Please see below our roundup of this weekend’s newspapers: Banks poised to take control of Orchid The Orchid Group is under threat of being taken over by its banks. The pub group has admitted it is likely to breach the covenants on the terms of its bank loans, forcing it into discussions with Lloyds Banking Group, its main lender. It is understood that Lloyds is keen to reduce its exposure to the business and is in advanced talks with several other financial institutions, including Deutsche Bank, about selling its loans at a discount. The talks could result in Deutsche becoming Orchid’s sole lender. It would push through a debt-for-equity swap that would see the German bank writing off a chunk of Orchid’s debts in return for taking control of the company from owner GI Partners. However, GI could retain control if it can persuade Lloyds to continue lending to Orchid, or if it injects more money into the business. Sunday Times Unemployment to hit 17-year high Levels of unemployment in the UK will this week surge to their highest for 17 years - as experts warn the figure will increase even further in the following 12 months. Economists believe Wednesday's figures from the Office for National Statistics will show the number of people out of work to have risen well beyond 2,518,000 - the peak seen earlier this year. And the total is almost certainly expected to top the 2,521,000 recorded at the end of 1994 when Britain was in the wake of its recession. It has prompted even further fears of a double-dip recession, as 8% of 16 to 64-year-olds will be out of work, and piled even more pressure on the coalition's much criticised economic strategy. Experts at Deutsche Bank have warned the figure could increase even further - to 8.8% - in 2012. Wednesday's figures may also reveal that youth unemployment, for people aged between 16 and 24, has passed one million for the first time since records began. Mail on Sunday Sunday Telegraph Sunday Times Diageo’s Walsh viewed as Unilever chair candidate Paul Walsh, chief executive of Diageo, is seen as a leading candidate to replace Unilever’s Chairman Michael Treschow. Walsh, who is a non-executive director at London- and Rotterdam-based Unilever, the world’s second-biggest consumer- goods company, is seen as the “internal candidate” to take over from Treschow when he steps down. Treschow, however, is not expected to relinquish his role for at least two years. Sunday Times Profit warnings rise More profit warnings were issued by UK companies in the third quarter than for the same period last year despite analysts scaling down their forecasts, according to figures. Although expectations have become less bullish, there were still 51 profit warnings compared with 46 last year in a sign of continuing volatility in the market. Compared with the second quarter, data from Ernst and Young showed a 28% fall in the number of "red flag" notices issued by quoted companies but the accountancy firm said the figure was still high. "Through the recession, people have become increasingly aware of the need to manage expectations, probably more so than they had before," said Alan Hudson, head of Ernst and Young's UK restructuring practice. "Profit warnings are still happening. I don't know whether that causes you to think it's even more acute when you do see the warnings on the basis the market is managing expectations. Analysts are expecting people to be managing that expectation. We still had a relatively significant number of warners." Hudson said FTSE retail and media companies issued the most warnings with consumer sectors continuing to suffer. Sunday Telegraph Mail on Sunday Express on Sunday Entrepreneurs back small business fund Entrepreneurs behind Betfair, Carphone Warehouse and social gaming company Playfish have backed an online marketplace that allows small businesses to bypass banks by borrowing directly from consumers. Ed Wray, Charles Dunstone and Sami Lababidi have invested an undisclosed amount in Funding Circle, which savers have used to lend £11.7m to small firms in the site's first year of trading. Mr Wray, co-founder of online betting exchange Betfair, has joined Funding Circle's board. "When banks are reluctant to lend to small businesses and retail investors are getting poor levels of interest on their money, the timing is perfect for this model," he said. Small businesses can borrow between £5,000 and £100,000 through the 'peer-to-peer' site, with funding provided within 10 days on average. Savers have earned an average gross yield of 8.3% during the market's first year, while the site has a default rate of 0.4%. Sunday Telegraph Morgan relaunches Hansom Cab Piers Morgan relaunches his Kensington pub, The Hansom Cab, with chef Marco Pierre White tomorrow night. As well as treating their celebrity friends to appetisers from the new rib room and oyster bar, the pair will serve pints of The Governor, Marco’s new beer. “We’ve had barrels driven down from Lancashire. Piers has never tried it before, and this is the only place you can get it in London, along with Morrisons, which now stock it,” said Pierre White. Mail on Sunday Lewis sails off as shareholders work to stop his M&B bid Joe Lewis weighed anchor and set sail for the high seas, but sources close to the Bahamas-dwelling billionaire said he had not lost interest in taking over pubs group Mitchells & Butlers (M&B). Lewis’ 220ft yacht Aviva has been moored on the Thames near Tower Bridge since early September, while he ponders turning his interest in a bid at 230p per share into a firm offer. The reclusive investor has until an October 17 deadline to launch a formal bid, but his sudden departure fuelled rumours in the City that he could be about to row back on his interest. “We are still considering our options,” said a spokesman for Lewis. However, reports suggest that some minority shareholders were gathering support for an action group against the billionaire’s bid. Deutsche Bank was said to be canvassing interest in fighting the bid. A shareholder with almost 3% of M&B, said: “The mooted offer is derisory”. Daily Mail Daily Telegraph The Times Greene King approached as M&B white knight A report suggest that some big shareholders are encouraging rival operator Greene King to pursue a counterbid for M&B. It is suggested that Greene King tabled a proposal for a nil premium merger of equals earlier this year valued at 360p a share. There were two problems with the approach, according to people close to M&B: It was conditional on Joe Lewis’s investment vehicle Piedmont relinquishing its two board seats, and fellow large shareholder Elpida, selling its shares in the enlarged group. Greene King also demanded the right to install its chairman and chief executive in the same roles in the merged company. FT Weekend Orchid set to breach covenants Orchid Group, the company that went through a pre-pack administration in 2008 is poised to breach covenants on its £42m of debt after reporting a loss last year of £17m. It said it was confident of negotiating new terms on its loans. The company wrote down the value of its pubs by £11m. The Times Ramsay in sacking dispute Four of Gordon Ramsay’s in-laws are taking him to an employment tribunal after he sacked them in what has been described as a “public hanging”. The celebrity chef’s mother and father-in-law, Chris and Greta Hutcheson, their son Adam Hutcheson, 39, and his son Christopher Hutcheson, 19, have all lodged legal claims against him. Mr Hutcheson’s alleged mistress, Sara Stewart, is also making claims against her former boss. Ramsay sacked his wife Tana’s father, brother and nephew last October, claiming that Hutcheson senior was responsible for misappropriating company funds. Ramsay is in the midst of legal action against Mr and Mrs Hutcheson and Adam Hutcheson and his wife at the High Court where he has lodged a writ. In the claim Ramsay accuses Mr Hutcheson of hacking into his personal and company files, withdrawing £1.42m from the company to fund a double life with a secret second “wife” and family, putting members of his family on the payroll, and writing himself cheques. Daily Telegraph Daily Express Gin Lane 2011 The Daily Mail reports on a night out in Warrington, after previous scenes of binge drinking in the town were said to make “Hogarth’s Gin Lane seem tame by comparison”. The paper found that “banners everywhere lure the bored and the poor: ‘All drinks 50p’; ‘30 vodka shots for £30’ they scream”. Daily Mail Muffin saltier than a burger A McDonald’s muffin marketed as a healthier option contains more salt than one of its burgers. The fast-food chain’s low-fat blueberry muffin has 1.7g of salt – more than in three packets of ready-salted crisps. The figures come from health campaigners who claim that simple coffee-break snacks are part of the reason the nation is overdosing on salt every day. Hidden salt in processed foods is said to be fuelling high blood pressure, strokes and heart attacks, leading to thousands of premature deaths. A study of coffee-break favourites by Consensus Action on Salt and Health found that while some food chains have made real efforts to cut salt levels, others have apparently failed to act. Its research found that around 85% of popular coffee-break products contain as much salt as they did this time last year. The salt content in a McDonald’s Double Chocolate Muffin has gone up from 1.1g to 1.2g, while Starbucks and the Eat chain were also accused of doing too little to cut salt levels. Daily Mail Pizza mogul emerges as Republican contender Hermain Cain, former manager of 400 Burger King sites in the US and ex-chief executive of the Godfather’s Pizza chain, has emerged as a contender for the Republican Party’s nomination for president. His reputation as an effective leader prompted Cain to be described as “the Colin Powell of the restaurant industry”. FT Weekend