Adapt Or Die, How Businesses Can Survive Difficult Times

• Published date: 28 June 2021
• Subject Matter: Corporate/Commercial Law, M&A/Private Equity, Corporate and Company Law
• Law Firm: Giambrone & Partners
• Author: Ms Daniel Theron

The Bank of England has consistently taken an optimistic view, of the UK's ability to overcome the commercial hit of Brexit and the Covid-19 pandemic as reported in the Financial Times, it is sticking to the belief that there will be a relatively speedy recovery at first followed by a slow but steady return to pre-coronavirus levels. Given the crippling effects of the coronavirus pandemic lockdown the situation could be considerably worse.

This is not the moment for businesses to panic. Whilst nobody would pretend the country is in the best economic shape, however, it is not all bad news. Not all businesses are shedding staff and those businesses that are quick to see opportunities, and there are opportunities, will be the winners. The move to online shopping has provoked Tesco to announce the creation of 16,000 new permanent jobs to support the current growth and intended expansion of its online business. Marks and Spencer has also recognised the fact that shoppers are increasingly taking the online option and made the decision to link with Ocado. Home delivery appears to be a way forward for both customer safety and convenience. Giambrone's corporate and commercial team reminds businesses considering expanding into online shopping options that they must ensure that their terms of business and insurance policies are reviewed and varied in consideration of the differences between conventional retail and online shopping.

Another possibility for business survival is merger or takeover. Mike Ashley the CEO of Fraser's Group (formerly known as Sports Direct) announced a few months ago that his latest acquisition, DW Sports, has been bought out of administration. Fraser's has acquired most of the assets of gym and fitness business and will be able to put the business back on its feet. The purchase will save a considerable number of jobs and pave the way for DW Sport to rise again under the iconic Everlast brand owned by Fraser's.

Daniel Theron, a partner, commented "merger or being bought out by a stronger competitor may not be...