Retail News

Dollar Tree announced a strategic review of its Family Dollar Business, which could include a potential sale, spin off or other disposition of the business. The news follows Dollar Tree announcing the planned closures of approximately 970 underperforming Family Dollar Stores earlier this year; management noted that as of 1Q24, the Company had closed approximately 550 stores and expects to close another 150 stores by the end of FY24. The Company also recently announced that it had acquired the rights for 170 leases of liquidating 99 Cents Only Stores across AZ, CA, NV, and TX. Dollar Tree has not set a deadline or definitive timetable for the completion of the strategic alternatives review process.

Authentic Brands Group will acquire the Champion brand and business from HanesBrands in a deal valued at $1.20 billion, with the potential to reach $1.50 billion in performance-based earnouts. The transaction was approved by HanesBrands' board, completing the previously announced evaluation of the brand's options, which the Company launched in September 2023. Authentic plans to convert Champion into a licensed model and is in discussions with existing and potential operators. Part of Champion's design, production and distribution in North America was previously licensed to G-III Apparel Group. The deal is expected to close in 2H24. 

On June 5, MRRC Hold Co., DIP (dba Rubio’s Coastal Grill) filed a voluntary Chapter 11 petition in the U.S. Bankruptcy Court for the District of Delaware. The proceedings have been designated as case number 24-11164.

The filing lists assets of up to $50 million and liabilities of at least $100 million.

This is the second Chapter 11 filing for the Company since 2020. The Debtors said they plan to continue operating during the current Chapter 11 proceedings.

Prior to the filing, we noted that the Company abruptly closed 48 locations in California, citing underperformance and the "current business climate in the state." Rubio's will continue to operate 86 stores in California, Arizona, and Nevada.

The TJX Companies entered into a joint venture with Grupo Axo, S.A.P.I. de C.V., an operator of global brands in Mexico and South America that includes both full- and off-price formats, to expand in Mexico. Under the terms of the agreement, TJX will own 49% and Axo will own 51%. The joint venture will comprise Axo's off-price physical stores in Mexico, which includes more than 200 stores under the Promoda, Reduced, and Urban Store banners. Financial terms have not been announced yet. TJX said it does not anticipate this proposed transaction to have a material impact on its guidance for the fiscal year. 

Victoria's Secret plans to open 15 new stores in North America in FY24, mainly in the Store of the Future design in off-mall locations. The Company also expects about 40 store closures, which will mostly be consolidations of co-located Victoria’s Secret and PINK stores.

In the Rite Aid, DIP case, the Court issued a third amended order authorizing the Debtors to access DIP financing, including up to $75 million in New Money DIP Notes and $225 million in Roll-Up DIP Notes. The amended Plan of Reorganization provides that as part of their claim recovery, New Money DIP Notes will receive an equivalent amount of “Exit 1.5 Lien Notes” and Roll-Up DIP notes will receive $225 million of First Out Take Back Notes. Holders of New Money DIP Notes and Roll-Up DIP notes (together the Junior DIP Noteholders) will receive a 17.309% interest in the reorganized Debtors’ equity. 

Following the Confirmation Date, the Debtors will commence or continue the MedImpact term loan sales process. 

The Debtors identified two stores for closure, bringing the total of announced closures to 503.

Reports indicate that Walgreens Boots Alliance may be considering halting its plans for a potential IPO of its Boots UK drugstore chain, and instead consider a potential sale. Walgreens previously explored an exit from Boots in 2022, nearly a year and a half after abandoning a planned sale. Boots has garnered interest from various potential buyers in the past, including billionaire Mukesh Ambani's Reliance Industries and private equity businesses such as TDR Capital and Apollo Global Management.

Freddy's Frozen Custard & Steakburgers inked a deal with franchise group Lone Star Custard to bring 20 new restaurants to Houston, TX. In addition, Lone Star Custard acquired 18 existing Freddy's locations in the Houston market as part of the deal. Prior to this deal, Lone Star operated 24 restaurants in Texas, including locations in San Antonio, Austin, and Rio Grande Valley. Freddy's continues to push towards 800 restaurants by 2026, up from 530 currently. As of January 2024, the chain had over 130 locations in development for the year. 

Further Point Enterprises, the holding company that acquired $2.2 million of Foxtrot Market's non real-estate assets last month, entered into lease agreements for six Foxtrot locations, according to a May 31 filing with the U.S. Bankruptcy Court for the District of Delaware. All six locations are in Chicago. The chain's former parent, Outfox Hospitality, had abruptly ceased operations on April 23, 2024, leading to the shuttering of Foxtrot's 33 locations in Chicago, Austin, Dallas, and Washington D.C. The six locations that Further Point has now leased were part of the 15 stores whose assets it acquired, according to the court filing; the 15 locations are located in Chicago (10), Dallas (3), and Austin (2). Real estate was not included in the auction.

Foxtrot founder Mike LaVitola said there are plans toreopen the 15 stores in Chicago, Dallas, and Austin, TX this summer. The Company's website has the message, "A new Foxtrot with some old friends. Coming soon." LaVitola stated, "It's a totally new company starting from scratch, but (we) have the Foxtrot name and the (intellectual property) and a bunch of our locations. We're like a new startup again." Foxtrot was founded in 2015 as an upscale convenience store.

Wawa began construction on two stores in Kentucky, in Louisville and Nicholasville, which are expected to open in late 2Q25. The Company stated it will begin construction on three other Kentucky stores this year, all of which have projected openings during 3Q25 (Louisville, Georgetown, and Clarksville, IN, which is within the Louisville market). Wawa plans to open nine stores in Kentucky next year, and five to eight stores per year in the Louisville and Lexington markets over the next five to eight years, and up to 40 stores total in the state. Wawa currently has more than 20 sites under contract across Kentucky. 

Wawa also broke ground on its first Ohio store in Cincinnati. The store is expected to open during 2Q25. Additional Ohio stores are projected to open during the same quarter in Liberty Township, Fairfield, Mason, and Cincinnati. The Company plans to open 11 stores in Ohio in 2025. Over the next five to eight years, it expects to open six to 10 stores per year, and up to 60 stores total within the state. Wawa currently has more than 20 sites under contact across Ohio. 

Wawa operates more than 1,050 stores throughout the Northeast and Florida.