Story of the Week
Party City to close all stores in bankruptcy
Party City filed for Chapter 11 bankruptcy protection on Dec 21st in the Southern District of Texas. The party supplies specialist also announced it would close its entire footprint, which at the time of its bankruptcy filing consisted of nearly 700 stores, according to court documents. The company has hired Gordon Brothers to assist in the liquidation process. This marks Party City’s second trip through bankruptcy court in less than two years after filing for Chapter 11 in January 2023.
Apparel & Footwear
Destination XL gets offer to go private
Destination XL Group Inc. received an offer to go private from Fund 1 Investments, the retailer confirmed on Dec 23. Under the non-binding proposal, Fund 1 would acquire all of DXL Group’s outstanding shares for $3 per share, according to a letter to the company from the firm. The offer from Fund 1 Investments for the big and tall-focused men’s apparel retailer is a 34% premium over the company’s closing stock price as of Dec 19, and the offer does not include a financing condition, the firm said. The company’s stock was up and trading at $2.84 on the Nasdaq at midday Dec 26. Destination XL’s board of directors will review and evaluate the proposal and other strategic alternatives together with its financial and legal advisors, the company said in its statement.
Beckham Brands Post Robust Gains in Fiscal 2023
David and Victoria Beckham’s various companies continued to log robust performances for the year ending Dec. 31, 2023, according to the most recent accounts filed Dec 30, 2024, on Companies House, the British government’s business register. The Beckham family brands, which include David Beckham Ventures Ltd., Studio 99 and Seven Global LLP, saw their profitability considerably improve in fiscal 2023. Consolidated net profit more than doubled to $36.2 million in the period, up from $16.2 million in fiscal 2022.
L’Exception Sold to Asset Management Firm AA Investments
French online retailer L’Exception has been acquired by Hong Kong-based asset management firm AA Investments, joining a rapidly growing group that also includes French fashion and home decor e-tailer Smallable and sneaker resale site Wethenew. Founder Régis Pennel revealed the deal in a LinkedIn post on December 31st, adding that he was immediately stepping down. Cécile Roederer, founder and chief executive officer of Smallable, will take over the company’s leadership, he added.
Athletic & Sporting Goods
Fleet Feet Expands in Puget Sound With Acquisition of South Sound Running Stores
Fleet Feet, the largest franchisor of run specialty stores, has announced the acquisition of two key locations in Olympia and Puyallup, Washington. Following the retirement of South Sound Running founders Greg Klein and Joan Marchioro, Wade and Julie Pannell have acquired the Olympia and Puyallup locations, marking a new chapter for Fleet Feet in the region. The South Sound Running locations are scheduled to reopen as Fleet Feet Olympia on Jan. 2, 2025, and Fleet Feet Puyallup on Jan. 10. With six existing stores throughout Washington, including Bonney Lake, Spokane, Spokane North, Spokane Valley, Tacoma and Richland, the acquisition positions the Pannells to make Fleet Feet the go-to running store across the Puget Sound region, further strengthening their presence in Washington. Founded in 1976, Fleet Feet is the largest franchisor of locally owned and operated run specialty stores, with more than 275 Fleet Feet stores in 40 states and a national headquarters in Carrboro, N.C.
Unrivaled Sports Acquires Rocker B Ranch
Unrivaled Sports has added Rocker B Ranch in Texas to its baseball and multi-sport division of venues with plans to expand the facility in the future. The Rocker B Ranch acquisition is the latest since Unrivaled Sports formed in 2024. In 2024, Rocker B Ranch hosted nearly 60,000 visitors, including over 900 baseball teams that participated in over 30 seasonal, weekend-based tournaments. Rocker B Ranch, near the Dallas-Fort Worth International Airport, is a 325-acre venue that has four baseball fields and resort-style amenities. The property also includes volleyball, basketball, and tennis courts
Cosmetics & Pharmacy
The CEO of Aesop for the past 22 years, Michael O’Keefe, has announced his intention to stand down from the role. The brand’s owner, L’Oreal, has yet to name a successor. According to a report published by Inside Retail, O’Keefe’s departure follows the brand’s milestone achievement this year; the Australian fragrance label pulled in some US$1 billion in sales. Japan is now its largest market, and market share is growing rapidly in Korea and China. Inside Retail reports that O’Keefe is hoping to take a sabbatical before moving on to another project.
Usana acquires ownership stake in Hiya Health Products for $205M
Usana announced its acquisition of a 78.8% controlling ownership stake in Hiya Health Products. The $205M cash transaction closed on December 23 and is anticipated to be accretive to Usana’s 2025 adjusted EBITDA. For the last twelve months ended September 30, Hiya generated net sales of $103M, net income of $19M, and adjusted EBITDA of $22M. As of September 30, Hiya had more than 200,000 customers.
L’Oreal acquires South Korea’s Dr.G in skincare deal with Migros
French cosmetics giant L’Oreal said on December 23 that it had agreed to buy Gowoonsesang Cosmetics, which includes South Korean skincare brand Dr.G., from Swiss retailer Migros. The Korean beauty market is dominated by local brands known for being among the world’s most innovative and are increasingly popular overseas as part of a trend for ‘K-Beauty.’ Dr.G will meet rising demand for K-Beauty and effective yet affordable skincare, L’Oreal said in a statement, adding that it has a growing pan-Asian presence and global growth potential.
Discounters & Department Stores
Big Lots’ new deal could keep up to 400 stores open
Big Lots announced Friday a transaction that could leave up to 400 of its stores open after an earlier announcement that all stores would close. The company had more than 1,300 stores when it filed for bankruptcy in September. The deal also includes the possibility of retaining store associates at acquired locations and some corporate staff to support operations, according to a company press release. The sale to Gordon Brothers Retail Partners enables the transfer of Big Lots assets like intellectual property and real estate to other companies. Variety Wholesalers, which owns more than 400 stores including the Roses and Bargain Town banners, said it intends to buy between 200 and 400 Big Lots stores and up to two distribution centers and operate them under the Big Lots banner. The agreement is subject to approval by the bankruptcy court and “other customary closing conditions,” the companies said.
The Container Store files for bankruptcy, but it’s business as usual
After nearly 50 years in business, The Container Store has filed for Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas and expects to confirm a reorganization plan within 35 days. The process doesn’t include its Swedish Elfa business, according to a company press release. Just days ago, the New York Stock Exchange suspended trading of the company’s shares and initiated delisting proceedings. That move is now moot, as, once its plan is executed, The Container Store will be owned by its term loan lenders and operate as a private company. In the meantime, the retailer will continue to operate as usual, with its stores and website open for business, per the release. The plan is to pay vendors and other trade creditors in full, as outlined in a motion filed with the court.
Saks Global names new leadership as it completes $2.7B Neiman Marcus acquisition
Saks Global completed its acquisition of Neiman Marcus Group for $2.7 billion, the company announced on Monday. The move brings several luxury retailers under the Saks Global corporate roof, including Saks Fifth Avenue, Saks Off Fifth, Neiman Marcus and Bergdorf Goodman. The companies first announced the deal in July. To pay for the deal, the company said it’s using equity contributions from a handful of new investors, including Amazon, Authentic Brands Group and G-III Apparel Group, along with the issuance of $2.2 billion of senior secured notes and an asset-based lending revolving credit facility. Saks CEO Marc Metrick will stay with the company to serve as CEO of Saks Global Operating Group. Ian Putnam, president and CEO of HBC Properties and Investments, will serve as CEO of Saks Global Properties & Investments. Both will report to Richard Baker, Saks Global’s executive chairman. Bergdorf Goodman will remain a stand-alone business and Tracy Margolies, who was previously Saks’ chief merchandising officer, will be Bergdorf Goodman’s new president.
Emerging Consumer Companies
The beauty industry gets a makeover with eyva.ai’s seed funding
Eyva.ai has announced a €2.7 million seed funding round led by Earlybird and Wenvest Capital. True Global Ventures, xdeck, Wepa Ventures, Robin Capital and Superangels also participated in the round. According to a report published by EU-startups, the platform leverages AI to optimise product development for beauty and personal care companies, cutting research time by 90 percent and speeding up the development of product concepts by 60 percent. According to a report published by EU-startups, eyva.ai will use the investment to expand its services into the broader consumer goods market, aiming to position itself as a leading AI-driven platform for product development.
Emerging brands hope for active M&A market in 2025
The past two years have been challenging for founders of consumer startups hoping to sell their burgeoning businesses at a premium. Brand founders, investors and bankers are betting that the business environment will improve in 2025. The Federal Reserve is expected to issue two interest rate cuts in 2025. Additionally, investment bankers say that there has been an improvement in conversations around dealmaking toward the end of the year. They expect that to fuel an uptick a small M&A in the first half of 2025, with the hope that it will pick up even more in the back half of the year.
Food & Beverage
Private equity firms invest in Tropical Cheese
Tropical Cheese Industries, LLC, Perth Amboy, NJ, a company producing Hispanic cheese, meat, and other food products, has received an undisclosed investment from AUA Private Equity Partners, LLC and Avance Investment Management, two investment firms that focus on partnering with family and founder-owned businesses. The Mendez family, who founded Tropical Cheese, and the management team will retain a significant minority interest in the company. The company began when Rafael Mendez immigrated to the United States at 17 years old. Mendez settled in Perth Amboy in the 1970s where he began delivering milk serving the Hispanic community. He later founded his company Tropical Cheese in 1982.
Premium Brands adds to portfolio with acquisitions
Premium Brands Holdings Corp. is expanding its portfolio with three acquisitions. The company disclosed on Dec 30th that it has acquired NSP Quality Meats (Owasso, OK), a processor of cooked and deli meats that has processing facilities in Missouri, Oklahoma, and Texas; Casa Di Bertacchi (Vineland, NJ), a processor of cooked proteins; and Italia Salami (Guelph, Ont.), a manufacturer of Italian salami. “We are very pleased to welcome NSP, Casa and Italia into our ecosystem and to be partnering with the management teams of these well-known and long-established businesses,” said George Paleologou, president and chief executive officer of Premium Brands. The total purchase price for the three businesses was $66 million, according to Premium Brands Holdings.
Wakefern Food Corp. hauls in Di Bruno Bros.
Wakefern Food Corp. has acquired Di Bruno Bros., a Philadelphia-based maker of specialty products, including crackers, cheeses and cured meats. “We are proud to welcome this incredible line of products into our Wakefern family of brands,” said Mike Stigers, president of Wakefern. “This new venture represents a tremendous opportunity for Wakefern as we look to expand the distribution of these delicious and distinct groceries nationally through a dedicated sales team,” Stigers said. Wakefern will continue to offer the Di Bruno Bros. brand to its existing customers as well as its cooperative members and wholesale customers. “We are committed to growing the Di Bruno Bros. brand while remaining true to the Di Bruno family’s tradition of great food and outstanding quality,” Stigers said.
Louis Dreyfus acquiring ingredients business
The Louis Dreyfus Co. is acquiring BASF’s food and health performance ingredients business. Terms of the acquisition were not disclosed. The acquisition includes a manufacturing facility in Illertissen, Germany. The BASF business produces such ingredients as aeration and whipping agents, emulsifiers, plant sterol esters, conjugated linoleic acid, omega-3 oils, and others. “In line with our strategic plans for revenue diversification through more value-added products and growth in downstream markets, this agreement is an opportunity to accelerate LDC’s participation in the rapidly growing plant-based ingredients market,” said Michael Gelchie, chief executive officer of LDC. “We are excited about the prospect of this transaction, as LDC’s first investment in dedicated facilities to produce food and health performance ingredients at scale.” The food and health performance ingredients business was no longer a strategic focus for BASF, according to the company.
Grocery & Restaurants
McDonald’s largest franchisee renews its agreement for 20 years
Arcos Dorados Holdings Inc., Latin America’s largest restaurant chain and the world’s largest independent McDonald’s franchisee, has renewed its master franchise agreement with the quick-service chain. The parties finalized a new, 20-year MFA, that became effective on January 1, 2025, and replaced the previous one. The new agreement also includes a renewal option, at McDonald’s discretion, for an additional 20 years, beginning on January 1, 2045. As previously announced, the new MFA includes a royalty fee of gross sales of 6% for the first 10 years, 6.25% for the subsequent five years, and 6.5% for the final five years. In addition to a steady royalty rate for the next decade, Arcos Dorados and McDonald’s expect the renewed agreement to support additional growth in the franchisee’s 20 existing countries and territories, with approximately 90 to 100 new units expected to open in 2025.
Home & Road
Marquee Buys Laura Ashley and Builds to $4 Billion Retail Sales
Marquee Brands rang in 2025 with a big new deal — scooping up U.K. home fashions mainstay Laura Ashley. The 72-year-old brand adds $750 million in retail sales to Marquee, which specializes in using licensing deals to accelerate established brands around the world. Many of the businesses that enter the brand management world have their own operating units and need to be converted to an intellectual property and licensing-heavy model, but Laura Ashley is already there. Gordon Brothers bought the brand out of administration in 2020 and reset its business, building it back up with licensed partners. The brand is already distributed in more than 80 countries through wholesalers and digital marketplaces and has a total of 150 stores and shops-in-shop.
Tempur Sealy makes 5-year commitment to others’ premium beds at Mattress Firm
In response to a judge’s suggestion that its slot commitment for third-party vendors was lower than understood, Tempur Sealy International and Mattress Firm have filed a revised plan that promises the sleep retailer will maintain its current percentage of “premium” mattresses from other producers for five years. The document, filed in U.S. Court for the Southern District of Texas, referenced closing arguments mid-December during which Judge Charles Eskridge said Tempur Sealy’s commitment to premium mattress slots from other mattress makers post-closing of the proposed acquisition was lower than Mattress Firm currently has in place. In its court filing, Tempur Sealy and Mattress Firm said they will rectify the perceived discrepancy by allowing third-party mattresses to be placed in at least 43% of premium slots (on average) across all open Mattress Firm stores. Previously, the commitment had been to reserve 28% of the floor for other mattress suppliers. The company defines premium mattresses as those that retail for $1,500 or more.
Tesla Reports First Ever Drop in Annual Deliveries
Tesla posted its fourth-quarter vehicle production and deliveries report on Thursday. Results for the quarter represented the first annual drop in delivery numbers for Tesla, which reported 1.81 million deliveries in 2023. It reported 484,507 deliveries in the fourth quarter of 2023. Analysts had expected Tesla to report deliveries in the quarter of 504,770, including 474,000 Model 3 and Model Y EVs, according to a consensus of estimates compiled by StreetAccount. Tesla sent some investors a company-compiled delivery consensus of 506,763 vehicles, based on a survey of 26 analysts. A widely followed independent Tesla researcher, who publishes as Troy Teslike, predicted deliveries of 501,000. Deliveries are the closest approximation of sales reported by Tesla but are not precisely defined in the company’s shareholder communications. The fourth-quarter report comes after a huge late-year rally in Tesla’s stock, which finished 2024 up 63%.
Jewelry & Luxury
Walmart’s Viral Birkin Bag Dupe Is Bad News for Luxury Brand, Experts Say
Walmart has given customers a chance to experience the finer things in life by offering a Hermès Birkin Bag dupe—but fashion experts warn it could be bad for business. With prices ranging from just $78 to $100, it’s no surprise that Walmart’s affordable alternative has sold out in nearly every color online. This budget-friendly option is a mere fraction of the cost of the iconic Hermès Birkin, which starts at around $10,000 for a leather version and can soar to over $400,000 for a diamond Himalayan Birkin sold at Sotheby’s, a global auction house. The Birkin has long been a global symbol of success and exclusivity, with celebrities like the Kardashians and Victoria Beckham known to own multiple versions of this accessory.
Inside luxury goods’ broken audit system
LVMH-owned Dior’s production arm in Italy, Manufactures Dior, relied on formal inspections to assess working and safety standards inside its supply chain last year. In some cases, such certifications missed glaring problems, a Reuters review of unpublished court documents has found. AZ Operations, a sub-contractor of Manufactures Dior tasked with the production of leather items and based near Italy’s fashion capital Milan, was accused by Italian prosecutors in June of being a front for an operation that exploited workers. However, AZ Operations passed two environmental and social inspections in 2023, in January and July, according to unpublished audit documents reviewed by Reuters. Widespread Milan investigations have uncovered malpractice inside the Italian luxury goods supply chain of Dior, Giorgio Armani and Alviero Martini this year, Reuters has previously reported.
BNPL Makes Inroads With Luxury Brands as High Earners Pay Over Time
The conventional wisdom may be that buy now, pay later (BNPL) options are best suited for lower- to middle-income consumers, for smaller ticket items, and being able to afford necessities. But a spate of recent announcements underscores the widespread appeal of paying over time — where stretching out transactions over weeks or months helps improve consumers’ cash flow — even among high-income households. PYMNTS Intelligence noted in the special report “New Data: Defining the New Buy Now, Pay Later Consumer,” that for roughly two-thirds of users, cash flow management is one of the key benefits of BNPL. Roughly a third of users say the BNPL option helps them afford larger purchases. We segmented the data in several ways — including those who used BNPL by necessity and by choice. A third of higher-income consumers, those earning more than $100,000 annually, said they’d used BNPL. With a bit more bifurcation, only 5.7% of consumers in this income bracket embraced BNPL out of necessity; about 25% said BNPL was a choice they prized among the broader range of payment options available to them. Clothing and accessories were the product categories spurring the use of BNPL among all users — at about 33% of consumers who paid over time. Only about 6% of individuals embraced installments for luxury goods — which indicates significant room for growth.
Office & Leisure
Kormotech Secures Funding to Expand Pet Food Production in Europe
Kormotech, a family-owned pet food company with Ukrainian origins, has secured €40 million in funding from the European Bank for Reconstruction and Development (EBRD). The investment will be used to expand its wet pet food production facility in Kėdainiai, Lithuania, by adding three additional phases and significantly boosting the company’s production capacity, company officials reported. The project, valued at €63 million, will include four new production lines, with the first phase of construction beginning in 2025 and full completion expected by 2028, officials said. The new plant will expand Kormotech’s current production capabilities, which already include three facilities: two in Ukraine and one in Lithuania, opened in 2020.
iAnthus Acquires Lifestyle Vape Brand “Cheetah”
iAnthus Capital Holdings, Inc., which owns, operates and partners with regulated cannabis operations across the United States, announced that it has entered into an asset purchase agreement with Cheetah Enterprises Inc., pursuant to which iAnthus will acquire the Cheetah vape brand, a fast-growing brand known for its premium quality and disruptive presence in the Illinois’ cannabis market. This Acquisition marks a key milestone in iAnthus’ ongoing strategy to elevate its portfolio of consumer-focused cannabis brands and drive long-term growth. The Cheetah brand has become synonymous with innovation and quality, offering premium live resin vape products that have captured the attention of cannabis enthusiasts.
Technology & Internet
Justice Department urges Supreme Court to reject Trump’s push to pause TikTok ban
The Justice Department on Friday urged the Supreme Court to reject President-elect Donald Trump’s request to delay the implementation of a law that would effectively ban TikTok in the U.S. or force its sale by its Chinese parent company by Jan. 19. The latest filing in the Supreme Court case comes after Trump’s lawyer D. John Sauer asked the court to pause the law beyond the deadline to give the president-elect “the opportunity to pursue a political resolution to the questions at issue in the case.” TikTok and its parent company, ByteDance, sued to try to stop implementation of the law, arguing that it violates its free speech rights under the First Amendment.
Foreign phone sales plunge 47% in China, spelling trouble for Apple
Sales of foreign phone brands in China plunged in November, according to official data released Friday, underscoring further pressure on Apple, the biggest international handset vendor in the country. In November, foreign mobile phone shipments in China stood at 3.04 million units, according to CNBC calculations based on data from the China Academy of Information and Communications Technology, or CAICT. That’s a fall of 47.4% from November 2023, and a 51% drop from October last year. The figures highlight the mounting pressure Apple is under in the world’s largest smartphone market as it battles rising competition from domestic brands.
Finance & Economy
US unemployment claims fall to 211,000, the lowest level since March
The number of Americans applying for unemployment checks dropped last week to the lowest level since March, suggesting that most U.S. workers continue to enjoy unusually high job security. The Labor Department reported that jobless claims dropped by 9,000 to 211,000 last week. The four-week average of claims, which strips out week-to-week ups and downs, fell by 3,500 to 223,250. The overall number receiving unemployment benefits fell by 52,000 to 1.84 million, the lowest since September.
US Mortgage Rates Rise to Highest Since Early July, Suppressing Demand
US mortgage rates climbed to an almost six-month high during the Christmas holiday week, suppressing applications for home purchases and severely undercutting refinancing activity. The contract rate on a 30-year mortgage advanced 8 basis points to 6.97% in the period ended Dec 27th after rising 14 basis points the previous week, according to Mortgage Bankers Association data released Jan 2nd. The group’s index of home-purchase applications slid nearly 7% to the lowest level since mid-November. The refinancing gauge slumped more than 23% to a one-year low. While the figures are adjusted for seasonal effects, they are still prone to wide swings around the year-end holidays.
