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Bed Bath & Beyond Bankruptcy Files

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“The appeal of owning Willy Wonka’s golden ticket — or the blue ticket — is gone,” Dancy said.

When Mr. Dancy called him on the Sunday after the bankruptcy news, he was getting ready to go to the store that same day with his husband and lots of coupons to buy sheets, a robot vacuum cleaner, a deep fryer, and everything else that slipped out of his hands.

“I just don’t want to go there and lose two grand, but I probably will,” Mr. Dancy said.

In August, the company announced an aggressive restructuring plan, saying it would close 150 stores and lay off more employees. Just days after the restructuring was announced, the retailer was hit by an emotional turmoil when its chief financial officer, Gustavo Arnal, passed away. Arnal’s death was ruled a suicide, according to the New York City Medical Examiner’s Office.

Suppliers of Bed Bath & Beyond got scared and demanded upfront payment. Sue Gove, who became permanent chief executive in October, said this resulted in inventory levels nearing 70 percent last holiday season.

The company avoided bankruptcy in early February after it came up with a plan to use a public offering of shares to raise more than $1 billion. The plan, backed by Hudson Bay Capital Management, was only good as long as Bed Bath & Beyond stock stayed above $1 a share. This month, Bed Bath & Beyond canceled that deal after its terms were violated. Its shares closed at 29 cents a share on Friday.

Meanwhile, sales continued to fall, robbing the company of the cash and confidence it needed to have suppliers deliver goods to its stores.

“It’s a death spiral,” said Neil Saunders, managing director of GlobalData’s retail division. “If you can’t get shares, you can’t sell. If you cannot make sales, your credit deteriorates. If your credit deteriorates, people are less willing to supply you. It seems that this circle cannot be broken.

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BUSINESS

On changes in the UK, political agreements and missing Scots

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I was very impressed with Heidi Allen’s first speech when she left the Conservative Party to join the Independent group, now known as the Change Party in the UK. How could the Conservative high command ignore such an outstanding talent? But I’m afraid I wasn’t very impressed with her performance at the beer and Brexit debate on May 14 hosted by King’s College London. Ms. Allen is now the acting leader of Change UK. But even as her position grew, she seemed to shrink as a politician. Gently interrogated by Anand Menon, the reigning Brexit guru at King’s, she gave a series of mild and vague answers that suggested she was incapable of either strict thinking or vigorous organization.

Ms Allen spouted a torrent of good government platitudes about how Britain should make much better use of the experience. Politics should be run more like a business. Parties must take stock of the skills and talents of each new set of deputies. Parliament operates like an old-fashioned gentlemen’s club, and so on and so forth. This makes some sense, especially with regard to the list of skills. But isn’t the call for politics to be run more like a business a bit old hat for a party that positions itself as an agent of change? Donald Trump ran for a promise to use his businessman skills to shake up Washington D.C. in 2016, and Silvio Berlusconi said the same about Rome in the 1990s. And isn’t the Change UK boss a pretty bad place to call for a more businesslike approach to politics? The party rushed from one disaster to another: failed to create a brand; fiddling with his name; public disagreement with the policy; the production of ridiculously sloppy propaganda literature; and, in every possible sense, allowing itself to be inefficient, disorganized and ill-conceived by what is considered the party of out-of-world fanatics, Nigel Farage’s Brexit Party.

The UK looks set to receive the Palme d’Or for the most risky projects in recent political history. For a moment, it looked like Tom Watson and the Social Democratic wing of the Labor Party might go on a mass strike and join the Tigers (as Change UK members were called when their nascent party was the Independent Group). But Mr. Watson chose to stay and fight, and the Tigers had to rely on the strength of their personalities rather than numbers. The trouble is that this is far from enough: the founders of the Social Democratic Party back in 1983 were big weather-making beasts. Change UK is a collection of little animals that are likely to be blown away by a storm.

***

In EDINBURGH – this is a wonderful exploration of stone as poetry – to discuss the future of capitalism with Stuart Wood, a Labor colleague courtesy of Reform Scotland, a think tank. To be honest, we struggled to find important things to disagree about. Across the political spectrum, there is broad agreement on the biggest challenges facing the UK: the over-centralization of economic and political power in London; a long tail of low-skilled workers stuck in low-paying jobs; the cult of the short term; financial design; lack of respect for the manufacturing sector. And yet the British political class is instead focusing on policies that are as divisive as possible: on the right, exit from the European Union, and on the left, massive state intervention in the “commanding heights” of the economy, such as the renationalization of housing and communal services and taking 10% of the country’s largest public companies. As long as we quarrel over what is controversial, we cannot decide what we agree on.

***

SCOTLAND and England are perhaps politically further apart than at any time in the history of the Union, and not just because the Scots voted to stay in the EU and the British voted to leave. The Labor Party once specialized in pushing Scottish politicians to the heights of power in Westminster – Tony Blair, Gordon Brown, John Smith, Ramsay Macdonald, Keir Hardy. The Liberal Party and its various offshoots had deep roots in Scotland as well as in the English provinces (think of Joe Grimond and Charles Kennedy). The aristocratic wing of the Tory party also boasted deep Scottish connections: Alec Douglas-Home had an estate there, and even David Cameron boasted a Scottish name and Scottish shooting buddies.

British politics are now as English as they ever were. The only Scot at the forefront of politics is Michael Gove, the adopted son of a Scottish fishmonger and a man who could switch from Oxbridge English to Aberdeen Scots if necessary. People in high government positions (prime minister, chancellor, minister of foreign affairs) seem to be competing to be the most southerly. The Scottish Labor Party has all but died of complacency and mediocrity, and the National Party has been taken over by a cabal of London MPs: Jeremy Corbyn and Emily Thornberry sit next door in Islington, while Diane Abbott and John McDonnell represent London. places. The Scottish dominion that once ruled over its southern neighbor has been blown to the wind: Gordon Brown and Alistair Darling are back in Scotland, and Tony Blair is flying in a private jet somewhere in the middle of the Atlantic.

Political life in Scotland is dominated by the Scottish National Party (SNP), which has no real importance in the south (although it has 35 MPs and their leader, Ian Blackford, courageously delivers the same Prime Minister’s Questions speech every week on the state of Britain ). take Scotland out of the EU against her will). The hottest issue in the north right now is the upcoming trial of Alex Salmond on charges including sexual harassment and attempted rape. (He says he is innocent of any crimes.) This separates the SNP and Scottish politics in general into fans of Nicola Sturgeon, who began her political life as a protégé of Mr Salmond but has since turned her back on him, and Salmond’s supporters who feel he is being unfairly accused. The row could loosen the SNP’s (increasingly deadly) grip on Scottish politics and set the stage for significant gains for either the Tories or the Labor Party, with major implications for the next general election in the south.

Another big issue is Ruth Davidson’s return to the stage after a few months on maternity leave. If things had gone well with Brexit, Ms Davidson would have reappeared at a time when the Tory party would have put Brexit behind us and addressed the question of where Britain needs to go now that it is leaving the EU (Ms Davidson is the remaining who resigned herself to fulfilling the will of the people). But the Brexit problem is even more serious today than when she went on vacation, and the Tory brand is far more toxic. Ms. Davidson has resisted enormous pressure from within her party to weaken her ties to the Conservative Party south of the border. As Brexit swings from disaster to disaster, and as the Tory party becomes more associated with the likes of Jacob Rees-Mogg, she may regret her decision.

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UK inflation falls but remains in double digits

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Inflation in the UK slowed in March, but less than economists had expected, keeping the figure in double digits.

Consumer prices rose 10.1% in March from a year ago, the Office for National Statistics said on Wednesday, slightly slower than the 10.4% in February. But economists had expected the country’s inflation rate to fall below 10 percent for the first time since the summer.

The UK’s annual inflation rate peaked at 11.1 percent in October, but its downward trend was broken in February when the rate rose unexpectedly. The Bank of England then raised interest rates for the 11th consecutive time in March to 4.25 percent.

A return to a downward inflation path may bring some relief to households and policy makers, but UK cost of living issues remain acute. Food prices rose about 19% year-over-year in March, with prices for bread, meat and cooking oils continuing to rise rapidly. According to the statistical agency, price inflation for bread and cereals is at a record high. Core inflation, a measure that excludes food and energy prices that tends to be more volatile, was 6.2 percent, the same as the previous month.

And headline inflation is still high compared to international peers. In the United States, the consumer price index slowed in March, up 5 percent from a year ago, while inflation in the euro area fell to 6.9 percent.

While inflation is expected to slow sharply later this year due to lower energy prices, uncertainty remains about how quickly price growth will return to the 2 percent target set by the central bank. Bank of England policymakers are closely monitoring private sector wage growth and service prices for signs of how much inflationary pressure is taking root in the economy.

On Tuesday, data from the statistical agency showed wages before bonuses rose 6.6% in the three months to February from the same period a year earlier, beating economists’ expectations. But there were also signs that the UK labor market was starting to lose ground, supporting bets that the Bank of England was close to stopping rate hikes. In February, private sector wage growth slowed slightly for the second straight month as job openings fell and more people returned to work, data showed on Tuesday.

Inflation in the services sector, which is heavily influenced by companies’ payroll costs, remained unchanged at 6.6%.

Bank of England policymakers will meet again in early May to decide whether to raise interest rates again.

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Sensex down 100 pips; metallic luster; IT, bank case

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LIVE stock market updates: Benchmark S&P BSE Sensex fell about 100 points, or 0.2%, to 59,600 on Wednesday amid losses from Infosys, HCL Tech, Asian Paints, Wipro, HUL, TCS, Bajaj Finserv, ITC, ICICI Bank and Kotak bank . Meanwhile, Nifty50 was trading below 17,650.

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