Business

Ministers have again refused to pay compensation to women affected by changes to the state pension age, triggering renewed anger from campaigners who say millions were left in the dark about reforms that upended their retirement plans.

The government revisited the issue after a previously unseen document emerged, but concluded once more that compensation was neither justified nor affordable. Campaigners argue that around 3.6 million women born in the 1950s were not properly informed about the increase in the state pension age, which was equalised with men’s.

The Women Against State Pension Inequality (Waspi) said the latest decision showed “utter contempt” for those affected.

Angela Madden, chair of Waspi, (pictured) said: “The government has kicked the can down the road for months, only to arrive at exactly the same conclusion it always wanted. This is a disgraceful political choice by a small group of very powerful people who have decided the harm suffered by millions of ordinary women simply does not matter.”

The government maintains that the majority of women affected were aware that the state pension age was rising, citing years of public information campaigns through leaflets, GP surgeries, television, radio, cinemas and online channels. However, many women say they only discovered the changes late in life, leaving them with little time to adjust financially.

In 2024, the Parliamentary and Health Service Ombudsman recommended compensation of between £1,000 and £2,950 for affected women, after finding maladministration in how changes were communicated. While the Ombudsman can make recommendations, it cannot compel the government to act, and ministers previously rejected the proposal.

Speaking in the House of Commons, Pat McFadden said the government accepted that letters notifying women of the changes “could have been sent earlier”, repeating an apology previously made by Liz Kendall.

However, McFadden said ministers also agreed with the Ombudsman’s earlier conclusion that the delay did not result in “direct financial loss”. He added that evidence suggested most women would not have read “an unsolicited pensions letter”, even if it had arrived sooner, and that those least informed about pensions were also least likely to engage with such correspondence.

The latest review was prompted by the discovery of a 2007 survey that had not been shared with ministers during earlier deliberations. McFadden said officials had since checked that no other relevant documents had been overlooked.

In a statement, the government said a flat-rate compensation scheme could cost up to £10.3bn and would be unfair because it would apply to many women who were already aware of the changes. More targeted individual compensation, it added, would be impractical to administer.

Opposition politicians criticised the decision. Liberal Democrat work and pensions spokesperson Steve Darling said affected women would feel “utterly betrayed”.

“False hope was given to them in the autumn, and that hope has now been dashed,” he said.

The renewed rejection is likely to intensify pressure on ministers, with campaigners warning the issue will not go away and that trust in the pensions system has been severely damaged.

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Ministers again reject Waspi compensation claims after fresh review

When Patrick Drahi revived the sale of a stake in a German fibre network this month, the headlines focused on familiar themes. High leverage typical of the sector and asset disposals, reflecting a large debt position built during a decade of unusually cheap capital.

It is a narrative that fits comfortably with how European telecoms is often described, as an industry shaped by capital intensity, long investment cycles and complex balance sheets.

Yet, this focus on ownership and balance sheets hides an often forgotten reality: telecom networks do not generate revenue simply by existing. Fibre in the ground and spectrum in the air only become profitable through a dense commercial layer that sits between operators and customers. Sales platforms, distribution partners, call centres, and customer acquisition engines are what turn capital investment into cash flow. This machinery is rarely discussed, despite being decisive in whether telecom strategies succeed.

The commercial layer that determines profitability

The scale of this layer is not marginal. Analysys Mason estimates that customer acquisition and retention costs account for 15 to 25 percent of operating expenditure for European telecom operators. In competitive markets such as Sweden, the UK, and the Netherlands, annual churn rates for mobile customers routinely exceed 20 percent. Under these conditions, profitability depends less on network coverage than on how efficiently services are sold, retained, and serviced.

Jason Grannum and the execution gap

This is where a different kind of telecom entrepreneur operates. Jason Grannum built his career in Sweden not by owning networks or bidding for spectrum, but by building and scaling sales and distribution businesses embedded in the industry’s commercial infrastructure, achieving significant commercial scale in one of Europe’s most competitive markets.

Operating as a mobile virtual network operator via a licensed partner, his businesses delivered fully branded services while relying on Tele2, one of Sweden’s leading telecommunications companies, for nationwide network coverage and performance. The arrangement illustrates how value in mature telecom markets is often created without asset ownership, through execution at scale. Recruitment, incentives, compliance, and performance tracking were treated not as overhead, but as core strategic levers, managed with the discipline typically associated with established operators rather than entrepreneurial start-ups.

Over time, this execution-led model became repeatable. Grannum has gone on to co-build multiple businesses within the same commercial layer of the telecom ecosystem, working closely with large operators and regulated partners. In markets defined by thin margins and constant churn, that kind of durability is itself a marker of strategic relevance.

Connectivity does not guarantee returns

Sweden offers a useful illustration of why this matters. It ranks among Europe’s most connected countries, with fibre-to-the-home coverage above 80 percent and some of the highest mobile data usage rates in the EU. At the same time, average revenue per user remains relatively low. According to the Swedish Post and Telecom Authority, ARPU levels lag behind those of Germany and France. For operators, profitability therefore hinges on operational efficiency rather than pricing power.

In this environment, sales execution becomes essential. Call centre productivity, adherence to consumer protection rules, and staff retention directly affect margins. A poorly managed distribution channel can erase gains achieved through network optimisation. Conversely, a disciplined sales operation can sustain revenues even when subscriber growth slows.

The boardroom blind spot

This operational reality often sits uncomfortably with how telecom leadership is structured. Research by McKinsey shows that senior executives devote disproportionate attention to capital allocation and regulatory strategy, while frontline sales and service performance is delegated downward or outsourced. The result is a persistent gap between boardroom priorities and customer experience. That gap tends to widen in large, leveraged groups where refinancing and restructuring dominate management agendas.

Entrepreneur-led models differ less in ambition than in structure. Sales operations are tightly managed, costs are tracked in real time, and frontline performance feeds directly into strategic decisions. This operational proximity is not a stylistic preference but a response to markets where competition is intense and pricing headroom is limited.

Lessons from disruption beyond pricing

A different but related lesson can be drawn from Xavier Niel, whose disruption of the French market is often attributed to pricing alone. Yet Free Mobile’s impact rested as much on commercial execution as on low tariffs. Lean distribution, simplified offers, aggressive customer acquisition, and an early embrace of online sales allowed the company to scale rapidly without the overheads that burdened historic players. Network investment mattered, but it was the sales model that translated that investment into market share.

Take-up rates lag

Across Europe, similar patterns emerge. In the UK, mobile virtual network operators now account for more than 15 percent of mobile connections, according to Ofcom. These companies own no infrastructure. Their competitiveness rests almost entirely on distribution partnerships and customer service efficiency. In fibre markets, take-up rates still lag coverage by wide margins. Across the EU39 region, only about 53 percent of homes passed with FTTH/B are actually connected, even though coverage has reached roughly 75 percent. In some countries, the gap is far wider: France reports take-up near 78 percent once fibre is available, while Germany and Italy remain near 25 percent. These differences point to how sales execution and
customer migration strategies matter as much as physical rollout

When infrastructure underperforms

These dynamics become especially visible when projects underperform. Drahi’s German fibre venture, OXG Glasfaser, has so far reached around 500,000 homes out of a planned 7 million. While deployment challenges play a role, uptake also depends on how effectively services are marketed and sold at the local level. Infrastructure alone does not guarantee adoption.

Customer service compounds the issue. The European Commission estimates that dissatisfaction-driven switching imposes billions of euros in indirect costs on the telecom sector each year. Poor service increases churn, raises acquisition costs, and erodes long-term returns. These losses rarely feature prominently in investor presentations, yet they materially affect valuations.

Automation isn’t a silver bullet

Automation and artificial intelligence are often presented as remedies. AI-driven customer support promises efficiency gains, but evidence suggests limits. Gartner research has repeatedly shown that deploying AI in customer service delivers limited gains unless frontline processes and operating models are redesigned alongside it. Technology amplified existing strengths or weaknesses rather than correcting them.

Entrepreneurs grounded in sales and distribution tend to approach automation pragmatically. AI is used to assist agents rather than replace judgement. Data informs training rather than serving as a blunt disciplinary tool. This reflects an understanding that customer relationships are fragile, and that short-term efficiency gains can create long-term damage if mishandled.

The forgotten human cost

There is also a labour dimension that remains underappreciated. Sales and customer service platforms employ hundreds of thousands across Europe. According to Eurofound, these roles have among the highest turnover rates in the services sector. Retention strategies are therefore not only social considerations, but economic ones. Replacing a single call centre agent can cost several thousand euros once recruitment and training are factored in.

As European telecoms confront higher interest rates and slower growth, attention will continue to focus on debt reduction and asset sales. That focus is understandable. But it risks missing an important point. The sector’s long-term health depends as much on how networks are sold and serviced as on who owns them. Fibre and spectrum may dominate headlines, but execution happens elsewhere, in places that rarely attract public attention.

Read more:
Telecoms’ debt problem hides a deeper truth about how the industry really works

YouTube has been criticised by broadcasters and advertisers after withdrawing from the UK’s main television audience measurement system, just months after agreeing to be measured alongside traditional TV channels and rival streaming platforms.

The move follows legal action by YouTube’s owner, Google, which sent cease-and-desist letters to Barb and its research partner Kantar Media, blocking access to data used to attribute viewing sessions to individual content creators.

The decision came after Barb began including viewing figures for around 200 YouTube channels watched on TV sets, allowing direct comparison with broadcasters such as BBC, ITV, Sky and Channel 4, as well as streamers including Netflix.

According to reports, Google cited a breach of its terms of service as the reason for blocking access, arguing that the measurement process involved the use of creator content in ways not permitted under its application programming interface rules.

Industry figures said the move undermined YouTube’s efforts to position itself as a television-equivalent platform for advertisers.

Lindsey Clay, chief executive of Thinkbox, which represents ITV, Sky, Channel 4 and UKTV, said the decision raised questions about transparency.

“It does seem odd that YouTube has spent so much effort trying to convince advertisers that they are TV, and so gain the benefits of that reputation, but the moment there’s some TV-like scrutiny they go legal to avoid it,” she said. “If they want to be treated like TV, they need to be transparent.”

YouTube is estimated to generate almost $2bn (£1.5bn) a year in UK advertising revenue, according to eMarketer. Its participation in Barb’s measurement system was announced last February as part of a broader push by digital platforms to attract larger TV advertising budgets by allowing cross-platform comparisons.

Simon Michaelides, director general of ISBA, said the suspension was disappointing for advertisers.

“Barb plays a significant role in the UK’s measurement ecosystem, enhanced by its collaboration with YouTube,” he said. “Cross-media measurement is complex and brings challenges, but we would hope that a resolution can be found in the interests of advertisers.”

Recent Barb data underlined why the measurement matters. Figures for December showed YouTube overtook the BBC’s combined channels for the first time in terms of UK viewing across TVs, smartphones and tablets. However, the methodology counts a minimum of three minutes’ viewing, a metric that favours short-form platforms such as YouTube, compared with broadcasters’ preference for longer viewing thresholds.

Last year, YouTube said TV sets had overtaken mobile devices as the primary way its content is watched in the US. In the UK, the platform overtook ITV to become the second most-watched media service, behind the BBC.

Google said it did not believe the Barb service was representative of YouTube’s overall viewership, but stressed that the legal action was based on terms-of-service compliance rather than opposition to measurement itself.

“YouTube has a long track record of providing access to third parties for research and reporting,” a spokesperson said. “All third parties must respect our terms of service and policies when using our APIs, and we will take action when these are violated.”

YouTube’s UK audiences are also measured by firms including Ipsos/Iris, while advertising performance is tracked by organisations such as Nielsen, ISBA’s Origin initiative and AudienceProject.

Kantar confirmed the Barb-linked service had been paused but declined to comment further, while Barb itself declined to respond.

The dispute highlights growing tensions as digital platforms seek TV-style advertising budgets while resisting the scrutiny and standardised measurement long accepted by traditional broadcasters.

Read more:
YouTube criticised for pulling out of UK TV audience measurement system

Aldi has announced plans to open 40 new stores across the UK in 2026 as part of a £370 million investment programme aimed at expanding access to low-cost groceries.

The German-owned supermarket said new locations will include Southam in Warwickshire, Hastings in East Sussex and Amersham in Buckinghamshire, as it targets communities where it currently has no presence.

Giles Hurley, chief executive of Aldi UK and Ireland, said the retailer had identified clear gaps in its store network.

“We recognise there are still areas across the UK without an Aldi store,” he said. “Our expansion plans are designed to address these gaps and bring Aldi’s high-quality, affordable food to more customers.”

Aldi currently operates around 1,060 stores in the UK, but has set a longer-term ambition to grow that number to 1,500. Hurley said the expansion reflects the company’s belief that affordable food should be accessible to everyone.

“We’ve always believed that access to high-quality affordable food is a right, not a privilege, and that’s why it’s our mission to make this a reality for customers up and down the UK,” he added.

The announcement follows a busy year of openings in 2025, with new Aldi stores launched in locations including Eastbourne in East Sussex, Fulham Broadway in London and Deeside in Wales.

The £370m investment for 2026 forms part of Aldi’s wider £1.6 billion two-year expansion programme, unveiled last September, which includes plans to open a total of 80 new UK stores over that period.

The continued rollout underlines Aldi’s confidence in the UK grocery market, as value-focused retailers benefit from sustained pressure on household budgets and shifting consumer spending habits.

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Aldi to open 40 new UK stores in 2026 as part of £370m expansion

The National Wealth Fund has set out plans to sharply accelerate investment, committing up to £5 billion a year of public money into clean energy, industrial transformation and strategic infrastructure as part of a more focused growth strategy.

Under the new approach, the fund will prioritise ten sectors, with clean energy at the core. These include energy storage, electricity networks, nuclear power, hydrogen, and carbon capture and storage, alongside ports, green steel manufacturing, transport infrastructure, regional regeneration, battery manufacturing and the electric vehicle supply chain.

Oliver Holbourn, chief executive of the National Wealth Fund, said the strategy was designed to unlock “growth opportunities on the clean energy pathway” and position the UK to be more resilient and self-sufficient in a rapidly changing global economy.

The fund, which was rebranded in 2024 from the UK Infrastructure Bank, has a core capital budget of almost £28 billion. Over the past five years it has invested just over £8 billion, around half of that into clean energy, and helped crowd in £17 billion of private finance.

Holbourn said the NWF now intends to deploy the remainder of its capital over the next five financial years, targeting a ratio of £3 of private investment for every £1 of taxpayer funding. Clean energy will remain “a really core part of our portfolio”, he said.

In total, the fund estimates its activities will create or support around 200,000 jobs and drive more than £100 billion into the UK economy. A spokesperson confirmed that this headline figure includes the “exceptional” loan facility of up to £36.6 billion being provided via the NWF to the Sizewell C nuclear project, alongside its core investment programme.

Beyond its ten priority sectors, the NWF will also consider opportunities across a further 15 areas, including artificial intelligence and critical minerals. Holbourn said strengthening “sovereign and strategic capabilities” was increasingly important, with potential future investments in UK deposits of tungsten, cobalt, manganese and nickel, building on existing backing for lithium and tin projects.

Based in Leeds, the National Wealth Fund is wholly owned by the HM Treasury but operates independently of ministers. Its mandate is to support the government’s growth and clean energy missions, deliver a return for taxpayers, and catalyse private sector investment. Holbourn said the fund would continue to take “significantly more risk than other commercial financial institutions” while aiming to achieve underlying profitability within its planning period.

The fund’s minimum investment size is £25 million for equity or £50 million for debt, but Holbourn said average deal sizes would need to exceed £100 million to deploy capital at the required pace, given the organisation has capacity to complete around 40 investments a year.

To date, the NWF has made around 70 investments. These include major backing for upgrades to the UK’s electricity transmission network, such as an £800 million financial guarantee to support SSE’s grid projects in the north of Scotland, and a £600 million commitment to Scottish Power to reinforce connections between Scotland and England.

It has also invested across the energy storage sector, including lithium-ion battery projects and long-duration storage technologies such as Highview Power’s plans for large-scale liquid air energy storage. Other investments include Cornish Lithium, which aims to produce battery-grade lithium in Cornwall, and Cornish Metals, which is reviving historic tin mining in the region.

Holbourn said the faster deployment strategy reflects both urgency and opportunity. “We want to move quickly, but in a way that is targeted and strategic, helping to build the clean energy systems, industrial capacity and regional growth the UK needs for the long term,” he said.

Read more:
National Wealth Fund to double investment pace with focus on clean energy and green steel

UPS has announced plans to cut up to 30,000 jobs this year as it continues to reduce deliveries for its largest customer, Amazon, which the parcel giant says have been weighing heavily on profitability.

The world’s largest package delivery firm said the job reductions would be achieved primarily through voluntary buyout offers to full-time drivers and by not replacing staff who leave the business. The move forms part of a broader turnaround strategy aimed at reshaping UPS’s network and focusing on higher-margin customers.

UPS said Amazon shipments were “extraordinarily dilutive” to profit margins, prompting the company to deliberately reduce its exposure to the online retailer. Last year, UPS announced it would scale back its dependency on Amazon and pivot towards more profitable sectors, including healthcare and time-critical logistics.

Chief executive Carol Tomé said the company was nearing the end of its planned drawdown.

“We’re in the final six months of our Amazon accelerated glide-down plan and for the full year 2026, we intend to glide down another million pieces per day while continuing to reconfigure our network,” she said.

The announcement came alongside stronger-than-expected financial results. UPS reported revenues of $24.5bn (£17.7bn) for the final quarter of last year and forecast a surprise rise in full-year revenue to $89.7bn in 2026, despite the planned reduction in Amazon volumes.

The restructuring follows an aggressive cost-cutting programme in 2025, when UPS cut 48,000 jobs and closed 93 facilities as part of the same strategy. The company said it will shut a further 24 facilities in the first half of this year as it continues to streamline operations.

According to its 2024 annual report, UPS employs around 490,000 people globally, including nearly 78,000 in management roles. Much of its workforce is unionised.

In a separate move, UPS confirmed it is permanently retiring its fleet of MD-11 cargo aircraft following a fatal crash in Louisville, Kentucky, in November. The MD-11s, which account for around 9% of the company’s fleet, have been grounded since the incident.

UPS shares ended slightly higher in New York trading on Tuesday following the announcement.

The strategic shift highlights the changing dynamics of the US delivery market, where Amazon has rapidly expanded its in-house logistics network. In 2024, Amazon handled an estimated 6.3 billion deliveries in the US, overtaking both UPS and FedEx. By 2028, Amazon is expected to surpass the US Postal Service as the largest delivery operator in the country, according to Pitney Bowes’ parcel shipping index.

UPS said reducing reliance on Amazon would allow it to improve margins, simplify operations and build a more resilient business model focused on premium and specialised logistics services.

Read more:
UPS to cut 30,000 jobs as it accelerates shift away from Amazon deliveries

Royal Mail has come under renewed fire after research found it failed to deliver Christmas letters and cards on time to around 16 million people, the worst festive performance in five years outside periods of strike action.

The findings, published by Citizens Advice, suggest the number of people affected by delays over Christmas 2025 was 50 per cent higher than in 2024, highlighting what campaigners describe as a persistent deterioration in postal services.

Anne Pardoe, head of policy at Citizens Advice, said the scale of disruption was “simply unacceptable”, particularly given that many households have no alternative postal provider.

“We’re afraid there’s no light at the end of the tunnel for consumers struggling with Royal Mail’s persistent delivery failures,” she said. “When people have no other postal provider to choose from, the sheer volume of delays is unacceptable.”

The research, based on a survey of almost 2,100 adults conducted by Yonder, found that 5.7 million of those affected missed out on receiving important correspondence, including health appointments, benefit decisions, fines and legal documents.

Pardoe warned that the problem went far beyond late Christmas cards. “This is a worrying trend, and with cuts to delivery days looming, Ofcom must crack down harder on missed targets before things go from bad to worse,” she said.

Ofcom does not apply its standard delivery targets to Royal Mail during the busy festive period, a long-standing exemption that consumer groups have criticised.

Royal Mail rejected claims that its Christmas performance was poor. A spokesperson said: “Independent data shows that more than 99 per cent of items posted by the last recommended dates arrived in time for Christmas. This was during our busiest time of year, when volumes more than double, and we’re grateful to our teams across the country who worked incredibly hard to deliver for customers.”

The disruption came during the first Christmas since the £3.6bn takeover of Royal Mail’s parent company, International Distribution Services, by Czech billionaire Daniel Křetínský.

In July, Ofcom approved plans allowing Royal Mail to end second-class deliveries on Saturdays and move to an alternating weekday service from Monday to Friday, a change that has fuelled concerns about further declines in reliability.

At the same time, the cost of postage has risen sharply. A first-class stamp now costs £1.70 — more than double its 2020 price — while a second-class stamp costs 87p. Citizens Advice said 36 per cent of those surveyed sent fewer Christmas cards this year because stamps were too expensive.

Royal Mail has not met its Ofcom-mandated delivery targets for first-class post since 2017, or for second-class mail since 2020. In October, the regulator fined the company £21m for missing annual targets.

“Any future stamp price increases should be conditional on Royal Mail meeting these targets,” Pardoe said.

The challenges facing the service reflect a long-term shift in usage. A decade ago, Royal Mail delivered around 20 billion letters a year; that figure has fallen to 6.7 billion and could drop to 4 billion within four years. Over the same period, the number of addresses served has increased by around four million.

Royal Mail also faced criticism ahead of Christmas after downgrading a staff perk, replacing books of first-class stamps with second-class stamps for employees.

Citizens Advice said the latest figures underline the need for tougher regulatory intervention, warning that without meaningful improvement, millions of consumers will continue to face delayed or missed deliveries for essential correspondence.

Read more:
Royal Mail delivered Christmas post late to 16 million people, Citizens Advice finds

Pornhub will restrict access to its website for UK users from next week, effectively blocking new visitors in protest at tougher age-verification requirements introduced under the Online Safety Act.

From 2 February, only people who already hold a Pornhub account will be able to access the site. The same restrictions will apply to other adult websites owned by its parent company Aylo, including YouPorn and Redtube.

Aylo said the UK’s age-check regime had failed to protect children and instead pushed users towards “darker, unregulated corners of the internet”. The company said traffic to Pornhub fell by 77% after the new requirements took effect last summer.

Alex Kekesi, Aylo’s head of community and brand, described the move as a “difficult decision”.

“Our sites, which host legal and regulated porn, will no longer be available in the UK to new users, while thousands of irresponsible porn sites remain easy to access,” she said.

Aylo initially complied with the law’s requirements, she added, in the belief that Ofcom could enforce the legislation effectively. However, six months after the rules came into force, the company said its experience suggested the Act had not achieved its primary objective of stopping children accessing adult content.

Ofcom rejected that assessment. A spokesperson said pornographic services had a clear choice: “use age checks to protect users as required under the Act, or block access to their sites in the UK”.

The regulator said it would continue discussions with Aylo to understand the change in its position, adding that the age-assurance rules were “flexible and proportionate” and had seen widespread adoption across the sector.

The Department for Science, Innovation and Technology said the law does not prevent adults from viewing legal content and does not require companies to leave the UK market.

“The Online Safety Act is clear: online pornographic services must stop children accessing this material by putting robust age assurance in place,” a spokesperson said.

Pornhub remains the UK’s most-visited adult site, according to Similarweb. Visitors to the UK version of the site are currently met with a notice requesting proof they are over 18. From next week, new users will instead face what Kekesi described as “a wall” blocking access altogether.

Solomon Friedman of Ethical Capital Partners, which owns Aylo, said the company believed Ofcom was acting “in good faith” but argued the legislation itself was flawed.

“You have a dedicated regulator working in good faith, but unfortunately the law they are operating under cannot possibly succeed,” he said, adding that users could still easily find explicit material via search engines.

Legal and technology experts remain divided. Emma Drake, partner specialising in online safety at Bird & Bird, said research cited by Aylo also showed overall adult use of porn sites had fallen,  and that the same was likely true for children.

“Adding barriers to the most well-known sites can still protect a very large number of children who won’t make the effort to bypass them,” she said.

Aylo has argued that age controls should be implemented at device level by companies such as Apple, Google and Microsoft, rather than by individual websites.

Ofcom said there was nothing to stop device manufacturers developing effective age-assurance tools, but stressed that its role was to enforce the law as written.

Cyber-security expert Dr Chelsea Jarvie cautioned that no single solution would be sufficient. “Virtual private networks offer a workaround, which is why protecting children online requires layered controls rather than reliance on any single measure,” she said.

VPN downloads surged in the UK after age-verification rules took effect in July. Peers in the House of Lords have since backed an amendment to prohibit the provision of VPNs to children, highlighting the growing political focus on enforcement.

The decision by Pornhub marks the highest-profile pushback yet against the UK’s online safety regime and is likely to intensify debate over how age-verification laws should be implemented, and who should be responsible for enforcing them.

Read more:
Pornhub to block UK access for new users amid age-verification row

The struggling British fashion brand LK Bennett has been bought out of administration by US restructuring specialist Gordon Brothers, raising the prospect that its remaining nine UK shops could close with the loss of around 380 jobs.

Gordon Brothers, which acquired Poundland for £1 last year, confirmed it has purchased LK Bennett’s global brand and intellectual property assets for an undisclosed sum after the retailer collapsed for the second time in six years.

The Boston-based firm said the womenswear label would move to an “asset-light” model, fuelling speculation that LK Bennett could become an online-only business. The future of its physical estate and workforce remains uncertain.

Tobias Nanda, head of brands at Gordon Brothers, said LK Bennett remained a “beloved heritage brand” with strong international appeal.

“We are excited to add LK Bennett to our portfolio and proud to steward the brand into its next phase of growth, bringing its modern luxury to both long-time followers and new customers around the world,” he said.

Founded in the early 1990s by Linda Bennett with a single store in Wimbledon, LK Bennett became known for its signature shoes, handbags and occasionwear. At its peak, the brand operated more than 200 stores globally, but has since shrunk to just nine standalone UK shops and 13 concessions.

The business has struggled for more than a decade following private equity ownership. Bennett sold a majority stake to Phoenix Equity Partners in 2008 for an estimated £80m to £100m, before later returning as a consultant as profits collapsed. She bought the company back in 2017 after it posted a £48m loss.

In 2019, LK Bennett entered administration for the first time and was acquired by Rebecca Feng, its Chinese franchise partner, leading to the closure of 15 stores. More recent accounts revealed the business had recorded a £3.5m loss in 2024 and carried almost £22m of debt, prompting auditors to warn of “material uncertainty” over its future.

Nimit Shah, managing director for Europe, the Middle East and Africa at Gordon Brothers, said the firm believed LK Bennett was “capable of reinvigoration under a new asset-light model”, suggesting a sharp pivot away from the traditional high street.

The acquisition comes amid sustained pressure on the premium fashion sector, which has struggled with weaker consumer demand and rising costs. While some rivals, such as Reiss and Me+Em, have successfully adapted their offer, LK Bennett has been hampered by what analysts describe as a dated business model and slower response to changing tastes.

The wider UK retail sector has also seen a wave of restructurings. Footwear brand Russell & Bromley was bought out of administration by Next earlier this month, a deal that will result in the closure of most of its stores.

LK Bennett reported revenues of £42.1m in the year to January 2024, down from £48.8m the previous year, swinging from a £2.3m profit in 2023 to a £3.5m post-tax loss. The company employs around 380 people.

Gordon Brothers’ takeover now leaves staff and customers waiting for clarity on whether LK Bennett’s physical presence on the UK high street will survive its latest rescue.

Read more:
Poundland owner Gordon Brothers buys LK Bennett out of administration

More than 3,400 jobs and billions of pounds of private investment are set to flow into Lanarkshire after the UK government named the region as Scotland’s first AI Growth Zone, a flagship initiative under its Modern Industrial Strategy.

The Lanarkshire AI Growth Zone, announced on 29 January, will be delivered by Scottish data centre operator DataVita at its Airdrie site, in partnership with AI cloud specialist CoreWeave. The project is expected to generate more than 3,400 jobs over the coming years, including around 800 high-value roles focused on artificial intelligence, data and digital infrastructure.

These roles will range from AI researchers and software engineers to permanent operational staff running and maintaining advanced data centres. The remaining jobs will be created during the construction phase, as work begins on new data centres, supporting infrastructure, a renewables park and associated facilities.

Alongside job creation, the project has secured £8.2 billion in private investment, making it one of the largest AI-linked infrastructure commitments announced in the UK to date. A further £540 million community fund will be generated over the next 15 years as data centre capacity comes online, providing targeted support to help tackle cost-of-living pressures in the local area.

The fund will back a wide range of initiatives, including skills and training programmes, apprenticeships, after-school coding clubs, and support for local charities and foodbanks. DataVita’s parent company, HFD Group, will also contribute an additional £1 million per year to local community organisations.

The Growth Zone will deliver at least 50 apprenticeships, helping to build a pipeline of Scottish AI talent, while strengthening collaboration between industry, universities and training providers. Ministers said the scheme will ensure local people have access to the skills needed for emerging AI-driven careers.

The announcement marks further progress on the government’s AI Opportunities Action Plan, with ministers saying more than 75 per cent of its commitments have already been delivered. In total, 38 of the plan’s 50 actions have been met within a year, supported by a new public dashboard tracking progress.

Over the past 12 months, the government has increased national AI computing capacity tenfold and launched a major skills drive, delivering more than one million free AI training courses. AI is already being deployed across public services, with around a third of NHS chest X-rays now AI-enabled, fraud detection times cut by 80 per cent, and new AI planning tools set to be rolled out to all councils by spring 2026.

Prime minister Keir Starmer said the Lanarkshire project showed how AI investment could directly benefit working people.

“Getting on in life should not mean travelling miles from your community for work while struggling to pay the bills at home,” he said. “By bringing billions of pounds of investment into Lanarkshire, we are creating good, well-paid jobs and funding support that directly helps families with the cost of living.”

Technology secretary Liz Kendall said the Growth Zone would ensure the benefits of AI are felt locally. “From thousands of new jobs and billions in investment to direct community support, this is how AI can deliver real change for people across Scotland,” she said.

Chancellor Rachel Reeves added that AI Growth Zones were central to driving regional growth and unlocking private investment, while Scotland Office minister Kirsty McNeill said the project would write “the next chapter” in North Lanarkshire’s industrial history.

DataVita managing director Danny Quinn said Scotland now had “everything AI needs; talent, green energy and infrastructure”, while CoreWeave’s international managing director Ben Richardson described the site as a shift from “AI ambition into AI in production”.

When complete, the Lanarkshire AI Growth Zone will be among the most advanced AI sites globally, with plans for more than 500MW of on-site power generation over the next four years. Energy will be drawn from on-site renewables, and excess heat from cooling systems is expected to be reused, with proposals to supply nearby University Hospital Monklands, Scotland’s first fully digital, net zero hospital.

Lanarkshire joins four other AI Growth Zones announced over the past year – in Oxfordshire, North Wales, South Wales and the North East of England. Together, these zones are expected to create up to 15,000 jobs and attract at least £28.2 billion in private investment, cementing the UK’s position as Europe’s leading AI economy.

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Lanarkshire named latest AI Growth Zone with 3,400 jobs and £8.2bn investment boost