frasers Group notes recent press reports concerning the potential provision of emergency funding by the company to the Arcadia Group," Frasers said in

British clothing retailer Arcadia , ravaged by coronavirus lockdowns and fierce online competition, remains on the brink of bankruptcy despite an emergency loan offer , the BBC reported Monday.

British clothing retail group Arcadia, ravaged by coronavirus lockdowns and fierce online competition, on Monday rejected an emergency loan offer, even as it teeters on the brink of bankruptcy.

a person standing in front of a store: Arcadia, the owner of a chain of retail clothing stores including Topshop, is struggling to avoid bankruptcy © Tolga Akmen Arcadia, the owner of a chain of retail clothing stores including Topshop, is struggling to avoid bankruptcy

Some 13,000 jobs are at risk at the company's flagship stores including Topship, Topman, Dorothy Perkins, Burton, Miss Selfridge, Evans and Wallis.

British media reported the group was poised to enter administration, in what would be another body blow to Arcadia boss Philip Green and the Covid-hit British retail sector.

AOC Insists Joe Biden Can Forgive Student Loans by Executive Order Despite Constitutional Questions

  AOC Insists Joe Biden Can Forgive Student Loans by Executive Order Despite Constitutional Questions Senators Chuck Schumer and Elizabeth Warren have also suggested forgiving student debt by executive order.Biden has not said he will cancel student loan debt. During the presidential campaign, his proposal was to cancel up to $10,000 of student loan debts but this would not apply to all borrowers and may not cover private loans. He is now under pressure to go further.

Several Arcadia brands have outlets within Debenhams stores — so JD Sports is said to be backing away from a rescue deal for the department store chain. Mr Ashley offered a £50million emergency loan on Saturday but fierce rival Sir Philip dismissed it as “a non-starter”.

Mike Ashley's Frasers offers Arcadia a £50m emergency loan . Should the Company and the Arcadia Group’s efforts to agree an emergency funding package fail and the Arcadia Add in the bills owed to suppliers, and Arcadia ’s collapse could cause serious damage to the wider UK retail sector.

Green, 68, who was once dubbed "the king of the high street", saw his reputation hit from the high-profile collapse of retailer BHS four years ago.

His bricks and mortar businesses has also suffered from increasing online competition from the likes of Boohoo and Asos.

But Arcadia turned down a £50-million ($67-million, 56-million-euro) loan from British sportswear tycoon Mike Ashley's Frasers Group to stave off bankruptcy.

"Frasers Group can confirm that Arcadia Group Limited have declined Frasers Group's offer of a lifeline loan of up to £50m," it said in a statement to the London Stock Exchange.

"Frasers Group were not given any reasons for the rejection, nor did Frasers Group have any engagement from Arcadia before the loan was declined."

Topshop Owner 'Faces Collapse Within Days With 15,000 Jobs at Risk'

  Topshop Owner 'Faces Collapse Within Days With 15,000 Jobs at Risk' The Arcadia Group, responsible for Topshop, Burton, and Dorothy Perkins, is said to be preparing to appoint administrators as soon as next week.The company, owned by billionaire businessman Sir Philip Green, is preparing to appoint administrators from Deloitte as soon as next week, Sky News reports. The majority of the group's 500 standalone stores are currently shut due to England's second nationwide lockdown.

Arcadia , the retail group owned by billionaire Sir Philip Green, is set to enter administration “within hours,” according to the BBC. The BBC reported on Monday morning that the retail group — which owns brands like TopShop, Dorothy Perkins, and Miss Selfridge — was set to appoint administrators

Mike Ashley's Frasers offers Arcadia a £50m emergency loan . The Company can confirm that it has made an offer and provided draft terms to the Arcadia Group for a loan of up to Add in the bills owed to suppliers, and Arcadia ’s collapse could cause serious damage to the wider UK retail sector.

Ashley, who also owns English Premier League side Newcastle United, bought the troubled department store chain House of Fraser in 2018 and runs the Sports Direct brand of shops.

Frasers had earlier said it "would be interested in participating in any sale process" should Arcadia fail to secure emergency funding and go into administration.

Arcadia announced on Friday that the Covid-19 pandemic has had a "material impact" on trading due to enforced closures during lockdowns that have devastated retail across Britain.

It said it was working on "a number of contingency options" to secure the future of its brands.

- Pension scheme -

Back in 2015, Green sold retailer BHS for just £1 to Dominic Chappell, a former bankrupt businessman with no retail experience.

BHS then collapsed one year later, resulting in 11,000 job losses and leaving a massive £571-million deficit in its pension fund.

Inequality of student loan debt underscores possible Biden policy shift

  Inequality of student loan debt underscores possible Biden policy shift The potential forgiveness of student loan debt could be one of the biggest policy shifts in the first months of the incoming Biden administration.President-elect Joe Biden has said that student debt forgiveness will be a key part of his economic agenda, though how and to what amount the loans will be forgiven has become a point of debate among Democrats.The disproportionate impact of the debt on students of color, meanwhile, could be further accentuated in the new year, as the freeze on federal student loan payments that was implemented by the Trump administration amid the coronavirus pandemic ends at the end of December.

Arcadia was struggling from weak sales before the pandemic hit and underwent an emergency Any collapse would see Mr Ashley, other retailers and hedge funds begin to circle Sir Philip's brands But Mr Ashley's offer is not expected to be taken up given fierce rivalry between Mr Ashley and Sir Philip

Finance UK 10 hrs ago Suban Abdulla. A woman walks past a Debenhams store in Manchester in the final week of a four week national lockdown to curb the spread of coronavirus. Debenhams’ rescue deal talks with JD Sports could be in peril as Arcadia — Debenhams’ biggest concession holder

British lawmakers on Monday called on Monaco-based Green to cover the shortfall in the Arcadia pension fund, which is estimated to run as high as £350 million.

The head of parliament's cross-party Work and Pensions Committee, Stephen Timms, said Green should dip into his own pocket to ensure workers do not miss out.

"There is unquestionably a moral case for the Green family to do the right thing and guarantee Arcadia's hardworking staff what is rightfully theirs, whatever happens this Christmas," he said.

Timms also said the pensions regulator should "do everything in its power to fight the corner of the pension scheme members".

Green, who net worth was estimated at £930 million on this year's Sunday Times Rich List, last year paid £363 million to plug the gap in the BHS pension scheme.

The human fallout of the global pandemic has seen more than 58,000 deaths from some 1.6 million cases in Britain -- the worst in Europe.

The economic consequences also threaten to be dire. Last week, finance minister Rishi Sunak said the economy was set to contract 11.3 percent this year -- the worst in over 300 years.

A three-month shutdown from late March forced non-essential retailers to close but even as businesses reopened from June, town and city centres remained virtually deserted.

The government ordered non-essential shops to close again in England on November 5 to try to cut infection rates as cases spiralled across the country.

rfj-phz/cdw

Energy Department seeks to boost mining through loan programs Trump proposed cutting .
The Energy Department is seeking to use loan programs that President Trump has previously proposed cutting to give a boost to the country’s mining industry.The department on Tuesday issued a guidance stating that it had a "preference" for critical minerals projects as applicants for two loan programs in the Loan Programs Office aimed at innovative technology and vehicle manufacturing, respectively.

usr: 5
This is interesting!