Latest news with #collapse
Yahoo
10 hours ago
- Business
- Yahoo
Evergrande's $7 Billion Secret: The High-Stakes Hunt for Hui Ka Yan's Hidden Fortune
Evergrande's collapse isn't yesterday's newsit's entering a make-or-break phase. Liquidators are circling founder Hui Ka Yan, who's still refusing to disclose his personal fortune despite reportedly pocketing over $7 billion during the company's heyday. The next showdown is set for September 2 in Hong Kong's high court, where creditors hope to crack open Hui's holdingsa potential step toward recovering a slice of the group's estimated $45 billion in debt. Evergrande (EGRNF) has already notified plans to delist from the Hong Kong exchange by August 25, marking a symbolic end to its 16-year run as one of China's most ambitiousand now infamousdevelopers. Warning! GuruFocus has detected 3 Warning Signs with RKGXF. This isn't just about Hui. Liquidators are following the money across 3,000 tangled entities, stretching from Guangzhou to Vancouver to London, where Hui's ex-wife reportedly owns $350 million worth of luxury real estate. His former CEO, Xia Haijun, appears to be living comfortably in California, tied to assets worth nearly $500 million. Both have delayed disclosure for over a year, using high-priced lawyers and legal tactics, but cracks are starting to show. Meanwhile, one of Hui's sonswho ran Evergrande's wealth management unitwas reportedly taken into custody last year. The personal network is under pressure, and creditors aren't letting up. But even if they win in court, getting money out of China is another story. Most of Evergrande's value sits onshore, and the legal wall between mainland courts and Hong Kong remains steep. Last year, Chinese regulators accused Hengda Real EstateEvergrande's core property armof faking $78 billion in revenue. The resulting $4.18 billion fine didn't just damage reputationsit likely wiped out more cash that offshore creditors were counting on. Liquidators say they're tracking hundreds of actions across the mainland, but with Hui reportedly under residential surveillance and Chinese authorities staying silent, the road to recovery still looks long. September's hearing could be the turning point. This article first appeared on GuruFocus. Sign in to access your portfolio
Reuters
a day ago
- Business
- Reuters
Chilean miner Codelco's El Teniente smelter to restart after collapse
SANTIAGO, Aug 13 (Reuters) - Chilean miner Codelco's smelter at its El Teniente mine is set to restart on Thursday, the firm said, after being paused for nearly two weeks due to a deadly collapse at the site. The collapse at El Teniente in late July, which killed six workers, is still being investigated. The shutdown led to a loss of 20,000 to 30,000 metric tons of copper, worth about $300 million, Chairman Maximo Pacheco said on Wednesday.
The Guardian
2 days ago
- Business
- The Guardian
Claire's to appoint administrator in UK and Ireland, putting 2,150 jobs at risk
Claire's is on the brink of collapse after the fashion accessories retailer said it is to appoint administrators in the UK & Ireland, putting 2,150 jobs at risk. The tween jewellery and ear-piercing retailer, which has 278 stores in the UK and 28 in Ireland, has struggled to arrest falling sales and competition from online retailers such as Amazon. Claire's has filed a notice of intention to appoint the administrator Interpath, which will assess 'all options' for the company while it continues to trade. Chris Cramer, chief executive of Claire's, said: 'This decision, while difficult, is part of our broader effort to protect the long-term value of Claire's across all markets. 'In the UK, taking this step will allow us to continue to trade the business while we explore the best possible path forward. We are deeply grateful to our employees, partners and our customers during this challenging period.' The decision follows Claire's in the US and Canada filing for bankruptcy earlier this month. Claire's, which also operates stores under the Icing jewellery and cosmetics brand, is owned by a group of firms, including the US hedge fund Elliott Management. Will Wright, UK chief executive at Interpath, said: 'Claire's has long been a popular brand across the UK, known not only for its trend-led accessories but also as the go-to destination for ear-piercing. 'Over the coming weeks, we will endeavour to continue to operate all stores as a going concern for as long as we can, while we assess options for the company. 'This includes exploring the possibility of a sale which would secure a future for this well-loved brand.' Interpath Advisory had been working to find a buyer for Claire's UK and European businesses, which has a combined workforce thought to be about 5,000, to avoid administration. Last week it was reported that potential bidders for Claire's British arm, including the Lakeland owner Hilco Capital, had backed away from making an offer for the business. There has been speculation that as many as a third of the UK shops might need to be closed if the chain is to survive. Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: 'It looks certain that more stores will close, given the liability the store footprint has become for the company.' Founded in 1961, Claire's has been a staple in British shopping centres and high streets. Products such as ear-piercings and on-trend jewellery made it particularly popular among teenagers. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion 'Claire's attraction has waned, with its high street stores failing to pull in the business they used to,' said Streeter. 'While they may still be a beacon for younger girls, families aren't heading out on so many shopping trips, with footfall in retail centres falling. The chain is now faced with stiff competition from TikTok and Insta shops, and by cheap accessories sold by fast fashion giants like Shein and Temu. 'Having so many stores across the UK, used to be great for brand recognition, now names are recognised from social media feeds not building fascia.' The retailer has two shops on Oxford Street in London and further branches in sites such as the Westfield and Brent Cross shopping centres and the O2 in Greenwich. Claire's operates more than 2,750 stores across 17 countries in North America and Europe. Its British arm has made losses of £25m over the past three years. The most recent figures showed it made a loss of £4.7m in the 12 months to the end of March last year, following a £5m loss the previous year. The UK operation has an outstanding loan of $480m (£355m) that is due to be repaid by December next year. The US operation previously declared bankruptcy in 2018 after it was unable to repay a loan but recovered seven months later after wiping about $1.9bn from its balance sheet.
Telegraph
2 days ago
- Business
- Telegraph
Claire's Accessories on brink of collapse with 2,100 jobs at risk
More than 2,100 jobs are at risk at Claire's as the jewellery and accessories chain teeters on the brink of collapse. The retailer is poised to appoint administrators as soon as Wednesday afternoon, dealing a further blow to Britain's ailing high streets. Chris Cramer, the chief executive of Claire's, said the appointment of administrators would help keep the company afloat while it scrambles for a buyer. Claire's has 306 stores across the UK and Ireland and employs 2,150 staff. Mr Cramer said: 'This decision, while difficult, is part of our broader effort to protect the long-term value of Claire's across all markets.' Claire's has lined up insolvency experts at Interpath to act as administrators, with the appointment expected to come as soon as Wednesday. Mr Wright said: 'Over the coming weeks, we will endeavour to continue to operate all stores as a going concern for as long as we can, while we assess options for the company.' Store employees are expected to remain in their positions for the time being, while Claire's said customers would be able to continue to shop in-store as usual. However, the administration will raise fears that thousands of staff could be axed owing to the company's strained finances. Claire's has already warned store managers this week that bailiffs could start turning up in person to recover debts. It comes after The Telegraph revealed last month that Claire's was racing to draw up a rescue plan to protect jobs in the face of a looming debt repayment. The company has been battling to preserve cash since the start of the year, ahead of an outstanding $480m (£355m) loan that must be repaid by December 2026. It follows years of financial struggles, with Companies House filings showing that the UK chain has recorded £25m of losses over the last three years. Problems have been compounded over the past year by Rachel Reeves's tax raid, which has piled pressure on retailers across the country. The latest administration move comes after its US parent company filed for bankruptcy earlier this month, marking the second time it has done so since 2018. It emerged from the process in 2022 under the control of its biggest creditors, including hedge funds Elliott Management and Monarch Alternative Capital. The UK chain sits as part of the sprawling Claire's empire, which stems from a base in a suburb of Chicago, Illinois. Claire's French business, which has 239 stores, was forced to call in receivers last month.
Daily Mail
2 days ago
- Business
- Daily Mail
Government plans for the potential collapse of Thames Water
Ministers have reportedly appointed advisers to prepare for the potential collapse of Thames Water. Environment Secretary Steve Reed has lined up FTI Consulting to advise on contingency plans which would involve Thames Water being placed into a special administration regime, according to Sky News. The embattled water company has been at threat of both nationalisation and collapse as its investors and creditors scramble to keep the group afloat. It has been in talks with its largest group of creditors and the water regulator Ofwat over a rescue plan that would see lenders inject £5billion of new capital. However, its creditors warned it has a 'very short and closing window' to ensure its survival as a private business. If the utility giant were to be placed into a special administration regime, customers would continue to receive water and sewage services, but it would be paid for by taxpayers.
