Finance & Capital Management

Minneapolis – The corporate restructuring that has led Target Corp. to lay off 17.600 Canadian workers and 2,200 U.S. workers has reportedly hit the retailer’s Indian operation. According to the Minneapolis/St. Paul Business Journal, Target has laid off 180 Indian employees and closed 125 open positons in India this week.

Target has pledged to eliminate several thousand positions, many from its corporate headquarters in Minneapolis, as part of a $2 billion restructuring plan instituted by CEO Brian Cornell.

 

Redmond, Wash. – Microsoft Corp. recently held a press tour of its Redmond, Washington campus that included briefings on the future of technology. Two items that may be of particular interest to retailers are a transformation to an IT networking model based on interconnected nodes, and a world where encryption-based security is obsolete.

“Peripherals will become nodes on an interconnected network,” said David Baumert, senior program manager technology & research, Microsoft. “They will sense the meaning of interactions.”

New York -- Gap Inc. is eyeing the 110,000-sq.-ft. Toys “R” Us flagship at 1514 -1530 Broadway, according to The Real Deal.

Sources say the specialty apparel retailer may split the space between Old Navy and Gap stores.

The massive retail space comes with a hefty price tag: the ground floor alone goes for $2,500 per square foot per year in rent, while the top floor is going for $150 per square foot, and the basement for $350 per square foot.

Oak Brook, Ill. - The Inland Real Estate Group Inc. is naming Prashant Bodhanwala, 48, as chief accounting officer, overseeing accounting, financial strategic planning and financial analyses for Inland. Bodhanwala most recently served as VP of accounting for CA Ventures LLC, a real estate development firm, where he was responsible for all accounting, tax, accounts payable, accounts receivable and payroll.

Gainesville, Fla. - The developer of Celebration Pointe, a 225-acre mixed-used regional development located in Gainesville, Florida, has secured a $125 million construction loan for Phase I of the project.  Celebration Pointe partner Ralph Conti made the announcement.

“We are very pleased to have secured this key piece of our capital stack,” said Celebration Pointe partner Ralph Conti.   

Dodgeville, Wis. – Profit plummeted in a difficult first quarter of fiscal 2015 for Lands’ End Inc. that also saw sales decline. Cost of sales and other expenses declined at a smaller rate than revenues, leading to net income of $1.72 million, down 84% from $10.86 million the same quarter a year earlier.

Net merchandise sales and services declined 9% to $299.39 million from $330.48 million. Same-store sales dropped 12.1%.

Irving, Texas – Net income at the Michaels Companies Inc. skyrocketed 47% to $67 million in the first quarter of fiscal 2015 compared to $45 million in the same quarter a year earlier. A large drop in interest expense helped fuel strong profit growth.

Net sales climbed 2% to $1.08 billion, from $1.05 billion. Same-store sales rose 0.3%. Michaels said unfavorable weather and a strong U.S. dollar hindered sales growth.

Philadelphia – Five Below Inc. reported healthy profit and sales gains in the first quarter of fiscal 2015 and is planning to open 155 stores in the next two fiscal years. The retailer’s net income totaled $4.28 million, up 39% from $3.08 million a year earlier.

Higher gross profit and the elimination of debt extinguishment loss helped Five Below reach above in net income. Five Below plans to open 70 stores and enter six new states in 2015, and plans 85 openings for 2016.

New York – Top management continues to leave Lumber Liquidators Holdings Inc. in the wake of accusations the retailer sold Chinese hardwood laminate products that had illegal levels of formaldehyde. Ray Cotton, chief compliance officer of Lumber Liquidators, has resigned from the company.

Bentonville, Ark. - Sam’s Club is partnering with SmartBiz as the exclusive platform for SBA-guaranteed loans for Sam's Club Business Lending Center, a digital platform for small businesses. As a Business Lending Center participant, SmartBiz will provide qualifying Sam's Club business members with SBA loans.