Luxury handbag retailer to change its name
Eager to better reflect the company’s increasing diversity, Coach is changing its name.
Coach will become Tapestry Inc., on Oct. 31. The company, which owns the brands Coach, Kate Spade New York and Stuart Weitzman, will continue to define itself as a New York-based house of modern luxury lifestyle brands.
The decision came on the heels of the company’s acquisitions of Stuart Weitzman in 2015 and Kate Spade & Company this past summer. However, this transition has been three years in the works, according to Coach’s CEO, Victor Luis.
“Three years ago we laid out our vision to transform Coach, and announced our intention to grow beyond the Coach brand,” Luis said.
“We are now at a defining moment in our corporate reinvention, having evolved from a mono-brand specialty retailer to a true house of emotional, desirable brands, all leveraging our strong operational foundation,” he said. “Each of our brands has a unique proposition, fulfilling different fashion sensibilities and emotional needs within the very attractive and growing $80 billion global market for premium handbag and accessories, footwear and outerwear. At the same time, our brands are also built upon the shared values of optimism, inclusivity and innovation.”
The leadership team at Coach partnered with brand agency Carbone Smolan Agency on all aspects of the rebrand, the company said.
When searching for a new name, Coach wanted something that reflected its values. It also wanted to express the cultural diversity of the company and its brands today, as well as in the future, the company said.
“In Tapestry, we found a name that speaks to creativity, craftsmanship, authenticity and inclusivity on a shared platform and values,” Luis said.
“We believe that Tapestry can grow with our portfolio and with our current brands as they extend into new categories and markets,” he added. “The name embodies our creative brand-led and consumer-focused business, while also representing the deep heritage of the group. Most importantly, we are establishing a strong and distinct corporate identity, which enables our brands to express their individual personalities and unique language to consumers.”
To further reflect the transition, the company will change its New York Stock Exchange ticker symbol from COH to TPR on Oct. 31. The company’s Hong Kong Depositary Receipts are traded on The Stock Exchange of Hong Kong Limited under the symbol 6388.
Very disappointed! I don't like the new name, doesn't sound any better than Coach!
Upscale home furnishings retailer repays second lien term loan
RH has repaid its second lien term loan — in just over three months after securing it.
The upscale home furnishings retailer said that it has repaid its $100 million second lien term loan on Oct. 10. The annualized cash interest rate on the second lien term loan was approximately 9.5% as of the date of retirement.
The company funded the repayment with borrowings on its asset backed credit facility, which bears current annualized interest of approximately 2.75%, as well as existing cash on its balance sheet. Between repaying the loan early, and having a related reduction in interest expenses, RH expects an incremental $0.05 benefit to its fiscal 2017 adjusted diluted earnings per share, the company said.
“Based on our strong business performance, significant cash flow generation, and confidence in our future outlook, we are retiring the second lien term loan just over three months after securing it,” said Gary Friedman, RH chairman and CEO.
“The $100 million second lien term loan was intended to act as a short term bridge loan to help fund the company’s purchase earlier this year of nearly one-half of its outstanding shares, which has created, and we believe will continue to create, significant shareholder value,” he added. “The early debt retirement is expected to be incremental to the company’s fiscal 2017 adjusted diluted earnings per share by approximately $0.05.”
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Sears Canada is going out of business
It’s closing time for Sears Canada.
The long-struggling department store chain said on Tuesday that it is seeking court approval to liquidate all of its remaining stores and assets. The retailer expects the court to hear the motion on Oct. 13. Pending approval, liquidation sales could start as of Oct. 19, and continue for 10 to 14 weeks, according to the retailer.
In June, Sears Canada filed for protection from its creditors and announced it would be restructuring under Canada’s Companies’ Creditors Arrangement Act. At that time, the company got court approval of a sale and investment solicitation process (SISP) to seek out proposals for the acquisition of, or investment in, the Sears Canada Group’s business, assets and/or leases, and to implement one or a combination of proposals.
Sears Canada received and implemented going concern transactions for various lines of business. Despite exhaustive efforts, no viable transaction for the retailer to continue as a going concern was received. Thus, Sears Canada, with the recommendation of its advisors and approval of the Monitor, FTI Consulting Inc., is seeking an order to commence a liquidation that would result in a wind-down of its business following court approval.
“The company deeply regrets this pending outcome and the resulting loss of jobs and store closures,” according to Sears Canada.
The store closures will result in in loss of about 12,000 jobs, according to Bloomberg.
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