News Briefs

The stage is set for a proxy fight at Macy’s. 

Macy’s on Tuesday said it has received notice from Arkhouse Management Co. that it has nominated nine candidates for election to the board of the department store retailer at its 2024 annual meeting.  (The date of the meeting has not yet been set.)

The nominations follow Arkhouse’s and Brigade Capital Management’s unsolicited $21-a-share bid for the company in December. In January, Macy’s rejected the $5.8 billion bid, saying the firms failed to address the board’s concerns regarding their ability to finance the proposed transaction and that there was a “lack of compelling value” in the proposal.

In its statement on Tuesday, Macy’s said that rather than make any attempt to provide additional information, Arkhouse instead sent a letter its board on February 11, requesting the retailer extend its director nomination window by 10 days and “claiming inaccurately that they had responded to any outstanding issues.”

“Arkhouse and Brigade have yet to provide any financing details that would enhance the actionability of their proposal despite multiple opportunities to do so, and instead of attempting a constructive dialogue, Arkhouse has chosen to launch a proxy contest,”  Macy’s stated.

Macy’s reiterated that Arkhouse had “yet to provide any financing details that would enhance the actionability” of its proposal.

The company added that, “notwithstanding the sole objective of Arkhouse is a sale of Macy’s Inc.," it will evaluate Arkhouse’s director candidates.

Guess Inc. is teaming up to acquire a trendy fashion brand.

The apparel retailer and brand management firm WHP Global have entered into an agreement to buy Rag & Bone. Under terms of the agreement, Guess will buy all of the operating assets of the  jeans brand. Separately, Guess and WHP will jointly acquire and own Rag & Bone's intellectual property.

Founded in 2002, Rag & Bone directly operates 34 stores in the U.S. and two stores in the U.K. Its merchandise, which includes both men's and women's fashions, is also available in high-end boutiques, department stores and through e-commerce globally. In 2023, the brand generated revenue of approximately $250 million.

"We are excited to add an iconic brand such as Rag & Bone to Guess?, further diversifying our portfolio with complementary customer bases and price points," said Guess CEO Carlos Alberini. "We look forward to partnering with WHP Global to build on rag & bone’s heritage. We expect the transaction to deliver earnings per share accretion in the first year and strong value creation for our shareholders for years to come.”

Rag & Bone will continue to be based in New York City. As part of the Guess portfolio, the company's team will operate as an independent fashion brand.

"Today marks the beginning of an exciting new chapter as rag & bone joins forces with a much larger international fashion company," said chairman Andrew Rosen. "It’s a great opportunity for our team to take the brand to the next level, blending our unique styles and respective expertise to create new possibilities for rag & bone on a global scale.”

True Religion’s return to growth may be leading it to new owners.

The denim and apparel brand’s owner, hedge fund Farmstead Capital Management, is considering selling the company, reported CNBC. Farmstead has hired Baird to run the sale process, according to the report. 

True Religion has had an up-and-down time of it since its heyday in the early 2000s, including filing for bankruptcy twice, in 2017 and 2020. But it’s been on an upward trajectory the past few years under the leadership of CEO Richard Buckley.  In September, the company opened its first new store — and 46th U.S. outpost — in four years, at Atlanta’s Cumberland Mall.  

The company is also adding new product categories, including the home market through a parternship with Envogue to license True Religion-branded products for the bed, bath, living room, and kitchen. 

True Religion is also expanding its global reach. In March 2023, the chain announced it was expanding into China with partner Aurorae Group, owner of Evisu Group. Plans call for the opening of 65 stores (a mix of freestanding locations and shop-in-shops) by 2026, growing to a total of 108 by 2028. The Chinese market is expected to represent 10% of True Religion’s global brand volume by 2026.

In addition, the brand is expanding its international presence in new markets that include India, Indonesia, South Korea, the Philippines, South Africa, Lebanon and Qatar, bringing its total number of markets outside the United States to 26.

The offices of Chain Store Age will be closed Monday, Feb. 19 in observance of Presidents' Day. DayBreaker will resume publication on  Tuesday, Feb. 20.

Target Corp. is targeting budget-minded consumers and moving into the dollar and extreme discount space with its newest private label — or "owned" — brand. 

The retailer is launching Dealworthy, which features nearly 400 "everyday" products across four categories: apparel and accessories, essentials and beauty, electronics, and home items. Prices start at less than $1, with most items under $10.

Target said the prices of Dealworthy items are among the lowest customers will find across its assortment. In electronics, some items will be priced 50% lower than any other brands sold at Target.

Dealworthy products will be available in Target stores and on its website starting on Feb. 18. New products will continue to be introduced through early 2025, including power cords, undergarments, socks, laundry detergent, dish soap and more.

"We know that value is top of mind for consumers, and Dealworthy, backed by our owned brand promise, will not only appeal to our current guests but position us to attract even more new shoppers to Target,” said Rick Gomez, executive VP and chief food, essentials and beauty officer.

Target’s owned brands now account for nearly $3 billion in annual sales. The news about Dealworthy comes days after Target said it was relaunching and expanding its up+up brand, which it launched 15 years ago. Hundreds of new products are being added to the assortment

The retailer offers a generous return policy on its owned brands.  If a consumer is not satisfied with any Target owned brand item, they can return it within one year with a receipt for an exchange or a refund.

Texas-based burger chain Whataburger has named its new chief marketing officer.

Scott Hudler is the company’s new senior VP and chief marketing officer, bringing 30 years of experience to the role. Most recently, Hudler served as the president and chief growth officer of Cotton Patch Cafe, a Dallas-based restaurant chain with locations in Texas, Oklahoma and New Mexico.

Hudler’s past experience also includes roles at Torchy’s Tacos, Dick’s Sporting Goods, and Dunkin’, where he spent 11 years and was ultimately elevated to senior VP and chief digital officer.

"Among the many qualities that impressed us about Scott was his remarkable blend of marketing acumen and experience leading a business," said Alexander Ivannikov, Whataburger’s chief administrative officer. "His insight into how marketing and operations must work in unison to drive growth and ensure the brand's vitality is significant, highlighting their essential collaboration for success."

​​Hudler's will begin chief marketing officer duties on Feb. 21. He will work in Whataburger's San Antonio Home Office.

Founded in 1950, Whataburger operates more than 1,000 locations across a 15-state footprint.

"As a longtime Whataburger fan, I am excited to join the team and take this iconic brand to new markets and new generations," Hudler said. "It's thrilling to be joining a storied 73-year-old company that is equally committed to its legacy and to innovation and growth."