Lord & Taylor sold - Chain Store Age

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The nation’s oldest department store company is being acquired by an apparel rental service that was founded some seven years ago.

Hudson’s Bay Company said it will sell Lord & Taylor to Le Tote for $100 million. The Canadian department store giant will be paid C$99.5 million (US$75 million) in cash after the deal closes and a secured promissory note of C$33.2 million (US$25 million) payable in cash after two years. In addition, Hudson’s Bay will receive an equity stake in Le Tote, two seats on its board and certain rights as a minority shareholder.

Under the terms of the agreement, Le Tote will acquire the Lord & Taylor brand and related intellectual property while assuming operations of the retailer’s 38 stores, digital channels and the associated inventory.

Hudson’s Bay and HBS Global Properties, the company’s real estate joint venture, will retain ownership of all the owned and ground-leased real estate assets related to Lord & Taylor. For at least the initial three years, Hudson’s Bay will maintain economic responsibility for the rent payments owed by Lord & Taylor at the locations operated by Le Tote. Starting in 2021, Hudson’s Bay and Le Tote will have options to reassess the Lord & Taylor store network

In May, Hudson’s Bay announced it was reviewing strategic alternatives for its Lord & Taylor division, including a possible sale or merger. Lord & Taylor accounted for about $1.4 billion of Hudson’s Bay’s $9.4 billion in retail sales in 2018.

“We’re excited to have reached an agreement with Le Tote that creates a new model for Lord & Taylor, bringing together fashion rental subscriptions with traditional retail,” said Helena Foulkes, CEO, Hudson Bay’s. “Following an extensive review of strategic alternatives, Le Tote’s leadership and innovative approach is the best path forward for Lord & Taylor, its loyal customers and dedicated associates. For HBC, this transaction builds upon our previous bold actions, further enabling us to focus on our greatest opportunities, Saks Fifth Avenue and Hudson’s Bay.”

Founded in 2012, Le Tote is a fashion subscription service that lets women rent clothing and accessories for a flat monthly fee. Members choose the items they want to wear and can keep them as long as they like. They also have the option to purchase items at a discount

“Since founding Le Tote, it’s been our mission to push the boundaries of retail,” said Rakesh Tondon, founder and CEO, Le Tote. “We’re excited to bring Le Tote together with Lord & Taylor, a storied brand that has stood for quality, style and service for nearly two centuries. With this acquisition, we continue our journey in creating the future of retail.”

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2019-08-28 14:05:31Z
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Lowe's executive apologizes for derogatory comment about Hispanics - CNN

"This is perfect for them. Lifetime warranty on this. What else could you want?" said Joe McFarland, Lowe's (LOW) executive vice president of stores, in a corporate video broadcast to store employees Monday. The Washington Post first reported on the video.

McFarland apologized after employees criticized his comments online, saying they were offensive.

"I am sorry for a careless and ignorant comment I made during an associate broadcast yesterday," he said in a company-issued statement, adding that he took full responsibility and will be "spending time in the coming days and weeks with our associates, customers and business leaders to learn and grow from this moment."

McFarland joined Lowe's last year from JCPenney (JCP), where he oversaw that company's stores, operations and merchandise strategies. He previously worked at Home Depot (HD).

Lowe's did not say whether he would face any consequences consequences for the comments.

The company operates more than 1,700 stores in the United States. As of February 1, it employed approximately 190,000 full-time and 110,000 part-time workers in the United States, Canada and Mexico. Earlier this month, Lowe's said it would lay off thousands of workers, including assemblers who put together items like grills and patio furniture. It will also cut maintenance and facility-service jobs, such as janitors, and outsource those positions to third-party companies.

Correction: An earlier version of this story misstated which company had said earlier this month that it was cutting jobs.

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https://www.cnn.com/2019/08/27/business/lowes-executive-hispanic-comments/index.html

2019-08-27 21:40:00Z
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Beyond Meat Testing Fake Chicken at KFC - Bloomberg Markets and Finance

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2019-08-26 19:57:02Z
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Starbucks is adding a new pumpkin spice drink to its fall menu - CNN

Beginning Tuesday it will sell a Pumpkin Cream Cold Brew drink for the first time. That's in addition to the hot Pumpkin Spice Latte, which has attracted a cult following for the company.

The new "deliciously fall" drink combines pumpkin spice flavoring and cold brew coffee, the company said. It's topped with pumpkin cream cold foam and a dusting of pumpkin spice topping. Prices start at $4.45 for a grande, but vary depending on location.

Cold drinks are growing in popularity for Starbucks. They made up more than half of the company's sales last year — a 13% increase from 2013, it said. In its most recent earnings, Starbucks credited cold drinks, like cold brew coffees, for bolstering its bottom line and helping to kickstart sales in the afternoon, which previously has been a sore spot for the company.

The new cold brew drinks could also attract more health-conscious customers. A 16 oz Pumpkin Cream Cold Brew has 250 calories and 31 grams of sugar, while a same-size hot Pumpkin Spice Latte has 380 calories and 50 grams of sugar.

In addition to the two drinks, Starbucks (SBUX) on Tuesday is bringing back the Salted Caramel Mocha and pumpkin-flavored baked items, including a pumpkin scone and a pumpkin cream cheese muffin.

The pumpkin spice craze isn't slowing down. Sales for pumpkin-flavored items increased nearly 5% in 2018 to $511.5 million, according to new data from Nielsen provided to CNN Busines

Starbucks' new cold options also land at a time when pumpkin spice season seemingly starts earlier every year and the weather is still hot. The company told CNN Business that "PSL" season is only beginning a day earlier compared to last year.

Rival Dunkin' (DNKN) launched their fall menu in mid-August. This year, Dunkin' added apple cider-flavored donuts and a new Cinnamon Sugar Pumpkin Signature Latte.

Correction: A previous version of this story incorrectly identified the type of beverage Starbucks is offering. It also misstated Starbucks' sales figures.

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https://www.cnn.com/2019/08/26/business/starbucks-cold-brew-pumpkin-spice-latte/index.html

2019-08-26 10:31:00Z
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China trade war: Liu He calls for calm after Trump comments - Axios

Photo: Nicholas Kamm/AFP/Getty Images

President Trump said Monday China has requested for trade talks to resume.

Details: His comments came after China's economy czar, Vice Premier Liu He, said the Chinese government is willing to negotiate with the United States in a calm manner to resolve trade issues, Reuters reports.

We are willing to resolve the issue through consultations and cooperation in a calm attitude and resolutely oppose the escalation of the trade war."

— Vice Premier Liu He comments, translated by Reuters

Driving the news: President Trump said Friday he would raise tariffs against China, hours after the Chinese government announced it would levy retaliatory duties on earlier U.S. action.

• Trump ramped up tensions at the G7 summit in France on Sunday, telling reporters that he had "no plans right now" to follow through on his emergency declaration threat to force U.S. companies to leave China but added, "If I want, I could declare a national emergency."
• And after telling reporters that he "might as well" have "second thoughts" about escalating the trade war, White House press secretary Stephanie Grisham clarified that Trump "regrets not raising the tariffs higher."

The big picture: China had vowed to continue fighting the trade war "until the end." But Reuters reports that Liu said at a tech conference in southwest Chongqing, "We believe that the escalation of the trade war is not beneficial for China, the United States, nor to the interests of the people of the world."

Editor's note: This article has been updated with new details throughout.

Go deeper:

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https://www.axios.com/china-trade-war-liu-he-calls-for-calm-resolution-after-trump-remarks-bc491d9d-0a4f-4be6-b478-a0c5934ee2a4.html

2019-08-26 05:43:00Z
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Corporate America Sounds Alarm on Trump's Threats Over China - Bloomberg

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Corporate America Sounds Alarm on Trump's Threats Over China  Bloomberg

U.S. companies are concerned about President Donald Trump's threats to ban them from doing business in China, and they're poised to halt new investments if ...

https://www.bloomberg.com/news/articles/2019-08-25/u-s-corporate-chiefs-sound-alarm-on-trump-s-threats-over-china

2019-08-25 17:03:00Z
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More than 20,000 AT&T workers walking off the job overnight Friday. - Atlanta Journal Constitution

 In a surprise move, more than 20,000 union workers for AT&T in the Southeast went out on strike as of midnight Friday, officials said.

Members of the Communication Workers of America – including 4,000 in Georgia – charged the huge telecommunications company with unfair labor practices during negotiations aimed at securing a new contract.

The previous agreement expired Aug. 3.

Since then, the talks have gone nowhere because the company has made sure that an agreement cannot happen said Richard Honeycutt, the union’s vice president for the Southeast in a statement issued late Friday. “Our talks have stalled because it has become clear that AT&T has not sent negotiators who have the power to make decisions so we can move forward toward a new contract.”

The company, which is based in Dallas, has annual revenue of about $170 billion a year. It includes the remnants of Atlanta-based BellSouth, which for more than two decades was the largest of the seven regional phone companies.

Company officials said they were blindsided and mystified by the strike call.

“We’re baffled as to why union leadership would call one when we’re offering terms that would help our employees – some of whom average from $121,000 to $134,000 in total compensation – be even better off,” said AT&T spokesman Jim Kimberly.  

Company officials were adamant about being prepared for a walk-out. In the days before the contract expired, AT&T officials said they would be prepared for a strike and that business operations would go on smoothly with managers, executives and contractors picking up the slack.

“We’re prepared for a strike and in the event of a work stoppage, we will continue working hard to serve our customers,” Kimberly said on Friday night 

Union leaders scoffed at the notion, arguing that the company will have to prioritize work delaying new installations and non-emergency maintenance.

The union said it has filed an unfair labor practice charge with the National Labor Relations Board, arguing that the company has not bargained in good faith.

The union’s Southeast region includes technicians, customer service representatives and others who “install, maintain and support” the company’s landline and internet line services. The region includes Alabama, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina and Tennessee.

Union officials have said that the key issues are job security and a steady rise in healthcare costs. 

The timing of the strike gives the union leverage in some ways, but favors the huge company in others.

To the workers advantage is a tight labor market in which a low unemployment rate has many employers complaining of a shortage in skilled workers. 

But changes in technology allow the company's day-to-day operations to continue smoothly, which may encourage AT&T to try waiting out the strike.

And the federal agency that the union is making its complaints to, the NLRB, has become more conservative over the years even as the influence of unions nationally has shrunk.

Moreover, the South has long been a region with fewer union members and governments that are typically not sympathetic. 

That backdrop has made many southern unions reluctant to strike. But some telecom workers have said they are under continued pressure, that wages are rising more slowly than costs while the company shifts to lower-paid jobs and contract workers.

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https://www.ajc.com/business/workers-strike-the-southeast-more-than-000-walk-out/wNwYJfXjLwOLuRg0148BuM/

2019-08-24 19:39:13Z
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