Tag: Store

Sainsbury’s Confirms Talks to Offload Argos to China’s JD.com
LONDON – In a move that has sparked fresh debates over British economic sovereignty, Sainsbury’s, the iconic high street supermarket chain, has confirmed it is in advanced talks to offload its subsidiary Argos to JD.com, one of China’s burgeoning e-commerce behemoths. The potential deal, announced on Saturday, comes at a time when UK businesses are under increasing scrutiny for their vulnerability to foreign acquisitions, particularly from state-influenced enterprises in Beijing.
Sainsbury’s, a cornerstone of British retail for over 150 years, acquired Argos in a £1.4 billion deal back in 2016 as part of a strategy to bolster its non-food offerings and compete in the digital age. Now, just eight years later, the company appears poised to hand over the keys to what it describes as the UK’s second-largest general merchandise retailer. Argos boasts the third most visited retail website in the country and operates more than 1,100 collection points, making it a vital player in everyday British shopping habits.
In an official statement released over the weekend, Sainsbury’s emphasized its commitment to Argos’ future while framing the potential sale as a strategic accelerator. “Sainsbury’s is committed to delivering the strongest and most successful future for Argos customers and colleagues and the group’s ‘More Argos, more often’ transformation strategy is delivering solid progress,” the statement read. It went on to highlight the purported benefits of partnering with JD.com: “A transaction with JD.com would accelerate Argos’ transformation. JD.com would bring world-class retail, technology and logistics expertise and invest to drive Argos’ growth and further transform the customer experience.”
The statement also included assurances about protections for stakeholders, noting that “the terms of any possible transaction would include commitments from JD.com in relation to Argos for the benefit of customers, colleagues and partners.” However, Sainsbury’s was quick to temper expectations, adding that “no deal has currently been struck and there is no certainty at this stage that any transaction will proceed.”
Critics from the conservative wing of British politics have already voiced alarm, viewing the talks as symptomatic of a broader erosion of UK control over key retail assets in the post-Brexit era. With China’s economic footprint expanding aggressively across Europe, there are fears that JD.com’s involvement could expose sensitive consumer data and supply chains to Beijing’s oversight. “This isn’t just a business deal; it’s a question of who controls the high street,” said one Tory MP speaking off the record. “We fought for sovereignty outside the EU, only to watch it slip into the hands of a regime that doesn’t play by the same rules.”
JD.com, founded in 2004 and listed on the Nasdaq in 2014 as the first major Chinese e-commerce firm to do so, positions itself as a “leading supply chain-based technology and service provider which integrates traditional industry features with cutting-edge digital technology and capabilities,” according to its official website. The company has grown into a formidable rival to Alibaba, boasting a vast logistics network and investments in AI-driven retail innovations. Yet, its ties to the Chinese Communist Party—through mandatory state collaborations and data-sharing requirements—have long raised eyebrows among Western regulators.
For Sainsbury’s, the sale aligns with a broader pivot under CEO Simon Roberts, who has been steering the company toward a food-first focus amid slumping profits in general merchandise. Argos has been integral to Sainsbury’s digital expansion, with in-store collection points driving foot traffic and online sales surging during the pandemic. But with e-commerce giants like Amazon dominating the market, the retailer may see JD.com’s expertise as a lifeline—albeit one that comes with geopolitical strings attached.
The discussions come against a backdrop of heightened UK-China tensions, including recent blocks on Chinese investments in critical infrastructure and ongoing probes into tech transfers. If the deal proceeds, it would likely face rigorous scrutiny from the Competition and Markets Authority (CMA) and possibly the National Security and Investment Act, which empowers the government to intervene in foreign takeovers deemed risky.
As Britain grapples with balancing economic growth and national interests, the fate of Argos could serve as a litmus test for how far Conservative policymakers are willing to go in protecting domestic icons from overseas predators. For now, Sainsbury’s insists the talks are exploratory, but the mere prospect has reignited calls for tougher safeguards on British assets.
September 14, 2025
Discount retailer Gabe’s is negotiating a transfer of control to its lenders
NEW YORK — Discount retail chain Gabe’s, a popular off-price department store operating over 160 locations across the Mid-Atlantic and Southeast, is in advanced negotiations to hand over control of the company to its lenders, according to people familiar with the matter. The move comes as the company, owned by private equity firm Warburg Pincus, struggles to manage a growing debt load and softening sales in a highly competitive retail environment.
The potential debt-for-equity swap would give creditors significant ownership in the company, signaling a major shift in the retailer’s structure and potentially marking the end of Warburg Pincus’s majority stake in Gabe’s.
Founded in 1961 and headquartered in Morgantown, West Virginia, Gabe’s built its reputation on steeply discounted apparel, home goods, and seasonal merchandise. In 2020, the company expanded its footprint by acquiring Old Time Pottery, a Tennessee-based home décor retailer. Combined, Gabe’s and Old Time Pottery operate more than 160 stores in 20 states, serving budget-conscious shoppers in both urban and rural areas.
But even deep discounts haven’t been enough to shield the company from the dual pressures of inflation-strapped consumers and heightened competition from giants like Dollar General, Burlington, and Walmart. Industry sources say traffic and margins at Gabe’s stores have weakened over the past 18 months.
Gabe’s is currently carrying hundreds of millions of dollars in debt, much of it dating back to leveraged buyouts and expansion efforts funded under Warburg Pincus’s ownership. People close to the matter say interest costs and operational overheads have significantly eroded free cash flow, leaving the company with limited flexibility to reinvest in store upgrades or digital infrastructure.
Warburg Pincus, which acquired Gabe’s in 2017, has declined to comment publicly, though sources suggest the firm has been seeking an exit or restructuring solution since late 2023. The private equity firm manages over $80 billion in assets globally.
Talks with lenders, which include major institutional credit investors and private debt funds, are said to be ongoing but constructive. According to two sources familiar with the process, the restructuring could include:
- A debt-for-equity conversion that significantly reduces the company’s interest burden
- A potential injection of fresh capital to support working capital and store operations
- Operational changes to focus on core markets and divest or shutter underperforming locations
No final decision has been made, and restructuring outcomes could vary depending on lender consensus and macroeconomic conditions. A Chapter 11 filing is not imminent, according to people briefed on the talks, but remains a backup plan if an out-of-court deal falls apart.
Gabe’s situation reflects broader challenges in the discount and off-price retail sector. Once seen as recession-resistant, the industry is now facing thinning margins due to supply chain costs, rising minimum wages, and shifting consumer behavior.
“Off-price retailers used to thrive in uncertain economies,” said retail analyst Caroline Myles of Piper Sandler. “But now, they’re caught in a squeeze—consumers are stretched thin, and many of these chains are underinvested in e-commerce, which is where price-savvy shoppers are increasingly going.”
Myles noted that many discount retailers owned by private equity firms have faced similar financial pressures, with some opting for restructurings or distressed asset sales in recent years.
If Gabe’s can successfully restructure its debt and stabilize operations, the company could retain a significant footprint in its key regions, where it still enjoys brand loyalty among deal-seeking customers. Analysts say the company’s strength lies in its low-overhead model, real estate flexibility, and regional appeal.
But challenges remain. With over 160 stores, Gabe’s must now determine how many of those locations are sustainable long-term. Store closures, layoffs, or liquidation sales could be part of the path forward if lenders push for rapid cost-cutting.
For now, Gabe’s stores remain open, and the company continues to promote new merchandise and in-store deals on its website and circulars.
Lenders are expected to reach a consensus on the restructuring framework by early summer. A formal announcement could follow shortly thereafter. If successful, the transition could allow Gabe’s to avoid bankruptcy and regain financial footing—albeit under a new ownership structure.
Whether Gabe’s can adapt in a rapidly evolving retail market remains to be seen. But one thing is clear: the deep-discount chain that once grew quietly in America’s small towns is now facing the full weight of a new retail reality.
May 10, 2025
Rite Aid’s second bankruptcy filing comes surprisingly soon, less than a year after the company’s previous emergence from Chapter 11
Rite Aid filed for bankruptcy protection Monday for the second time, less than a year after the embattled drugstore chain emerged from Chapter 11 as a private company.
Rite Aid said in a news release that it’s looking for a buyer and is in “active discussions” with multiple prospects. The Chapter 11 filing in U.S. Bankruptcy Court in New Jersey gives Rite Aid access to $1.94 billion in new financing to fund the sale process, during which it plans to keep stores open.
The company did not respond to The Washington Post’s request for comment.
Rite Aid first filed for bankruptcy in October 2023 and received $3.45 billion in new financing to support its reorganization. The company emerged from Chapter 11 in September after slashing almost $2 billion in debt and closing hundreds of stores.
Despite this downsizing, Rite Aid has “continued to face financial challenges” that have intensified as the retail and health-care sectors evolve, chief executive Matt Schroeder said in a statement, adding that the retailer will focus on keeping pharmacy service uninterrupted.
Rite Aid’s October 2023 bankruptcy filing also allowed the company to resolve hundreds of lawsuits alleging that it unlawfully filled opioid prescriptions, a practice that fueled the nation’s opioid crisis, according to allegations by several cities, counties and states.
The flood of litigation, which also targeted CVS and Walgreens, has resulted in more than $50 billion in settlements with state and local governments — upending the country’s three major pharmacy retailers.
Those settlements come as traditional pharmacy companies also face rising competition from e-commerce giants such as Walmart and Amazon, which offer same-day prescription delivery. Walgreens announced last year that it would close a “significant portion” of its almost 9,000 U.S. locations and agreed last March to take itself private as part of an acquisition by private-equity firm Sycamore Partners.
Meanwhile, CVS, the country’s largest national chain, announced in 2021 that it would shutter 900 stores over three years and outlined plans last October to lay off almost 3,000 employees to cut costs.
Rite Aid, the third-largest national stand-alone pharmacy chain, has about 1,200 stores, according to its website. The Philadelphia-based retailer has closed more than 1,000 stores since its 2023 bankruptcy filing. Most recently, it said it would shutter all of its stores in Michigan and all but four stores in Ohio by the end of September.
Rite Aid is the latest in a string of retail bankruptcies in the past year, with Forever 21, Joann, Party City and Big Lots all recently filing for Chapter 11 protection. Coresight Research in December projected that more than 7,300 store locations would shutter by the end of 2024, compared with about 5,500 in 2023. Bankruptcies in the sector this past year almost doubled.
May 6, 2025
Hobby Lobby to Open First Store in Manhattan — But It’s Stirring Controversy.
In the Lower Manhattan neighborhood of TriBeCa, known for its liberal politics and sky-high rents, a new retailer, known for its conservative Christian convictions, rock-bottom prices and steadfast customers in rural America, is moving in.
Now the question is, can this retailer, Hobby Lobby, make it in Manhattan?
The retailer, which is expected to open this spring and is taking over 75,000 square feet that used to be a Bed Bath & Beyond and Barnes & Noble for its first Manhattan store, should have prompted an enthusiastic response given the surge of Americans who picked up crafts hobbies during the pandemic.
Instead, the reaction has been mixed, with some residents feeling affronted that Hobby Lobby is opening in their neighborhood. Local groups and forums that are protesting the company’s arrival in TriBeCa point to Hobby Lobby’s work with organizations that oppose gay and transgender rights. They haven’t forgotten the private company’s lawsuit in 2014 to fight against having to provide insurance coverage for contraception for employees.
Over a decade later, it remains to be seen whether low prices and a staggering selection of products are enough to make residents in an area that has long been a liberal stronghold look past the company’s conservative bent. The neighborhood, known for cobblestone streets and converted loft buildings that are now home to affluent families and A-list celebrities, is solidly Democratic, but, like much of New York, it shifted to the right during the 2024 election.
Heide Fasnacht, an artist who has lived and worked in TriBeCa for five decades, said she felt “angry” about the arrival of a company that promotes the evangelical Protestant convictions of its founder.
“I moved to New York to get away from things like that,” said Ms. Fasnacht, who was calling for a boycott of the store.
“There are probably a lot of people here who do crafts, I’m sure,” says Heide Fasnacht, an artist who lives in TriBeCa. While she appreciates increased access to materials, she strongly opposes the new store.Credit…Oliver Farshi for The New York Times
Madeline Lanciani, the owner of Duane Park Patisserie, a couple of blocks from Hobby Lobby’s location in TriBeCa, also considers herself part of the resistance. “I will gladly go out of my way to shop somewhere else,” she said.
Hobby Lobby is no stranger to protests against its business. Its owners, David and Barbara Green, are outspoken about their Christian faith, which has infused the culture of the retailer. The company has said its guiding principle is “honoring the Lord in all we do by operating the company in a manner consistent with biblical principles.” The stores remain closed on Sunday and sell Christian-themed goods.
Despite backlash from residents like Ms. Fasnacht and Ms. Lanciani, Hobby Lobby is making inroads in New York at what appears to be an opportune time: One of its main competitors, Joann, which sold fabrics and crafts supplies for over 80 years, said in February that it was going out of business and closing all of its roughly 800 stores, including 30 in New York. Another competitor, Michaels, went through a leveraged buyout in 2021.
Hobby Lobby, by contrast, has been the model of stability. The company, which has about 1,040 stores across the country, including 28 in New York State, brought in $8 billion in revenue and opened 37 new stores last year.
Visits to its stores increased nearly 17 percent from 2019 to 2024, according to an analysis of foot traffic by Placer.ai, a data provider, while Michaels had a decline of over 9 percent and Joann a loss of over 5 percent.
Hobby Lobby opened its first store in New York City last year, in Staten Island, the most suburban and conservative-leaning of the city’s boroughs, and is eyeing possible locations in other neighborhoods.
As for the TriBeCa location, just blocks from the World Trade Center site, which attracts millions of visitors annually, Neil Saunders, managing director at GlobalData, a research and consulting firm, said, “There will be some people who boycott it and some who adore it and people in the middle who just want a ball of yarn.”
Lidia Curto, a Staten Island resident who was indeed loading blue yarn in her car after shopping at the store there on a recent afternoon, said Hobby Lobby’s low prices were why she shopped there.
Hobby Lobby did not respond to requests for comment for this article.
The reaction to the retailer’s coming to TriBeCa harks back to Chick-fil-A’s arrival in Lower Manhattan in 2018 on Fulton Street, not far from Hobby Lobby’s new space. The purveyor of fried-chicken sandwiches — with an ethos that has also been colored by its Christian founder, who has publicly maligned same-sex marriage — had caused its own uproar.
Protesters greeted Chick-fil-A when it opened there, but were soon replaced by long lines of customers who seem to have since put aside their political concerns for a crispy, well-seasoned chicken sandwich.
Chick-fil-A did not respond to requests for sales figures for the Fulton Street store, but the chain’s non-mall locations generated average revenues of $9.3 million in 2023, according to the company’s 2024 franchise disclosure document, an 8.1 percent increase over 2022. Chick-fil-A has 26 stores in New York City, according to its website.
Chick-fil-A, which opened on Fulton Street in 2018 near the new Hobby Lobby, similarly embeds its founder’s Christian faith into aspects of its corporate identity.Credit…Oliver Farshi for The New York Times
Jonnie Weeden called the food he had just bought at the Fulton Street restaurant on a recent afternoon “a guilty pleasure.” He said he was aware of what he called the founder’s “homophobic views,” which he said didn’t align with his own, but pointed out that “many other companies have flawed world views, and people turn a blind eye.”
Founded in 1972, Hobby Lobby started as a 300-square-foot space in Oklahoma City, an outgrowth of a miniature picture frame business that the Greens had started in their home. They later added crafts supplies, home goods and seasonal decorations to their offerings.
Mr. Green, 83, is still Hobby Lobby’s chief executive. One of his sons is president of the retailer, and another started an affiliate company that sells Christian books and church supplies.
Today, Hobby Lobby stores are as big as 90,000 square feet and filled with tens of thousands of items.
At Hobby Lobby’s Staten Island location, shoppers can browse a wide selection of crosses. Credit…Oliver Farshi for The New York Times
The retailer’s Christian principles may seem like an odd fit for Manhattan, let alone TriBeCa. Hobby Lobby, like Joann and Michaels, has typically favored suburban and rural areas.
But Steven Soutendijk, an executive managing director and retail specialist at the real estate firm Cushman & Wakefield, said he thought Hobby Lobby’s lease in TriBeCa had less to do with the neighborhood than with the space itself, a rarity in Manhattan.
“There are very few superlarge-format big boxes that actually even physically exist” in the borough, he said.
An executive at the real estate firm Cushman & Wakefield said he thought Hobby Lobby’s lease in TriBeCa had less to do with the neighborhood than with the space itself.Credit…Oliver Farshi for The New York Times
The company’s real estate strategy involves leasing big-box facilities previously occupied by another retailer, avoiding the high costs of new construction. Its 42,000-square-foot space in Staten Island was a former Babies “R” Us. It also typically funds its own renovations, unlike many other retailers that rely on their landlords to help cover those costs and are thus locked into higher rents, said Daniel Taub, the national director of retail at Marcus & Millichap, a commercial real estate brokerage.
As to what extent Hobby Lobby’s politics might affect how well the store performs, James Cook, the senior director of Americas retail research for JLL, a real estate services company, said, “At the end of the day, I don’t think it matters.”
Chris Panayiotou, the owner of the Gee Whiz Diner in TriBeCa just across from the Hobby Lobby building on Greenwich Street, said he was hoping to benefit from the foot traffic the retailer would bring.Credit…Oliver Farshi for The New York Times
Chris Panayiotou, the owner of the Gee Whiz Diner, a TriBeCa mainstay just across from the Hobby Lobby building on Greenwich Street, said he was hoping to benefit from the foot traffic the retailer would bring and possibly make up for the customers he lost when Bed Bath & Beyond and Barnes & Noble closed.
“People, once they’re done shopping, they’re going to be tired,” Mr. Panayiotou said. “Once they pop out and see us on the corner, they might want a cup of coffee or something to eat.”
April 10, 2025