Your commercial news round-up: London Trocadero, Rolls-Royce, Christmas, Morrisons

LawCareersNetLIVE application season is here (apply now) and part of your preparation should be:

• developing your commercial awareness;
• demonstrating an interest in the business world; and
• pulling apart the political, economic, sociological, technological, legal and environmental issues of some news stories.

For a selection of this week’s headline-grabbing commercial news stories, read on.

• London’s Trocadero won a High Court battle against Cineworld for £1.4 million in unpaid rent. The owners of the Trocadero’s Centre in Piccadilly Circus filed for legal action against Cineworld and Picturehouse Cinemas for outstanding bills from 18 months ago. The covid-19 lockdown saw cinemas across the country close in late March 2020 to contain the spread of the virus. The defendants argued their business model was shattered by the pandemic so they should be entitled to a rent holiday. The High Court demanded the cinema giants pay the amount they owed in rent, electricity, insurance and service charges.
   
• Engineering giant, Rolls-Royce will stop making petrol and diesel cars by 2030. Rolls-Royce, known for its aircraft engines and luxury cars, has closed the chapter on centuries of engineering. The announcement came alongside news that the first all-electric Royce will be in a production line in 2023, with Rolls-Royce embarking on a 1.5 million-mile global testing programme. This means Rolls-Royce’s first electric car, Spectre, will soon grace public roads (watch out for it!). The electric car market continues to grow rapidly; the UK plans to ban the sale of new petrol and diesel cars from 2030.
   
• Next demands the UK government take a “more decisive” approach to save Christmas. Lack of foreign workers will affect the services industry in the run-up to Christmas. The driver shortage is already causing a noticeable strain on supermarkets; just last week we reported Asda and Sainsburys on the brink of collapse. Despite the lack of recruitment in warehouse and logistics, the retailer has reported pre-tax profits of £347 million for the six months to 31 July and has even “bumped up its expectations for full-year earnings.” The UK lorry driver shortage is an indication of a wider European problem, one that won’t be solved in time for Christmas.
   
• Morrisons takeover battle will commence in a one-day auction this Saturday. Two weeks ago, we predicted the bidding war might be coming to an end, following the CD&R agreement with the supermarket chain. The UK’s takeover watchdog confirmed the multibillion-pound takeover that began a month ago. The two private equity bidders, CD&R and Fortress Investment consortium, have until Saturday to submit a “formal increased bid at a fixed price in cash” in the first round of the auction. The winner will be announced on Monday. So, who’s looking forward to the dramatic showdown this weekend?

Be sure to check the News every Thursday for this weekly commercial news round-up. Follow @LawCareersNetUK on Twitter and like us on Facebook for instant business news updates.