Tailored Brands, parent of Men's Wearhouse and Jos. A. Bank, is implementing a series of operating and organizational changes that will result in the elimination of approximately 20% of its corporate positions by the end of the fiscal second quarter. The company expects to close up to 500 stores as a result of business disruptions from the COVID-19 pandemic.
Ascena Retail Group, parent company of Ann Taylor, Lane Bryant, Loft, Justice and Catherines, filed for Chapter 11 protection Thursday in the U.S. Bankruptcy Court in Richmond, Va. The retailer plans to close 1,100 stores. Since March, a number of major clothing retailers have been pushed into bankruptcy, including Brooks Brothers Group Inc., J.C. Penney Co., Neiman Marcus Group Inc. and J.Crew Group Inc.
Tapestry, the parent company of Coach, Kate Spade and Stuart Weitz, said that, effective immediately, Jide Zeitlin, chairman and CEO, has resigned from the company and its board. "In the past month, a woman I photographed and had a relationship with more than 10 years ago reached out to various media organizations to express her concerns about what had occurred,” Zeitlin said in a statement. “I felt compelled to resign today because I do not want to create a distraction for Tapestry, a company I care deeply about.”
Three of the world’s biggest retailers are joining forces for good, not evil. Walmart, Target, and CVS Health have partnered for the Beyond the Bag Initiative, a plan to reinvent single-use plastic bags, the use of which is only being exacerbated by COVID-19. Kroger and Walgreens have signed up as well. “With $15 million in promised investments, the partners are inviting entrepreneurs and inventors to pitch new ideas to replace the 100 billion plastic bags still used in the United States every year,” according to Fast Company.
Airlines are urging the United States and the European Union to deploy a joint COVID-19 teeing program so that overseas air travel can resume. “The CEOs of United, American Airlines, IAG, and Lufthansa Group wrote July 21, that ‘given the unquestioned importance of transatlantic air travel to the global economy as well as to the economic recovery of our businesses, we believe it is critical to find a way to reopen air services between the U.S. and Europe,’” per Afar.
Going out of business is never easy, but it's more personal for small, family-owned local businesses. The 117-year-old Harrell’s Department Store in Burgaw, N.C., is a community fixture. “It has survived changing fashions — it once sold long johns — world wars, the Great Depression and the 2008 financial crisis, and floods,” according to The New York Times. “But it couldn’t survive the coronavirus.”
The grocery delivery wars are heating up. Instacart is suing Uber-spinoff Cornershop, claiming it “stole significant portions of its product catalog and is using that information on Cornershop’s app and website,” according to Grocery Dive. “Instacart said it sent a cease-and-desist order to Cornershop earlier this week that the company initially said it would comply with but has failed to do so.”
A nationwide face-covering mandate begins Monday at national retailers including Petsmart, Walmart, Sam’s Club, Lowe’s, BJ’s Wholesale Club, Kohl’s, Walgreen’s and CVS. The requirement starts Tuesday at Publix Supermarkets and Kroger stores and at Home Depot begins Wednesday. Aldi’s policy begins July 27 and Target's requirement starts Aug. 1. The Retail Industry Leaders Association sent a letter to state governors asking for mask mandates.The National Governors Association said its members are discussing the letter.
A week before Kanye West announced he was running for U.S. president, he inked a deal to help rebuild another American institution. The 10-year deal with Gap includes West creating a Yeezy Gap apparel line, set to arrive in 2021. West will receive royalties, have the option to renew the deal after the first five years, “and most importantly, acquire up to 8.5 million shares of common stock from Gap,” per Complex. “So along with royalties, West also has the chance to gain equity or a piece of Gap if his line meets certain sales targets.”
Hiroki Asai, an 18-year veteran of Apple, will join Airbnb to lead its marketing. The appointment comes at a time of flux at the home sharing company. Catherine Powell, the company’s head of experiences, takes on a new role as global head of hosting and Greg Greeley, president of the homes division, is leaving. The company also is resuming its efforts to go public, a plan put on hold due to the pandemic.