TOP NEWS
* Struggling fast-fashion retailer Forever 21 Inc. is in talks to possibly sell a stake to two of its largest landlords, Simon Property Group Inc. and Brookfield Property Partners LP, Bloomberg News reported, citing people with knowledge of the matter. A spokeswoman for Brookfield declined to comment on its involvement in a potential deal, while Simon and Forever 21 did not respond to requests for comment, the report said.
* Travel services provider Thomas Cook Group PLC filed for Chapter 15 bankruptcy protection in the U.S. as it looks to secure its £900 million rescue deal with Fosun International Ltd.-owned Fosun Tourism Group, banks and the majority of senior noteholders. The move allows Thomas Cook to proceed with its restructuring plans with protection against legal action by U.S. lenders since the filing gives U.K. law primacy over company bonds held in the U.S.
TEXTILES, APPAREL AND LUXURY GOODS
* H & M Hennes & Mauritz AB launched a digital store in Thailand, offering 24-hour delivery services. The move expands H&M's online presence to 50 markets.
* Destination Maternity Corp. posted second quarter adjusted net loss of 20 cents per share, versus a loss of 11 cents per share in the year-ago period, as net sales decreased 11.9% year over year to $84.9 million.
MULTILINE RETAIL
* Kohl's Corp. plans to hire 90,000 seasonal employees, of whom 7,000 will be deployed to its omni-power center pilot that aims to support increased digital demand across 135 stores. The department store chain, which began hiring seasonal workers in July, will host a hiring event Oct. 5 at all of its retail locations and e-commerce fulfillment centers in the U.S.
E-COMMERCE
* Chewy Inc.'s second-quarter net loss came in at $82.9 million, wider than $63.1 million posted a year ago, while net sales jumped 43% year over year to $1.15 billion from $805.6 million. Shares of the pet supplies retailer slid 3.8% to $29.10 in after-hours trading following the report.
HOUSEHOLD AND PERSONAL PRODUCTS
* The Estée Lauder Cos. Inc. unit MAC Cosmetics named James Aquilina as senior vice president and general manager for its global commercial business. Aquilina, who previously was vice president and general manager of the international division of Estée Lauder's Tom Ford Beauty, succeeds Mary Renaud, who retired from the role in August.
* Beauty-products maker The Body Shop International Ltd. launched a concept store in London that aims to return to the environmental and human rights activist roots of late founder Anita Roddick, The Guardian reported. The shop, which is testing a shower gel refill station and will soon include a water refill station, is mostly made from upcycled materials from landfills or from reclaimed steel and recycled wood.
FOOD AND STAPLES RETAILING
* Supermarket chain Safeway Inc. and Aon Hewitt Investment Consulting Inc. agreed to pay a combined $8.5 million to settle a class-action lawsuit filed in 2016 by participants of Safeway's 401(k) plan, Pensions & Investments reported, citing court filings. Aon Hewitt was the plan's former independent investment adviser. The lawsuit reportedly claimed Safeway chose a target-date fund lineup that "charged excessive fees as compared to readily available alternatives."
HOUSEHOLD DURABLES AND SPECIALTY RETAIL
* Home improvement retailer Kingfisher PLC reported that underlying basic EPS for the fiscal first half of 2019-2020 slid 3.9% to 12.3 pence from 12.8 pence in the year-ago period. Total sales dipped 1.4% year over year, or 0.9% at constant currency, to £6 billion, as like-for-like sales declined 1.8%.
* Ingka Holding BV, the parent company of the Ikea Group, has agreed to acquire a 49% stake in two solar photovoltaic projects in the U.S. from Copenhagen Infrastructure Partners K/S. Financial terms of the deal were not disclosed.
HOTELS, RESORTS AND CRUISE LINES
* Seibu Holdings Inc. opened its first hotel in London on Sept. 17, marking its debut in the European market, where it also plans to expand into cities such as Paris and Madrid, the Financial Times reported, citing President and CEO Takashi Goto. Goto reportedly said London's position as an international hub is "solid" even with the potential impact from Brexit.
* Sandals Resorts International Ltd. has resumed an attempt to sell itself for as much as $4.5 billion, Bloomberg News reported, citing sources familiar with the matter. A spokesperson told the news wire that the company "is exploring options to take advantage of the growing global demand for the brand" but refused to disclose further details.
CASINOS AND GAMING
* The Stars Group Inc. partnered with Fox Sports Media Group to launch Fox Bet products in New Jersey and Pennsylvania, and the Fox Sports Super 6 prediction game app nationwide, as part of the initial phase of its U.S. strategy. The company on Sept. 9 also opened a land-based, retail sportsbook at Mount Airy Casino Resort LP's location at the Poconos region in Pennsylvania.
* Boyd Gaming Corp. named A. Randall Thoman, principal of business advisory firm Thoman International LLC, to its board of directors. Separately, the board declared a quarterly cash dividend of 7 cents per share, payable on Oct. 15 to shareholders of record on Sept. 27.
SPECIALIZED CONSUMER SERVICES
* S&P Global Ratings lowered its issuer credit rating on Sotheby's to B+ from BB- and its issue-level rating on the auctioneer's senior unsecured notes to B+ from BB-, with a stable outlook. The rating agency expects its adjusted leverage for Sotheby's to jump to about 6.6x from 4x in fiscal 2018 following BidFair USA's acquisition of the company.
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The day ahead
Early morning futures indicators pointed to a lower opening for the U.S. market.
In Asia, the Hang Seng lost 0.13% to 26,754.12, and the Nikkei 225 declined 0.18% to 21,960.71.
In Europe, around midday, the FTSE 100 rose 0.05% to 7,324.54, and the Euronext 100 was up 0.16% to 1,089.03.
On the macro front
U.S. housing starts, the U.S. Energy Information Administration Petroleum Status Report, the Federal Open Market Committee meeting announcement, the FOMC forecasts and the Fed chair press conference are due out today.
Click here to read about today's financial markets, setting out the factors driving stocks, bonds and currencies around the world ahead of the New York open.
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