Legislative, Regulatory & Legal

New York – Activist investor fund Starboard Value has reportedly purchased a 6% stake in Staples Inc. and upped its ownership of Office Depot from 8.6% to 10%. According to the Wall Street Journal, Starboard Value may be positioning itself to pressure the two office supply retailers to merge.  

SC Johnson chief talks transparency SC Johnson CEO Fisk Johnson said his company wants to “lay it all out there” when it comes to transparency and greater disclosure in the consumer goods industry.

Speaking at the 2014 Consumer Specialty Products Association (CSPA) annual meeting, Johnson discussed the critical need for the industry to build trust so families can feel comfortable with and believe in the products they bring home. He also said the industry should be clear and fact-based in environmental discussions, and advocate for better regulation.

Washington, D.C. - Import cargo volume at the nation’s major retail container ports is expected to continue to slow down in December. According to the monthly Global Port Tracker report released by the National Retail Federation and Hackett Associates, import volume at U.S. ports covered by the Global Port Tracker report is expected to total 1.37 million containers this month as the holiday shipping cycle winds down.   

New York - The House has passed a long-delayed tax bill that will help retailers remodel their stores and also move a wide range of individuals including welfare recipients and veterans into the workforce. The Tax Increase Prevention Act of 2014 now heads to the Senate.   The package includes two key provisions on depreciation that affect retailers who remodel their stores and another that helps with hiring.  

New York - Shack Corp. on Monday denied that it  defaulted on a loan from its term lenders—Salus Capital Partners and Cerberus Capital Management—less than a week after the chain initially disputed the allegations as “wrong and self-serving,” the Wall Street Journal reported.  

Teen retailer Delia’s Inc. plans to liquidate operations and file for Chapter 11 bankruptcy protection "in the very near term."

The company has struggled with weak sales for years and has not reported an annual profit since 2007.

Several teen apparel retailers have been losing market share to fast-fashion brands such as H&M, Forever 21 and Zara.

Goodlettsville, Tenn. — Dollar General Corp. and Dollar Tree engaged in a verbal war on Friday as they both seek to acquire Family Dollar.    In a news release, Dollar Tree said Dollar General's bid "may ultimately fail" because the Federal Trade Commission may require it to sell more than the 1,500 stores the retailer has said it is willing to let go of.  

New York — Teen retailer Delia’s Inc. plans to liquidate operations as it prepares to file Chapter 11 bankruptcy protection "in the very near term." The struggling retailer has been hurt by sluggish mall traffic, evolving fashion trends and weak online sales. It said it has  unable to find a merger partner, or get an acquisition or financing proposal that would allow it to remain a viable concern.