The ratings on U.K. retailer Marks&Spencer PLC (M&S) and related entities reflect the continuing underperformance of the group's core U.K. clothing business, together with the shift to a more aggressive financial policy. M&S' new strategic review includes the closure of its subsidiaries in Continental Europe, the sale of Brooks Brothers Inc. and Kings Super Markets Inc. in the U.S., the shutting down of its direct catalogue business in the U.K., and the disposal, sale, and leaseback of almost one-quarter of its entire property portfolio. In addition, the group announced that it would return £2 billion of cash to shareholders by the end of March 2002. Like-for-like sales for the 26 weeks to Sept. 29, 2001, fell by 1%,
