Legislative, Regulatory & Legal

A Delaware developer’s plan to create a green space and shopping center in Lewes, Delaware, an idyllic shore town that was the site of the first European settlement in the state, has encountered a new obstacle.   After overcoming opposition by some residents to the commercial re-zoning of 11 acres in this town north of Rehobeth Beach, J.G. Townsend Jr. & Co. now must content with protestors who say that its proposed Gills Neck Village Center would desecrate a Native American burial ground.  

Fred’s Inc. is playing defense.   The Memphis-based retailer on Tuesday adopted a shareholder rights plan, or “poison pill,” less than a week after news surfaced that an activist investor had amassed a big stake in the company. It also comes approximately one week after Fred’s announced it had agreed to purchase 865 divested Rite Aid stores as part of the expected Walgreens Boots Alliance-Rite Aid merger. The acquisition would more than double Fred’s store count.   

The U.S. Federal Trade Commission will rule on the Walgreens Boots Alliance-Rite Aid merger before the Trump Administration takes office on Jan. 20, according to the New York Post. The newspaper added approval of the transaction is “not guaranteed.”   “It is most likely [FTC] Chairwoman Edith Ramirez addresses it before she leaves,” a source close to the situation told the news outlet, and not leave it to a Republican-led FTC.  

One current and one former employee of Whole Foods Market have filed a federal class-action lawsuit against the grocer.   

Limited Stores LLC is planning to file for Chapter 11 bankruptcy protection within weeks, Bloomberg reported, and will most likely liquidate its business.  

American Apparel’s financial saga is winding down.  

Aeropostale, Disney Store, Pacific Sun, and Zumiez joined the growing list of retailers that have stopped using the controversial practice of on-call scheduling for store employees.   

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.