Saks Inc. to Sell for $2.4 Billion

Hudson’s Bay Company, parent of luxury retailer Lord and Taylor, plans to buy Saks for $16 a share, for a total deal of around $2.4 billion.

The purchase price is a 5 percent premium over the company’s Friday closing price of $15.31. Saks’ stock was up almost 4 percent Monday on the news.

The deal has not been approved by Saks’ shareholders, but, assuming they approve, should be concluded by the end of the year. Saks had sales of $3.2 billion in 2012, against sales of $4.1 billion for Hudson’s Bay.

The buyout will merge three big names in retail, featuring luxury, mid-tier, and outlet sectors. The company will have roughly 320 stores, including 179 department stores, 72 outlets, and 69 home stores in the U.S. and Canada. 

‘‘We are excited about what this opportunity and being part of a much larger enterprise can mean for the future of the Saks Fifth Avenue brand,’’ Saks Chairman and CEO Steve Sadove said in a statement.

Saks will continue to be run as a separate company, based in New York City, with its own merchandizing, marketing, and store operations.

Hudson’s Bay said that it plans to combine back office facilities and distribution centers to save around $100 million in annual operating costs. It will also look at possible options for the company’s real estate portfolio, which will include a long list of prime retail locations.

Saks Fifth Avenue is a destination store for travelers from around the world because of its sophisticated portfolio of international designers. In allowing management to stay on and not merging operations, Hudson’s Bay hopes to preserve the design base that has built the Saks brand.

The company now has a 40-day period to seek out third party bids, which could lead to a leveraged buyout. As a result of the risk of debt acquisition, Fitch Ratings placed Saks Inc. on “rating watch negative.” It expects to upgrade the rating once the Hudson’s Bay deal is completed.

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Resource URL: https://www.sourcingjournalonline.com/saks-inc-to-sell-for-2-4-billion/

Venezuela Angrily Ends Talks With US To Restore Normal Relations

Apparently offended by a statement made by Samantha Powers, the UN ambassador-designate from the US, Venezuela will no longer talk with the US about restoring normal relations.

During recent confirmation hearings before the US Senate, Ms. Powers said that Venezuela is guilty of a “crackdown on civil society,” comparing it to other oppressive governments such as Cuba, Iran and Russia, criticizing the country’s human rights record. 

A statement from Venezuela’s Foreign Ministry said the country felt compelled to halt discussions because of her remarks.

Before Venezuela’s refusal to talk further to the US, diplomatic discussions were being held in Guatemala between US Secretary of State John Kerry and Venezuelan Foreign Minister Elias Jaua.

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https://www.sourcingjournalonline.com/venezuela-ends-talks-with-us-to-restore-normal-relations/

Apparel Powerhouse Launches New Contender For Best Base Layer

The Team that brought Polartec^® (fleece) to the world market place is now launching a new brand of high-performance base layer apparel. This new brand is poised to capture the attention of eco-conscious consumers across a broad spectrum, from outdoor enthusiasts to fashion-forward trend setters.

The Brand is called Komafram, which means ” To Bring Forward”, and its CEO is Danny Feuerstein. Komafram is in partnership with Ambassador Enterprises, a for-profit philanthropic equity firm committed to investing in leaders and the organizations they lead. Komafram aspires to the inspirational model of Danny’s father, Aaron Feuerstein, the former owner and CEO of Malden Mills Industries — and Founder of Komafram. In terms of corporate responsibility, Aaron has set a high standard of commitment to employees, and living by the mantra of doing the right thing, in the right way, for the right reasons. Innovation, performance and style, combined with high ethical standards are what Komafram is all about. 

Komafram: Where Luxury Meets Performance

Komafram is designed for outdoor enthusiasts who want apparel that aligns peak performance with superior comfort and style. Komafram feels better, wears better and looks better than other base layers—and it delivers an unprecedented performance. Its alpaca based fiber blends are generating lightweight, luxurious, and durable odor-free fabrics. In essence, Komafram combines an exceptionally soft, next-to-skin “feel”, with outstanding thermal regulation and moisture management. For every climate extreme, from desert heat to winter cold, Komafram offers exceptional performance.

For more detailed check Resource URL: https://www.sourcingjournalonline.com/press-release-apparel-powerhouse-launches-new-contender-for-best-base-layer/

A.B.S. Declines Renewal Offer from JCP | Textile Retail News

Embattled retailer JC Penney’s (JCP) already depressing week just got worse. After a welter of rumors the company is poised to seek another $1 billion loan to finance turnaround efforts, Allen B. Schwartz, founder of A.B.S. by Allen Schwartz, decided to pull his collection from JCP stores.

Schwartz explained, “I just don’t feel it’s the right opportunity. I’m refusing the renewal. I want to be more appreciated. I’ve done incredible work with them. I became uneasy and I’m not going to renew.”

A JCP spokesperson issued only this tersely worded statement: “We don’t comment on contract negotiations.”

Schwartz, however, was much more voluble when asked about the split that resulted from soured contract negotiations. He was sent a renewal offer following his attendance of a presentation given by JCP CEO Mike Ullman. “I listened carefully and I came back and they sent me my renewal. The terms were not acceptable. It wasn’t what it started out to be.”

According to Schwartz, JCP wanted him to shift his line from sportswear to dresses, a sudden redirection he found distressing. “I want to be consistent. Every season is something new. We’re staffing twenty-five people for a project like this and we just can’t flip a switch. I feel very relieved. The terms keep changing and you lose trust.”

CREDITS: Sourcing Journal

Source: https://www.sourcingjournalonline.com/b-s-declines-renewal-offer-jcp

Bangladesh Factory Owners Push Back Against Reform | Textile Labor Issues

While the push for sweeping reforms of Bangladesh’s labor practices has been widely covered by the international press, comparatively little attention has been devoted to the resistance of factory owners.

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FTC Proposes Changes for Wool Product Labeling | Softgood Updates

The Federal Trade Commission has asked for public feedback on proposed changes to its Wool Products Labeling Rules as part of a systematic review that ensures all rules are up-to-date and effective…

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China, Sri Lanka to Finalize FTA | Trade News

China and Sri Lanka will soon finalize a free trade deal, the Chinese Embassy in Colombo reported….

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More Retailers Embracing Big Data | Retail News

If only stocking a store were as simple as sending buyers to Fashion Week and letting them check off the outfits they like best.
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Cash-Strapped Teens Bad News for Retail

Teen shoppers have become key target demographic for retailers, bad news since they have been disproportionately affected by general economic malaise. Experts are worried that sluggish back-to-school sales augur poor performance not just by the retail sector, but the global economy at large.

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H&M Sales Surge

Swimming against the current of economic torpor, Hennes & Mauritz (H&M) reported that its sales leapt an impressive 12 percent, or $5.7 billion, in the third quarter. Same store sales for the Swedish retailer rose 4 percent in August, after losing 1 percent in July. Total revenues have climbed 14 percent. H&M plans to release.

[ Read complete H&M news from Sourcing Journal ] 

Are Regional Trade Pacts Rewriting the Rules of Business?

The map of world trade is being hurriedly redrawn by a bevy of massive regional trade agreements, potentially redefining the rules that govern international commerce. The causes of these tectonic shifts are now many.

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Factory Roles Get Messy in New Sourcing Landscape

Factories have evolved to take a new, higher profile role in the apparel sourcing chain, but the rising tide has not necessarily lifted all the boats. As the traditional apparel sourcing model has evolved, industry experts say that the paradigm has been splintered into a host of complex new models tailored to meet individual company needs.

[ Full article on apparel news @ Sourcing Journal ]

Bangladesh Minister Calls for Lower Interest Rates

If Bangladesh is to remain competitive in the global textiles market, they’ll have to get their current bank interest rate down from over 18 percent. 
[ Read complete story on Bangladesh textile news @ Sourcing Journal ]

Online Apparel Sales Booming

While some major brick-and-mortar retailers post weak sales of apparel, online sales of clothing and footwear has continued its upward trend this year. Read full story from Sourcing Journal.

https://www.sourcingjournalonline.com/online-apparel-sales-booming/