Caché Follows Wet Seal And Delia's In Filing For Bankruptcy

Caché Follows Wet Seal And Delia’s In Filing For Bankruptcy

The almost 40-year-old purveyor of prom dresses filed for bankruptcy this morning. View this image › Cache / Via Facebook: CacheStyle Caché is the latest mall retailer to file for bankruptcy in a brutal quarter that’s already claimed Wet Seal, dELia*s, DEB Shops and C. Wonder. The company, which has been working towards a turnaround for the past two years, said in a statement today that “the depressed brick and mortar retail market, the continued growth of online shopping, and rapidly changing consumer tastes and habits thwarted our efforts.” Caché said in December it was searching for a buyer but apparently couldn’t find one in time. It plans to liquidate its inventory through going-out-of-business sales, according to bankruptcy filings, and also work to negotiate some leases. The chain said it’s “critical” to start liquidation sales by March 4 based on the cash drain from stores and because its inventory is […]

Headscarf Case Cements The Abercrombie "Look" In Legal History

Headscarf Case Cements The Abercrombie “Look” In Legal History

Under former CEO Mike Jeffries, Abercrombie & Fitch developed a hyper-specific look for its customers and its employees. That look has now stumbled its way into the Supreme Court. View this image › Samantha Elauf (center) her mother Majda Elauf (left), and Equal Employment Opportunity Commission General Counsel David Lopes leave Supreme Court Wednesday. Chip Somodevilla / Getty Images Abercrombie’s famously stringent “Look Policy” for sales associates–which specified everything from the maximum acceptable number of earrings (2) to the maximum length of fingernails (1/4 inch)–was discussed by the nation’s highest court today. This, of course, has a significance all of its own: It means Abercrombie’s hyper-specific, borderline absurd dress code, enforced by former CEO Mike Jeffries, has been cemented in U.S. legal history for as long as this nation stands. It also contributed to a more narrow debate in the Supreme Court, related to the company’s decision not to hire […]

End Of An Era: RadioShack Files For Bankruptcy

End Of An Era: RadioShack Files For Bankruptcy

The company has been teetering on the edge for years. View this image › AFP / Getty Images SAUL LOEB RadioShack, after years of struggling, officially filed for bankruptcy today. The company, which operates more than 4,000 stores, said in a statement that it will sell between 1,500 and 2,400 of its U.S. stores to an affiliate of hedge fund Standard General called General Wireless. Up to 1,750 of those locations will host a Sprint “store within a store,” as per the statement. RadioShack said the rest of its stores will be closed following liquidation sales. The company said it will update a restructuring portion of its website with a list of stores that will be closing once it knows more. It has a long list of stores that may close on the website. The retailer said in filings today that it employs more than 21,000 people. RadioShack has been […]

Retail's Winter Of Death Has Claimed Thousands Of Stores

Retail’s Winter Of Death Has Claimed Thousands Of Stores

In the clothing and accessories business alone, eight big-name bankruptcies and closures have hit the retail industry the last two months, shutting more than 1,000 stores. The closed doors are symptoms of a bigger problem: America simply has too many stores. View this image › BuzzFeed News American retailers selling clothing and accessories have been through a grim winter death march of bankruptcies in the past two months: Wet Seal, Delia’s, DEB Shops, C. Wonder, Gap’s Piperlime, Kate Spade Saturday, Jones New York, and Caché. If that feels like a lot of big-name bankruptcies, it’s because it is. In clothing and accessories alone, more than 1,000 stores have either ceased to exist or are in their final throes, and thousands of retail employees have lost their jobs. While each of these brands fell for different reasons — and some of their competitors have thrived — the closures are symptomatic of […]

Retail Workers Are Quitting Their Jobs Like It's 2007

Retail Workers Are Quitting Their Jobs Like It’s 2007

Wal-Mart’s announcement that it will raise its minimum wage came as the retail industry faces a rising number of workers quitting their jobs. Better pay is one way retailers can keep the people they already have, rather than constantly hiring new ones. View this image › BuzzFeed/Bureau of Labor Statistics / Via cloud.highcharts.com Here’s one reason why big retailers have been making noise about raising their minimum wages: Their workers have been quitting at a rate last seen in the boom times before the financial crisis. Wal-Mart, America’s biggest private employer, made headlines last week for raising its minimum wage, becoming the latest in a string of companies upping the pay of their lowest-paid workers. The decision, which followed similar announcements out of Gap and Ikea in recent months, underscores the fact that retail workers are getting harder to hold on to these days. The retail industry’s “quits rate” — […]

Wal-Mart Raises Its Minimum Wage To $9 An Hour

Wal-Mart Raises Its Minimum Wage To $9 An Hour

The retailer is America’s biggest private employer. Its minimum wage will rise to $9 an hour this year, and $10 an hour in 2016. Wal-Mart, America’s biggest private employer, is boosting wages for its workers. The retailer said its minimum wage in U.S. stores will increase to $9 an hour in April, and rise to $10 an hour in 2016. Some department managers will see a pay raise to $13 an hour this summer and $15 next year. About 500,000 associates will get a raise from the change in the first half of this year, Wal-Mart said in a statement today. CEO Doug McMillon alluded to worker dissatisfaction in a blog post announcing the changes today. “We frequently get it right but sometimes we don’t,” he wrote. “When we don’t, we adjust.” “In recent years we’ve had tough economic environments, a rapidly growing company, and fundamental shifts in how customers […]

Macy's Is Making Its Own Version Of T.J. Maxx And Nordstrom Rack

Macy’s Is Making Its Own Version Of T.J. Maxx And Nordstrom Rack

The “off-price” channel, home of discounted designer goods, is the place to be in retail. Macy’s plans to pilot a new off-price chain as well as expand its Bloomingdale’s outlet locations. Macy’s Facebook Facebook: Macys TJ Maxx Facebook Facebook: tjmaxx   The success of T.J. Maxx and Nordstrom Rack is pulling Macy’s into the off-price chain game — and highlighting the pervasiveness of outlet culture in America. The department store company, which announced plans last month to explore a set of off-price stores, said yesterday that executives are working on a pilot of a T.J. Maxx-like chain, as noted by Fortune. Notably, TJX, which owns T.J. Maxx, Marshalls, and Home Goods, today reported annual sales that surpassed Macy’s for the first time ever, underscoring the strength of its treasure-hunting business model. View this image › Sapna Maheshwari/BuzzFeed / Via chartbuilder The Macy’s off-price chain will differ from Bloomingdale’s outlets, which […]

Jet.com Could Start The Mother Of All Price Wars

Jet.com Could Start The Mother Of All Price Wars

Marc Lore, who sold his company to Amazon for $500 million, is willing to make one big promise about his new site: You won’t find a lower price anywhere. View this image › Jet / Via jet.com Since July of last year, entrepreneur Marc Lore has been posting coy updates to his Tumblr about Jet.com, a mysterious “new shopping experience” that would “empower customers like never before.” Speculation around the secretive project surged as Lore, who sold Diapers.com to Amazon for $550 million five years ago, raised a whopping $80 million in venture capital. He managed to hire more than 100 employees, sign a lease on a 40,000-square-foot headquarters in Hoboken — and still, hardly a hint. Lore finally unveiled Jet.com this month, and it is, as promised, a unique proposition in online retailing. It’s a $50-a-year, members-only online marketplace that promises to save customers 10% to 15% on everything […]