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That same year, Amazon unsuccessfully sought to get her recused from agency probes against the company, arguing she was too biased. The District of Columbia also tried to sue Amazon on antitrust grounds before, but its lawsuit was dismissed by a federal judge last year. Experts say the FTC faces a few hurdles in its own case, including convincing the court which slice of the market Amazon is allegedly monopolizing. In a blog post responding to the lawsuit, Amazon General Counsel David Zapolsky accused the FTC of attempting to “gerrymander alleged market” to portray Amazon as something it’s not. The FTC also alleges Amazon keeps sellers dependent on services that have allowed it to collect billions in revenue every year.

Persons: Lina Khan, hasn’t, Khan, Joe Biden, ” Khan, David Zapolsky, “ gerrymander, ”, Neil Saunders, Maurice Stucke, Stucke, Sean Sullivan, they’re Organizations: Federal Trade, Activision Blizzard, FTC, Microsoft, Yale Law, Amazon, of, Walmart, GlobalData, Google, Department of Justice, University of Tennessee, University of Iowa College of Law Locations: California, of Columbia, U.S, monopolization

☆ US new auto sales likely rose in Q3, but UAW strikes may pose speed bump
▼ + stars: | 2023-10-02 | by ( Shivansh Tiwary | ) www.reuters.com time to read: +2 min

But that may change after the United Auto Workers (UAW) union launched unprecedented, coordinated strikes against GM, Ford (F.N) and Stellantis (STLAM.MI) last month. "The production disruptions caused by the strike will have ramifications for potential sales levels moving through the fourth quarter," S&P Global Mobility said in a note. The automakers haven't disclosed a financial hit from the strikes so far and September sales are likely to be unscathed given the inventory built up in anticipation of the strike. U.S. new vehicle sales likely rose 17% to 3,941,700 units, whereas, the September seasonally adjusted annualized rate is expected to be 15.4 million units, consultants J.D. Automakers are expected to report quarterly sales in the coming days.

Persons: Carlos Barria, autoworkers, haven't, J.D, GlobalData, Shivansh, Shounak Dasgupta Organizations: REUTERS, General Motors, Toyota, United Auto Workers, UAW, GM, Ford, P Global Mobility, Detroit Three, Detroit, Thomson Locations: Port of Richmond, San Francisco , California, Edmunds, Bengaluru

☆ What a stressed commercial real estate market means for these exposed bank stocks
▼ + stars: | 2023-09-27 | by ( Morgan Chittum | ) www.cnbc.com time to read: +9 min

Banks are facing mounting uncertainty as the commercial real estate (CRE) sector continues to struggle. Commercial real estate landscape Higher interest rates, tightening credit conditions and elevated office vacancies are weighing down the estimated $21 trillion commercial real estate sector . A lagging commercial real estate market can strain a bank's capital reserves while a stronger market can boost incomes from lending and fees. While there's reason for concern in the broader commercial real estate market, we see the most pronounced challenges unfolding in offices. CEO Charlie Scharf said the bank sustained "higher losses in commercial real estate, primarily in the office portfolio."

Persons: Banks, Wells, Morgan Stanley, Morgan Stanley's dealmaking, Tomasz Piskorski, Piskorski, Jim Cramer, Morgan, deteriorations, Tailwinds, JPMorgan Chase, Wells Fargo, Michael Santomassimo, Charlie Scharf, Jeff Marks, Wells Fargo execs, Santomassimo, Jim Cramer's, Jim, Collin Madden, Karen Ducey Organizations: Columbia Business School, Federal Reserve, CNBC, That's, Semiconductor, Arm Holdings, Rivian, IB, Barclays, JPMorgan, GEM, Estate Partners, South Lake Union Locations: Wells, CRE, U.S, Wells Fargo, South Lake, Seattle , Washington

☆ Consumers are still spending on nice things, if they’re on trend
▼ + stars: | 2023-09-25 | by ( Parija Kavilanz | ) edition.cnn.com time to read: +8 min

But they’re also rewarding the stores that are betting big on the right trends at the right time, for the right price. Mejuri: The Toronto-based jewelry retailer has intentionally positioned itself as a go-to destination for Millennials and GenZers for affordable fine jewelry. “When we founded the business, we wanted to redefine luxury and bring it a new experience within the fine jewelry industry,” said Masad. We just wanted to make fine jewelry part of everyday wear. We saw no reason for why there should be a barrier between fine jewelry and our customer.”He said Mejuri hasn’t wavered from that goal.

Persons: aren’t, they’re, ”, Jharonne Martis, —, Neil Saunders, Marshal Cohen, ” Abercrombie, Andrew Kelly, Saunders, Abercrombie, Fran Horowitz, Lulu, Circana’s Cohen, Noura Sakkijha, Majed Masad, Zach Hilty, Mejuri hasn’t, “ There’s, It’s, TJ, TJ Maxx, TJ Maxx's, David L, Ryan, Aaron Sorensen Organizations: New, New York CNN, Abercrombie, Fitch, “, CNN Business, TJ Maxx, TJ, Boston Globe, Lotis, Consulting Locations: New York, Toronto

☆ Job security provisions could be the key to ending the auto strike
▼ + stars: | 2023-09-24 | by ( Chris Isidore | ) edition.cnn.com time to read: +4 min

New York CNN —As important as wages and benefits are in the unprecedented United Auto Workers strike against General Motors, Ford and Stellantis, nothing is more important than job security. When Fain announced an expansion of the strike against GM and Stellantis, he specifically exempted Ford because of that progress. The UAW hasn’t disclosed more details on job security discussions with Ford. And much of the job losses are due to the drop in US market share by the three unionized automakers. “One thing that’s most important is job security,” General Motors CEO Mary Barra told CNN the day the strike started, “When I talk to employees…they want to know their facility is getting a new product.”

Persons: Shawn Fain, Fain, Ford, ” Fain, ” Ford, “, ”, Stellantis, Jeff Schuster, Mary Barra Organizations: New, New York CNN, United Auto Workers, General Motors, Ford, UAW, GM, Labor, GlobalData, Big, ” General, CNN Locations: New York, Belvidere , Illinois, Edmunds

☆ Bank stocks show more signs of life after a tumultuous year. Here's what's causing the run and why we’re optimistic on these financial names
▼ + stars: | 2023-09-19 | by ( Morgan Chittum | ) www.cnbc.com time to read: +9 min

Key Points Club names Wells Fargo and Morgan Stanley still have room to run higher. Morgan Stanley and Wells Fargo were up 6.2% and 5% in the past five days, respectively, as of Monday's close. WFC YTD mountain Wells Fargo YTD Wells Fargo doesn't stand to benefit quite as much as Morgan Stanley on a pickup in investment banking. Wells Fargo Chief Financial Officer Michael Santomassimo said the macroeconomic picture is "much better than people would have expected at this point." A combination file photo shows Wells Fargo, Citibank, Morgan Stanley, JPMorgan Chase, Bank of America and Goldman Sachs.

Persons: Morgan Stanley, Wells, Banks, SVB, Wells Fargo, haven't, Chris Kotowski, Oppenheimer, Kotowski, Morgan Stanley YTD, Dan Simkowitz, Simkowitz, Morgan, management's, Michael Santomassimo, Jeff Marks, Jim Cramer's, Jim Cramer, Jim, JPMorgan, Goldman Sachs Organizations: Wall Street, Nasdaq, Venture, Arm Holdings, Wells, Silicon Valley Bank, Federal Reserve, Swiss, UBS, Credit Suisse, CNBC, Barclays Financial Conference, of Investment, Barclays, Citibank, JPMorgan Chase, Bank of America, Reuters Locations: San Francisco, Sequoia, Silicon, Republic, Big, Wells Fargo, Wells

☆ UAW strike could buy GM time to address nagging EV issues
▼ + stars: | 2023-09-17 | by ( Paul Lienert | ) www.reuters.com time to read: +4 min

The company delivered just 1,348 Lyriqs and 47 Hummers in the second quarter, far below expectations, in part because of issues with battery module assembly. A longer strike could help GM address and potentially resolve some of those ongoing issues in its EV and battery operations, according to Sam Fiorani, vice president of global vehicle forecasting at AutoForecast Solutions. "A production stoppage could allow GM to solve bottlenecks,” Fiorani said. Wedbush auto analyst Daniel Ives said the strike was "a potential nightmare situation" for GM given it comes exactly at a key period of ironing out EV issues. In addition, the UAW strike in the United States could affect the flow of critical auto parts to GM operations in Canada and Mexico, which would hamper EV production there, Rinna said.

Persons: Jennifer Granholm, Jonathan Ernst, GlobalData, Mary Barra, Rory Harvey, Hummer, Sam Fiorani, Fiorani, GM's Barra, Bill Rinna, Daniel Ives, Ives, Rinna, GM’s Ramos, Paul Lienert, Deepa Babington Organizations: U.S . Energy, Washington Auto, REUTERS, Rights, General Motors, Ford Motor, UAW, Ford, Chevrolet Silverado, GMC Sierra, GM, GMC, AutoForecast Solutions, EV, Chevrolet Blazer, Thomson Locations: Washington , U.S, United States, Canada, Mexico, Ingersoll, Detroit

☆ Ford also faces strike at Canadian plants Monday night
▼ + stars: | 2023-09-17 | by ( Chris Isidore | ) edition.cnn.com time to read: +5 min

Unifor, the union that represents autoworkers in Canada, is preparing to go on strike against Ford on Monday night. The 3,400 Unifor members at the plant produce the Ford Edge and the Lincoln Nautilus SUVs. The two plants have a total of 1,700 Unifor members. It has not had a US strike since 1978, nor a Canadian strike since 1990. But Payne said her members at Ford are prepared to strike Monday night if the company doesn’t step up to its demands.

Persons: Ford, Lana Payne, “ We’re, ” Payne, –, Jeff Schuster, ”, Payne, she’s, Unifor, ” Ford Organizations: New, New York CNN, United Auto Workers, Ford, CNN, UAW, Ford Edge, Lincoln Nautilus, Nautilus, – Ford, General Motors, North American, Jeep, Dodge, Chrysler, GlobalData, GM, Canadian, US Locations: New York, Canada, Toronto, Oakville , Ontario, Windsor , Ontario, Detroit, Windsor, Warren , Michigan, United States, Mexico, America

But there’s a good chance at least some of them, at a mix of plants and companies, will walk out. Those limited, targeted strikes could be enough to grind production to a halt at America’s three unionized automakers. One advantage for the union of a targeted strike is the potential to save resources and extend a possible walkout. Striking union members are eligible for $500 a week from the union’s strike fund. The companies did not respond to questions Wednesday about their plans if faced with the targeted strikes Fain described on Wednesday.

Persons: Shawn Fain, Fain, Jeff Schuster, ”, Schuster, Jim Farley, Farley, Bill Ford, ” Farley, “, ” Ford, can’t, “ We’re, Patrick Anderson, Anderson, That’s, Ford Organizations: Detroit CNN, General Motors, Ford, United Auto Workers, UAW, America ’, GlobalData, GM, Detroit Auto, Jeep, Dodge, Chrysler, Anderson Economic Group, Fiat Chrysler, PSA Group Locations: America, Detroit, North America, Michigan, Edmunds, That’s, European

☆ Autoworkers strike: What to watch for as the clock ticks down
▼ + stars: | 2023-09-14 | by ( Chris Isidore | ) edition.cnn.com time to read: +7 min

Here’s what to watch as the clock ticks down:Which plants would go on strike? One advantage of a targeted strike for the union is the potential to save resources and extend a possible walkout. Striking union members are eligible for $500 a week from the union’s strike fund. Ford has not had a national strike since 1976 and has not had a strike of any kind at its US plants since 1978. Sometimes after talks break down, the parties can return to the table and reach a deal without a strike.

Persons: Jeff Schuster, ”, Schuster, Shawn Fain, Fain, We’re, –, ’, Ford, Wheaton, Will Organizations: New, New York CNN, United Auto Workers, General Motors, Ford, GlobalData, UAW, GM, Stellantis, Jeep, Dodge, Chrysler, Cornell University’s Industrial, Labor Relations, Warehouse, Writers Guild of America, Alliance, Television Producers, UPS, Teamsters Locations: New York, America, Kokomo , Indiana, Toledo , Ohio, Livonia , Michigan, Stellantis, Buffalo, West

☆ CEOs are having their worst year in decades
▼ + stars: | 2023-09-13 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

Oil prices hit 10-month highGlobal oil prices climbed above $92 a barrel on Tuesday for the first time in nearly 10 months, reports my colleague Matt Egan. Takeaways from Apple’s iPhone 15 eventTuesday was a big day for Apple as the tech titan unveiled its iPhone 15 lineup along with other major updates during its September keynote event. Among the highlights: The iPhone 15 Pro and iPhone 15 Pro Max now feature a titanium casing, allowing the design to be slimmer and thinner than before. The iPhone 15 comes in 5 colors (white, black, pink, green and yellow) and in two sizes: A 6.1-inch screen for the iPhone 15 and 6.7 inches for iPhone 15 Pro. The iPhone 15 will start at $799, and iPhone 15 Pro will start at $999.

Persons: New York CNN — It’s, ”, Bernard Looney, Looney, Stewart Glendinning, Timothy Baxter, Baxter’s, Baxter, Macy’s, Rosalind Brewer, Neil Saunders, hasn’t, Matt Egan, Brent, Matt Smith, “, Clare Duffy, Samantha Murphy Kelly, Max Organizations: CNN Business, Bell, New York CNN, Ferguson Partners, BP, Express, Tyson Foods, Walgreens Boots Alliance, Walgreens, “, Americas, AAA, Apple Locations: New York, —, Libya, “ Libya, Kpler, Russia, Saudi Arabia

A targeted strike could shut operations for each company, depending on which plants and facilities are struck. One advantage for the union of a targeted strike is the potential to save resources and extend a possible strike. The union members who are on strike are eligible for $500 a week in strike benefits from the union’s strike fund. With targeted strikes, it’s possible that the companies will shut down operations and lay off members who are not technically on strike. GM’s statement did not address what it planned to do if their operations are disrupted by a targeted strike.

Persons: Shawn Fain, Fain, Jeff Schuster, ”, “, ” Fain, Patrick Anderson, John Hatline, Hatline Organizations: Detroit CNN — United Auto Workers, General Motors, Ford, GlobalData, Jeep, Dodge, Chrysler, UAW, Anderson Economic, CNN Locations: America, Michigan, Detroit

☆ How Luckin Coffee overtook Starbucks as the largest coffee chain in China
▼ + stars: | 2023-09-12 | by ( Sheila Chiang | ) www.cnbc.com time to read: +6 min

SHENZHEN, CHINA - 2020/10/05: Chinese coffee shop chain Luckin Coffee logo seen at a store. Founded in 2017, Luckin Coffee burst onto the Chinese coffee scene to challenge Starbucks through affordable coffee options and mobile ordering. China is Starbucks' second-largest market after the U.S. Luckin Coffee grew to 10,829 stores in China at the end of June, surpassing Starbucks as the largest coffee chain brand in the country following what one analyst calls an "aggressive" expansion. Meanwhile, Starbucks' stores worldwide are company-owned and the American coffee chain does not franchise operations, according to its website. The Chinese coffee chain said that it sold 5.42 million Moutai alcohol-infused lattes on the first day of its launch.

Persons: Alex Tai, Li, Rahul Maheshwari, Luckin, Vivian Leung, Zhang Peng, Price, it's, Jianggan Li, Leung, Kweichow Moutai, Moutai, Shawn Yang, Yang, latte Organizations: Getty, Starbucks, U.S, Luckin, Momentum, Coffee, CNBC, Lightrocket, Brand Finance, Blue Lotus Research Institute Locations: SHENZHEN, CHINA, China, Singapore, Guangzhou, TIANJIN, Asia, Beijing

☆ In Lululemon and Dollar General earnings, signs of a possible economic split
▼ + stars: | 2023-09-02 | by ( Samantha Delouya | ) edition.cnn.com time to read: +4 min

One reported strong sales on Thursday, while the other warned it may experience a sales decline for the year. Dollar General’s earnings report on Thursday painted a different picture. “Core customers continue to tell us they feel financially constrained,” said Dollar General’s CEO, Jeff Owen, on the company’s earnings call. Brian Nagel, a retail analyst at Oppenheimer & Co. who covers Lululemon, said he sees still strong spending across all retailers he covers. “Generally speaking, consumer spending has held in,” he said.

Persons: CNN —, ”, Calvin McDonald, Lululemon, Jeff Owen, Neil Saunders, Brian Nagel, Nagel, ” Nagel, Richard Dreiling, John Rainey, ” Rainey, Shannon Seery Organizations: CNN, Oppenheimer, Co, Federal Reserve, Fed Locations: Wells, United States, —

☆ Rosalind Brewer Steps Down as Walgreens Chief After a Short Tenure
▼ + stars: | 2023-09-01 | by ( Jordyn Holman | More About Jordyn Holman | ) www.nytimes.com time to read: +3 min

Walgreens has been shifting away from pharmacy and retail to focus more on health care services, with mixed results. “While the wisdom of this move is debatable, health care is not Ms. Brewer’s forte.”Before joining Walgreens, Ms. Brewer was the chief operating officer of Starbucks and previously served as chief executive of Sam’s Club, a division of Walmart. As Walgreens leans more into the health care business, it faces several hurdles, industry experts said. It is rare for a woman to replace another female chief executive.

Persons: ” Neil Saunders, GlobalData, Brewer, Brewer’s, ”, James Kehoe, “, Walgreens, Stefano Pessina, Graham, Ms, Eli Lilly Organizations: Walgreens, Starbucks, Sam’s, Walmart, Deutsche, Deutsche Bank analysts, Amylin Pharmaceuticals, Guidant Corporation

☆ Dollar General's messy stores are haunting the retailer as it takes a $95 million hit on inventory markdowns and deploys 'smart teams' to clean up
▼ + stars: | 2023-08-31 | by ( Alex Bitter | Mary Hanbury | ) www.businessinsider.com time to read: +4 min

Dollar General is trying to cut down on excess inventory to tame its messy stores. "We believe it will drive traffic and also more quickly reduce excess inventory," Owen said on the call. To clean up its stores, Dollar General is also deploying "smart teams," or groups of employees who move between multiple stores to organize excess inventory, Owen said. Aisles at many Dollar General stores have been clogged with everything from dog food to school supplies over the last few years. That's led to multiple problems, such as local fire marshals closing Dollar General stores because merchandise is blocking fire exits.

Persons: Jeff Owen, Owen, Neil Saunders, That's Organizations: Service, Dollar, GlobalData Retail, Employees Locations: Wall, Silicon, Texas

☆ Dollar General shares tumble after it cuts forecasts, blaming a spending slump and theft
▼ + stars: | 2023-08-31 | by ( Parija Kavilanz | ) edition.cnn.com time to read: +3 min

New York CNN —Dollar General slashed its sales and profit outlook for the year on Thursday, blaming headwinds including weaker consumer spending on non-essential purchases and increasing theft. Dollar General shares tumbled nearly 17% in pre-market trading Thursday. For its second quarter, Dollar General logged a 1% drop in its same-store sales. Meanwhile, close on the heels of Dick’s Sporting Goods sounding the alarm on store theft eating into its profit this year, Dollar General also flagged an increase in product theft, among other factors, hurting its profit. Target warned earlier this year that it was bracing to lose half a billion dollars because of rising theft.

Persons: ” Neil Saunders, ”, “, it’s Organizations: New, New York CNN —, Dollar, Sporting Locations: New York

☆ The Chinese EV market is dominated by BYD and Tesla, says consultancy
▼ + stars: | 2023-08-30 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailThe Chinese EV market is dominated by BYD and Tesla, says consultancyJohn Zeng, director of China forecasting at GlobalData, says because China's top two electric vehicle manufacturers have already taken half of the country's market share, the rest will have to find a "very unique marketplace for themselves."

Persons: Tesla, John Zeng Organizations: BYD Locations: China

Aug 24 - Subway has agreed to sell itself to private equity firm Roark Capital in a deal valuing the sandwich chain at more than $9 billion, sources said, ending a long-drawn auction that saw several bids from buyout firms. The deal will make Roark Capital one of the largest restaurant operators in the world. It controls Inspire Brands, the owner of restaurant chains including Jimmy John's, Arby's, Baskin-Robbins and Buffalo Wild Wings. Subway said in February it was exploring a possible sale, drawing interest from private equity firms including Roark, Advent International, TDR Capital and TPG as well as Goldman Sachs' asset management arm. The restaurant chain had then hoped to fetch more than $10 billion, owing to its strong brand and international business.

Persons: Roark, Jimmy John's, Neil Saunders, GlobalData, Goldman Sachs, Anirban Sen, Deborah Sophia, Arun Koyyur Organizations: Roark Capital, TDR, Sycamore Partners, Brands, Baskin, Robbins, Buffalo Wild Wings, Subway, Advent, TDR Capital, TPG, Thomson Locations: U.S, North America, New York, Bengaluru

☆ Subway has sold itself to a private equity firm
▼ + stars: | 2023-08-24 | by ( Jordan Valinsky | ) edition.cnn.com time to read: +3 min

New York CNN —Subway has sold itself to private equity firm Roark Capital, ending a six-month long search for a buyer. “This transaction reflects Subway’s long-term growth potential, and the substantial value of our brand and our franchisees around the world,” Subway CEO John Chidsey said in a statement. However, the Wall Street Journal reported the purchase price was “around $9.6 billion,” which would be slightly below the chain’s $10 billion asking price. Despite the sales turnaround, the number of US Subway stores declined to 20,576 last year according to Technomic. Another issue for Roark: Yearly sales at Subway US restaurants are still much lower compared to its sandwich-making rivals.

Persons: Roark Capital, ” Roark, Auntie Anne’s, Carvel, John Chidsey, Roark, Roark’s, Dunkin ’, Jimmy John’s, “ Roark, ”, Neil Saunders, GlobalData, ” Saunders, Trevor Haynes, He’s, Douglas Fry Organizations: New, New York CNN — Subway, Roark, Subway, Buffalo Wild Wings, Sonic, ” Subway, “, Wall Street Journal, ”, Inspire Brands, Inspire, US Subway, QSR Magazine, Jersey, Subway’s North Locations: New York, North America, Subway, Subway’s North America, Canada

☆ Get ready to buy Shein clothes in Forever 21 stores
▼ + stars: | 2023-08-24 | by ( Grace Mayer | ) www.businessinsider.com time to read: +3 min

Fast-fashion retailers Shein and Forever 21 are partnering up. The partnership allows Forever 21 to sell merchandise on Shein's site, and Shein products could be sold in Forever 21 stores. The partnership will allow Shein to sell Forever 21 products on its website, and Forever 21 to add Shein sections in-stores, where customers could also return Shein items. The partnership could give Forever 21 exposure to a significant number of new consumers across the US and the globe, Saunders wrote. Sparc Group, a joint venture of Authentic Brands Group and Simon Property Group, operates Forever 21.

Persons: Neil Saunders, GlobalData, Shein, Saunders, Simon, Lucky Brand, Eddie Bauer, Brooks Organizations: Service, Street Journal, U.S, Forever, Sparc, Authentic Brands, Simon Property Group, Brookfield Property Partners, Reebok, Brooks Brothers, Sparc Group Locations: Wall, Silicon

☆ Subway sandwich chain sells itself to Dunkin' owner Roark Capital
▼ + stars: | 2023-08-24 | by ( Amelia Lucas | ) www.cnbc.com time to read: +3 min

In this photo illustration, a Subway meal is seen on a table at a Subway restaurant on January 12, 2023 in Austin, Texas. Roark Capital is buying Subway, ending the sandwich chain's more than five decades of family ownership and marking a new era for the struggling company. Subway dwarfs all of them by number of restaurants, and brings in more annual sales than all but Dunkin'. Through holding company Inspire Brands, Roark owns Dunkin', Baskin-Robbins, Sonic, Arby's, Buffalo Wild Wings and Jimmy John's. Roark plans to keep Subway as a separate entity within its portfolio, Subway CEO John Chidsey told the Journal.

Persons: Roark, Dunkin, Robbins, Jimmy John's, Anne's, Carvel, Neil Saunders, John Chidsey, Chidsey, Fred DeLuca, Peter Buck, Jared Fogle, DeLuca, Buck Organizations: Roark Capital, Subway, TDR, Sycamore Partners, Wall Street, Inspire Brands, Baskin, Buffalo Wild Wings, Focus Brands, Journal ., Business Locations: Austin , Texas, Cinnabon, Connecticut, U.S

☆ Gap reports another period of declining sales across all brands, warns of 'uncertain consumer'
▼ + stars: | 2023-08-24 | by ( Gabrielle Fonrouge | In Gabrielle-Fonrouge | ) www.cnbc.com time to read: +7 min

In this article GPS Follow your favorite stocks CREATE FREE ACCOUNTPedestrians walk past Old Navy and GAP stores in Times Square, New York City. The company is projecting net sales to decrease in the low double-digit range for the fiscal third quarter compared to last year's net sales of $4.04 billion. Sales declined 6% at Old Navy, on top of a sharp 13.6% decline in the prior-year period. Gap is betting Dickson can breathe new life into Gap's brands: its namesake banner, Old Navy, Banana Republic and Athleta. "We know that regardless of market conditions, strong brands, brands that matter, win," said O'Connell.

Persons: Drew Angerer, Katrina O'Connell, Neil Saunders, StreetAccount, Richard Dickson's, Mattel's Barbie, Dickson, Here's, Chris Blakeslee, Alo Yoga, O'Connell Organizations: Navy, GAP, Refinitiv, Old Navy, Mattel, Banana, Republic Locations: Times Square , New York City, Banana Republic, women's, men's, Gap China, North America

These conditions, known as an earn-out, defer payment on part of the deal consideration, the sources familiar with the matter said. The arrangement helped bridge a gap in the valuation expectations between Roark Capital and the DeLuca and Buck families that own Subway, according to the sources. The deal will make Roark Capital one of the largest restaurant operators in the world. Subway said in February it was exploring a possible sale, drawing interest from private equity firms including Roark, Advent International, TDR Capital and TPG as well as Goldman Sachs' asset management arm. Roark and Subway have 12 months to close the deal, which has a 4% breakup fee, sources said.

Persons: Roark, DeLuca, Buck, Jimmy John's, Neil Saunders, GlobalData, Goldman Sachs, Anirban Sen, Abigail Summerville, Deborah Sophia, Arun Koyyur Organizations: Roark Capital, TDR, Sycamore Partners, Brands, Baskin, Robbins, Buffalo Wild Wings, Subway, Advent, TDR Capital, TPG, Thomson Locations: U.S, North America, New York, Bengaluru

Reuters reported on Tuesday on a so-called earn-out agreement that was key to Roark clinching a deal for Subway. Roark prevailed over a rival bidding group led by buyout firms TDR Capital and Sycamore Partners, whose final offer was for $8.75 billion including an earn-out, and $8.25 billion without, the sources said. Roark took the view that the restaurant market is too fragmented for the deal to raise competition concerns, the sources added. Roark and Subway, which announced the deal on Thursday, declined to comment on the terms. Roark currently controls Inspire Brands, the owner of restaurant chains including Jimmy John's, Arby's, Baskin-Robbins and Buffalo Wild Wings.

Persons: Roark, DeLuca, Buck, John's, Jimmy John’s, Jimmy John's, Neil Saunders, Peter Buck, Fred DeLuca, JPMorgan Chase, Sullivan, Cromwell, Weiss, Garrison, Roark Capital, Morgan Stanley, Anirban Sen, Abigail Summerville, Deborah Sophia, Greg Roumeliotis, Marguerita Choy Organizations: Roark, Reuters, Subway, TDR Capital, Sycamore Partners, Inspire Brands, Baskin, Robbins, Buffalo Wild Wings, JPMorgan, Cromwell LLP, Thomson Locations: Connecticut, U.S, Bridgeport , Connecticut, The Milford , Connecticut, Rifkind, Wharton, New York, Bengaluru

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