Office supplies chain sheds more of its international businesses
Office Depot continues to make good on its promise to focus on its North American business.
The company announced it has reached an agreement to sell its business in Australia and New Zealand to Platinum Equity, a global private equity firm. The transaction is subject to regulatory approval in each country and is expected to close within the next several months.
Office Depot had previously disclosed its intention to sell substantially all of its international businesses under a process that began in 2016. Earlier this year, the chain completed the sale of its European operations to The Aurelius Group.
“I’m very pleased that we were able to reach a favorable agreement to sell the Australia and New Zealand businesses to Platinum Equity,” said Gerry Smith, CEO, Office Depot. “The proceeds from this transaction will further enhance our financial flexibility as we focus on our strategic initiatives to grow our North American business.”
Three retailers step up shopper engagement with bots
FreshDirect, Subway and The Cheesecake Factory have added a new item to their menus — conversational commerce.
Through a partnership with MasterCard, the three brands are now using artificial intelligence (AI)-based bots to enable consumers to browse menus, build orders and securely checkout via Masterpass — all without leaving the Messenger chat-based platform.
For example, on online fresh food grocer FreshDirect, the bots enables customers to browse, shop and purchase groceries directly within Messenger. Meanwhile, Subway customers can use the bot to order their sandwich or salad order, and even add sides, toppings, snacks and drinks, and then pay for their meal through the chat app. The bot is currently available in more than 26,500 Subway restaurants in the United States.
The Cheesecake Factory is taking a different approach. By merging CashStar’s real-time gifting capability, which instantly approves and activates gift cards, the chain’s bot assists consumers as they purchase personalized gift cards directly through Messenger.
“Through this commerce-enabled bot we are able to leverage a new engagement channel with our guests,” said David Gordon, president of The Cheesecake Factory. “The bot experience delivers the convenience of customizing a gift card through Messenger integrated with Masterpass payment functionality to enable a simplified checkout experience.”
The bots support all Masterpass-enabled wallets from banks including Citi and Capital One.
Luxury department store retailer takes on more debt
Neiman Marcus’ debt burden just got heavier.
The luxury retailer will make interest payments over the next six months with new debt to preserve its cash and bank line of credit.
Instead of making a current $29 million cash interest payment on $600 million notes due in 2021, Neiman Marcus will issue more bonds to holders to cover the 9.5% interest, the Dallas News reported.
Neiman Marcus is struggling under $4.8 billion in debt, with the load primarily resulting from the company’s $6 billion leveraged buyout in 2013, when current owners Ares Management LP and CPPIB, acquired it from other private equity firms. In March, the retailer announced it was exploring strategic alternatives, which could include a sale of the company or other assets.
Neiman Marcus had $105.8 million in cash on hand as of April 1, and $423.3 million of unused borrowing available to it under its $900 million asset-based revolving credit facility, according to the Dallas News.
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