Latest news with #EddieLampert
Miami Herald
22-04-2025
- Business
- Miami Herald
Struggling luxury department store cuts 450 jobs
In the '80s when this writer was growing up, department stores were a magical place, well-staffed by polite, beautiful women and handsome, well-dressed men, always ready to escort you to purchase your next dress or suit. Christmas was perhaps the swan song of every department store's year, and many children (myself included) looked forward to a visit to their local Macy's, JCPenney, or Saks Fifth Avenue to see the store's best decorations, including a Christmas tree so tall that children and adults both marveled at how high it towered above their heads. Don't miss the move: SIGN UP for TheStreet's FREE Daily newsletter This is ancient history now, of course. Today 76% of adults shop online, and the worry of "But I can't try it on" has been remedied with free, easy returns. The convenience of entering your card into checkout and pressing buy has simply won people over - why waste gas and time driving to the mall when you really don't have to? Related: Iconic retail chain store closing after over 50 years We've watched as this change has wreaked havoc on the department stores of yore, and it's been brutal. Sears bankrupted in 2018 and shuttered all of its locations (two have since quietly reopened after hedge fund operator Eddie Lampert bought control of the chain for $11 billion). Lord & Taylor, once a high-end luxury department store, also filed for bankruptcy in 2020 and now only exists online. Then there are the ones still open but struggling: Macy's, which just announced it would shutter 150 stores by 2026. JCPenney, which filed for bankruptcy in 2020, continues to close locations, with eight more shuttering this year. Now there's another one added to that list, and considering the shoppers it typically attracted, it's a surprise that it has lasted so long. Image source: Jeenah Moon/Bloomberg via Getty Images Saks Global, which operates Saks Fifth Avenue (SKS) stores, has announced that it will shutter a Tennessee fulfillment center, according to a WARN Notice filed with the state's Department of Labor and Workforce Development last week. This layoff will affect the jobs of 446 workers. The closure will begin on June 4 and conclude by Nov. 30, 2025, according to a memo from the director of employee services. Related: Winemakers uncover a worrisome new problem "As we come together as Saks Global, we are continuing to take steps to optimize our fulfillment network to ensure we are best positioned to serve our customers," Saks Global said in a statement."We have made the decision to close operations at our La Vergne, Tennessee Distribution Center (TNDC). With this, we will be shifting inventory volume to Saks Global's Pottsville, Pennsylvania Distribution Center (PADC), which is well-equipped to scale to handle the additional volume. We are grateful to our TNDC colleagues for their contributions and are committed to supporting them through this transition." This comes after Saks announced layoffs of 5% of staff in February. The downsizing accompanied an integration process; Saks teamed up with Amazon to purchase Neiman Marcus in 2024 as part of a $2.65 billion merger that created Saks Global. Saks has gotten some negative attention about its decision to buy Neiman Marcus, as some vendors said the company was delinquent on payments. Ryan Babenzien, Founder of sneaker brand Greats, spoke out about the issue in an interview with PYMNTS, saying, "What I don't understand is how you can get someone to give you a couple of billion dollars to buy Neiman Marcus when you can't even cough up $15,000 to pay your vendors." Related: Walmart makes bold move to take down Starbucks Saks Global CEO Marc Metrick then sent out a memo that offered payment terms for past-due invoices, but said that they would not begin until July and would be paid back in 12 installments. He also promised any new orders would be fulfilled within 90 days. Overdue bills will be processed over a series of 12 installments beginning in July. Metrick, however, reassured vendors that any new orders would be fulfilled within 90 days of receipt, despite the 60-day industry standard. Saks' future remains uncertain, but one thing is for sure: with prices soaring on everything from groceries to clothing and President Trump's tariffs looming, luxury goods probably aren't high on most consumers' lists right now. The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
25-02-2025
- Business
- Yahoo
Lands' End Stock Soars 18.6% as Billionaire Eddie Lampert Demands a Sale--Could Shares Hit $90?
Lands' End (NASDAQ:LE) just got a major jolt. Shares jumped 18.6% at 10.53am, after Eddie Lampert, who owns 55% of the company, pushed the board to consider a sale, arguing the stock is severely undervalued. Despite operational improvementsbetter inventory management, stronger marginsthe market isn't giving Lands' End the credit it deserves. Lampert believes a sale to a larger retailer with better distribution and marketing muscle could unlock serious value, driving the share price far beyond where it trades today. Warning! GuruFocus has detected 5 Warning Signs with LE. The numbers back him up. Lands' End pulled in $1.36 billion to $1.40 billion in revenue last year, with a solid 47% gross margin. Yet the stock has been stuck in a rut, down nearly 50% from October highs. Lampert sees a path to $2.1 billion in sales over the next five years, with higher margins and AI-driven efficiencies boosting profitability. His estimate? A potential valuation of $5.6 billion, translating to a fair price of around $90 per sharemiles ahead of today's levels. Here's where it gets interesting: if the board refuses to act, Lampert plans to find a buyer for his stake on his own, setting up a potential power shift. His bet is simpleLands' End belongs inside a bigger retail ecosystem where synergies can be tapped for massive growth. Investors are taking notice. With shares spiking, speculation is growing that a sale could be on the horizon, positioning Lands' End for a major shake-upor a lucrative buyout. This article first appeared on GuruFocus.
