Legislative, Regulatory & Legal

American Apparel on Monday said that it has received unanimous approval of all voting classes for its reorganization plan. But also on Monday, the company received a $300 million buyout offer from an investor group that has the support of American Apparel founder and ousted CEO, the controversial Dov Charney.

The investor group, which is comprised of Hagen Capital Group and Silver Creek Capital Partners, said that its offer is superior to the company's reorganization plan, and has a valuation range of $180 million to $270 million.

The saga — and drama — of American Apparel Inc. continues.

The leading retail associations — including the Retail Industry Leaders Association, the Food Marketing Institute, the National Association of Chain Drug Stores and the National Retail Federation — gave a mixed reaction to new waste management proposals by the Environmental Protection Agency.

While the associations called the proposed regulations a “step forward,” they also expressed concern about how the rules would impact the disposal of unsold consumer products and pharmaceuticals by stores.

With the retail industry continuing to face abundant legislative challenges, the Retail Industry Leaders Association has made two key hires to bolster lobbying efforts during what promises to be a year of highly contentious presidential politics.

In 2016, retail chains will continue to face increasing competition and high consumer expectations. Changing regulations will also impact retail businesses. We see the regulatory issues below as the most critical for the retail industry this year and beyond.

With 2016 upon us, many employers find themselves nervously awaiting what election-year politics might bring to their doorsteps. Retailers and restaurant operators, more than ever, have been thrust front and center into the political landscape, with labor issues at the top of candidate’s agendas as well as the subject of numerous ballot issues at the state and local level. As a result, the business models and labor practices of entry-level employers are being evaluated by the public in much the same way the candidates are.

Following a contentious exchange with a large shareholder in 2015, Children’s Place is changing a key provision of its bylaws that allows investors to nominate directors and allowing a vote on several other measures shareholders identified as concerns.

Cleveland -- Forest City Enterprises, Forest City Realty Trust announced the completion of the merger of FCE Merger Sub, Inc., an Ohio corporation, with and into Forest City Enterprises, Inc., with Forest City Enterprises, Inc. surviving as a wholly-owned subsidiary of Forest City Realty Trust, Inc.

The merger marks the final step in the company’s planned conversion to real estate investment trust (REIT) status for the taxable year ending December 31, 2016.

Whole Foods Market has settled a dispute with the city of New York.

The grocer has agreed to pay $500,000 and to conduct regular in-store audits in a resolution of allegations that its stores in New York City were overcharging customers for prepackaged foods. The settlement was announced by the New York City Department of Consumer Affairs (DCA).

It is common during an election cycle for candidates to lament how nothing gets done in Washington. However, that’s not always a bad thing, as evidenced by some of the Retail Industry Leaders Association’s efforts to influence and repeal legislation.

As the 2015 legislative session comes to a close, RILA has identified several important regulatory and legislative wins that will benefit retailers and their millions of employees and customers.