Mergers & Acquisitions

Macy’s is exiting the chocolate business.   The department store retailer is selling its Frango chocolate brand to Garrett Brands, owner of Garrett Popcorn Shops, for an undisclosed amount.     Macy’s had inherited Frango, whose roots date back to 1918, from Marshall Field & Co., which was acquired by Macy’s in 2005.  

Office Depot has named a successor to CEO Roland Smith, who previously announced his intention to retire from the company. The company also named a new chairman.    The retailer has appointed Gerry P. Smith as CEO, effective Feb. 27. Smith currently serves as executive VP and COO of Lenovo Group, a $45 billion global technology company.  

It looks like it’s curtain time for The Wet Seal.   The struggling teen retailer is closing its 171 stores, along with its headquarters in Irvine, Calif., after being unable to obtain the necessary cash infusion or find a buyer, according to several media reports.        

The CEO of embattled Gymboree Corp. is stepping down.    The children’s apparel retailer said that Mark Breitbard will step down as chief executive once a successor has been named. He will assume the role of chairman of the board, effective February 1, 2017.  

PayPal credits partnerships for its revenue increase during the fourth quarter, as well as throughout 2016.   The digital payments company reported a 17% jump in revenue to $2.981 billion for the fourth quarter ended December 31, 2016. During this timeframe, PayPal also added 5.4 million active customer accounts; and 1.8 billion payment transactions, an increase of 23%. The company also reported $99 billion in total payment volume (TPV), up 22%.  

Ulta Beauty is launching a new holding company.   On Sunday, Jan. 29, the beginning of the company’s new fiscal year, the retailer will form a new holding company, Ulta Beauty Inc. “Business operations will not change, and the primary purpose of the reorganization is to create a more efficient corporate structure,” the company said.    All outstanding shares of common stock will automatically convert, and the stock will continue to trade under the "ULTA" ticker. 

Neil Saunders, CEO of retail research and consulting firm Conlumino, comments on Starbucks’ first quarter results in the remarks below.    

Finish Line is cutting its losses related to its specialty running gear unit.   The sportswear retailer has sold its JackRabbit specialty running store division to CriticalPoint Capital LLC, a Los Angeles-based private investment firm.