Mergers & Acquisitions

Walgreens Boots Alliance and Rite Aid have entered into an agreement to sell 865 Rite Aid stores and certain assets related to store operations to Fred’s for $950 million.   The transaction is subject to Federal Trade Commission approval, the approval and completion of the pending acquisition of Rite Aid by Walgreens Boots Alliance, and other customary closing conditions.  

American Apparel’s financial saga is winding down.  

French children’s clothing company Orchestra-Premaman SA has won its battle to acquire to acquire Destination Maternity Corp.    The deal calls for Orchestra to acquire Destination Maternity for about $7.05 a share, valuing the U.S. retailer at about $100 million according to its share count.  

CBL announced it has closed on a sale of three Tier 3 malls to Hull Property Group for a price of $32.25 million. Changing hands are the Randolph Mall in Asheboro, North Carolina, and the Regency Mall in Racine, Wisconsin.    The identity of the third property was not disclosed.  

Land’s End has appointed a seasoned fashion and luggage veteran as its next chief executive.    The apparel retailer named Jerome Griffith to be its next CEO, effective March 6, 2017. Griffith most recently served as president and CEO of upscale luggage brand Tumi Holdings from 2009 until its sale in August 2016 to Samsonite International. He will also join the Lands’ End board of directors.  

Gracious Home has filed for Chapter 11 bankruptcy reorganization, its second filing in six years.   In its filing, the 53-year-old retailer, which operates stores in New York City, said “there is a viable business remaining, albeit on a smaller scale.”   Gracious Home previously filed for Chapter in August 2010, citing a sales decline due to the 2008 financial crisis.   

CVS Health has embarked on a three-step streamlining initiative with a goal of saving approximately $3 billion from 2017 to 2021.     Two-thirds of the savings will be seen in CVS’s retail/long-term care segment, with the remaining one-third of savings seen in the pharmacy benefits manager category.        

The pressure is on for retailers to not only meet customer expectations, but to exceed them as differentiation in the retail industry becomes paramount. Amazon has raised the bar for expectations with offers such as same-day delivery and free shipping, as well as spread its influence to become one of the world’s biggest retailers.