Borders extends leases on 11 stores
New York City — Borders Group has reached agreements with its landlords to extend the leases on 11 stores it had previously asked a bankruptcy court to shutter, the Associated Press reported.
Last week, the chain asked permission to start liquidating 51 stores because of a condition for its financing. But it said at the time it was actively working to keep them open.
Borders now has 40 stores remaining on last week’s closing list. However, company said in documents filed Wednesday with the U.S. Bankruptcy Court in the Southern District of New York that it is continuing to negotiate with landlords and that number will likely shrink, according to the report.
Borders also canceled an auction to select a liquidator for those stores because it is in talks with its creditors to eliminate the financing condition that requires it to close the stores.
A hearing on the matter will be held June 20
Retail and CPG group concludes confab is Spain
A coalition of major retailers and CPG companies known as the Consumer Goods Forum met in Spain this week where they agreed on a series of common-sense resolutions related to health and wellness. The group, which includes Walmart, adopted resolutions covering the following areas:
- Access and availability of products and services that support the goal of healthier diets and lifestyles.
- Transparent fact based information to help consumers make informed product choices and usages.
- Communication and educational programs to help raise consumer awareness on health and wellness.
According to the Consumer Goods Forum, implementing the resolutions will be carried out by a diverse working group of industry CEOs and chairmen, as well as expert stakeholders from outside the industry. The working group is led by Paul Bulcke, CEO of Nestlé Group and Dick Boer, CEO of Ahold.
“We believe that manufacturers and retailers have a key role to play in improving the health and wellness of consumers,” said Bulcke. “Working together and partnering with stakeholders such as public health authorities and healthcare professionals, will help our industry accelerate its collaborative effort and assure a positive impact on health and wellness in particular and on society at large.”
The team of Forum member companies charged with delivering the health and wellness resolutions is co-chaired by Nestlé and Ahold, and includes Aeon, Barilla, Carrefour, The Coca-Cola Company, Delhaize, General Mills, Grupo Bimbo, Johnson & Johnson, Kao, Kellogg, Kraft, L’Oréal, Metro, Pepsi Co, Procter & Gamble, Sobeys, Tesco, Unilever and Walmart.
“Today’s consumers are more empowered than ever and their expectations are changing. As an industry, we need to be out ahead of these changes and aligned behind one voice,” said Forum co-chair Muhtar Kent, chairman and CEO of the Coca-Cola Company.
About The Consumer Goods ForumThe Consumer Goods Forum (CGF) is a global, parity-based industry network, driven by its members. It brings together the CEOs and senior management of over 650 retailers, manufacturers, service providers and other stakeholders across 70 countries and reflects the diversity of the industry in geography, size, product category and format. Forum member companies have combined sales of EUR 2.1 trillion and their retailer and manufacturer members employ over 9.1 million people.
The Forum was created in June 2009 by the merger of CIES – The Food Business Forum, the Global Commerce Initiative (GCI) and the Global CEO Forum and today includes 650 retailers, manufacturers and other stakeholders.
A new wild card in the warehouse club space
Sam’s is enjoying some solid momentum these days, but a potential buyout of BJ’s Wholesale Club announced Friday morning could create some competitive issues in market where the companies operations overlap.
Of course, that assumes the private equity firms Leonard Green & Partners and CVC Capital Partners, the companies who have joined forces to take BJ’s private, are interested in growing the business and investing in operations as opposed to simply squeezing the 190 unit retailer for cash.
The investment firms submitted regulatory filings with the Securities and Exchange Commission Friday morning indicating their intentions, but the potential deals is hardly new news. BJ’s has long be the subject of buyout speculation and the conjecture intensified last year when Leonard Green acquired an ownership stake which now stands at 9.3%. Then earlier this year, BJ’s stated the obvious by revealing it was exploring strategic alternatives.