// M&S has only a week to save its place in the FTSE 100
// It has had a place in the index since it was first launched in 1984
// The relegation would be a “historic” moment
Marks & Spencer has one week to salvage its spot in the FTSE 100 as it faces a potential relegation from the top flight of blue-chip firms.
The bellweather retailer is one of the few companies to have had a place in the index since it was first launched in 1984.
City watchers said its relegation after 35 years at top table would be a “historic” moment as well as an illustration of the UK high street’s doom and gloom.
M&S narrowly avoided relegation in June, but its stock has fallen further since, losing two-thirds of its value since 2015.
Meanwhile JD Sports simultaneously made a debut after its global expansion and rising profits resulted in a surge in its share price.
At the time, it was thought that M&S managed to avoid relegation after a £601 million investor cash call following a rights issue.
Companies that are dropped out of the FTSE 100 can suffer a “double whammy” as funds invested only in blue-chip stocks automatically sell their shares.
Meanwhile, other retailers battling for a future in the FTSE 100 include B&Q owner Kingfisher, Sainsbury’s, and Morrisons.
Stock market reshuffles take place every three months and the next will be based on share prices at the close of business on September 3.
M&S has a market value of less than £3.7 billion, putting it at the bottom of the FTSE 100 and well behind a number of companies in the FTSE 250.
M&S chairman Archie Norman and chief executive Steve Rowe are overseeing the latest in a series of turnaround plans.
They have recruited TV presenter Holly Willoughby to revitalise the company’s outdated fashion collections.