Herb Chambers dealerships to pay $11.8M in PPP fraud case
Car dealership chain owner Herb Chambers has agreed to pay $11.8 million to settle federal allegations that his companies fraudulently obtained pandemic-era government loans.
State of play: Federal prosecutors allege eight Chambers-owned companies requested Paycheck Protection Program loans after a decision by the Small Business Administration limited a single corporate group to $20 million.
A bank initially canceled Chambers' unfunded loan applications because of the cap, but the companies reapplied with a different bank that funded the loans.
The other side: Herb Chambers Companies CEO Nicolas Gennetti said the loan program violation stemmed from "conflicting professional advice" and "vague and unclear language" in the loan requirements.
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Business of Fashion
5 hours ago
- Business of Fashion
Five Years After George Floyd: Can Fashion Still Stand for Something?
In June, a new nonprofit, The Jewelry Edit Foundation, convened a group of industry leaders — including executives from Coach, Tiffany & Co. and Hermès — for a 'Lunch With Purpose.' The agenda: support underrepresented designers through year-round programming with a heavy focus on diversity, equity and inclusion, as well as sustainability. The Jewelry Edit Foundation has its roots in a retail platform of the same name (with a similar values-driven emphasis) founded by the designer Rosena Sammi in 2020, when fashion's promise to stand for something was at its loudest and most urgent. But in the second Trump administration, organisations that put DEI front and centre are increasingly rare, and groups with public backing from major corporations are even rarer. Sammi says the need to plow ahead now is more critical than it has ever been. ADVERTISEMENT 'I want to be surrounded by people brave enough to take action — not stand by on the sidelines,' she said. The Jewelry Edit founder Rosena Sammi hosts a "Lunch With Purpose," attended by high-profile leaders in the fashion and jewellery industry. (Courtesy/Courtesy) Many companies that founded DEI departments and backed organisations that support minority designers and entrepreneurs have quietly – and not so quietly – dismantled those efforts in the face of a conservative backlash. Dozens of Black-owned fashion and beauty brands that benefitted from increased attention after 2020 have shuttered, starved of capital and lacking the resources to weather economic headwinds. The pressure to keep silent was on display last week, as protests erupted in California after immigration enforcement agents arrested dozens of day labourers, including garment workers. While a handful of celebrities, including singer and rapper Doechii and Kim Kardashian spoke out, few large brands did. There was certainly nothing resembling the black square campaign of 2020 — a highly visible, if much-criticised, show of solidarity that saw brands from Chanel and Gucci to Levi's and Gap participate. Still, some of the energy sparked in 2020 hasn't disappeared. In a few cases, it's intensified. Felita Harris, a former Donna Karan executive who co-founded RAISEFashion in 2020 to support independent BIPOC designers, says there's upside in staying the course. The nonprofit in May hosted its latest 'master class' for emerging Black designers, this time on profitable growth, and partnered with Ferrara Manufacturing on a June 12 fundraiser to help underrepresented founders scale. Its latest grants are helping several Black-owned labels stay afloat, and alumni have landed roles at Louis Vuitton, Bloomingdale's and other major companies. 'I see the potential every day in [our master] classes — being able to make introductions, to stop the gatekeeping,' Harris said. Felita Harris, a former Donna Karan executive, co-founded RAISEFashion in 2020 and is doubling down on its mission to support BIPOC designers. (Courtesy/Courtesy) A few companies have kept up their pre-2024 approach to politics. Outdoor retailer REI and beauty brand Lush Cosmetics have recently doubled down on their DEI commitments — with Lush even using the acronym in product names and marketing. Designer Willy Chavarria in April partnered with the American Civil Liberties Union to launch Creatives for Freedom, which takes on issues like immigrant rights. So why have some brands and creatives continued to press forward when so many others have pulled back? ADVERTISEMENT The motivation is a combination of mission and margin — rooted in the belief that fashion can be a cultural force on issues like race, gender, and immigration, and that marginalised creatives drive the innovation and relevance the industry needs to grow with a new generation of consumers. 'Our business has always been rooted in mission and values. To stray from that now — or ever — would be antithetical to who we are,' said Nicole Lacasse, senior manager of brand and customer REDI (or racial equity, diversity and inclusion) at REI. 'We have seen firsthand the business results. This is right for our business.' For companies caught in the middle — eager to engage but wary of political blowback from a divided customer base — the path forward can feel murky. But it's not impossible. And some brands say the rewards for staying the course are becoming apparent. Backlash to the Backlash The surge in anti-DEI sentiment — from Trump's vow to 'end the tyranny' of DEI to a wave of executive orders earlier this year — has introduced real, or at least perceived, risks for fashion and beauty brands. Earlier this year, many brands determined that staying quiet was the most prudent course of action. But the anti-DEI backlash is generating its own backlash. Target — once praised for its swift response in the wake of Floyd's murder in its home city of Minneapolis — backed off its diversity commitments within hours of Donald Trump's inauguration. The URL that once led to a 2020 statement by chief executive Brian Cornell about 'a community in pain' now returns a 404 error. Foot traffic has declined in each of the four months since Target changed its policies, according to In May, Cornell told investors that year-over-year sales were down partly due to the fallout. Meanwhile, plenty of retailers have plowed ahead with their existing DEI policies, sometimes under new names, without facing a backlash from Trump or consumers. The key is to move past the 2020-era reflex to turn everything into a marketing play, experts say. ADVERTISEMENT Lush keeps its internal DEI work mostly under the radar, even as it renamed three of its bestselling bath bombs 'diversity,' 'equity' and 'inclusion' in January. That's because, while the brand is known for its activist campaigns, when it comes to its culture and workforce, 'you should take care of your own house before talking about it externally,' said Amanda Lee Sipenock Fisher, the company's head of DEI and belonging. Lush's cheekily named soaps are a natural way 'to enter the conversation with our products,' Sipenock Fisher said. But it works best when paired with substantive work behind the scenes. 'When you have a DEI programme that first and foremost serves your people, you are tuning in directly to employee engagement,' Sipenock Fisher. 'And we know that employee engagement is an incredible KPI. It is a driver of successful businesses.' Lush's "diversity" bath bomb. (Courtesy/Courtesy) That dual track approach is getting more challenging as the Trump administration puts corporate DEI initiatives under the microscope. 'I've never seen this much external interest in our work,' she said. 'Seeing [DEI] being threatened, rolled back, quieted — that was a moment for employees, consumers and companies to say, 'Wait, there is backlash to the silence.'' Retailers with the most successful DEI programmes today tend to be the ones that were thinking about the topic before 2020. REI formally embedded inclusion into its business strategy nearly two decades ago, Lacasse said. Its partnerships with groups like Outdoor Afro, Black Girls RUN!, and Latino Outdoors are part of a broader strategy that includes investing in inclusive sizing, colour palettes and gender-neutral designs — products that have become some of the company's top performers, Lacasse said. 'This is really about continuity of our brand commitment, our purpose and trust building,' she said. 'We do really believe that when we show up consistently over time, when we centre the voices of our communities and we make equity a shared responsibility, we can really strengthen our position as a brand.' Fashion as a Cultural Force Even as brands face pressure to retreat, fashion's most public-facing moments — red carpets, runways, and campaigns — remain powerful, if inconsistent, signals of inclusion. But 'visibility doesn't equal viability,' Harris pointed out. In other words, fashion has become known for splashy displays of support — like buzzy shows or red-carpet moments featuring BIPOC designers — that often fail to translate into lasting commercial success, like shelf space, wholesale deals or infrastructure investment, Harris said. The Met Gala in May offered mainstream exposure to Black creatives, with LaQuan Smith, Grace Wales Bonner, Ozwald Boateng and Sergio Hudson delivering standout red carpet moments. The spotlight on the Black dandy — a fluid term celebrating expressive, often ostentatious style — landed like a quiet protest in a politically fraught climate. Teyana Taylor, Colman Domingo and Lewis Hamilton at the 2025 Met Gala. (Getty Images) 'The Met Gala shows fashion's power to inspire the masses,' Chavarria said in an email. 'However, that must live beyond the one event and we should use that momentum to elevate voices.' The industry has repeatedly failed to turn these cultural flashes into lasting structural change — whether through sustained investment, leadership opportunities, or shelf space. With a few high-profile exceptions, including Pharrell Williams at Louis Vuitton and Olivier Rousteing at Balmain, designers of colour remain rare in top creative roles. These designers not only continue to be locked out of these top roles — they're also expected to lead the charge for change, often while navigating the very systemic barriers that hinder their progress. Designer Willy Chavarria walks the runway during his Ready to Wear Spring/Summer 2025 fashion show. (Getty Images) 'I don't want Willie [Chavarria] to be the only one who's doing this work, and I also don't want it to always be the person who is in the marginalised community who feels that they have to be the one doing this work,' said Jessica Weitz, national director of artist and entertainment engagement at ACLU. 'There's no question that this industry could not exist without a diverse workplace ... and a diverse group of people who are in the business of buying fashion.' Fashion's influence — its soft power to shape culture and drive progress — has dulled, insiders say, not for lack of rhetoric, but for lack of follow-through. 'Maybe the world is looking at fashion in the same way we [experience it], which is, can fashion be trusted?' said Harris. 'Can it really deliver what it promises? Because how can fashion call for democracy when designers are going out of business? When there's such a lack of Black leadership at the top?' Still, designers like Chavarria say there's power in holding the industry accountable to the ideals it promotes. 'Fashion has always been political, and now it's becoming urgent,' Chavarria said. 'It is a way to resist. Now more than ever, fashion must stand with the communities that have always used it to speak out and be heard.'
Yahoo
9 hours ago
- Yahoo
McDonald's Settles $10B Discrimination Lawsuit Brought by Byron Allen's Media Company
McDonald's reached a settlement in the $10 billion lawsuit brought by Byron Allen's Allen Entertainment Studios, in which the media mogul accused the fast food company of discriminating against Black-owned media companies. Allen's companies and McDonald's released a joint statement on Friday, revealing that they'd come to 'an agreement to settle pending litigation between them.' At the tailend of last year, U.S. District Judge Fernando Olguin found that McDonald's may have violated federal and state civil rights laws by keeping a separate advertising tier for companies who create content target toward Black audiences. More from The Hollywood Reporter Byron Allen Puts His Local TV Stations Up for Sale Byron Allen's 'Comics Unleashed' Gets the Post-Colbert Time Slot on CBS - Again Byron Allen's $10B Discrimination Lawsuit Against McDonald's Over Ad Spend to Go to Trial 'We are pleased to find a resolution that maintains our business relationship,' Allen's Entertainment Studios and The Weather Channel said in a statement. 'During the course of this litigation, many of our preconceptions have been clarified, and we acknowledge McDonald's commitment to investing in Black-owned media properties and increasing access to opportunity. Our differences are behind us, and we look forward to working together.' The news comes after McDonald's was set to go to trial for the lawsuit. Financial terms of the deal were not disclosed. Later in the release, it was noted that 'The parties reached a confidential commercial agreement whereby McDonald's will continue to purchase advertising from ESN in a manner that aligns with its advertising strategy and commercial objectives and ESN will dismiss its lawsuit against McDonald's in the United States District Court for the Central District of California.' Additionally, they noted, 'Under the terms of the agreement, which are confidential, McDonald's is not admitting any wrongdoing, and the ads sold will, as per all such commercial deals, be priced at market value. 'We are pleased that Mr. Allen has come to appreciate McDonald's unwavering commitment to inclusion, and has agreed to refocus his energies on a mutually beneficial commercial arrangement that is consistent with other McDonald's supplier relationships,' McDonald's USA, LLC said. 'Our company's unique three-legged stool model relies on mutual respect, and we look forward to ESN's contributions to the betterment of our system.' Best of The Hollywood Reporter How the Warner Brothers Got Their Film Business Started Meet the World Builders: Hollywood's Top Physical Production Executives of 2023 Men in Blazers, Hollywood's Favorite Soccer Podcast, Aims for a Global Empire
Yahoo
11 hours ago
- Yahoo
Byron Allen Reaches Settlement With McDonald's In Lawsuit Claiming Racial Bias In Advertising
Byron Allen's Entertainment Studios and The Weather Group have reached a settlement with McDonald's in a lawsuit over the fast food giant's alleged lack of support for Black-owned media companies. McDonald's defeated the complaint in 2024 in the U.S. District Court for the Central District of California, but Allen appealed. The parties announced the settlement Friday, though no financial details were disclosed. More from Deadline Paramount Says Abrupt Dismissal Of Longtime Media Agencies WPP Media And Horizon Was Driven In Part By Push For "Greater Efficiency" - Update AMC Says New NCM Preshow Ads Don't "Negatively Influence Moviegoing Habits" Tastes Great, Less Filling? Report On Meta Plan For Cheaper, Fully AI-Made Ads Boosts Tech Giant's Stock As Media Agency Shares Slump Under the settlement, McDonald's will still buy ads from ESN, which controls a range of broadcast and streaming properties, 'in a manner that aligns with its advertising strategy and commercial objectives,' a press release said. and ESN will dismiss its lawsuit against McDonald's The fast food company is not admitting any wrongdoing and the press release affirmed that the ads sold will be priced at market value. 'We are pleased that Mr. Allen has come to appreciate McDonald's unwavering commitment to inclusion, and has agreed to refocus his energies on a mutually beneficial commercial arrangement that is consistent with other McDonald's supplier relationships,' McDonald's said in a statement. 'Our company's unique three-legged stool model relies on mutual respect, and we look forward to ESN's contributions to the betterment of our system.' The presumed injection of capital into Allen's companies comes as they face the same pressures hitting all media companies due to cord-cutting and declines in advertising. He recently enlisted Moelis & Co. to explore a sale of his local TV stations. 'We are pleased to find a resolution that maintains our business relationship,' ESN and The Weather Co. said. 'During the course of this litigation, many of our preconceptions have been clarified, and we acknowledge McDonald's commitment to investing in Black-owned media properties and increasing access to opportunity. Our differences are behind us, and we look forward to working together.' Best of Deadline 2025 TV Series Renewals: Photo Gallery 2025 TV Cancellations: Photo Gallery 2025-26 Awards Season Calendar: Dates For Tonys, Emmys, Oscars & More
