It’s been another week with far more retail news than there is time in the day. Below, we break down some things you may have missed during the week and what we’re still thinking about.
From Michaels’ Halloween plans to Purina’s chief snuggle officers, here’s our closeout for the week.
What you may have missed
Roots gains shareholder approval
Roots Corporation obtained shareholder approval to be acquired by Marquee Brands, according to a Tuesday press release. Over 99% of shareholders voted for the deal, which will take Roots private.
Roots also said the company satisfied Canada’s Competition Act to implement the acquisition. The deal remains subject to some customary closing conditions. The company on Thursday received a final order by the Ontario Superior Court of Justice, and the deal is expected to close this month.
The deal was first announced in August. Marquee Brands, parent company to Sur La Table, Laura Ashley, BCBG, Roberto Cavalli and others, partnered with JM&A Design and Development to serve as the core operating partner of Roots.
Michaels aims to make DIY Halloween costumes more approachable
Craft and hobby retailer Michaels is encouraging customers to get creative and make their own Halloween costumes this year.
The company is highlighting its online project tools to help make DIY costumes more approachable by offering step-by-step inspiration, instructions and supply lists that can be added directly to a customer’s cart.
Michaels highlighted that its Knit & Sew Shop now features 1,600 new products across various categories, including fabric, yarn and needlecraft.
“A Halloween costume is such a fun way to show your creativity,” Stacey Shively, chief merchandising officer at Michaels, said in a statement. “You can sew something from scratch, transform what is already in your closet or add a few unexpected handmade details.”
Michaels said the move reflects a cultural shift from consumers to make their costumes, with the retailer citing Exploding Topics data that found searches for “DIY costumes” surged over 650% this year.
Retail therapy
Purina appoints furry C-suite officers
Purina Puppy Chow and Kitten Chow appointed a Dalmatian puppy named Bowie and a kitten named Cashew as their new chief snuggle officers, per a Wednesday press release.
The two furry pets were the winners of a Chief Snuggle Officer contest, with each receiving a $25,000 "salary" as honorary brand ambassadors. Shelters in each winner's city will receive a $10,000 donation.
“The hiring process was highly competitive,” the pet company said in its press release. “An independent panel narrowed the pack to six finalists based on cuteness, charm, and heartwarming submission stories before consumers voted for the winners.”
What we’re still thinking about
$150M
That’s how much The RealReal’s new senior secured term loan will be, part of a credit agreement the resale marketplace announced Thursday. The company also has access to a $25 million senior secured revolving credit facility as part of the deal. Both loans mature in 2033 and are managed by affiliates of Fortress Investment Group.
The RealReal will use the proceeds from the deal, which is expected to occur on Monday, to repay all of its senior secured notes due in 2029.
"This refinancing represents a key milestone in our plan to strengthen our balance sheet. Over the last two years, we have successfully lowered our total debt by more than $80M. This transaction builds on that progress by reducing overall interest costs and further extending our maturity profile," Chief Financial Officer Ajay Gopal said in a statement. "We believe our consistent progress in growing Adjusted EBITDA, coupled with a cash-efficient operating model that translates Adjusted EBITDA growth into robust cash flows, positions us well to continue deleveraging in the years ahead."
What we’re watching
The FTC takes on wholesale T-shirts
The Federal Trade Commission secured a modified partnership agreement between T-shirt manufacturer Gildan Activewear and wholesale T-shirt distributor S&S Holdings, according to an agency press release last week.
The federal agency said it had opened an investigation into the companies “after becoming aware that S&S’s contract with Gildan prohibited Gildan from offering certain pricing and discounts given to S&S” and their competitors.
In response, the companies modified their contractual agreement, and the investigation has been closed.
In a separate statement, Gildan said it did not admit to any violation of law or wrongdoing, and it has engaged constructively with the FTC.
Gildan’s brand portfolio spans major names, including its namesake label, Hanes and American Apparel.
“S&S is committed to operating our business with integrity and in compliance with applicable laws,” Marc Vitulli, senior vice president of marketing and communications at S&S, said in an emailed statement Thursday. “We cooperated fully with the FTC throughout its review, and the matter has now been closed with no finding of a violation by S&S.”
The move from the FTC helps it enforce the Robinson-Patman Act, a federal antitrust law that prohibits purposefully inducing or receiving price discrimination that can impact business competition.
