Tapestry Inc (TPR.N) Chief Executive Officer Jide Zeitlin has been negotiating lower rents for the company’s Coach and Kate Spade stores for more than a month, using the brands’ power to draw in U.S. mall traffic as leverage in tough talks with landlords.
The company, whose handbags have won it a place among the big names of the fashion world, is just one of a raft of major U.S. retailers seeking to lower rent bills to make sure they have enough cash to weather the COVID-19 pandemic.
Continue reading “Mall operators collected only 15% of April rent …”
Oregon Lottery Director Barry Pack announced Thursday significant measures the agency is taking in response to the sharp revenue decline sparked by the COVID-19 response.
The reductions help Lottery address two major issues: the immediate reduction in cash flow, and a projected long-term contraction of the retail market.
Continue reading “Oregon Lottery announces layoffs, furloughs, pay cuts”
Roughly one out of every four Americans who hold a credit card — nearly 50 million people — saw their credit limits slashed or accounts involuntarily closed altogether by lenders over the past month, according to a new survey.
CompareCards, the Lending Tree site that conducted the survey, was so struck by the high numbers that it ran the survey a second time to be assured of the fallout to cash-strapped consumers hit with staggering unemployment due to the coronavirus crisis.
Continue reading “Nearly 50 million Americans had their credit card limits involuntarily cut in the past month”
The retail sector is currently facing one of its most challenging periods in history as stores and restaurants stay closed and the future of retail remains uncertain.
Many brick and mortar retailers and restaurants that were experiencing troubles heading into the crisis are now being forced to shutter locations or lay off workers in order to stay afloat as their business almost entirely dries up.
Others are left with no choice but to file for bankruptcy, and experts say we can expect to see many more follow in their lead as the pandemic continues to decimate the industry.
Here’s who has filed for bankruptcy so far:
Continue reading “Neiman Marcus, J. Crew, and True Religion are among the first US retailers to file for bankruptcy as the pandemic takes its toll. Here’s the full list so far.”
- When Lord & Taylor’s 38 stores reopen after pandemic-related restrictions ease, they may be running liquidation sales ahead of shuttering permanently. Reuters reported the news on Tuesday, citing unnamed sources.
- The department store, now owned by online apparel rental company Le Tote, is delaying a bankruptcy filing in order to make the most of such sales, but has been in touch with liquidators, according to the report. A company spokesperson declined to comment to Retail Dive on the news.
- Hudson’s Bay Co., which last August sold Lord & Taylor to Le Tote for $100 million, held on to some real estate in that deal and may take advantage of a bankruptcy to reassume some leases, Reuters said.
The COVID-19 pandemic has been rough on consumer-facing businesses, and fragile retailers like Lord & Taylor are especially at risk.
Continue reading “Lord & Taylor reportedly prepping to liquidate”
Neiman Marcus, the 112-year-old storied luxury department store chain, has filed for Chapter 11 bankruptcy protection, the first department store chain to be toppled by the coronavirus pandemic.
The move, announced Thursday, follows the bankruptcy filing by J.Crew, which became the first major retailer to reorganize during the pandemic. Experts believe there will be more to come even as there are moves to reopen businesses in parts of the country like Texas and Florida.
“Prior to COVID-19, Neiman Marcus Group was making solid progress on our journey to long-term profitable and sustainable growth,” said Neiman Marcus Group CEO Geoffroy van Raemdonck in a statement. “However, like most businesses today, we are facing unprecedented disruption caused by the COVID-19 pandemic, which has placed inexorable pressure on our business.”
Continue reading “Neiman Marcus files for Chapter 11 bankruptcy protection”
Photo Credit: Tomas Del Coro
State-owned Qatar Airways and Virgin Atlantic are the latest airlines to announce plans to cut large numbers of jobs due to the impact of coronavirus pandemic.
In a notice to staff Akbar al-Baker, chief executive of Qatar Airways warned: “The truth is, we simply cannot sustain the current numbers and we need to make a substantial number of jobs redundant – inclusive of cabin crew.”
Photo Credit: Phillip Pessar
Nordstrom plans to permanently close 16 of its 116 full-line stores while moving toward a phased reopening of others, as it tailors its immediate future to the realities of retail in the coronavirus pandemic.
The Seattle-based company also said it will make changes to how its stores function in a “market-by-market” approach, and will move its big Anniversary Sale from July to August.
Shuttering one out of seven stores is not simply a response to the pandemic, said Neil Saunders, managing director of GlobalData Retail.
“This coronavirus crisis is the catalyst rather than the cause,” he said. “Not all of its full-line stores pull their weight. … Some have probability that is dwindling. They’re saying, ‘Look, we don’t see a future in these stores, let’s cut our losses.’”
Continue reading “Nordstrom permanently closing 16 full-line stores…”