A foreign exchange firm, Wise, has come under criticism from the Government for allowing a sanctioned Russian oligarch, Vladimir Potanin, to withdraw cash from an ATM. The firm's staff didn't work on weekends, which allowed Potanin to withdraw £250 in cash from an ATM using his business debit account. Treasury documents revealed that although this withdrawal should have raised alarms, it was not reviewed until two days later due to the firm's lack of weekend working. Wise has since changed its policy and strengthened its sanctions team to prevent similar incidents in the future.
Treasury decides not to impose financial penalty on Wise
After initially causing concern for investors, it seems that Wise will not face a financial penalty for allowing the withdrawal. The Treasury deemed the cash amount to be relatively small, and since Wise promptly reported the error, it will only face public scrutiny for its failure. As a result, Wise shares initially fell by 3.5 percent but later recovered. The firm has since taken measures to rectify the situation, including introducing weekend working and enhancing its specialist sanctions team.
Mike Ashley increases stakes in Boohoo and ASOS
Mike Ashley, the founder of Sports Direct, has recently acquired stakes in both Boohoo and ASOS, two major players in the fast-fashion industry. Ashley's Frasers Group, which already holds a 72 percent stake in the company, has increased its stake in Boohoo to 9.1 percent and in ASOS to 19.3 percent. This move aligns with Frasers Group's strategy of investing in weaker retailers, as it already has significant stakes in electrical rivals like AO World and Currys. Both Boohoo and ASOS experienced a significant boost in their share prices following Ashley's increased investment.
Wilko faces job losses as potential deal falls through
Retail chain Wilko is at risk of job losses after a potential buyer failed to provide proof of funds for a deal. Private equity firm M2 Capital made a last-minute offer of £90 million, claiming it could save all of Wilko's shops and retain its employees with higher wages. However, doubts were raised about the credibility of the offer, and M2 Capital's chairman, Robert Mantse, claimed to have secured financing from British businessman Michael Flacks, who denied any involvement in the deal. Administrators are now in talks with HMV owner Doug Putman, who may keep some of Wilko's stores but not its warehouses or headquarters. If these discussions fail, other retailers such as B&M and Home Bargains may be interested in acquiring parts of the company.
Did you miss our previous article…
https://hellofaread.com/money/with-childcare-costs-soaring-heres-our-ultimate-guide-to-family-friendly-jobs/
