Just as the safeway saga throws a shadow over the UK retail sector, there appear to be turbulent times ahead for the catering sector if recent reports are anything to go by.

Catering giant Compass could soon unleash a wave of redundancies as a spokesperson revealed that certain departments it felt to be replicated were now under review.

Although the company denied anyone had been made redundant the group admitted it was talking with individuals whose jobs could be affected.

Meanwhile, Capital Management and Investment (CMI) put in a failed bid for hotel, restaurant and pub company Six Continents. The £5.6b takeover bid was rejected by Six Continents who are reported to have said the offer was 'opportunistic' and contained a significant risk for shareholders.

Hotel group Thistle has also been hit by a change of fortune, and is now suffering a drop in turnover. The sale and leaseback of 37 hotels to Orb Estates resulted in a drop in profits for the group. In the 12 months to December 29 turnover fell by 38 per cent. The company also blamed a difficult trading environment for the results.