Story of the Week
Walgreens to go private in roughly $10 billion deal with Sycamore Partners
Struggling drugstore chain Walgreens is going private. On Mar 6th Walgreens inked a deal with private equity firm Sycamore Partners that will take it off the public market for an equity value of around $10 billion. Sycamore will pay $11.45 per share in cash for Walgreens, representing a roughly 8% premium to the stock’s closing price on Mar 6th. Shareholders could also receive up to $3 more per share in the future from sales of Walgreens’ primary-care businesses, including Village Medical, Summit Health and CityMD. Walgreens said the total value of the transaction would be up to $23.7 billion when including debt and possible payouts down the line. Walgreens and Sycamore expect to close the take-private deal in the fourth quarter of this year.
Apparel & Footwear
Forever 21 will lay off nearly 700, close headquarters
Forever 21’s operating company is laying off nearly 700 people in California and Pennsylvania, according to a series of WARN notices sent to the states in recent weeks. More than 350 work at the company’s headquarters, which is closing, according to a letter sent to the California Employment Development Department. The others work at stores that will close permanently in the coming weeks, according to the notices. In response to a query about the layoffs, a spokesperson for Forever 21’s operating company, which licenses the brand in the U.S., said by email that it “continues to explore strategic options while also looking at ways to reduce costs across our operations and optimize our store footprint.”
Gap blows away expectation again, showing turnaround has staying power
Gap posted another quarter that blew away expectations, indicating its turnaround under CEO Richard Dickson is working better – and faster – than Wall Street anticipated. The apparel retailer behind Old Navy, Banana Republic, Athleta, and its namesake banner beat expectations on the top and bottom lines during the all-important holiday quarter and saw comparable sales grow 3%, ahead of expectations of up 1%, according to StreetAccount. Sales dropped to $4.15 billion, down about 3% from $4.30 billion a year earlier. Like other retailers, Gap benefited from an extra selling week in the year-ago period, which negatively skewed comparisons. In the year ahead, Gap is expecting sales to grow between 1% and 2%, in line with expectations of up 1.7%, according to LSEG. For the current quarter, its guidance was slightly weaker than anticipated. It’s expecting sales to be “flat to up slightly,” compared to Wall Street estimates of up 1.5%, according to LSEG.
Abercrombie & Fitch stock hammered by tariff concerns
After two years of robust growth at Abercrombie & Fitch, shares plunged on Mar 5th after the company posted weaker-than-expected 2025 guidance partially due to tariffs’ impact on freight costs and consumer spending. The retailer now expects net sales to grow by 3% to 5% in 2025, compared with the 6.77% jump the Street expected, and a stark drop from the 14% increase in net sales it clocked in 2024. “We expect the first half will be adversely impacted by higher year-over-year freight costs and more normalized carryover inventory selling, and the second half will benefit from expected lower freight than last year,” CFO Robert Ball told investors on a call, adding that the company’s outlook includes current tariffs on China, Canada, and Mexico but not “other potential incremental tariffs.” Per its 2023 annual report, Abercrombie sources the majority of its merchandise outside of the US, with around 130 vendors in 17 countries “primarily located in Southeast Asia.”
Athletic & Sporting Goods
Fenix Outdoor Takes Majority Stake in Devold of Norway Wool Brand
Fenix Outdoor International AG, the parent of Fjällräven, Royal Robbins, Hanwag, and Fenix Outdoor brands, has agreed to acquire 65 percent of the shares in Devold of Norway AS, which is described as a “pioneer in wool clothing for outdoor activities and protective workwear.” Following the completion of the transaction, Fenix noted in a media release that “Devold would become its number one wool brand.” Fenix will pay €35 million for the 65 percent stake in Devold through a combination of cash and 112,898 Fenix Outdoor treasury shares. The seller is Flakk Group, a Norwegian-based family-owned business with investments in private and public companies across multiple industries. Flakk Group will retain a 35 percent stake in Devold.
Adidas’ fourth-quarter sales top expectations as final Yeezy stock sold off
Adidas reported an uptick in fourth-quarter sales that exceeded expectations, as the retailer sold off the last of its remaining Yeezy stock, but pointed to slower revenue growth in the year ahead. The German sportswear giant recorded a 19% increase revenues at neutral currency rates to 5.97 billion euros ($6.34 billion) in the three-month period, ahead of the 5.72 billion euros forecast by LSEG analysts. Operating profit came in at 57 million euros in the fourth quarter compared to a loss of 377 million euros in the same period of last year. Adidas is attempting to grow its market share in North America amid declining sales at Nike and a broader retailer shift away from an overdependence on a weaker China.
CVC serves up $1bn bid for Miami and Madrid Open in tennis power play
CVC Capital Partners submitted a $1bn bid to acquire a portfolio of tennis assets, including the Miami Open and Madrid Open, two of the most prestigious tournaments in professional tennis. The sale process, managed by The Raine Group, has attracted interest from multiple bidders, with final offers expected later this month. Currently owned by Endeavor Group Holdings, led by Hollywood talent agent-turned-executive Ari Emanuel, the assets include additional tournaments such as the Barcelona Open and the pre-Wimbledon event at London’s Hurlingham Club. Emanuel is reportedly competing against CVC for control, with Goldman Sachs advising on his bid. Other private equity firms, including EQT Partners and Providence Equity Partners, have also explored potential bids, while wealthy individuals have expressed interest in acquiring individual tournaments. However, Endeavor is expected to favour a single buyer for the entire portfolio.
On Stock Sprints Higher On Earnings, Faces Tariff Questions
On Holding, the parent company behind the On running shoe brand, reported earnings of 37 cents per share adjusted, improving from a loss of 6 cents per share last year. Wholesale revenue jumped 26% to $346 million, while direct-to-consumer sales increased 40% to $330 million. On said it enters 2025 with “remarkable brand momentum,” that has been “fueled by strong demand in the early months of the year.” The shoemaker expects to achieve a net sales growth rate of at least 27% for the year, with net sales of at least 2.94 billion Swiss francs ($3.31 billion). On predicts a higher growth rate in the first half of the year due to comparison dynamics and the timing of key product launches, including the Cloud 6. Tariffs could also have an adverse impact on business, On warned in its 20-F filing with the SEC.
Cosmetics & Pharmacy
Carol’s Daughter Enters a New Era With L’Oréal USA Sale
L’Oréal USA has confirmed the sale of its pioneering textured hair care label Carol’s Daughter to new ownership. Brand founder Lisa Price will become President and maintain equity in the business, partnering with an independent beauty entrepreneur renowned for building and scaling popular personal care brands. After an impactful run under L’Oréal’s umbrella, Carol’s Daughter is poised to flourish under dedicated leadership that honors its heritage. By returning Lisa Price to a central leadership role, the brand can pivot more nimbly to evolving consumer needs while preserving its core values and identity.
10Beauty Acquires Clockwork, Bringing together the two Leading Innovators in Autonomous Manicures
10Beauty, a pioneer in Intelligent Beauty, has acquired Clockwork, creator of the world’s first AI-powered nail painting robot. This strategic acquisition strengthens 10Beauty’s position in automated beauty services as it prepares to launch its complete manicure system this summer. “We are thrilled to have the opportunity to integrate Clockwork’s unique intellectual property into the 10Beauty tech stack,” said Alex Shashou, Co-CEO of 10Beauty. “Clockwork’s machines have painted over 500,000 nails and scanned millions more. Their deep customer insights, AI, algorithms, and computer vision pipeline will be instrumental in accelerating the launch of our full manicure machine.” As part of the transition, Clockwork will sunset its current machines with the sole focus on continuing the development of 10Beauty’s full manicure machine.
Cutera Files Ch. 11 With $400M Prepackaged Plan
CUTERA, INC., a leading provider of aesthetic and dermatology solutions, announced that it is initiating a restructuring transaction with the support of a group of existing lenders, representing approximately 74% of the Company’s notes, to strengthen its balance sheet and position Cutera for long-term success. Through the transaction, Cutera will reduce its debt by nearly $400 million, or over 90%, and raise $65 million in new money from its existing lenders. To implement the transaction, Cutera has filed voluntary “pre-packaged” Chapter 11 cases in the U.S. Bankruptcy Court for the Southern District of Texas. Cutera will operate as usual throughout the court-supervised process and continue to provide best-in-class solutions to its customers around the globe without disruption.
Johnson & Johnson revives bankruptcy plan to tackle talc cases
Johnson & Johnson subsidiary Red River Talc has applied to a Texan bankruptcy court in the hope of gaining approval for a deal whereby the company would set up a trust to settle some 93,000 talc cases. Some 83 percent of claimants have voted in favor of the agreement, according to a report published by The Wall Street Journal. The pot of US$9 billion would pay an average of US$120,000 to each claimant. Johnson & Johnson has been attempting to bring all talc litigation to a close via a Chapter 11 process known as the ‘Texas Two Step’. Those who oppose the plan have argued that a profitable company should be prevented from using the bankruptcy courts in this way.
Discounters & Department Stores
Target expects tariffs to pressure profits in Q1
Target expects consumer and tariff uncertainties to pressure profits in Q1, the retailer said in its earnings announcement on Mar 4th. For the fourth quarter, the retailer reported net sales declined 3% year over year to $30.9 billion, while comparable sales rose 1.5%. Operating income fell 21% from the prior year to $1.5 billion, and net income fell about 20% to $1.1 billion. Net sales for the full year fell nearly 1% to $106.6 billion from last year, while comps were essentially flat. Operating income for the year fell 2.5% to about $5.6 billion. The gross margin rate for the year was 28.2%, up from 27.5%, which the company attributed in part to product cost improvements and growth in advertising and marketplace revenues.
Nordstrom posts robust holiday quarter, CFO plans jump to Starbucks
Nordstrom Q4 net sales fell just over 2% year over year to $4.2 billion. But accounting for last year’s extra week, they rose 2.5%, and store comps were up 4.7%. By banner, over a comparable time period: Q4 full-line net sales rose 0.5%, with comps up 5.3%, and off-price Rack net sales rose 6.6%, with comps up 3.5%. Gross margin expanded by 290 basis points, thanks mostly to less shrink, lower promotions and merchandise margin improvements related to switching from the retail inventory method to cost accounting. Net earnings surged more than 23% to $165 million. Chief Financial Officer Cathy Smith, who arrived two years ago and oversaw Nordstrom’s move away from the retail inventory method, will step down after Nordstrom files its annual report. The search for her replacement has begun. Smith will become Starbucks CFO next month, the coffee chain said on March 4th.
Macy’s turnaround starts to take shape, but ailing stores weigh on quarterly results
Macy’s delivered another quarter of mixed results as investors wait and see how quickly CEO Tony Spring can pull off a turnaround of the business with yet another activist investor looking to take the chain private. Across the business, which includes the Macy’s banner, Bloomingdale’s, and Blue Mercury, comparable sales during the all-important holiday quarter were down 1.1%. But comparable sales across its owned and licensed businesses, plus its online marketplace, were up 0.2%, which is the highest the metric has been since the first quarter of 2022. Plus, the so-called First 50 locations – the stores that Macy’s is devoting more resources to as part of its turnaround plan – saw comparable sales up 0.8%, marking the fourth quarter in a row the metric has been positive. The two bright spots in an otherwise worse-than-expected set of results suggest Macy’s turnaround is showing some signs of life – it just might take a bit longer than expected.
Luxury Dallas retailer Stanley Korshak acquired by Mitchells
Mitchells is acquiring Stanley Korshak, a men’s and women’s specialty retailer with one location at The Crescent in Uptown Dallas, for an undisclosed amount. The deal brings the number of stores owned by Mitchells to nine and represents the company’s first location in the central U.S. Mitchells other luxury men’s and women’s stores operate on the East and West coasts under names such as Wilkes Bashford in California, Marios in Oregon and Washington state, and Richards and Mitchells on the East Coast. Stanley Korshak’s former owner Crawford Brock, who is a former Neiman Marcus executive, is expected to stay at the helm of the Dallas store. Stanley Korshak has a multifloor retail space at 500 Crescent Court in Dallas’ sought-after Uptown neighborhood.
Emerging Consumer Companies
Tecovas to open flagship store in Soho
Tecovas is bringing its western appeal to the concrete jungle. The 10-year-old digitally native brand, known for its $300 cowboy boots, is opening a 4,500-square-foot flagship store in SoHo this fall. The New York outpost is one of 12 new locations Tecovas plans to open in 2025, as part of a larger retail expansion that will bring its total store count up to 54 by the end of the year. Plenty of digitally native brands have prioritized brick-and-mortar in recent years as online customer acquisition costs have risen. For Tecovas, however, it’s representative of not just a push offline, but into markets outside of the American South — home to most locations typically considered cowboy boot country.
Birdy Grey sees growth, expands into suits and tuxedos
Birdy Grey, a direct-to-consumer (DTC) brand known for its affordable bridesmaid dresses, has reported generating $100 million in revenue last year. The company is broadening its product line to include menswear, which will allow it to cater to the entire wedding party. Starting on March 19, Birdy Grey will introduce its first line of groomsmen attire, including a suit priced at $199 available in five colors and a black tuxedo retailing for $249. These new offerings are designed to complement the existing range of bridesmaid dresses, addressing what co-founder Monica Ashauer described as “untapped demand” in the wedding apparel market.
Rodan and Fields partners with Ulta
Skin care company Rodan and Fields has partnered with Ulta. The launch marks the first time Rodan and Fields has appeared at retail stores. Products are available at 150 Ulta stores nationwide and on its website. Ulta’s website currently has 20 Rodan and Fields products that range in price from $45 for face cleansers to $159 for the Total RF Serum Anti-Wrinkle Face Serum. Rodan and Fields is in stores for the first time, following a big change last year that redirected the company’s business model. In September, the company moved away from multilevel direct selling. Commissions made through product sales via recruitments are no longer part of the brand’s operations. The hair and skin care brand at the time also reconfigured its corporate structure and eliminated around 100 positions.
Food & Beverage
USDA rolls out $1B strategy to lower egg prices, curb bird flu
U.S. Secretary of Agriculture Brooke Rollins announced last week a $1 billion strategy to curb the ongoing bird flu, protect the U.S. poultry industry and lower egg prices. The strategy includes providing $500 million for biosecurity measures, $400 million in financial relief for impacted farmers and $100 million for vaccine research, action to reduce regulatory burdens and exploration of temporary import options, per the announcement. The USDA’s plan comes after the department predicted consumer costs for eggs would rise more than 40% this year.
New Water Capital Acquires Dutch Gold Honey and Related Businesses
An affiliate of New Water Capital Partners II L.P., a Boca Raton-based private equity investment firm focused on lower-middle market companies, has acquired Dutch Gold Honey, a top U.S. producer of best-in-class, ethically sourced honey, and the related businesses of McLure’s Honey & Maple Products, Gamber Container Company, The Bacon Jug Company and DGH Logistics. Dutch Gold has grown from a backyard business into a nationwide provider of honey, well known for inventing the iconic squeezable plastic honey bear container. The company’s customers include iconic brands, restaurants and foodservice operators, big box grocery retailers and institutional customers. Gamber Container, a national distributor of empty containers and closures, and DGH Logistics, a transportation company, were originally part of Dutch Gold Honey. Both were eventually established as independent companies as their business expanded. McLure’s Honey & Maple Products and The Bacon Jug Company were acquired by Dutch Gold Honey in 1997.
Kraft Heinz’s Crystal Light enters alcohol space for the first time
Kraft Heinz is bringing Crystal Light into the alcohol space for the first time with the launch of a new hard seltzer line. Crystal Light Vodka Refreshers allow the CPG giant to expand the powdered drink brand’s presence with more consumers. Kraft Heinz estimated nearly 20% of current Crystal Light buyers already use the product as a mixer in their alcoholic drinks. Crystal Light Vodka Refreshers is the latest innovation from Kraft Heinz as the food company looks to generate $2 billion in incremental net sales by 2027. Kraft Heinz generated $26 billion in net sales during 2024.
Colavita acquires dry pasta maker
Colavita USA, a manufacturer of Italian specialty products, has acquired Fair Lawn, NJ-based Vitelli Foods. Financial terms of the acquisition were not disclosed. Colavita said the acquisition strengthens its position as the third-largest importer of Italian pasta into the United States and bolsters its presence in the tomato market. Family-owned and founded in 1885, Luigi Vitelli primarily was involved in the canned tomato business until the mid-1990s, when the company began operating as Vitelli Foods and expanded its line of products to include pasta, beans, and other Italian specialties. Today, the company offers a broad range of dry pasta products under the Luigi Vitelli brand, including penne rigate, bow ties, cut ziti, elbows, rotini, fettuccine, spaghetti, and many others. The company also offers organic whole wheat pasta and artisanal pasta.
Grocery & Restaurants
Shaquille O’Neal’s Big Chicken brand joins the Craveworthy Brands portfolio
Craveworthy Brands — parent company to Genghis Grill, Taim Mediterranean Kitchen, and Hot Chicken Takeover — announced Monday that the company would be adding Shaquille O’Neal’s fast-casual chicken concept, Big Chicken, to its portfolio of restaurant brands. Craveworthy is becoming a managing partner, investor, and stakeholder in Big Chicken, while CEO Josh Halpern will continue to oversee the brand as Big Chicken CEO, with the added role of chief business officer of Craveworthy Brands. In addition to Craveworthy’s investment, Big Chicken is backed by O’Neal, Las Vegas-based hospitality group JRS Hospitality, and athletic/apparel brand management company Authentic Brands Group (Reebok and Champion). All four stakeholders will “manage and provide expertise” in areas like operations, training, supply chain management, culinary development, and customer service, while Big Chicken retains its independent brand identity. Big Chicken has 40 locations globally, with more than 350 restaurants in development.
Kroger ousts CEO Rodney McMullen, citing ‘personal conduct’
Speculation was swirling Monday about the cause of Rodney McMullen’s sudden resignation as chairman and CEO of Kroger. Kroger ousted McMullen, who had worked for the grocery retailer since 1978, following a board investigation of his personal conduct that, while unrelated to the business, was inconsistent with Kroger’s Policy on Business Ethics. The alleged misconduct, however, does not appear to be related to the company. Kroger said in the press announcement that McMullen’s conduct is not related to the company’s financial performance, operations, or reporting, and it did not involve any Kroger associates. On February 21, the board was made aware of certain personal conduct by McMullen, 65, and immediately retained outside independent counsel to conduct an investigation, which was overseen by a special board committee, the grocery retailer said.
Bain buys supermarket, dining chains from Japan’s Seven & i for $5.5B
Bain Capital agreed to buy Japanese retail giant Seven & i‘s supermarket and specialty store businesses for 814.7 billion yen (around $5.5 billion)—making it the country’s third largest PE buyout in a decade. Bain Capital is said to be planning to list the unit, York Holdings, in three years, Reuters reported. York operates major supermarket chains in Japan, such as Ito-Yokado and York-Benimaru, as well as specialty retailers, including lifestyle goods producer Loft, baby products seller Akachan Honpo, and Seven & i Food Systems, which operates the restaurant chain Denny’s in the region. Seven & i said the sale is due to a refocus on its convenience store business, including 7-Eleven.
Home & Road
Sluggish consumer demand lands Sleep Number a 12% drop in Q4 sales
Citing ongoing industry challenges and weak consumer demand, Sleep Number Corp. posted a narrowed net loss of $5 million for the fourth quarter ended Dec. 28, compared with a net loss of $25 million in the same period last year. Net sales for the quarter declined 12% to $377 million from $429.5 million in the same period last year. For the full year, Sleep Number posted a net loss of $20 million, widening from a $15 million loss in 2023. Annual net sales dropped 11% to $1.68 billion compared with $1.89 billion in net sales reported in 2023. Sleep Number said it improved its gross profit margin to 59.6%, up from 57.7% the prior year, driven by cost reductions and operational efficiencies. In after-hours trading, Sleep Number shares dropped 7.84% to $11.88. In addition to the results, the company also announced a new president and chief executive officer to succeed Ibach, who is retiring. Linda Findley, most recently with meal kit brand Blue Apron, will join Sleep Number April 7.
Culp Q3 sales drop 6.1% on challenging industry, macro-economic factors
Upholstery and mattress fabric supplier Culp reported consolidated net sales of $52.3 million for the third quarter ended Jan. 26, a 6.1% drop compared with $60.4 million reported in the same quarter last year. Upholstery fabric sales were down 7.8%, while mattress fabric sales slid 4.8% from the prior-year period. The company posted a net loss of $4.1 million in the quarter, compared with a net loss of $3.2 million in the third quarter last year. The company said its mattress fabrics restructuring was completed in January, and Culp has an agreement to sell its Canadian facility. The real estate sale, subject to due diligence and closing conditions, is expected to generate between $6 million and $8 million in cash. Culp said its restructuring plan sent in motion in May was mostly completed at the end of the quarter and the company expects to generate between $10 million and $11 million in annualized savings and operating improvements. In addition, Culp said it expects to fund close to $1.8 million of the cash costs with proceeds from the sale of excess manufacturing equipment and proceeds from a building lease termination in Haiti.
Ikea to expand small store format in 2025
Ikea has big plans for new small-format locations in 2025. The home decor retailer said it plans to open eight new-format stores this year, all of which are expected to be open by spring or summer. Ikea will open seven new locations featuring its “Plan & order points” format, which is focused on kitchen, bedroom and living room planning. The stores will be located in Cherry Hill, Pa.; Hunt Valley, Md.; Beaverton, Ore.; Scottsdale, Ariz.; Thousand Oaks, Calif.; Ontario, Calif; and Colma, Calif. Ikea will also open one new store featuring its “Pick-up point” format in Santa Monica, Calif. Different from the traditional large-format Ikea stores, the “Plan and order” format gives customers the opportunity to meet with the Ikea store team to plan and order home furnishing solutions that require a bit more help. At Ikea’s “pick-up- and point” locations, customers will be able to collect their purchases when and where it’s convenient for them. Last year, Ikea opened eight new stores featuring the “Plan and order Point format joining the existing 39 pick-up points and 21,000 FedEx collection points across the country. It also opened the first small-format store in Rockwall, Texas, the third Ikea location in the Dallas-Fort Worth area.
Wayfair cuts 340 tech employees after completing platform upgrades
Wayfair Inc. has cut 340 members from its technology team, citing the company’s efforts to reshape, streamline and refocus its technology organization after completing its modernization and replatforming milestones. The reorganization is expected to cost Wayfair between $33 million and $38 million in employee-related costs, including severance, benefits and transition costs. The majority of the cash payments are expected to be made over the next 12 months. In the near term, Wayfair expects the elevated transition costs will largely offset the structural savings from the technology reorganization. However, the company expects to realize savings from the reorganization in the second half of the year and continuing into 2026. In a blog post, the company noted it embarked on a major transformation to modernize its technology stack over the past five years, including replatforming and migration to the cloud.
Jewelry & Luxury
Prada Group Sees Robust Growth in 2024, Management Mum on Potential Versace Acquisition
Reporting another year of growth on Mar 4th, with sales rising 15 percent to 5.43 billion euros and net profit climbing 25 percent to 839 million euros, Prada management broadly commented on the company’s performance, but expertly dodged questions about a potential acquisition of Versace. “I think that we’ve been always very, very clear,” said group chief executive officer Andrea Guerra during the conference call. “On the one side, we are 100 percent totally focused on our brands. On the other side, when things come around, you always look at them. I don’t think you need to be arrogant and not look at them.” Capri Holdings has reportedly put Versace and Jimmy Choo up for sale and, as reported, sources said Prada Group is in exclusive due diligence with Capri about buying both brands and has until about mid-March to conclude a deal if one is finalized. Prada could, in turn, flip Jimmy Choo to another buyer to focus on Versace, and Tamara Mellon is said to be interested in the brand she cofounded.
One of Signet’s Largest Shareholders Calls for Company’s Sale
Select Equity, one of Signet Jewelers’ largest investors, said in a public filing last week that the jewelry giant is underperforming and should be put up for sale. The asset management firm, which owns close to 10% of Signet’s shares, argued that Signet “would be better able to realize value for stockholders by exploring strategic options for the business, including its immediate sale.” Like many communications from activist investors, Select’s filing contained a grab bag of complaints that didn’t always add up to a coherent narrative. In a letter to Signet’s board that accompanied the filing, Select said it was “supportive of the changes the prior CEO, Gina Drosos, made to refresh the brands and capitalize on Signet’s competitive strengths but we have been disappointed with recent performance including operational missteps and management changes.… Despite [strong cash flow], the public market’s perception of and confidence in Signet’s future prospects are clearly poor given [its] enterprise value today of approximately $2 billion.”
Office & Leisure
Famed Central California family adventure park acquired by Virginia Company
Lucky Strike Entertainment, a leader in location-based entertainment, has announced the acquisition of Visalia Adventure Park, a popular 7-acre family attraction in Visalia, California. The park has been a community staple since 2004, offering diverse entertainment options for all ages. Visalia Adventure Park boasts a state-of-the-art arcade, high-speed go-karts, bumper boats, an 18-hole miniature golf course, and Sequoia Springs Splash Park, featuring multiple waterslides and 120+ interactive water features. Lucky Strike plans to enhance the guest experience by incorporating its signature hospitality and upgraded food and beverage offerings.
Business & Pleasure Co. Receives Growth Equity Investment From Silas Capital
Business & Pleasure Co., a lifestyle brand that captures nostalgia and charm through luxury outdoor products, has announced the completion of a $16 million minority growth investment led by Silas Capital – a growth equity and venture capital firm focused on exceptional next-generation consumer brands. The Company turned the world’s best beach umbrella into a stunning assortment of outdoor products that inspire glamour and elegance. Business & Pleasure’s product mix consists of anchor pieces and thoughtful accessories that enable aspirational consumers to create seamless designs across their homes that elevate everyday living.
Longtime family-owned Cragun’s Resort in Brainerd sold to local investment group
One of Minnesota’s most prominent resorts, owned by members of the same family for the past 85 years, is changing hands. The longtime owners of Cragun’s Resort on Gull Lake in Brainerd, founded in 1940, have agreed to sell the resort to a local investment group with Leisure Hotels and Resorts, headquartered in nearby Baxter. The company manages hotels and resorts in eight states, including a dozen properties in Minnesota, such as Pier B Resort Hotel in Duluth, Cove Point Lodge on the North Shore of Lake Superior, and a new hotel slated to open on Lake Minnetonka.
Crestview Acquires Smyth Companies, Provider of Labels and Custom Packaging Solutions
Crestview Partners, a leading private equity firm, announced today that it has completed the acquisition of Smyth Companies, a premier, full-service provider of pressure sensitive labels, shrink sleeves, in-mold labels, glue-applied labels, and flexible packaging, from Novacap. Crestview is investing alongside members of the company’s founding family and the existing management team led by President & CEO Scott Fisher, who will continue to lead the company. Financial terms of the transaction were not disclosed. Headquartered in Eagan, Minnesota, Smyth is a leader in the prime labels industry, providing customized solutions for a diverse array of high-value consumer product applications across the household, food, health & beauty and automotive aftermarket segments.
Technology & Internet
Trump signs executive order establishing U.S. strategic bitcoin reserve
President Donald Trump signed an executive order on Thursday creating a strategic bitcoin reserve, marking a major shift in U.S. digital asset policy. White House Crypto and AI Czar David Sacks, a Silicon Valley venture capitalist, wrote in a post on X that the reserve will be funded exclusively with bitcoin seized in criminal and civil forfeiture cases, ensuring that taxpayers bear no financial burden. According to estimates, the U.S. government controls approximately 200,000 bitcoin, though no full audit has ever been conducted. Trump’s order mandates a comprehensive accounting of federal digital asset holdings and prohibits the sale of bitcoin from the reserve, positioning it as a permanent store of value.
Alibaba shares soar after Chinese tech giant unveils DeepSeek rival QwQ-32B
Alibaba shares surged after the Chinese behemoth revealed a new reasoning model it claims can rival DeepSeek’s global blockbuster R1. Hong Kong-listed shares of Alibaba ended the Thursday session up 8.39% — hitting a new 52-week high — while the company’s New York-trading stock fell about nearly 1%. Alibaba shares have gained nearly 71% in Hong Kong in the year to date. The Chinese giant on Thursday unveiled QwQ-32B, its latest AI reasoning model, which it said “rivals cutting-edge reasoning models, e.g., DeepSeek-R1.” Alibaba’s QwQ-32B operates with 32 billion parameters compared to DeepSeek’s 671 billion parameters, with 37 billion parameters actively engaged during inference — the process of running live data through a trained AI model in order to generate a prediction or tackle a task.
How Facebook Marketplace is keeping young people on the platform
Facebook’s influence remains strong globally, but younger users are logging in less. Only 32% of U.S. teens use Facebook today, down from 71% in 2014, according to a 2024 Pew Research study. However, Facebook’s resale platform Marketplace is one reason young people are on the platform. “I only use Facebook for Marketplace,” said Mirka Arevalo, a student at Buffalo University. “I go in knowing what I want, not just casually browsing.” Launched in 2016, Facebook Marketplace has grown into one of Meta’s biggest success stories. With 1.1 billion users across 70 countries, it competes with eBay and Craigslist, according to BusinessDasher.
Finance & Economy
Mortgage rates fell again this week to another 2025 low
Homebuyers are getting more relief from high mortgage rates, but not for reasons anyone would hope for. The average 30-year mortgage rate fell to 6.63% for the week through March 5th, from 6.76% a week earlier, according to Freddie Mac data. The latest drop came after President Donald Trump implemented sweeping tariffs on goods imported from Canada, Mexico, and China and markets digested a string of downbeat economic data that sparked a selloff and raised new fears about a possible recession in the US. Mortgage rates move largely based on expectations about future Federal Reserve interest rate policy. After tariffs took effect on Tuesday following several weaker-than-expected economic reports, traders began fretting about a potential recession and pricing in additional rate cuts later this year.
U.S. payroll growth totals 151,000 in February, less than expected
Job growth was weaker than expected in February though still stable despite President Donald Trump’s efforts to slash the federal workforce. Nonfarm payrolls increased by a seasonally adjusted 151,000 on the month, better than the downwardly revised 125,000 in January, but less than the 170,000 consensus forecast from Dow Jones, the Labor Department’s Bureau of Labor Statistics reported Mar 7th. The unemployment rate edged higher to 4.1%. The report comes amid efforts from Elon Musk’s Department of Government Efficiency to pare down the federal government, starting with buyout incentives and including mass firings that have impacted multiple departments. Though the reductions likely won’t be felt fully until coming months, the efforts are beginning to show.
U.S. pauses tariffs on some Canadian, Mexican imports until April 2
It has been a week of retaliatory actions, warnings of price hikes from businesses and wild price swings in the markets. Investors and business leaders, on edge about an escalating trade war, continue to monitor fast-paced headlines from the Trump administration. President Donald Trump granted temporary tariff exemptions for Canadian and Mexican goods covered by the North American trade agreement known as USMCA until April 2. About 50% of Mexican imports and 38% of Canadian imports are covered by the trade agreement, according to a White House official. Trump’s tariffs will still apply to about 50% of Mexican imports and more than 60% Canadian goods.
