PRESS DIGEST - British business - July 8

The Times

CARE HOME CHAIN FACES SALE AS LENDERS SHUN DEBT SWAP

Four Seasons is expected to make one last attempt to secure a rescue deal with its creditors by the end of the week, before placing itself up for sale for up to 900 million pounds following the collapse of the talks with its lenders. The group's lenders have not supported a proposal that would have handed all of Four Seasons' equity to more than 30 creditors in return for writing off 50 percent of its 1.5 billion pounds debt pile. Britain's largest care home chain, which operates 400 nursing and care homes and has 15,000 residents, is trying to gain the support of a group of lenders behind payment-in-kind, or PIK loans.

OCADO'S IPHONE LINK

Online supermarket Ocado has become the first grocer to create an "app" for the Apple iPhone. The innovative platform will allow customers to place their orders without having to log into Ocado's website through a browser. Jason Gissing, the online retailer's co-founder, said: "I'm convinced we're in the midst of a structural change in how grocery markets work, just like the first out-of-town supermarkets 20 years ago or, 20 years before that, the first self-service supermarkets."

N BROWN SALES RISE AS IT SHRUGS OFF CUSTOMER DEBT

N Brown (BWNG.L), the catalogue and online fashion group, reported on Tuesday that sales during the 18 weeks to last Saturday increased by 5.1 percent compared to the same period last year. The retailer, whose brands include Oxendales, Simply Be, JD Williams and Ambrose Wilson, said there had been an expected rise in bad debts among its customers but that the situation was under control.

The Daily Telegraph

CVC SHOCKED BY ECCLESTONE GAFFE

CVC, the private equity group that took a controlling stake in Formula One in 2006, said it was "shocked" at the remarks made by Bernie Ecclestone which apparently praised Adolf Hitler's ability to "get things done", The motor racing boss's comments were a big embarrassment to CVC which invests money on behalf of several Jewish funds. CVC said it fully concurred with the unreserved apology that was issued by the 78-year-old billionaire. The case is the latest scandal to hit the sport, with racing teams recently threatening to break away from the governing body.

LIBERTY SHAREHOLDERS REBEL OVER CASH-CALLS

Property group Liberty International (LII.L) faced a major shareholder rebellion at its annual meeting on Tuesday as it saw 35 percent of voters rejecting a resolution to grant the company the right to issue 94 million pounds of new shares if necessary, while 22 percent snubbed proposals to disregard pre-emption rights in a cash-call. The FTSE 100 group's remuneration report also came under scrutiny, with 17.6 percent voting against it at Tuesday's meeting. All the resolutions were passed, but the showdown over the equity issues stems from South African institutional investors, who own considerable stakes in the company.

The Independent

PERSIMMON REPORTS UPLIFT IN HOUSE SALES

Shares in Persimmon (PSN.L) rose seven percent to 390.25 pence as Britain's largest house builder reported it was selling more homes than in the corresponding period last year. In the half year to June 30, the group completed 4,006 homes and generated revenues of 625 million pounds, down from 998 million pounds in June 2008, following a four percent drop in prices. The company said it would continue to focus on cash generation and the cutting of its debt, which it reduced to 495 million pounds at the end of June from 906 million pounds a year ago. Persimmon's cheerful update helped lift rivals including Taylor Wimpey (TW.L) and Bovis Homes (BVS.L).

DRY CLEANER CUTS COSTS TO COPE WITH SLOWDOWN

Johnson Service Group (JSG.L), the owner of the dry cleaner Johnson, said on Tuesday its like-for-like sales were below expectations in the first six months of 2009 but that its running costs were 100,000 pounds a week less than in November. The group, whose cost-cutting drive has helped it protect its profits amid challenging trading conditions, said it had seen a rise in revenues from its environment-friendly GreenEarth machines. Executive chairman John Talbot said the majority of the cost cuts had been made by decreasing staff working hours to deal with a drop in demand for dry cleaning services.

CLAPHAM HOUSE PROFITS FALL BY 18 PERCENT

Clapham House (CPH.L), the owner of the Gourmet Burger Kitchen, Real Greek and Tootsies brands, has suffered an 18 percent drop in full-year headline pre-tax profits, hit by higher administrative costs. The restaurant group, which said it expected increased promotional activity to squeeze its margins, said that underlying pre-tax profit fell to 4.1 million pounds from five million pounds a year ago. It added, however, that its sales grew by six percent in the year to March 29 while revenue from continuing operations jumped 17 percent to 62.2 million pounds.

The Guardian

MARKS & SPENCER BRACED FOR SHOWDOWN AS ANGRY INVESTORS ATTACK ROSE'S DUAL ROLE

Up to 50 percent of Marks & Spencer's (MKS.L) shareholders are expected to oppose Sir Stuart Rose's chairmanship at the retailer's annual general meeting at the Royal Festival Hall on Wednesday afternoon. Discontented investors do not plan to oust Sir Stuart, who is due to retire in 2011 but want to force him to split his dual role of chief executive and chairman. The Local Authority Pension Fund Forum, which represents 49 public sector pension funds with assets of 75 billion pounds, has tabled a proposal calling on the retailer to appoint an independent chairman from outside the company by July 2010. Its proposal has also won the support of three other shareholder advisory groups, America's Glass Lewis, Pensions and Investment Research Consultants (Pirc) and RiskMetrics.

FEARS FOR TIO TINTO STAFF HELD IN CHINA

Four Rio Tinto (RIO.L) employees were detained by the Chinese authorities on Sunday amid growing concerns for their safety. The British-based mining group, which did not reveal if the workers were British nationals, said it did not know the reasons behind the move and has sought clarification. All four worked at the company's sales and marketing office in Shanghai and hold relatively senior roles. A spokesperson for the company said: "Rio Tinto is concerned about the employees' wellbeing and is doing everything possible to help them and support their families."

COFFEE REPUBLIC IN ADMINISTRATION

Coffee Republic's (CFE.L) shares were suspended on Tuesday at 22 pence as the high street coffee chain fell into administration. KPMG's Richard Hill and David Crawshaw, who have been appointed joint administrators, said they expected considerable interest in the profitable parts of the 187-strong chain. The group, which was founded in 1995, has grown rapidly in recent years through selling franchises but has been hit by the downturn in consumer spending. In December, it posted a loss of 527,000 pounds in the half year to September 2008 but had no debts. Chief executive Steve Bartlett has stepped down, replaced for the time being by Peter Breach, the group's executive chairman.

Prepared for Reuters by Durrants