McColl’s enters administration- 16,000 jobs and 1,100 stores at risk after major collapse

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McColl’s confirmed that discussions with lenders had broken down after the firm attempting to find a solution to its current funding crisis. In the absence of a resolution the shop chain has entered administration with PriceWaterhouseCoopers appointed as administrators. In a statement to the stock exchange McColl’s said: “In order to protect creditors, preserve the future of the business and to protect the interests of employees, the Board was regrettably therefore left with no choice other than to place the Company in administration, appointing PriceWaterhouseCoopers LLP as administrators, in the expectation that they intend to implement a sale of the business to a third-party purchaser as soon as possible.” Trading in McColl’s shares have been suspended.

The chain operates 1,100 shops putting the jobs of around 16,000 workers at risk.

More to follow…

Children’s Robes Recalled For Burn Risk

The U.S. Consumer Product Safety Commission announced recalls of certain children’s robes citing burn risks.

Ridgefield, New Jersey-based Linum Home Textiles LLC has called back about about 44,600 units of children’s robes as they fail to meet the federal flammability standards for children’s sleepwear, posing a risk of burn injuries to children.

Further, China-based importer NewCosplay recalled about 3,160 units of children’s robes for the same concern.

Linum Home Textiles’ recall involves children’s 100 percent cotton terry robes. The long-sleeved, hooded robes have two front pockets and a sewn-in, side-seam matching belt. The robes were sold in sizes small, medium and large and in white, navy, pink, gray and purple colors.

The robes, manufactured in Turkey, were sold online at Amazon.com, JCPenney.com, Kohls.com, and TorreyCommerce.com, among others, from July 2017 through April 2022 for between $25 and $40.

NewCosplay children’s robes were manufactured in China and sold online at www.newcosplay.net and www.amazon.com from December 2021 through March 2022 for between $14 and $30, depending on the style.

The long-sleeved robes are made of 100 percent micro polyester and were sold in sizes 3T through 12. The robes were sold in 22 different patterns.

However, no incidents or injuries have been reported related to the recalled products to date.

Consumers are urged to contact the respective companies for a full refund.

Goodyear Tire & Rubber Q1 Results Top Estimates

Goodyear Tire & Rubber Co. (GT) reported Friday that net income for the first quarter soared to $96 million or $0.33 per share from $12 million or $0.05 per share in the prior-year quarter.

Excluding items, adjusted earnings for the quarter were $0.37 per share, compared to $0.43 per share in the year-ago quarter.

Net sales for the quarter increased 40 percent to $4.91 billion from $3.51 billion in the same quarter last year, driven by the Cooper Tire merger, improvements in price/mix, higher volume, and increased sales from other tire-related businesses.

Excluding the Cooper Tire transaction and foreign currency, net sales grew only 20 percent.

On average, analysts polled by Thomson Reuters expected the company to report earnings of $0.21 per share on sales of $4.65 billion for the quarter. Analysts’ estimates typically exclude special items.

American Axle Trims FY22 Sales Outlook; Q1 Results Top Estimates

While reporting financial results for the first quarter on Friday, American Axle & Manufacturing Holdings, Inc. or AAM (AXL) trimmed its sales guidance for the full-year 2022.

For fiscal 2022, the company now projects sales in the range of $5.6 billion to $5.8 billion, compared to the prior guidance range of $5.6 billion to $5.9 billion. It also cut North American light vehicle production outlook to a range of 14.3 million to 14.7 million units from the prior guidance range of 14.8 million to 15.2 million units.

On average, ten analysts polled by Thomson Reuters expect the company to report sales of $5.69 billion for the year.

For the first quarter, net income plunged to $1.0 million or $0.01 per share from $38.6 million or $0.33 per share in the prior-year quarter.

Excluding items, adjusted earnings for the quarter were $0.19 per share, compared to $0.57 per share in the year-ago quarter.

Net sales for the quarter increased to $1.44 billion from $1.43 billion in the same quarter last year.

The Street was looking for earnings of $0.02 per share on sales of $1.35 billion for the quarter. Analysts’ estimates typically exclude special items.

E.W. Scripps Posts Profit In Q1

The E.W. Scripps Company (SSP) reported first-quarter income per share from continuing operations of $0.10 compared to a loss of $0.10, prior year. Income from continuing operations, net of tax, increased to $22.37 million from $3.50 million.

Total revenue was $566 million, an increase of 4.6% from the prior-year quarter. The company said its revenues benefited from higher core, political and retransmission revenue in Local Media division and overall growth in Scripps Networks operations.

The company said it is on track to deliver free cash flow of $400-$450 million for the full year, aided by a projected $270 million of political advertising revenue, which would be an increase of about 40% from the last mid-term election year, 2018.