Finance & Capital Management

It’s going to be a busy spring for Stein Mart.   The Florida-based chain will open five stores this spring –– the first phase of its 2017 store plan to open a total of 11 new stores. The remainder of the locations will open in the fall.    “These new stores fall within our real estate strategy to grow sales by filling existing markets where we are doing well,” said Hunt Hawkins, CEO of Stein Mart, which operates 290 stores.   

For a retailer, the allure of a historic building is obvious: A renovated historic space conveys a unique degree of character and a memorable and defining sense of place. It can help a brand or business stand out in a crowded and competitive retail marketplace and deliver that all-important experiential element.  

An Indianapolis-based appliance and electronics chain is bringing in outside help as it struggles with sinking sales.    Hhgregg announced that it has engaged subsidiaries of Stifel Financial Corp. for advice on potential strategic and financial transactions as the retailer works to improve liquidity and return to profitability.  

The baton has been passed at Beauty Brands as it looks to enter its “next phase of growth.”   The Kansas City-based retailer has named Caryn Lerner as CEO, succeeding Lyn Kirby, who will remain chairman. Kirby is part of the group that bought Beauty Brands in 2014 from founder Bob Bernstein. Since then, she has served as CEO and chairman of the company, reportedly commuting between Chicago and Kansas City.  Prior to Beauty Brands, Kirby served as CEO of Ulta Beauty.   

Walgreens Boots Alliance’s acquisition of Rite Aid is moving closer to getting a green light from the Federal Trade Commission.       The FTC is expected to approve the sale in the next two to four weeks, reported the New York Post, citing two sources close to the situation.   The major sticking point was reportedly the number of Rite Aid stores that need to be divested to Fred’s Pharmacy.      

GNC Holdings Inc. on Thursday posted dismal results for its fourth quarter and said it was suspending its quarterly dividend in a move to reduce its debt.   The nutritional supplements retailer posted a loss of $433.4 million, or $6.35 a share, compared to a profit of $42.9 million in the year-ago period. Excluding certain items, earnings came in at 7 cents per share, well below the 36 cents that Wall Street analysts expected.  

Companies that suffer a data breach are subject to customer, opportunity and revenue losses well exceeding 20%.   This was according to the “2017 Annual Cybersecurity Report (ACR),” from Cisco, which surveyed nearly 3,000 chief security officers (CSOs) and security operations leaders from 13 countries in the “Security Capabilities Benchmark Study,” part of the ACR.  

The formerly high-flying Nasty Gal has been brought down to earth — and not in a good way.   The bankrupt fashion retailer will close its two Los Angeles-area stores by the end of February, the Wall Street Journal reported.    On Feb. 8, U.S. Bankruptcy Court for the Central District of California approved the sale of Nasty Gal’s intellectual property and customer database to British online fashion retailer Boohoo.com, which is seeking to speed up its expansion in the United States.