[AlbertC]

Staffing in a pandemic: Which retailers have furloughed, laid off or hired employees

Of 67 apparel retailers analyzed by Retail Dive, 41 have furloughed employees, while 9 have laid off employees.

By Cara Salpini and Nami Sumida

May 8, 2020

Staffing in a pandemic: Which retailers have furloughed, laid off or hired employees

Of 67 apparel retailers analyzed by Retail Dive, 41 have furloughed employees, while 9 have laid off employees.

www.retaildive.com

 

[AlbertC]

Coronavirus: 101-year-old Canadian discount retailer Army and Navy to close permanently

Posted May 9, 2020

A 101-year-old retail icon in B.C. and Alberta is closing permanently due to financial pressures from COVID-19.

Army & Navy closed its department stores “temporarily” in March due to the pandemic.

But in a statement Saturday, president and CEO Jacqui Cohen said while the company had hoped to reopen, “the economic challenges of COVID-19 have proven insurmountable.”

“I am full of gratitude for our staff and their years of service, our suppliers with whom we forged decades-long relationships, and of course our loyal customers who were at the heart of our business,” said Cohen.

“It is hard to comprehend. This time last year we were celebrating the centenary of Army & Navy — a company my grandfather started in 1919 — and we were looking forward to the years ahead. Now we are closing a company that was at the heart of eight communities in western Canada over its 101 years.”

Army and Navy, 101-year-old Canadian discount retailer, to close permanently under COVID-19 | Globalnews.ca

In a statement Saturday, president and CEO Jacqui Cohen said while the company had hoped to reopen, "the economic challenges of COVID-19 have proven insurmountable."

globalnews.ca

 

[AlbertC]

GNC says Ch. 11 is a possibility as pandemic hits sales and profits

Published May 12, 2020

Dive Brief:

• Nutrition supplement retailer GNC has been battered by the coronavirus pandemic, with its comparable sales down 10.1% in the first quarter, the company reported.
• The company recorded a $157.5 million asset impairment related to disruption from COVID-19. That led to a net loss of $200.1 million for Q1, wider by more than 1200% than its net loss from the prior year.
• As of May 6, about 40%, or about 1,300, of GNC's U.S. and Canadian stores were closed, and some of those may be permanently closed in the future, the company said in a securities filing. GNC may have to file for Chapter 11 so it can restructure, the company also said in the filing.

GNC buys time on its debt

The vitamin and supplement retailer had said it did not have the cash to pay the debt coming due and that Chapter 11 might be an option.

www.retaildive.com

 

[AlbertC]

CNBC: J.C. Penney in talks for $450M bankruptcy loan, with strings attached

May 13, 2020

Dive Brief:

• J.C. Penney is in talks with "key lenders" on bankruptcy funding that would require the retailer hit certain financial milestones, according to a CNBC report that cited anonymous sources.
• According to the report, the $450 million loan would provide $255 million at first and then require Penney hit budget targets, though no deal has been finalized yet. J.C. Penney declined to comment on the record.
• The retailer could file for Chapter 11 as early as Friday with a plan to close up to 200 stores, CNBC also reported. Reuters earlier reported a similar number of closures. In recent weeks, Penney has missed two interest payments together worth $29 million.

J.C. Penney makes a missed $17M payment amid reports of looming bankruptcy

The retailer avoided default on its term loan facility while it reportedly is in talks with lenders to fund it in Chapter 11.

www.retaildive.com

 

[AlbertC]

J.C. Penney pays out nearly $10M to execs as finances falter

May 14, 2020

Dive Brief:

• J.C. Penney is paying out millions of dollars in performance bonuses to its top executives as its stock nears $0 and the retailer reportedly drifts toward bankruptcy.
• In a recent securities filing, the company said its board had approved changes to its compensation program that include pre-paid cash incentive awards worth a fraction of executives' target variable compensation.
• The amounts include $4.5 million for CEO Jill Soltau and $1 million each for CFO Bill Wafford, Chief Merchant Michelle Wlazlo and Chief Human Resources Officer Brynn Evanson. Most of the awards have to be repaid if the executive is terminated with cause or resigns before January 31, 2021, and 20% must be paid back if the company misses performance goals. The company also accelerated payment of $2.4 million in cash awards based on the company's 2019 performance.

J.C. Penney pays out nearly $10M to execs as finances falter

The retailer, reported to be near bankruptcy, said it made compensation changes "to retain and continue to motivate" its top management team.

www.retaildive.com

 

[christiesplits]

https://twitter.com/x/status/1261125589492281345

 

[AlbertC]

Landlords push back on J. Crew's plans to skip rent in Ch. 11

May 15, 2020

Dive Brief:

• Several of J. Crew's landlords are objecting to the apparel retailer's request in bankruptcy court to skip on $23 million in rent due over the first two months of its bankruptcy.
• Major mall operators, including CBL & Associates and Simon Property Group, have raised issue with J. Crew, which closed its stores in response to the COVID-19 crisis, skipping rent including on stores that reopen. So far, more than 15 objections have been lodged against J. Crew's request, which was filed earlier this month.
• Another landlord, Grand Place, argued in court papers that J. Crew's bankruptcy "should not be funded, on an interim basis, by Debtors' [i.e., J. Crew's] landlords and administered for the benefit of Debtors' secured lenders without some form of adequate protection being granted to Debtors' landlords."

J. Crew wins court approval for rent relief

The order allows the retailer to avoid $23 million in rent payments, a move landlords objected to.

www.retaildive.com

 

[AlbertC]

J.C. Penney files for bankruptcy

May 15, 2020

Dive Brief:

• J.C. Penney filed for Chapter 11 bankruptcy protection on Friday evening, citing disruption caused by the COVID-19 crisis.
• The department store went into bankruptcy with a reorganization plan that had the support of owners of 70% of its first-lien debt, according to an emailed press release. The company has commitments for $900 million in debtor-in-possession financing, including $450 million in new money.
• Penney said in the release it would reduce its store footprint but did not immediately disclose details on how many stores it would close.

J.C. Penney files for bankruptcy

The company plans to close about 242 stores and has new access to cash as it looks to shed debt and sell assets in Chapter 11.

www.retaildive.com

 

[AlbertC]

Apparel collapse drags down retail in April

May 15, 2020

Dive Brief:

• With most nonessential stores shut due to the pandemic, retail sales in April in the key sectors tracked by Retail Dive plummeted 16% year over year, according to the U.S. Department of Commerce’s preliminary results for the month. Retail trade sales as defined by the government fell 17.8% compared with the year ago period.
• Some sectors were particularly hard hit. Clothing and accessories sales plunged 89%; furniture and home sales fell 67%; electronics sales fell 65% and sporting goods and hobby sales fell 46%. General merchants, which in most cases were permitted to stay open thanks to sales of essential items, saw sales fall 14%, according to the report.
• Others did see a lift. E-commerce and other non-store sales rose 28%, and grocery stores rose 13.4%, the Commerce Department said.

Apparel collapse drags down retail in April

A significant e-commerce boost and a rise in grocery were unable to make up for record declines in clothing, furniture and electronics sales.

www.retaildive.com

 

[AlbertC]

J.C. Penney store closings coming: Retailer trying to avoid liquidation in Chapter 11 bankruptcy

May 17, 2020

With 846 stores and 85,000 employees, J.C. Penney could be the largest symbol of what COVID-19 may mean for retailers already struggling for survival.

The department store chain filed for bankruptcy Friday and is asking a federal judge to authorize the rejection of 20 leases in the opening salvo of the company's Chapter 11 bankruptcy. The company said it plans to "accelerate" permanent store closings as part of its bankruptcy but declined to provide details on which locations it plans to shutter.

The move sets in motion the process of beginning permanent store closings as the retailer aims to stabilize its finances and avoid outright liquidation – a fate that chains such as Papyrus, Modell’s Sporting Goods and Art Van Furniture haven't been able to avoid.

J.C. Penney store closings coming: Retailer trying to avoid liquidation in Chapter 11 bankruptcy

J.C. Penney plans to close some stores permanently during its Chapter 11 bankruptcy as the company tries to avoid outright liquidation.

finance.yahoo.com

 

[Johnny Au]

It would be interesting if American electronics retailers such as Best Buy, MicroCenter, and WB Mason's (and B&H Photography and Adorama) can survive both the pandemic and Amazon's ascendancy.

 

[AlbertC]

It would be interesting if American electronics retailers such as Best Buy, MicroCenter, and WB Mason's (and B&H Photography and Adorama) can survive both the pandemic and Amazon's ascendancy.

I work in the technology industry, and the demand for devices like laptops, webcams, headsets, and tablets is high for the rush to get employees equipped to work from home. This will likely remain the case for the year and gradual trend towards the future. I've been told by clients where it's almost impossible to find webcams in stock right now.

However, I can see the demand for other consumer electronics like TV's and digital cameras to diminish. Especially if the general state of the economy remains stagnant and household budgets are tight. While digital camera sales have been on a steady decline for years.

 

[AlbertC]

J.C. Penney bankruptcy aftermath: 700 very large stores may completely vanish

May 18, 2020

J.C. Penney (JCP) will be a shell of its former self if it emerges from bankruptcy, retail experts tell Yahoo Finance, and there is a big question mark around the if component.

“J.C. Penney will look a lot different if they survive. Perhaps they could have 150 stores. It will look like a very different model just like what happened with Sears,” SW Retail Advisors chief Stacey Widlitz said on Yahoo Finance’s The First Trade.

J.C. Penney bankruptcy aftermath: 700 very large stores may completely vanish

J.C. Penney's outlook is bleak, at best, in the wake of its new bankruptcy filing.

finance.yahoo.com

 

[AlbertC]

Office Depot to cut more than 13K jobs, close some stores

Published May 18, 2020

Dive Brief:

• Office Depot on Thursday announced a restructuring plan that includes "closing and/or consolidating distribution facilities and retail stores and the reduction of approximately 13,100 employee positions by the end of 2023." The company said in a Securities and Exchange Commission filing that it expects the effort to yield up to about $860 million in net savings by the end of 2023 when the work is complete.
• The company aims "to realign its operational focus to support its 'business-to-business' solutions and IT services business units and improve costs," according to the filing.
• The office supplies retailer is still mulling when, which and how many retail stores and distribution facilities it will close. As of March 28, the retailer operated 1,295 retail stores in the U.S., Puerto Rico and the U.S. Virgin Islands, down from 1,359 in the year-ago period, according to its separate first-quarter filing.

Office Depot to cut more than 13K jobs, close some stores

The office supplies retailer said it expects to save about $860 million by the end of 2023, according to a Securities and Exchange Commission filing.

www.retaildive.com

 

[Towered]

I work in the technology industry, and the demand for devices like laptops, webcams, headsets, and tablets is high for the rush to get employees equipped to work from home. This will likely remain the case for the year and gradual trend towards the future. I've been told by clients where it's almost impossible to find webcams in stock right now.

However, I can see the demand for other consumer electronics like TV's and digital cameras to diminish. Especially if the general state of the economy remains stagnant and household budgets are tight. While digital camera sales have been on a steady decline for years.

Digital cameras will likely be obsolete soon. With the quality and features of cameras on our cell phones having improved exponentially, and the ability to share photos on social media instantly, what is the incentive to invest in an expensive, bulky, separate piece of equipment that only produces marginally better photos, and only if the user knows what they are doing? Hand-held cameras will become the exclusive domain of a small handful of trained experts and hobbyists in photography.