Metro Bank ending seven-day operation that set it apart from rivals — with 1,000 jobs slashed

Metro Bank is ending the seven-day operation that set it apart from its rivals — and 1,000 jobs are being slashed.

The high street lender — saved in a £925million rescue deal last October — will no longer open on Sundays or Bank Holidays.

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Half of its 76 branches will also be shut on Saturdays as it looks to save £50million.

It is also closing most at 5pm, rather than the 8pm time that appealed to customers who wanted to visit after work.

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

Extra cost savings will “come from colleague costs”, with almost a quarter of its 4,000-strong staff being axed.

Mr Frumkin ruled out branch closures and said he was still planning to open 11 more in the North to help small firms.

Metro Bank was launched in the aftermath of the 2008 financial crisis. US entrepreneur Vernon Hill wanted it to be more like a retailer with “stores”, bright signs, and free dog biscuits.

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.

Fears around the bank’s financial health had led to shares crashing and some customers pulling their cash. Investors then approved a rescue deal from Colombian tycoon Jaime Gilinski Bacal, who is now majority shareholder and board director.

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

A record 246,000 new accounts were opened last year, with 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 dipped another 4.4 per cent yesterday to 32.8p, valuing the lender at just £221million.

It’s Yeezy come, easy go

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Adidas has suffered its first loss in 30 years amid its ill-fated partnership with Kanye West.

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

But Adidas cut ties with the star after he made a string of anti-Semitic remarks. It now expects to sell the remainder of its Yeezy stockpile, right, at cost.

Adidas reported a £50million loss last year compared to £217million profit in the previous 12 months. It lost £427million of revenues related to the fall-out, despite its classic Gazelle and Samba trainers enjoying a renaissance.

Insurer rejects new bid

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Direct Line has snubbed its Belgian rival’s takeover bid — rejecting a sweetened £3.2billion offer yesterday.

The FTSE 250 insurer, which also owns the Churchill brand, confirmed it had received another cash and shares approach from Aegeas that valued it at 237p a share.

The improved offer was just three per cent more than Aegeas’ previous bid.

The UK insurance giant rejected that proposal on February 28.

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

Its shares sank by almost six per cent to 212p after turning down the bid.

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

It’s loss for Mor

Morrisons made a £1billion loss last year after its private equity takeover.

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

Its parent company, Market Topco, made a £1.1billion pre-tax loss in 2023 as sales slipped from £18.7billion to £18.4billion.

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

Fashion firm hits new high

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Zara owner Inditex has raked in its biggest ever sales as it continues to stride ahead of its retail rivals.

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

It shut 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 firm plans to re-open shops in war-torn Ukraine after two years. Inditex said demand for its spring and summer collections was “very strong”.

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

She added: “It nimbly keeps up with the latest high-end trends, quickly increasing supply of popular items.”

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Brits kept their New Year fitness resolutions, says Gym Group, which has seen revenue rise by 16 per cent since the start of the year.

Sales in 2023 were up 18 per cent to £204million. Losses fell to £8.3million. It plans to open 50 sites over the next three years.

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‘Ground rents a problem’

The competition watchdog yesterday ramped up criticism of “problematic” ground rent clauses that often trap homeowners in their properties.

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

The Government has restricted ground rent clauses in new homes but it is unregulated for existing properties.

The CMA said yesterday it had agreement from eight firms to release 500 homes from ground rent clauses.

It came as new figures from the Royal Institute of Chartered Surveyors suggested life had returned to the housing market with more sellers confident that mortgage rates will not shoot higher for buyers.