Steinhoff International, the scandal-hit South African retail conglomerate, is in talks with banks to secure additional financing and a temporary waiver over credit covenants in an attempt to “meet business critical payments” and keep the company afloat (The Financial Times £).

Scandal-hit Steinhoff has been thrown a lifeline by its South African lenders, who have backed a move to prop up its troubled European retail operations with its healthier domestic operations as it scrambles to shore up its balance sheet. (The Telegraph)

City whispers speculating that consumer goods giant Unilever is set to swoop for rising star Fevertree Drinks caused the upmarket tonic water maker’s shares to fizz on London’s junior market. Swirling rumours mooted that Unilever will try to snap up the posh drink mixers company to help lift its ailing growth but will have to pay at least £28 per share for the investor darling. (The Telegraph)

Soaring sales at Primark, the bargain fashion retailer, helped to boost revenue at Associated British Foods in the final four months of last year (The Times £). Primark is on track to overtake Next as the UK’s second biggest clothing retailer this year after strong sales over the winter (The Guardian). Budget fashion chain Primark celebrated a record performance in the weeks running up to Christmas last year as it further expanded its presence in the UK market (The Daily Mail).

The Primark fast-fashion chain made “record sales” the week before Christmas but for owner Associated British Foods the news was soured by its expectation that profits in the recently recovered sugar business would be worse than expected this year (The Financial Times £). A sharper than expected drop in sugar prices dragged on sales at Associated British Foods’ sugar division lower, taking the shine off the record UK festive sales at the group’s budget fashion chain Primark (The Telegraph).

Whitbread, the owner of Costa Coffee stores and the Premier Inn hotel chain, has said growth is stalling at both of its major businesses, blaming falling consumer spending across the UK (The Financial Times £). Britain’s biggest coffee shop chain, Costa Coffee, has suffered a fall in sales at its high street stores and warned consumer demand would remain “subdued” (The Guardian).

The boss of Costa Coffee and Premier Inn owner Whitbread refused to rule out a break-up of the business as its lattes and flat whites failed to lure caffeine lovers (The Daily Mail). The chief executive of Whitbread insisted yesterday that the board was “very open-minded” about a possible separation of its Premier Inn and Costa Coffee businesses but argued that the time was not right for the FTSE 100 group to consider a split (The Times £). The boss of Whitbread today fuelled speculation the company could spin off Costa coffee chain under pressure from a US activist fund (The Telegraph). Latest sales figures show coffee sales are coming off the boil but shares have heated up on talk of a demerger at the giant (Sky News).

The ready meals maker Bakkavor disappointed the City yesterday with its first formal trading update. (The Times £)

Supermarkets are coming under growing pressure from politicians and campaigners to reveal the amount of plastic they create, and pay more towards its safe disposal, following a Guardian investigation. (The Guardian)

Pladis, the Turkish owner of the biscuit manufacturer, is shrinking the size of a 500g pack of Digestives to 400g as it adapts to higher ingredient costs and the fall in the value of the pound. (The Times £)

Britain’s pub and restaurant industry looks to have suffered a tough Christmas as festive revellers curbed their spending on food (The Telegraph).

Gin parties, gin menus, ginvent calendars and even a Ginstitute hotel: the UK’s renewed passion for all things gin is fast creating a whole new industry. (The Guardian)

Nestlé is planning to overhaul its 14-strong board by appointing three new independent directors, seven months after it was attacked by an activist investor for being “stuck in its old ways”. (The Times £)

After sifting through 238 proposals from across North America for the site of its second headquarters, e-commerce giant Amazon has whittled down the list to just 20 potential sites that will advance to the next round of consideration. (The Financial Times £)

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