FINANCE

The import tax proposal has officially been removed from the tax reform plan — which is welcome news for retailers across the industry.   On Thursday, congressional and administration leaders announced they would remove the Border Adjustment Tax (BAT) from consideration, and announced an outline for comprehensive tax reform. The BAT provision would have ended importers’ ability to deduct the cost of merchandise purchased from other countries.   

Brands just can’t escape a challenging retail environment — a main reason Starbucks is pulling the plug on its Teavana operation.   Just hours after the coffee giant announced it would buy out the remaining 50% share of its East China business from its joint venture partners for about $1.3 billion — its biggest acquisition, ever — Starbucks is cutting loose its Teavana division.  

The nation's largest specialty candy retailer may soon get even bigger.    BBX Capital Corp. has acquired It’Sugar for approximately $57 million. BBX said it plans to expand It'Sugar, which currently operates 95 locations in 26 states, by opening new retail stores in high-traffic leisure locations.   

Investors at the nation’s largest rent-to-own company are their losing patience.   Activist hedge fund Marcato Capital Management LP demanded in a letter on Tuesday, July 25, that Rent-A-Center start the process of selling itself. If the company doesn’t, the hedge fund threatened to throw out board members up for re-election at next year's annual meeting, according to Reuters.  

Less than three years after opening stores across the pond, American Eagle Outfitters is closing up shop in the United Kingdom.   The specialty retailer operates three stores in the U.K. It has already closed one location, and is winding down operations at its remaining two stores, as well as its British e-commerce site, according to the Telegraph.  

Neiman Marcus is making moves to offset its debt and improve its capital structure.   The luxury department store’s first step was to eliminate 225 positions. Affected employees — which span all brands and operating divisions — will receive severance packages, and also be considered for other job openings within the company, according to the Dallas News.  

Michael Kors expects its newest acquisition to give it a stronger hold in the luxury sector.   The brand, which built its reputation on lines of high-end apparel, handbags, shoes and fashion accessories, has acquired luxury shoemaker Jimmy Choo for approximately $1.350 billion. The transaction, which is expected to close in the fourth quarter of 2017, has been approved by the boards of directors of both Michael Kors and Jimmy Choo.  

One investor wants Barnes & Noble to embark on a new chapter — with a new owner.   Activist investor Sandell Asset Management issued a letter to Barnes & Noble’s board of directors on Tuesday, urging the company to sell itself. The firm believes a sale would not only improve the value of the brand, but protect itself against a volatile marketplace that continues to take a toll on sales.   

Strong performance across its largest global brands, digital and international divisions lifted VF Corp.'s profits in the second quarter.    For the quarter ended July 1, VF Corp.’s revenue increased 2% to $2.4 billion, surpassing the Zacks Consensus Estimate of $2.289 million. While earnings per share dropped 11% to 29 cents, this still beat analyst expectations of 28 cents.   The company’s direct-to-consumer division’s revenue increased 13%. Digital revenue jumped by 34%.

A specialty apparel retailer is making it even easier for its customers to shop the latest looks.    Lane Bryant, a division of apparel giant Ascena Retail Group, is launching an in-store personal styling service. Called LaneStyle Studio, the program features a team of personal shoppers that will assist customers throughout their store visits.