Month: August 2025

At some point in their history, businesses commonly have need for external funding to help their growth trajectory.
However, acquiring investment has its dangers and pitfalls and the last thing the Board will want is to invest time and money getting to the point of securing the funding only for it to be pulled.  As a commercial lawyer with decades of handling funding rounds, James Fulforth, Senior Partner and Partner in Kingsley Napley’s Commercial, Corporate and Finance team explains some of the reasons why fundraises can go wrong and therefore how best to avoid such a scenario.
Valuation and financials
Investors will wish to see a credible valuation for the company which is raising investment, and the more substance that lies behind this, the better. Is the company already trading? If yes, what financials are available? If any year end accounts have been finalised, these should be disclosed, but ideally they will be accompanied by up-to-date management accounts.
If initial trading is modest, then the focus will be more on forecasts for future periods. These will generally be incorporated within the company’s business plan.
Even if the company has researched the position carefully, financial projections are by their nature highly speculative which is why they are rarely supported by warranties in the transaction documentation. If investors do invest in an early round, future relations between founders and investors will be happier if trust is established early on. If the initial valuation proves too frothy, relations may start to sour quickly, and founders will spend more time on managing relations with grumpy stakeholders than on building their business.
Far better to take a realistic, even conservative, approach to valuations and projections, to avoid overselling the idea, and to then exceed those expectations.
Proposition
The credibility of the company’s business plan will depend on the nature of the product or service, the market, and the degree to which data is available to support the company’s analysis. Investors will consider the extent to which a product or service has already been developed, launched and tested.
Has an expert been engaged to produce a report on the product, service or market, and can such a report be regarded as independent and therefore credible? How original is the business idea, and is it possible to protect the intellectual property underlying it? If there is little substance behind the proposition, then even if the financial performance and valuation is modest, investors will struggle to see future value.
But highly detailed analysis may be of limited value if the founders are unable to articulate the company’s proposition in their pitch. Much will depend on the individuals concerned and the character of the founder team. More introverted individuals may have the technical skills, but they will need to be complemented by those with energy, charisma and leadership.
Many successful businesses are led by gifted individuals, but raising investment involves stiff competition. Balanced founder teams tend to appear a more compelling offering.
Preparation
Careful preparation prior to the fund raising is critical. A well-researched plan and a strong pitch will have little traction with experienced investors if the same level of professionalism has not been applied to the management of the company. The same applies to the organisation of the due diligence process, and the way in which founders engage in the process.
While family and friends may be prepared to rely on their trust in the founders, more sophisticated investors will require detailed answers to detailed questions. Most important is capital structure. Have all share issues and share options been documented properly?
Have terms with key suppliers, customers, employees and consultants been agreed and written down? To what degree are such terms standardised? Has the company acquired ownership or a licence over all key assets, such as intellectual property? What governance is in place around data, cyber security, and regulatory issues? Potential investors may wish to go back to when the company was founded, so ideally founders should start addressing any gaps in these elements early on.
Any obvious issues which are uncovered may be difficult to fix quickly, and may compromise an awful lot of hard work in devising and selling the proposition.
These are not the most exciting elements of running a business, and some founders will simply not have the desire or the skillset to give them much focus but, once again, the key is to have someone in the team who is prepared to understand the detail and to directly address any wrinkles that inevitably emerge.
Other investors
Securing a lead investor is often key to attracting additional investors, especially if that investor is well-known or has significant expertise in a particular sector. Even if that’s not the case, a lead investor is often someone who has already spent time in getting to know the company’s product, service or team, and provided they appear credible and are able to articulate their views to other investors in the course of due diligence, they will help reassure smaller investors and build momentum.
However, founders should be cautious of getting too close to one investor, and again they should carry out their own research on the background and track record of that individual or institution. If a lead investor pulls out of the round, others may follow.
If this happens shortly before completion, the damage may be significant. If a company is fortunate enough to have the option of choosing between investors, it should be strategic about who it collaborates with, and it may not wish to put all eggs in the same basket.
The ideal investor or investors will not only provide capital but also commercial experience and real knowledge of the sector. They may even be a suitable person for the company to have on the board.
Founder terms
Finally, founders should be realistic about their personal compensation and the terms under which they hold shares. Even though they may own a substantial percentage of fully vested shares prior to the fund raise, investors will wish to include appropriate protections, and these may include requiring the founders to offer up their shares for sale in certain circumstances.
Again, the protections required will vary, depending on the nature of the parties involved and their experience, but also on the other elements already touched upon, ie the valuation, track record of the founders, nature of the preparation and dynamic between the investor group.
If a founder can confidently justify the overall proposition, negotiations will be easier. But an unrealistic founder may fall at the last hurdle. These matters need careful consideration alongside advisers and, much like a company’s valuation, the key is to be reasonable and to think long-term.
This also applies to other employees’ compensation. Investors will wish to see that employees are properly incentivised to stay and perform and to add value to the company. Companies that don’t offer equity to their employees (for example, through EMIs) risk losing important talent to competitors.
Securing funding has its pitfalls, and expert advice should always be sought to help guide your business through the process but, if properly managed and executed at the right time, the result can prove transformational for your business.
Read more:
5 Reasons Why Fundraising can Go Wrong

Backed by fertiliser giant Mosaic, the Oxford-based venture accelerates field testing of its precision biostimulant technology
SugaROx, a UK-based agricultural technology company developing precision biostimulants, has secured a £1 million seed round extension to accelerate manufacturing and field testing of its flagship product.
The funding includes a £400,000 strategic investment from The Mosaic Company, one of the world’s largest fertiliser producers, with the remainder provided by existing backers including Future Planet Capital, Regenerate Ventures, and UK angel investors.
Biostimulants are among the fastest-growing crop input categories globally, with an estimated compound annual growth rate of 11 per cent. SugaROx is seeking to position itself at the forefront of the market with its proprietary ingredient, Trehalose-6-Phosphate (T6P).
The T6P biostimulant works by inhibiting SnRK1, an enzyme that signals energy scarcity in plants, thereby improving crop yield and resilience. Safety tests completed earlier this year confirmed a favourable regulatory outlook, encouraging potential partners to request samples for large-scale trials.
SugaROx is targeting a UK market launch for its T6P wheat biostimulant in 2027, followed by entry into the EU in 2028. Trials in soybean and maize began this year, with ambitions to expand into the US and Brazilian markets shortly after.
Mark Robbins, chief executive of SugaROx, (pictured) said the new funding was critical in meeting demand for product samples. He said: “In response to increasing demand, we decided to accelerate our manufacturing timeline, fast-tracking the shift from in-house lab production to a pilot facility,” he said. “The Innovate UK grant and additional investment allow us to do exactly that.”
The deal also builds on a £2.4 million Innovate UK grant awarded last year to help scale manufacturing of T6P. Mosaic’s involvement gives SugaROx access to its US trial network and digital platform TruResponse, which allows field results to be visualised and analysed at scale.
Dr Cara Griffiths, chief technical officer and co-founder of SugaROx, said: “With Mosaic we gain access to an established network of trial sites for validation of our first product in the US at scale. Mosaic will also provide us with access to TruResponse, a digital platform to visualise field results, which will be extremely valuable for our research.”
Founded to commercialise research into plant biochemistry, SugaROx aims to bring science-backed innovation into a market increasingly focused on sustainable crop production.
Robbins added: “We have the ambition to transform the biostimulants industry with science-based solutions – something that is only achievable in collaboration with other players.”
Read more:
UK biostimulant startup SugaROx raises £1m to fast-track crop trials

Amazon is facing a multibillion-pound legal challenge in the UK after being accused of artificially inflating prices paid by tens of millions of British consumers.
The Association of Consumer Support Organisations (ACSO), a non-profit group, has applied to launch a collective legal action on behalf of 45 million customers who bought products from Amazon since 2019. It alleges that the e-commerce giant prevented independent sellers from offering cheaper prices on their own websites, thereby restricting competition and driving up costs for consumers.
If successful, the “opt-out” claim could see millions of Britons automatically entitled to refunds, without having to join the action individually.
Matthew Maxwell-Scott, founder and executive director of ACSO, said: “Millions of people in the UK make purchases on Amazon every day. Despite the company’s assurances that it is above all else ‘customer-obsessed’, we consider there are strong grounds to argue that UK consumers have paid higher prices because of Amazon’s pricing policies. This action will ensure that consumers can obtain redress for the considerable losses they have suffered.”
The lawsuit echoes long-running battles between Amazon and regulators abroad. In the US, the Federal Trade Commission filed a case in 2023 claiming Amazon used its “monopoly power to inflate prices” by penalising sellers who offered discounts elsewhere. Although parts of that claim were dismissed, the case is proceeding to trial.
The move underlines the growing prevalence of US-style class actions in Britain since reforms under the Consumer Rights Act 2015. Collective cases have become a mounting risk for multinational corporations, with researchers at the European Centre for International Political Economy warning in June that mass litigation could cost the UK economy £18bn by deterring investment.
Amazon has faced scrutiny in Britain before. A 2013 probe into its pricing practices led to voluntary changes to address regulator concerns. But ACSO argues its business model continues to prevent “healthy price competition”.
Amazon has rejected the claims. A spokesman said: “This claim is without merit and we’re confident that will become clear through the legal process. Amazon features offers that provide customers with low prices and fast delivery. In fact, according to independent analysis by Profitero, Amazon has maintained its position as the lowest-priced online retailer in the UK for the fifth consecutive year.
“We remain committed to supporting the 100,000 independent businesses that sell their products on our UK store, which generate billions of pounds in export sales every year.”
The case will be closely watched by retailers and investors given its potential scale. Amazon’s UK business serves more than 45 million customers and supports around 100,000 third-party sellers. A ruling against the company could open the door to one of Britain’s largest ever consumer compensation awards.
It also comes at a delicate time for the company’s regulatory standing in the UK. Doug Gurr, Amazon’s former UK boss, was earlier this year appointed to lead the Competition and Markets Authority, the very watchdog that has previously examined its pricing practices.
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Amazon faces multibillion-pound legal action over alleged price inflation for UK shoppers

Soho House, the exclusive members’ club chain that has become synonymous with celebrity culture and creative-class networking, is to return to private ownership in a $2.7bn (£2bn) deal, just four years after its high-profile listing on the New York Stock Exchange.
The move comes after a volatile spell as a public company, during which its share price halved, investors questioned its accounting methods, and the business struggled to balance rapid global expansion with the exclusivity demanded by its more than 213,000 members worldwide.
The deal will see MCR Hotels, the third-largest hotel operator in the United States, lead a group of new equity investors. Actor and tech investor Ashton Kutcher, long rumoured to be a member, will join the board, while MCR’s chief executive Tyler Morse will serve as vice-chair.
Existing major backers will remain in place, including Ron Burkle, the US retail billionaire who holds a 40% stake, restaurateur Richard Caring with 21%, and Goldman Sachs, which has 8%. Founder Nick Jones (pictured), who opened the first Soho House in London’s Greek Street in 1995, retains his 5%.
New investors will buy shares at $9 apiece, an 83% premium on the price before takeover interest surfaced late last year. However, that still values Soho House below the $2.8bn peak it briefly reached in 2021. The $2.7bn enterprise value includes about $700m of debt.
When Soho House listed in 2021 under the name Membership Collective Group, it was pitched as a lifestyle stock for the Instagram age: a global network of clubs, hotels and restaurants with celebrity cachet and aspirational branding.
At its height, the company boasted revenues doubling in three years, rapid openings from Mumbai to Los Angeles, and waiting lists thousands strong. But the gloss faded quickly.
Shares slid from above $14 in August 2021 to $7.64 by last week, reflecting investor unease with its hefty losses — totalling $739m across its four years on the market — and the inherent contradiction of chasing rapid global growth while selling exclusivity.
Criticism also came from activist investors. Hedge fund Third Point, run by billionaire Dan Loeb, had urged Soho House to court fresh investors and even consider a competitive bidding process. Short-sellers such as GlassHouse Research raised questions about the company’s accounting, though these were rejected.
Chief executive Andrew Carnie said returning to private ownership would give Soho House the breathing space to pursue its expansion strategy without the quarterly scrutiny of Wall Street.
“Returning to private ownership enables us to build on this momentum, with the support of world-class hospitality and investment partners,” he said. “I’m incredibly proud of what our teams have accomplished and am excited about our future, as we continue to be guided by our members and grounded in the spirit that makes Soho House so special.”
Carnie has sought to make the company leaner in recent years. Management argues that operational efficiencies have improved profitability, with Soho House reporting three consecutive quarters of net profit.
For MCR Hotels, best known for assets such as New York’s TWA Hotel at JFK and the High Line Hotel, the deal provides a gateway into the lucrative high-end lifestyle sector. The group is also investing heavily in the UK, having acquired the BT Tower in London last year for £275m with plans to convert it into a hotel.
Ashton Kutcher’s appointment to the board reflects Soho House’s desire to blend cultural cachet with strategic investment nous. Kutcher has a track record in backing technology startups, from Uber to Airbnb, and is likely to bring both media attention and Silicon Valley credibility.
For a business that has long relied on its star-studded clientele — from Kate Moss and Kendall Jenner to the Duke and Duchess of Sussex, who had their first date at the Dean Street house — his arrival may also help bolster Soho House’s brand positioning as both aspirational and innovative.
The club now has 48 locations open or in development worldwide, with 10 in London alone. Annual fees range from £1,000 to £2,920, depending on access levels. But expansion at this pace has posed challenges: long-time members complain about overcrowding and a dilution of exclusivity, while rising fees risk pricing out younger creatives.
The deal is unlikely to alter the member experience in the short term. However, the backing of MCR Hotels could accelerate property development, with new sites expected across Europe, Asia and the US.
For investors, the transaction closes a turbulent chapter in Soho House’s history as a listed company. While the public markets struggled to value its hybrid model of hospitality, lifestyle, and membership, the private equity consortium appears to be betting on its ability to scale profitably away from Wall Street scrutiny.
The question is whether Soho House can retain its aura of exclusivity while expanding further into new cities and markets — or whether its greatest asset, its brand mystique, risks dilution in the pursuit of growth.
Read more:
Soho House to go private in $2.7bn deal as Ashton Kutcher joins board

Wider access to weight-loss injections on the NHS could deliver significant economic gains by cutting sick days and easing the burden of obesity-related illness, new research suggests.
A study of 421 NHS patients using the latest generation of obesity drugs found the number of sick days taken fell by a third within three months of starting treatment. Combined sick leave dropped from 517 days in the three months before starting the jabs to 334 days after three months of use, according to data from Oviva, the UK’s largest provider of weight-loss support services.
After six months, 77 per cent of patients reported taking no sick leave at all — up from 63 per cent before starting treatment.
The findings highlight the potential economic impact of rolling out obesity injections more widely. Government figures show UK workers took 149 million sick days in 2024, down from a pandemic-era peak but still nearly 10 million more than pre-2020 levels.
Health Secretary Wes Streeting has previously described obesity as a key drag on the workforce, with people living with obesity taking “an extra four sick days a year on average” and many leaving employment altogether.
“These drugs could have colossal clout in our fight to tackle obesity and get unemployed Britons back to work,” Mr Streeting has argued, backing the medicines as a tool for reducing economic inactivity.
Government modelling suggests that a widespread rollout could save the taxpayer £5bn annually through productivity gains and lower healthcare costs. Obesity is estimated to cost the UK economy around £98bn a year, including £15bn in lost productivity and £19bn in direct NHS spending.
Despite political enthusiasm, the rollout of jabs such as Mounjaro, made by Eli Lilly, has been slow. At the end of June, 32,000 patients were still waiting for an NHS weight management appointment, while only 1 per cent of eligible patients currently receive treatment, according to Oviva.
A quarter of a million people across England are expected to be prescribed Mounjaro on the NHS over the next three years, but demand is already outstripping supply.
Martin Fidock, UK chief of Oviva, urged ministers to accelerate distribution: “The Chancellor talks about firing up Britain’s productivity but doesn’t address the millions who are locked out of work by poor health. People living with obesity are twice as likely to be off sick, yet Britain’s postcode lottery for healthcare means just a fraction of patients get access to treatment.”
The average patient in Oviva’s study was 49 years old — an age group where obesity typically peaks and comorbidities such as anxiety, depression and hypertension are common. Alongside the reduction in sick days, many patients reported lifestyle changes, including drinking more water and eating vegetables more regularly.
Research has also linked the new generation of weight-loss treatments to broader health benefits, including halving the risk of death from cardiovascular disease and reducing cancer risks.
Earlier this year, the Tony Blair Institute suggested weight-loss jabs could be offered to half of all UK adults as part of a national obesity strategy. However, if all 26 million Britons with a BMI of 27 or above were prescribed the drugs, the annual bill would be about £38bn — around 17% of total NHS spending.
The debate now facing policymakers is whether the productivity gains and reduced healthcare costs outweigh the upfront price of scaling up access.
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Weight-loss jabs could slash UK sick days and boost productivity, study finds

Tesla has almost halved the cost of leasing its electric cars in Britain, in a bid to reverse sliding sales and shore up its market share against fast-growing Chinese competitors.
British motorists can now lease a Tesla for just over half what it cost a year ago, with monthly payments on a Model 3 starting as low as £252 plus VAT. The Model Y, launched in May and retailing for about £60,000, has also been offered at under £400 per month by some leasing firms. Last summer, the same cars typically cost £600–£700 per month to lease.
Industry sources say Tesla has been forced into ad hoc discounts of up to 40% to leasing companies — both to stay competitive and because of limited UK storage capacity for unsold stock. While retail prices remain unchanged, Tesla has added zero-interest finance deals in its stores, a move analysts say will cost the company around £6,000 over three years on a £40,000 car.
“The most expensive way to find a home for these cars is by cutting the retail price. The cheapest way is to cut the monthly payments,” said Fraser Brown, managing director at consultancy MotorVise.
Tesla’s registrations in the UK fell by 60% in July year-on-year, to just 987 units, pushing its market share down to 0.7%. In contrast, China’s BYD — a relatively new arrival in the European market — claimed 2.3% of all new UK registrations, according to Society of Motor Manufacturers and Traders (SMMT) data.
Across Europe, Tesla faces similar headwinds as Chinese brands undercut on price and flood the market with aggressively priced EVs. BYD, Nio and XPeng have all stepped up their push into the continent, capitalising on consumers’ demand for cheaper electric cars as household budgets tighten.
Despite the slide, Tesla remains dominant in the used EV market, where one in four sales is still a Tesla, according to Auto Trader. Ian Plummer, Auto Trader’s commercial director, said:
“The main thing is you can access Teslas at more affordable prices and a lease is a good way to get a more affordable EV. They are still popular and generate a lot of interest on our platform — new and used — no matter what people think of Elon Musk.”
Leasing companies have become a crucial distribution channel for Tesla as private buyers remain cautious. Cash buyers accounted for just over 27% of Tesla’s new homes market activity, while leasing plans, driven by monthly affordability, are increasingly seen as the key to maintaining volume sales.
The strategy, however, highlights the fine balance Tesla must strike between sustaining demand and protecting brand value. Deep leasing discounts may boost sales volumes in the short term but risk undermining resale values and investor confidence if they become entrenched.
With interest rates stabilising and the UK government considering new incentives to support EV adoption, the next 12 months will be critical for Tesla as it seeks to prove its long-term competitiveness against a wave of Chinese imports.
Tesla declined to comment.
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Tesla slashes UK leasing costs as sales slump against Chinese rivals

Rachel Reeves has been forced to correct the official parliamentary record after giving MPs and peers inaccurate figures on both unemployment and her flagship pension reforms, prompting renewed questions over her command of economic detail.
The Treasury confirmed that Hansard, the record of parliamentary proceedings, had been amended following errors made by the Chancellor during committee hearings.
In one exchange, Reeves told MPs that the £425bn Local Government Pension Scheme was managed by “96 different administering authorities” and that she intended to cut this down to “eight pools” under her reforms to boost investment and efficiency. Officials later conceded the true figures were 86 authorities and a planned consolidation into six pools.
She also misquoted labour market data during an appearance before the House of Lords economic affairs committee, saying that “20% of people of working age are economically inactive and we have an unemployment rate of just over 4%.” The Treasury clarified that the Office for National Statistics (ONS) puts economic inactivity at 21% and the unemployment rate at 4.7%.
The mistakes, first highlighted by the Mail on Sunday, come at a sensitive time as Reeves faces mounting pressure over her first autumn Budget. Economists warn she may need to raise as much as £50bn to plug a hole in the public finances, a gap critics argue has been widened by policies that have dented business confidence and investment.
Andrew Griffith, the shadow business secretary, accused Reeves of having a “shocking grasp of detail”. He said: “When she’s writing such big cheques with taxpayers’ money, it’s no time to be loose with your numbers.”
This is not the first time the Chancellor has been forced into a public correction. In February, she was compelled to revise remarks about wage growth, having claimed that “since the election we’ve seen year-on-year wages after inflation growing at their fastest rate”. Treasury officials later clarified that real wage growth was running at its fastest pace in three years, not at a record high.
Last year, Reeves also faced scrutiny for exaggerating elements of her CV. She had claimed to have worked as an economist at Bank of Scotland — a role the lender said was misdescribed — and overstated her time at the Bank of England.
The repeated slip-ups are beginning to fuel criticism about her readiness for the Treasury brief. Reeves, who has billed herself as Britain’s first female Chancellor with a mission to restore fiscal credibility, is under intense scrutiny to deliver both accuracy and authority at a time when fiscal headroom is limited and expectations are high.
The corrections come just weeks before Reeves is due to deliver the autumn Budget. With interest payments on government debt climbing and growth sluggish, speculation is mounting about how she intends to balance the books.
She has already ruled out raising income tax, National Insurance or VAT, but the options left on the table — including potential changes to inheritance tax and capital gains tax — risk fuelling controversy.
For now, Reeves is under pressure not just to make the numbers add up, but to convince both Parliament and the markets that she has a firm grip on them in the first place.
The Treasury declined to comment further.
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Reeves forced to correct parliamentary record after misquoting key figures

BrewDog has suffered another major setback after figures revealed its beers have been removed from almost 2,000 pubs across Britain, in a fresh blow to the once high-flying craft brewer.
Confidential industry data shows that BrewDog’s draught beers have disappeared from around 1,860 pubs over the last two years – cutting its UK distribution by more than a third. Its flagship Punk IPA has borne the brunt, with distribution slashed by more than half, having been dropped from 1,980 pubs in the period.
One pub industry insider told The Times: “BrewDog is losing taps in the [pub and bar trade] like you wouldn’t believe,” with rival brands such as Camden Town and Beavertown moving into its place on the bar.
The losses have come mainly from pub chains and large operators, depriving BrewDog of vital income at the same time as it struggles to repair its financial position and reputation. Last month, the company was forced to shutter 10 of its own branded bars across the UK, including its flagship site in Aberdeen, after declaring them commercially unviable.
The downturn underlines the challenge facing chief executive James Taylor, who took over last year following a turbulent period marked by heavy losses and allegations of a “toxic” workplace culture. The company has reported losses of £59m in 2023 and £30.5m in 2022, with Taylor conceding it will remain in the red this year.
Industry figures suggest BrewDog’s reliance on JD Wetherspoon is now critical. The chain’s 794 pubs account for a large share of its remaining UK distribution. “If they ever lost the JD Wetherspoon deal, then that’s Punk IPA done as a [pub trade] product,” one source warned.
BrewDog’s chief operating officer, Lauren Caroll, said the contraction was part of a wider trend: “Independent brewers across the board have felt the squeeze from the economic pressures hitting the pub trade. With costs rising and consumers watching their spend, pub groups have been narrowing their ranges, and brewery-owned pubs are putting more emphasis on their own brands.
“It’s not just us – every independent brewer has been affected. We saw the trend coming, which is why we’ve shifted focus to high-impact channels like festivals, stadiums, and independents.”
Founded in 2007 by James Watt and Martin Dickie, BrewDog built its reputation on high-octane marketing stunts and the runaway success of hoppy beers like Punk IPA. But recent years have been overshadowed by damaging controversies, from allegations of a “culture of fear” to criticism over a 2017 deal with US private equity firm TSG Consumer Partners.
That deal requires BrewDog to deliver an 18 per cent compounding return on TSG’s shares, creating growing pressure on the brewer’s finances and sparking concern among its thousands of small “Equity Punk” investors.
Taylor, a former fashion executive who succeeded Watt and then James Arrow as chief executive, has overseen a major rebrand of the beer range in an attempt to restore momentum. But with shrinking pub distribution and sustained losses, BrewDog faces a fight to reclaim its place at the bar.
Read more:
BrewDog beers axed by almost 2,000 pubs as brand battles losses and closures

John Lewis has been forced to supply months’ worth of bottled water to residents in a Hampshire village after fertiliser pollution made the local supply unsafe to drink.
For the past four months, the retailer has delivered bottled water to homes in Longstock, near Andover, after tests revealed high levels of nitrates in drinking water drawn from its Leckford Estate, a 2,800-acre farm owned by the John Lewis Partnership since 1929.
The estate, known as the “Waitrose Farm”, produces fruit and other goods for the supermarket. About half the homes in Longstock are supplied directly with water from the site.
Nitrates, widely used in fertilisers, can seep into groundwater when washed out of soil by rainfall. Elevated concentrations in drinking water reduce the blood’s ability to carry oxygen, posing particular risks to infants — who may develop “blue baby syndrome” — as well as pregnant women.
Local authorities have told villagers they can continue to drink tap water only if it is supplemented by bottled supplies. Expectant mothers and young children have been advised not to consume the tap water at all.
The Leckford Estate has installed new filtration systems at its boreholes, which are partly fed by the River Test, but it expects problems to persist for at least another month while testing continues.
A spokesperson for the estate said: “The presence of nitrates is unfortunately a nationwide issue. We’re in regular contact with residents and have supplied free bottled water while new systems are installed. As a long-term solution, we are exploring options to connect Longstock to the local water provider.”
The government has previously warned of a rise in nitrate levels across England linked to prolonged dry weather, cropping changes and greater use of fertiliser. More than half the country has now been classified as a “nitrate vulnerable zone”, requiring extra monitoring.
Nearly 30% of water sourced from aquifers rather than rivers must now be treated or blended to meet safety standards.
The contamination at Leckford comes amid wider scrutiny of water quality. Southern Water, which supplies the surrounding region, was responsible for 15 serious pollution incidents last year.
A comparable incident occurred in Bramley, Surrey, when a petrol leak at an Asda filling station forced Thames Water to issue a “do not drink” order and distribute bottled water to residents.
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John Lewis estate supplies bottled water after pollution contaminates village supply