Mergers & Acquisitions

Destination Maternity Corp. saw its loss widen in the fourth quarter and the full year amid declining same-store sales and its exit from several businesses.     The maternity clothing retailer reported a loss $32.8 million, which included a $27.8 million non-cash income tax charge. Its adjusted net loss was $3.2 million, compared to an adjusted net loss of $1.5 million in the year-ago period.   Revenue totaled $100.2 million in the period. Same-store sales fell 7.8%.   

J.McLaughlin is in a growth phase. Armed with a new cloud-based retail platform, the chain can more efficiently execute its plan.    The Brooklyn, New York-based retailer is a specialty apparel chain that operates 115 stores and an e-commerce site. In November 2015, private equity investment firm Brentwood Associates acquired a majority stake in J.McLaughlin, and in July 2016, former Ralph Lauren executive Mary Ellen Coyne came aboard as CEO.   

Five Below is making its West Coast debut.   The retailer will open stores on Friday, April 21, in Aliso Viejo, Anaheim, Compton, Hawthorne, Montebello, Fontana, Rancho Cucamonga, South Gate and Redlands. The stores mark the company’s first West Coast locations, bringing its reach to approximately 550 stores in 32 states.  

Walmart has fired another shot at Amazon.   In a move that leverages the retail giant’s vast store and delivery networks and expanding online capabilities, Walmart, starting April 19, will begin offering a discount on merchandise that customers buy online and have shipped to a Walmart store for pick-up. Walmart’s new Pickup Discount program will initially be available only on about 10,000 items, but will be expanded to more than one million of the chain’s most popular items by the end of June.   

An array of private equity firms are interested in The Body Shop.   The beauty retailer, which is owned by cosmetics giant L’Oreal, has drawn bids from around 15 private equity firms and companies, including Bain Capital, CVC Capital Partners, Carlyle Group LP and South Korea’s CJ Group, Bloomberg reported.   

Rouse properties has announced plans to enter into a joint venture agreement with Devonwood Investors in the transformation of an outdated Burlington, Vermont, mall into a mixed-use center. The deal is expected to be closed in the coming weeks.   Burlington Town Center, a traditional enclosed mall in the center of the state’s largest city, is to be converted into a modern apartment block including restaurants and an upgraded retail component.  

Toys “R” Us is combining its business in Japan with its ones in Greater China and Southeast Asia.   In a joint venture between the toy retailer and Fung Retailing Limited, Toys “R” Us, Japan, which operates 160 stores in the country, will become part of Toys “R” Us, Asia Ltd., which operates 223 stores in Greater China and the Southeast Asia markets and licenses an additional 34 stores in the Philippines and Macau.     

Gymboree Corp.’s debt and mounting losses may have finally caught up with it.   The embattled retailer is preparing to file for Chapter 11 bankruptcy protection, Bloomberg reported, as it faces a June 1 interest payment on its debt.   Gymboree has more than $1 billion in debt resulting from its Bain Capital buyout in 2010. It warned in March that it was running short on cash.