Metro Bank is ending its seven-day operation and cutting 1,000 jobs

Metro Bank is ending the seven-day operation that set it apart from its rivals – with 1,000 job cuts.

The lender – which was rescued in a £925 million rescue deal last October – will no longer be open on Sundays and public holidays.

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Half of the 76 branches will also be closed on Saturdays as this looks to save £50m.

It also usually closes at 5 p.m., instead of 8 p.m., which was attractive to customers who wanted to stop by after work.

Boss Daniel Frumkin stressed the changes reflect demand as the bank struggled to hire Sunday staff. He claimed the bank “will still be open more hours than other high street competitors”.

Additional cost savings will “come from colleague costs”, with almost a quarter of the 4,000-strong workforce set to be made redundant.

Mr Frumkin ruled out branch closures and said he still planned to open 11 more branches in the north to help small businesses.

Metro Bank was founded in the wake of the 2008 financial crisis. American entrepreneur Vernon Hill wanted it to look more like a retailer with ‘shops’, bright signage and free dog treats.

But it has struggled to gain scale against rivals, not helped by the recent deals between Nationwide and Virgin Money and Barclays and Tesco Bank.

Fear surrounding the bank’s financial situation health had caused the shares to crash and some customers to withdraw their money. Investors subsequently approved a bailout deal for Colombian tycoon Jaime Gilinski Bacal, who is now majority shareholder and board director.

The lender yesterday reported £30.5 million in pre-tax profits, compared with a loss of £70.7 million last year.

Last year, a record number of 246,000 new accounts were opened, including 52,000 in the last quarter. But Mr Frumkin admitted it had been a costly exercise as some savings clients were on “unsustainably high interest rates”.

The bank’s shares fell a further 4.4 per cent to 32.8p yesterday, valuing the lender at just £221m.

It’s Yeezy, come on, take it easy

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Adidas has suffered its first loss in thirty years due to its ill-fated collaboration with Kanye West.

The German sportswear giant signed a blockbuster deal with the rapper, who now goes by Ye, to produce his range of highly sought-after Yeezy sneakers.

But Adidas cut ties with the star after he made a series of anti-Semitic comments. It now expects to sell the remainder of its Yeezy inventory at cost.

Adidas reported a £50 million loss last year, compared with £217 million profit in the previous 12 months. The company lost £427 million in revenue as a result of the fallout, despite the classic Gazelle and Samba trainers enjoying a renaissance.

Insurer rejects new offer

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Direct Line has rejected a takeover bid from its Belgian rival, rejecting a £3.2 billion bid yesterday.

The FTSE 250 insurer, which also owns the Churchill brand, confirmed it had received another cash and share tender from Aegeas, valuing it at 237p per share.

The improved offer was only three percent more than Aegeas’ previous offer.

The British insurance giant rejected that proposal on February 28.

Direct Line said the new offer was still “uncertain, unattractive and significantly undervalued” for the company and its prospects.

Shares fell almost six per cent to 212p after the offer was rejected.

New boss Adam Winslow, who has only been in office for two weeks, is tasked with turning around the insurer while fending off an opportunistic bidder.

It’s a loss for Mor

Morrisons made a £1 billion loss last year after taking over private equity.

The Bradford-based retailer faced £735 million in interest costs after being piled on debt by Clayton Dubilier & Rice, which bought the grocer for £7 billion in 2021.

Its parent company, Market Topco, made a pre-tax loss of £1.1 billion in 2023, while turnover fell from £18.7 billion to £18.4 billion.

New boss Rami Baitieh is said to be drawing up plans to “revive” the supermarket.

Fashion company reaches new heights

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Zara owner Inditex has achieved its biggest ever turnover as it continues to maintain its lead retail rivals.

The world’s largest fashion retailer, which also owns Bershka and Pull & Bear, said sales rose 10.4 percent to £30.7 billion last year, while profits rose 30 percent to £5.9 billion.

It closed 1,200 stores following pandemic lockdowns as it ramped up its online business, but shoppers have returned to the high street and its 5,700 stores worldwide.

The company plans to reopen stores in war-torn Ukraine after two years. Inditex said demand for its spring and summer collections was “very strong”.

Victoria Scholar, an analyst at Interactive Investor, said the retailer is still outpacing its biggest rival H&M and newer online competitors.

She added: “It deftly keeps pace with the latest high-end trends, rapidly increasing the range of popular items.”

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Britons stuck to their New Year’s fitness resolutions, says Gym Group, which has seen sales rise 16 percent since the start of the year.

Turnover in 2023 increased by 18 percent to £204 million. Losses fell to £8.3 million. It plans to open 50 locations over time next one three years.

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‘Land rental a problem’

The competition watchdog yesterday stepped up criticism of ‘problematic’ leasehold clauses that often trap homeowners in their properties.

The Competition and Markets The Authority welcomed government intervention and said the lease is neither “legally nor commercially necessary”.

The government has limited the leasehold clauses in a new framework houses but it is not regulated for existing properties.

The CMA yesterday said it had secured agreement from eight companies to release 500 homes from leasehold clauses.

It came as new figures from the Royal Institute of Chartered Surveyors suggested life had returned to the housing market and more sellers were confident mortgage rates for buyers would not skyrocket.