August 2, 2023
AMAZON and iROBOT agreed to amend the existing terms of their merger agreement to reflect a change to the price per share. Under the amended terms, Amazon will pay $51.75 per share, down from $61 per share previously. At the same time, iRobot entered into a $200 million financing facility to fund its ongoing operations. For Amazon, the change in price per share is expected to be largely offset by the planned increase in iRobot's net debt under the new financing facility. Completion of the transaction remains subject to customary closing conditions, including regulatory approvals and approval of the amended merger agreement by iRobot's stockholders.
KROGER is opening a new spoke facility in Independence, KY, which will work in conjunction with the Company's existing CFC in Monroe, OH. All orders are assembled at the Monroe facility before being transported to Independence, where they are then delivered to customers. The Company also operates another spoke facility in Louisville, which launched in May 2022.
In other news, Kroger converted a store in Franklin, TN to self-checkout-only, and has plans to do the same at another store in the state, in Hillsboro Village. The move is a cost-cutting measure, and the Company is choosing locations where customers were already primarily using self-checkout. Other retailers including Walmart and Dollar General have piloted self-checkout-only stores.
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SPARTANNASH is converting remodeled stores under the No Frills, Sun Mart, and Dan's Supermarkets retail banners to its flagship retail banner Family Fare. The Company has completed seven store remodels in Nebraska this summer and has five more conversions planned for North Dakota by the end of summer. Dan's Supermarket has five stores in North Dakota serving Bismarck and Mandan. No Frills stores are located in Glenwood, Iowa, and Ashland, NE. Sun Mart Foods has five stores in Nebraska.
LIDL plans to open a new 33,000 square-foot supermarket in Brooklyn's Crown Heights neighborhood in early 2024. The Company operates 27 stores in New York State, including in Staten Island, Harlem, and Astoria, and plans to open a 23,000 square-foot store in Manhattan's Chelsea neighborhood. As we reported last week, Lidl's U.S. CEO Michal Lagunionek will step down at the end of the month, and will be replaced by Joel Rapoldt, partner and managing director at AlixPartners.
Hannaford, a subsidiary of AHOLD DELHAIZE, announced that during the first half of the year it opened one new store and completed six renovations. The renovations focused on installing self-checkout stations and private pharmacy consultation rooms in Maine, Massachusetts, Vermont, and New Hampshire. Five of the remodels expanded their food offerings such as produce sections, meat and seafood departments, local selection, and grab-and-go offerings. The new store opened in May in Blue Hill, ME.
AUTHENTIC BRANDS GROUP received bankruptcy court approval to purchase Rockport, which filed for bankruptcy protection in June with the aim to sell its assets. Financial terms of the deal were not disclosed. The acquisition reunites Rockport with its former parent Reebok, which was acquired by Authentic for $2.50 billion in 2021. Authentic's recent acquisitions include British shoe brand Hunter, in June, and Boardriders, the parent of Quiksilver and Billabong, for $1.30 billion in March. The Company also recently entered into a partnership with fashion company Vince Holding Corp. to acquire the Vince brand intellectual property. Authentic owns a portfolio of more than 40 lifestyle, entertainment and media brands, with its retail footprint spanning more than 150 countries and 10,800+ freestanding stores.
In the DAVID'S BRIDAL, DIP case, the Court issued an order extending the deadline to assume or reject unexpired leases by 90 days from August 15 to November 13, 2023.
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CAMPING WORLD announced the opening of its 200th RV dealership in Van Buren, AR, coinciding with the closing of its previously announced Breeden RV acquisition. The Company reiterated its goal to increase its store count by 50% over the next five years, through a combination of acquisitions, new store openings, and manufacturer exclusive locations.
SPORTSMAN'S WAREHOUSE responded to a letter from Cannell Capital LLC, which urged the incumbent board to resign and make immediate arrangements to allow shareholders to select a new board. The letter cited a 38% decrease in the Company's stock price during 2023. It also notes "tepid confidence in the incumbent board" with 33% and 32% of shareholders represented voting against, abstaining from, or not voting for two of the existing board members. Cannell Capital, which is characterized as an activist investor, is the Company's largest shareholder.
The Company responded by stating, "Our management team and board are confident we are taking the right steps to create value for all stockholders. This includes working expeditiously to hire a long-term CEO to lead the Company forward. Our current board is comprised of seven highly qualified directors with a diverse skillset, more than half of whom have been added in the past four years. We remain open to engaging with all stockholders and to reach a constructive solution with Cannell that avoids any further unnecessary public distraction for the Company."
Following reports last year that BC Partners was exploring taking PETSMART public through an IPO, BC Partners announced it will be selling a minority equity interest in the business to Apollo Global Management later in 2023. Terms of the transaction were not disclosed. BC Partners, which first invested in PetSmart in 2015, will remain majority owners, alongside co-investors including GIC (Private Equity out of Singapore) and the PetSmart management team.
In the BED BATH & BEYOND, DIP case, the Debtors entered into an asset purchase agreement, which provides that Harmon Retail Holdings, LLC (HRH) will acquire the intellectual property, customer lists, goodwill, royalties, and general intangible assets relating to the Harmon and Face Values brands, for a price of $200,000. HRH said it plans to reopen a small number of stores, starting with five locations in the New York tri-state region, at or near the original locations -- as soon as possible, with a goal of expanding from there. HRH, a newly formed company based in Purchase, NY, is operated by Jonah Raskas, a Westchester, NY-based private investor. Bed Bath & Beyond abruptly closed all of its approximately 50 Harmon stores in January, prior to filing bankruptcy in April 2023.
On July 14, we reported that BARNES & NOBLE EDUCATION announced that it delayed the filing of its annual report because it was "engaged in discussions with third parties to evaluate a range of options to strengthen its liquidity and financial position" including the refinancing of its ABL credit agreement. On July 28, the company entered into an agreement with its financial stakeholders and strategic partners on the terms of a refinancing that would "immediately strengthen the Company's liquidity and overall financial positions by extending the maturity of its debt facilities, amending certain credit facility covenants and modifying certain other agreements." As part of the agreement, the Company is establishing a committee of the board to continue reviewing strategic alternatives.
Quarterly Earnings
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