Saks Owes Chanel $136M | Amazon Buys US Copper | Gap New Role
Inside the Mad Dash to Save Saks, America’s Last Luxury Retailer at WSJ. “Chanel’s tab is $136 million. At Kering, the company behind Gucci, Yves Saint Laurent and Balenciaga, the bill is nearly $60 million. And those are just two of the many brands owed money by Saks Global—a list so long it stretched more than three pages in the bankruptcy filing that landed in a Houston court early Wednesday morning. Even though the parent company of Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman was plainly veering toward bankruptcy in recent days, the filing was stunning in its sweep and scale.” WSJ subs.
…How Saks’s acquisition of Neiman Marcus plunged the company into bankruptcy at CNBC. “You had the two companies that weren’t doing great, and then you combine the two companies and put on a large amount of debt,” said Chadha…once the transaction closed and both companies paid debts related to the agreement, there wasn’t enough money left over to pay Saks’ vendors…vendors were less willing to send Saks inventory. Soon, the retailer lacked an adequate assortment to drive sales, leading the situation to deteriorate.” Read more
…Amazon Blasts Saks Funding Deal, Says Equity Is ‘Worthless’ at Bloomberg. “In 2024, Amazon took a minority stake in the retailer as part of an agreement that helped facilitate Saks’ $2.65 billion acquisition of Neiman Marcus. Amazon said it invested $475 million of preferred equity in the luxury retailer as part of the deal.” Bloomberg subs.
…Can Saks’ new CEO repair the damage done to the luxury retailer by years of being treated as a ‘financial plaything’? at Fortune. “In late 2024 at the WWD CEO conference, shortly before the Saks acquisition closed, Geoffroy van Raemdonck recalled how at the start of his tenure, he had challenged his Neiman Marcus C-suite with the question, “How do we reignite customers’ emotions?” That’s arguably the same question Van Raemdonck faces today.” Fortune subs.
Amazon Is Buying America’s First New Copper Output in More Than a Decade at WSJ. “The Nuton copper will satisfy only a sliver of Amazon’s needs. The biggest data centers each require tens of thousands of metric tons of copper…The 14,000 metric tons of copper cathode that Rio expects the Arizona Nuton project to yield over four years wouldn’t be enough for one of those facilities.” WSJ subs.
Gap Inc. Creates Chief Entertainment Officer Role, Tapping Pam Kaufman to Lead Entertainment Strategy Press release
Target Launches Exclusive Bedding Collection from Interior Designer Jeremiah Brent Press release
How This Entrepreneur Turned Her Ring Concierge Service Into A Growing Jewelry Empire at Forbes. “Nicole Wegman launched a jewelry business with $2,000 to help women navigate the engagement process. Today, Ring Concierge brings in more than $100 million a year…Wegman launched Ring Concierge, following brief stints in product development at Macy’s and as a buyer for Bloomingdale’s, with an initial investment of $2,000 to buy an LLC, a web domain and business cards.” Read more
Kroger Launches Delivery on Uber Apps Nationwide Press release
Trump signs a law returning whole milk to school lunches at AP. “Long sought by the dairy industry, the return of whole and 2% milk to school meals reverses provisions of the Healthy Hunger-Free Kids Act championed by former first lady Michelle Obama.” Read more
Amazon’s new portable Just Walk Out lanes bring checkout-free shopping to pop-up venues Press release
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