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Tag: Capacity/Facilities

  • Debt-ridden Rite Aid files for bankruptcy, will close more stores

    Debt-ridden Rite Aid files for bankruptcy, will close more stores

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    Drugstore chain Rite Aid Corp. filed for bankruptcy Sunday, as it faces billions of dollars of debt related to opioid lawsuits.

    In a statement Sunday night, Rite Aid
    RAD,
    -16.81%
    said it will close some “underperforming” stores and announced Jeffrey Stein as its new chief executive and chief restructuring officer. Interim CEO Elizabeth Burr will remain on the company’s board.

    The bankruptcy filing had been expected for months, and the Wall Street Journal reported in August that Rite Aid was more than $3.3 billion in debt, due largely to hundreds of lawsuits related to its distribution of opioid painkillers. The bankruptcy filing stays pending litigation against the company.

    Earlier this month, the New York Stock Exchange warned Rite Aid that it was “no longer in compliance” with the exchange’s minimum pricing and valuation standards, and gave it six months for the stock to regain compliance. Rite Aid shares have plunged about 80% year to date.

    Rite Aid said Sunday that lenders will provide $3.45 billion in financing for the chain to continue operating through the chapter 11 bankruptcy process.

    “With the support of our lenders, we look forward to strengthening our financial foundation, advancing our transformation initiatives and accelerating the execution of our turnaround strategy,” Stein said in a statement. “In doing so, we will be even better able to deliver the healthcare products and services our customers and their families rely on — now and into the future.”

    Rite Aid said it would work to minimize the effect of store closures on its customers so there is no disruption of services, and will transfer affected workers to different locations when possible.

    Rite Aid has about 2,100 stores and employs around 47,000 people. It has closed more than 200 stores in the past couple of years.

    Rite Aid also said it had reached a deal for pharmacy benefit-solutions company MedImpact Healthcare Systems Inc. to acquire its Elixer Solutions business. A price for the transaction was not disclosed.

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  • Retailers talk a lot about rising theft. But a retail industry report finds a key metric for it hasn’t increased that much.

    Retailers talk a lot about rising theft. But a retail industry report finds a key metric for it hasn’t increased that much.

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    Retail executives over the past year have talked a lot about “shrink” — or the losses they take due to theft, fraud or employee error — amid a flood of headlines about sometimes violent organized thefts at stores. But results from a retail-industry survey released Tuesday found the metric rose only modestly last year.

    The report from the National Retail Federation, a retail industry group, found that the average shrink rate in 2022 crept higher to 1.6% from 1.4% in the prior year, when calculated as a share of sales. The figure from 2022 is in line with those seen in 2020 and 2019.

    Still, the losses amounted to billions of dollars — $112.1 billion, up from $93.9 billion in 2021 — according to the report. And the report said that retailers were increasingly concerned about the violence of those crimes.

    “Far beyond the financial impact of these crimes, the violence and concerns over safety continue to be the priority for all retailers, regardless of size or category,” David Johnston, the NRF’s vice president for asset protection and retail operations, said in a statement.

    The NRF, working with the Loss Prevention Research Council — a research group founded by some of the nation’s biggest retailers — surveyed people in the industry who work in loss-prevention and asset protection. The report contained responses or information from 177 retail brands. The survey was distributed in May, June and July.

    The report was published the same day that Target Corp.
    TGT,
    -2.48%
    said it would close nine stores across four states next month, citing theft and dangers to employees.

    “In this case, we cannot continue operating these stores because theft and organized retail crime are threatening the safety of our team and guests, and contributing to unsustainable business performance,” Target said in a statement.

    The chain joins other retailers sounding the alarm about retail theft and closing stores, amid what executives have described as a spike in organized retail theft, or theft with the intent of reselling the goods. However, executives’ takes on earnings calls have differed slightly, and retailers are contending with other issues — like the fallout from inflation — that have hit financials.

    Also see: Costco CFO says inventory ‘in good shape,’ thefts have not ‘dramatically’ increased as earnings top estimates

    The fight over theft has played out, perhaps predictably, on partisan lines, with some blaming what they say are lax crime policies in large cities. But other analysts point to changes in the flow of foot traffic through population centers since the pandemic, and say the data is often too squishy and subjective to make any hard calls about the state of crime — and whether it’s rising or falling, particularly at retailers — in a particular area.

    More than two-thirds of the retailers surveyed by the NRF “said they were seeing even more violence and aggression” from organized retail theft compared with a year ago. Twenty-eight percent reported being “forced” to close a specific store location, the report said, while 45% said they cut operating hours, and 30% said they reduced or changed an in-store product selection as a result of retail crime.

    “The types of products shoplifters are targeting may not be based solely on price point,” the National Retail Federation said.

    “Products can range from high-price, high-fashion items to everyday products that have a fast resale capability,” the group said. “While ORC groups have traditionally targeted specific items or types of goods, that list has expanded to new categories like outerwear, batteries, energy drinks, designer footwear and kitchen accessories.”

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  • Intel’s Big Chip-Making Push in Germany Hits Bottleneck

    Intel’s Big Chip-Making Push in Germany Hits Bottleneck

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    Intel’s Big Chip-Making Push in Germany Hits Bottleneck

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  • Ford pauses work on $3.5 billion EV battery plant in Michigan

    Ford pauses work on $3.5 billion EV battery plant in Michigan

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    Ford Motor Co. said late Monday it has halted work on a $3.5 billion battery factory in Michigan, just days after the carmaker made concessions to its striking workers.

    “We’re pausing work and limiting spending on construction on the [Marshall, Mich.] project until we’re confident about our ability to competitively operate the plant,” a Ford
    F,
    +1.21%
    spokesperson said. “We haven’t made any final decision about the planned investment there.”

    Ford said in February it was investing $3.5 billion to build the facility in Marshall, about 100 miles west of Detroit. The plant, which Ford called BlueOval Battery Park Michigan, is part of Ford’s “commitment to American manufacturing,” the company said then.

    The plant was expected to employ about 2,500 workers at the start of production, scheduled for 2026. The $3.5 billion investment is part of Ford’s commitment to invest more than $50 billion in electric vehicles globally through that year.

    Employees in some parts of a Michigan Ford plant making Broncos and Rangers have been on strike since Sept. 14, part of a first wave of United Auto Workers’ labor action also hitting one plant each of General Motors Co.
    GM,
    +1.47%
    and Stellantis NV
    STLA,
    -0.57%
    after the union’s contract expired without progress in the negotiations.

    Read more: UAW strike: 5 things to know

    The UAW on Friday expanded the strike to 38 GM and Stellantis distribution centers across 20 states, but didn’t extend the labor action at Ford because it said it had won some concessions for the automaker, such as a return of cost-of-living adjustments.

    Ford was showing the UAW that it was “serious about reaching a deal,” union leadership said at the time.

    The strike comes at a time the legacy automakers are stretched thin to make investments in EVs, with batteries an especially critical — and pricey — components.

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  • UAW expands strike to 38 GM and Stellantis auto-parts distribution centers in 20 states

    UAW expands strike to 38 GM and Stellantis auto-parts distribution centers in 20 states

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    The United Auto Workers on Friday expanded its strike to 38 General Motors Co. and Stellantis NV auto-parts distribution centers in 20 states, hobbling the two carmakers’ repair networks.

    UAW President Shawn Fain said that the union has made “some real progress” in negotiations with Ford Motor Co.
    F,
    +1.89%    ,
    which agreed to cost-of-living increases, some job protections and other concessions, and it won’t be striking at additional Ford plants.

    “Ford is showing us they are serious about reaching a deal,” Fain said.

    Nearly 13,000 UAW members have been on strike since last Friday at a Missouri GM plant making GMC Canyons and Colorados, an Ohio Stellantis plant making Jeep Wranglers and Gladiators, and portions of a Michigan Ford plant making Broncos and Rangers.

    Joining them are 3,475 workers at 18 GM fulfillment centers and 2,150 workers at 20 Stellantis centers across the U.S. The workers at the auto-parts distribution centers started to walk off at noon Eastern on Friday.

    GM said that the strike’s “escalation” was “unnecessary.”

    “We have contingency plans for various scenarios and are prepared to do what is best for our business, our customers, and our dealers,” the company said in a statement Friday. “We will continue to bargain in good faith with the union to reach an agreement as quickly as possible.”

    Don’t miss: Tesla may be the winner of the Big Three labor woes

    Stellantis said later Friday that it made a “very competitive offer” on Thursday that included a pay raise of 21% over the four-year life of the contract for some of its full-time hourly workers and a “significant product allocation that allows for workforce stability through the end of the contract.”

    “And yet, we still have not received a response to that offer. We look forward to the UAW leadership’s productive engagement so that we can bargain in good faith to reach an agreement that will protect the competitiveness of our company and our ability to continue providing good jobs,” said Stellantis, which was formed in 2021 with the merger of Fiat Chrysler and France’s Groupe PSA and is headquartered in the Netherlands.

    Meanwhile, Wall Street seemed encouraged by the progress with Ford negotiations.

    That was “encouraging,” suggesting that the Big Three could “perhaps reach a labor agreement sooner than some have been expecting,” measured in days and weeks and not months, Citi analyst Itay Michaeli said in a note Friday. The new strikes at auto-parts distribution facilities would likely immediately impact “a relatively smaller yet high-margin revenue stream” for GM, Michaeli said.

    A potential parts shortage could add pressure on the carmakers to reach an agreement sooner, he said. Compared with the possibility of strike at full-size truck plants, at the heart of the automakers’ profits, however, “today’s update seems somewhat more encouraging.”

    Wedbush analyst Dan Ives called the UAW action “an aggressive move that essentially goes at the hearts and lungs of auto operations for GM and Stellantis.”

    A settlement with Ford is likely over the coming week, Ives said. “The UAW and GM/Stellantis now have crossed the invisible line and the UAW strike is about to get a lot nastier.”

    Since the strike began, the union and the automakers have said they are engaging in constant talks as they try to reach a compromise on a new national contract.

    The union is demanding wage increases, an end to tiers, the restoration of pensions and cost-of-living adjustments and other concessions. Although both the union and companies have claimed progress during talks, GM President Mark Reuss said in a recent opinion piece in the Detroit Free Press that the UAW’s demands are “untenable.” That’s in line with Ford President Jim Farley’s characterization of the union’s wage proposal as “unsustainable” for the company before the strike deadline.

    Fain mentioned Reuss’s “untenable” comment in his update Friday via webcast. GM and Stellantis “are going to need some serious pushing” to meet union demands, he said.

    See: 5 things to know about the UAW strike


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  • UAW expands strike to 38 GM and Stellantis auto-parts distribution centers in 20 states

    UAW expands strike to 38 GM and Stellantis auto-parts distribution centers in 20 states

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    The United Auto Workers on Friday expanded its strike to 38 General Motors Co. and Stellantis NV auto-parts distribution centers in 20 states, hobbling the two carmakers’ repair networks.

    UAW President Shawn Fain said that the union has made “some real progress” in negotiations with Ford Motor Co.
    F,
    +1.89%    ,
    which agreed to cost-of-living increases, some job protections and other concessions, and it won’t be striking at additional Ford plants.

    “Ford is showing us they are serious about reaching a deal,” Fain said.

    Nearly 13,000 UAW members have been on strike since last Friday at a Missouri GM plant making GMC Canyons and Colorados, an Ohio Stellantis plant making Jeep Wranglers and Gladiators, and portions of a Michigan Ford plant making Broncos and Rangers.

    Joining them are 3,475 workers at 18 GM fulfillment centers and 2,150 workers at 20 Stellantis centers across the U.S. The workers at the auto-parts distribution centers started to walk off at noon Eastern on Friday.

    GM said that the strike’s “escalation” was “unnecessary.”

    “We have contingency plans for various scenarios and are prepared to do what is best for our business, our customers, and our dealers,” the company said in a statement Friday. “We will continue to bargain in good faith with the union to reach an agreement as quickly as possible.”

    Don’t miss: Tesla may be the winner of the Big Three labor woes

    Stellantis said later Friday that it made a “very competitive offer” on Thursday that included a pay raise of 21% over the four-year life of the contract for some of its full-time hourly workers and a “significant product allocation that allows for workforce stability through the end of the contract.”

    “And yet, we still have not received a response to that offer. We look forward to the UAW leadership’s productive engagement so that we can bargain in good faith to reach an agreement that will protect the competitiveness of our company and our ability to continue providing good jobs,” said Stellantis, which was formed in 2021 with the merger of Fiat Chrysler and France’s Groupe PSA and is headquartered in the Netherlands.

    Meanwhile, Wall Street seemed encouraged by the progress with Ford negotiations.

    That was “encouraging,” suggesting that the Big Three could “perhaps reach a labor agreement sooner than some have been expecting,” measured in days and weeks and not months, Citi analyst Itay Michaeli said in a note Friday. The new strikes at auto-parts distribution facilities would likely immediately impact “a relatively smaller yet high-margin revenue stream” for GM, Michaeli said.

    A potential parts shortage could add pressure on the carmakers to reach an agreement sooner, he said. Compared with the possibility of strike at full-size truck plants, at the heart of the automakers’ profits, however, “today’s update seems somewhat more encouraging.”

    Wedbush analyst Dan Ives called the UAW action “an aggressive move that essentially goes at the hearts and lungs of auto operations for GM and Stellantis.”

    A settlement with Ford is likely over the coming week, Ives said. “The UAW and GM/Stellantis now have crossed the invisible line and the UAW strike is about to get a lot nastier.”

    Since the strike began, the union and the automakers have said they are engaging in constant talks as they try to reach a compromise on a new national contract.

    The union is demanding wage increases, an end to tiers, the restoration of pensions and cost-of-living adjustments and other concessions. Although both the union and companies have claimed progress during talks, GM President Mark Reuss said in a recent opinion piece in the Detroit Free Press that the UAW’s demands are “untenable.” That’s in line with Ford President Jim Farley’s characterization of the union’s wage proposal as “unsustainable” for the company before the strike deadline.

    Fain mentioned Reuss’s “untenable” comment in his update Friday via webcast. GM and Stellantis “are going to need some serious pushing” to meet union demands, he said.

    See: 5 things to know about the UAW strike


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  • How the Hawaii Fires Ensnared the State’s Third-Largest Bank

    How the Hawaii Fires Ensnared the State’s Third-Largest Bank

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    How the Hawaii Fires Ensnared the State’s Third-Largest Bank

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  • U.S. Steel Takeover Talk Rattles Manufacturers

    U.S. Steel Takeover Talk Rattles Manufacturers

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    U.S. Steel Takeover Talk Rattles Manufacturers

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  • Ford Venture Gets Record $9.2 Billion Government Loan for EV Batteries

    Ford Venture Gets Record $9.2 Billion Government Loan for EV Batteries

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    Ford Venture Gets Record $9.2 Billion Government Loan for EV Batteries

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  • Intel Stock Drops Despite Plan for Cost Savings. This Is Why.

    Intel Stock Drops Despite Plan for Cost Savings. This Is Why.

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    Chip maker


    Intel


    offered positive news on its foundry business Wednesday as it continues to build out new facilities to expand the custom chip-making service. Investors sold the stock anyway.

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  • Intel to build $25 billion advanced chip plant in Israel, Netanyahu says

    Intel to build $25 billion advanced chip plant in Israel, Netanyahu says

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    Intel Corp. plans to build a “huge and unprecedented” $25 billion advanced chip manufacturing plant in Israel, Prime Minister Benjamin Netanyahu announced Sunday.

    The agreement in principle would see a factory in Kiryat Gat open by 2027, according to a statement from Israel’s Finance Ministry.

    “This is the largest investment ever in the State of Israel,” Netanyahu’s office said in a tweet Sunday. “It is an expression of great confidence in the Israeli economy and reflects the strength of the free economy we have built, and the technological economy we’re developing here.”

    Intel has operated in Israel since 1974, and has a number of facilities there.

    An Intel
    INTC,
    +1.54%
    spokesperson confirmed the company’s “intention to expand manufacturing capacity in Israel” in support of Chief Executive Pat Gelsinger’s “IDM 2.0” strategy, which includes expanding manufacturing capabilities around the world.

    Intel is looking to reduce its reliance on Asian chip manufacturing to avoid potential snags in the global supply chain. Last week, the Santa Clara, Calif.-based company announced a $4.6 billion semiconductor assembly and test facility in Poland.

    Intel shares rallied to their best week in 14 years Friday, as analysts and investors expressed excitement about opportunities for AI to drive stronger growth.

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  • Siemens to Boost Manufacturing Capacity With $2.17 Bln Investments

    Siemens to Boost Manufacturing Capacity With $2.17 Bln Investments

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    Siemens set out plans to invest 2 billion euros ($2.17 billion) to boost manufacturing capacity this year, pledging to develop a high-tech plant in Singapore and expand its digital factory in Chengdu, China, to tap growth opportunities in digitalization and automation.

    The German industrial conglomerate said Thursday that it would pour around EUR200 million into its new Singapore facility, creating more than 400 jobs. The company will also invest EUR140 million to expand its digital factory in Chengdu, adding another 400 jobs.

    …

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  • Mediterranean fast-casual restaurant chain Cava prices IPO at $22 a share

    Mediterranean fast-casual restaurant chain Cava prices IPO at $22 a share

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    Mediterranean fast-casual restaurant chain Cava Group on Wednesday priced its initial public offering of 14.4 million shares at $22 a share, up from a prior range, giving the company a valuation of roughly $2.45 billion.

    Shares are expected to begin trading Thursday on the New York Stock Exchange with the ticker symbol CAVA.

    The rapidly-growing…

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  • UiPath Stock Is Flying This Year. Analyst Thinks the Party Is Over.

    UiPath Stock Is Flying This Year. Analyst Thinks the Party Is Over.

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    UiPath Stock Is Flying This Year. Analyst Thinks the Party Is Over.

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  • America’s Biggest Bank Is Everywhere—and It Isn’t Done Growing

    America’s Biggest Bank Is Everywhere—and It Isn’t Done Growing

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    This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by
    our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact
    Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com.

    https://www.wsj.com/articles/americas-biggest-bank-is-everywhereand-it-isnt-done-growing-5ff18360

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  • Bed Bath & Beyond Files for Bankruptcy

    Bed Bath & Beyond Files for Bankruptcy

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    Bed Bath & Beyond Files for Bankruptcy

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  • SpaceX scrubs Starship test launch minutes before blastoff

    SpaceX scrubs Starship test launch minutes before blastoff

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    SpaceX scrubbed the eagerly anticipated test launch of its giant Starship rocket minutes before blastoff Monday.

    The launch from SpaceX’s Starbase facility in Boca Chica, Texas, would have been the first flight test to integrate SpaceX’s Starship and Super Heavy rockets. The largest rocket ever built, Starship is designed to play a key role in returning humans to the Moon, as well as in future Mars exploration.

    SpaceX scrubbed the uncrewed launch attempt about nine minutes before blastoff, apparently because of an issue related to its stage 1 rocket.

    “A pressurant valve appears to be frozen, so unless it starts operating soon, no launch today,” tweeted SpaceX CEO Elon Musk.

    Related: Elon Musk’s SpaceX pulls another $1.7 billion in funding

    “Standing down from today’s flight test attempt; team is working towards next available opportunity,” SpaceX tweeted.

    When it scrubbed the launch, SpaceX transitioned to a “wet dress rehearsal,” continuing to load propellant. SpaceX also continued its countdown to T-minus 40 seconds.

    “Learned a lot today, now offloading propellant, retrying in a few days,” tweeted Musk.

    “Unfortunately, due to needing to recycle the propellant, we’re looking at a minimum of 48 hours until we are able to attempt this flight test again,” said Kate Tice, SpaceX’s quality systems engineering manager, during the launch livestream.

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  • Silicon Valley Bank branches closed by regulator in biggest bank failure since Washington Mutual

    Silicon Valley Bank branches closed by regulator in biggest bank failure since Washington Mutual

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    Silicon Valley Bank has been closed by the California Department of Financial Protection and Innovation, and the Federal Deposit Insurance Corporation (FDIC) has been appointed receiver, becoming the first FDIC-backed institution to fail this year.

    The news comes amid a crisis at parent SVB Financial Group
    SIVB,
    -60.41%    ,
    which lost a record 60% of its value on Thursday, after it disclosed large losses from securities sales and announced a dilutive stock offering along with a profit warning. The stock was halted premarket Friday amid reports the company was seeking a buyer.

    The FDIC, which insures deposits of up to $250,000 at eligible banks, said all insured depositors will have full access to their accounts no later than Monday morning. Uninsured depositors will get a receivership certificate and may be entitled to dividends once the FDIC sells the bank’s assets.

    The bank had 13 branches in California and Massachusetts and will reopen on Monday. As of Dec. 31, it had about $209 billion in total assets, and about $175.4 billion in deposits.

    That makes it the biggest bank failure since Washington Mutual Inc. was brought down during the financial crisis of 2008.

    See now: 10 banks that may face trouble in the wake of the SVB Financial Group debacle

    “At the time of closing, the amount of deposits in excess of the insurance limits was undetermined,” said the FDIC. “The amount of uninsured deposits will be determined once the FDIC obtains additional information from the bank and customers.”

    Read: Treasury monitoring a few banks ‘very carefully’ amid Silicon Valley Bank’s woes, Yellen says

    Related: Silicon Valley Bank collapse a cautionary tale, says New Constructs

    Customers with more than $250,000 in their accounts should contact the FDIC at 1-866-799-0959.

    The last FDIC-backed bank to close was Almena State Bank, Almena, Kansas, back in October of 2020, said the FDIC.

    The bank’s collapse has come swiftly just days after the parent announced a huge loss on bondholdings after it was caught out by interest rate increases. Some venture-capital firms reportedly told their startup clients to pull their money from the bank, triggering a classic run on the bank.

    On Friday, employees were told to “work from home today and until further notice,” the Wall Street Journal reported, citing an email it had obtained.

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  • Bed Bath & Beyond to Shut Down Canadian Stores in Bankruptcy

    Bed Bath & Beyond to Shut Down Canadian Stores in Bankruptcy

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    Bed Bath & Beyond Inc.’s Canadian division will shut down its stores under court protection after the company received an unusual lifeline earlier this week to save its U.S. operations from bankruptcy.

    The troubled retailer filed its Canadian division for protection under the Companies’ Creditors Arrangement Act, Canada’s rough equivalent of chapter 11 bankruptcy. Bed Bath & Beyond has “reluctantly concluded” that even with the lifeline of its recent equity raise, there isn’t enough capital available both to restructure its U.S. business and bring the Canadian business to profitability, the company said in filings with an Ontario court.

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  • Bed Bath & Beyond gets Nasdaq delisting warning, stock tumbles 7%

    Bed Bath & Beyond gets Nasdaq delisting warning, stock tumbles 7%

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    Bed Bath & Beyond Inc. has received a warning that it is not in compliance for continued Nasdaq listing because the company has not yet filed its Form 10-Q quarterly report with the Securities and Exchange Commission.

    In an SEC filing Thursday, the troubled home-goods retailer said it had received the Nasdaq notice on Jan. 12. The notice has no immediate effect on the listing or trading of Bed Bath & Beyond’s
    BBBY,
    -4.09%
    common stock on the Nasdaq
    COMP,
    +0.86%    ,
    the filing said. “The Notice states that the Company has 60 calendar days from the date of the Notice, or March 13, 2023, to submit a plan to regain compliance with the Listing Rule,” Bed Bath & Beyond said in the filing.

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