Richard Howell’s Post

This week in retail: Big Lots filed for Chapter 11 bankruptcy and entered into an agreement to be acquired by Nexus Capital Management, and F9 Investments acquired LL Flooring. Big Lots: Big Lots Enters Into Sale Agreement With Nexus Capital Management 🛋Big Lots announced that it has entered into an agreement with an affiliate of Nexus Capital Management, pursuant to which Nexus has agreed to acquire substantially all of the Company's assets and ongoing business operations https://lnkd.in/eP9N5qAg Retail Dive: F9 Investments Acquires LL Flooring 🏡F9 Investments, a private equity firm, has acquired LL Flooring, the agreement includes 219 stores and their inventory, a distribution center, and LL Flooring’s intellectual property https://lnkd.in/ekFps9VZ

We appreciate the recent follow up from the Memphis Business Journal and the resulting article. A few years ago they called us the 'billion dollar company that nobody had hear of', in their feature on Highline Warren. Our reaction then, as now, is that the partners who need to know us definitely do. They rely on us to create solutions for them through our unparalleled talent, footprint, set of capabilities, and unrivaled fill rates. Now that supply chains have normalized and business is once again firing on all cylinders those customers and suppliers depend on Highline Warren more than ever. We create simplicity in a large and fragmented industry and we remove complexity in the supply chain. Our story is simple: We help partners run their business more effectively by shipping at 98.5% fill rates anywhere in the country within 48hrs. Whether it's a full truckload or a single sku, we've got it and will get it to our customer. It shouldn't be a surprise that Highline Warren is growing faster than expected. We're laser focused on helping our partners achieve success by allowing them to focus on their growth, safe in the knowledge that we'll deliver their solutions.

Galeria Karstadt Kaufhof's New Owners Aim to Save Over 70 Department Stores Germany's last remaining major department store chain, Galeria Karstadt Kaufhof, is set to get new owners after its third insolvency filing in four years. The prospective new owners, a consortium of U.S. private equity firm NRDC Equity Partners and German businessman Bernd Beetz's BB Kapital SA, have announced their intention to keep more than 70 of the chain's current 92 branches open. This move is expected to preserve most of the company's 12,800 jobs, according to insolvency administrator Stefan Denkhaus. The deal is contingent on approval from a court in Essen and Galeria's creditors, who are scheduled to meet on May 28. Galeria Karstadt Kaufhof, formed by the merger of rivals Karstadt and Kaufhof a few years ago, has been through two rounds of store closures since seeking insolvency protection during the first COVID-19 lockdown in April 2020. Its most recent insolvency filing came in January, following similar filings by several companies in the trading and real estate group of Austrian businessman Rene Benko, including Signal Retail Selection, Galeria's previous owner. The prospective new owners have expressed their commitment to investing, developing, and growing the department store chain in the long term. Bernd Beetz stated at a news conference in Essen that they "want to invest, develop and grow in the long term." While the final outcome will depend on the court's and creditors' approval, the new owners' plan to retain over 70 stores offers a glimmer of hope for the struggling department store chain and its employees amidst the challenges faced by the retail industry.

Lumber Liquidators (now known as LL Flooring) has been a great tenant at our Fayetteville, NC retail center. The great liquidator of flooring is now liquidating their business. While we are sadden to lose a good tenant, we have an opportunity to turn a $15.50 PSF rent into $25-$28 PSF. Sure, it will cost us TI and Leasing Commission dollars, but the increase in rent is accretive not only to cash flow, but overall value when applying a cap rate to the new income. Good news or bad news for the Landlords who are losing this tenant? One thing I do know for sure, it is certainly bad news for those who are losing jobs and consumers who rely on LL Flooring for reasonably priced flooring materials. Let me know your thoughts? LL Flooring Progress Realty Partners Lidl GB Planet Fitness AMC Theatres Milan Laser Hair Removal #fayetteville #liquidation #chapter7 #retail #creloan #retail #realestate https://lnkd.in/e4GRJ-hW

Richard Baker's Investment Firm and Bernd Beetz Seal Galeria Acquisition in Germany Reviving Retail Giants NRDC Equity Partners and BB Kapital SA have officially confirmed their acquisition of Galeria Karstadt Kaufhof, the renowned department store business in Germany. This acquisition, marking Galeria's emergence from bankruptcy, signifies a pivotal moment in its trajectory. NRDC Equity Partners, led by Richard Baker and his son Jack, along with Lucas Evans, is a private investment firm in retail, real estate, and consumer brands. BB Kapital SA, led by Bernd Beetz, former Coty Inc. CEO, focuses on luxury and consumer goods. Insolvency Plan and Takeover Details The acquisition is part of an insolvency plan orchestrated by Galeria's administrator, Stefan Denkhaus. While Denkhaus will retain oversight temporarily, control will transition to NRDC Equity Partners and BB Kapital SA by July. The consortium aims to acquire over 70 stores, reflecting a strategic downsizing initiative. Statements from Key Figures Jack Baker emphasizes the consortium's commitment to revitalizing Galeria, citing plans for constructive negotiations with landlords to alleviate financial burdens and reinvest in the business. Evans underscores opportunities for growth... https://lnkd.in/eBXbm4Wa

It’s not always doom and gloom on the high street. Some of you may recall Cath Kidston one of the early post COVID administrations in the retail sector. Well four years later Cath Kidston is making a return to the high street. The goodwill, stock and other intellectual property was sold as part of a pre pack administration sale to a connected party. It was then acquired by Hilco before eventually landing in the ownership of retailer Next in 2023, following a subsequent administration, who have been acquiring a number of retail brand out of administration processes. The brand is set to return to the physical high street with a store in Westfield White City. At this stage it is unclear whether this is the first of many. The challenge will be in avoiding the same mistakes the brand made that led to the previous administrations. Most notably this will be in the form of branding given Cath Kidston has been seen somewhat as ‘marmite’ as far as its brand identity is concerned. Next has a strong track record on the high street so arguably if there is a retailer than can bring Cath Kidston back to relevance it would be Next. The timing of it’s reopening and the run up to Christmas will no doubt have some impact on the success of the return to the high street. #insolvency #businessrecovery #restructuring #turnaround #business #finance #cathkidston #highstreet #accountant #london

Today, we stopped by our Jonesboro location, near Southlake Mall. We are getting ready to receive 2 new containers so that’s 600 more tires. So who needs tires today? #DentTiresLLC #growth #newlocation #expansion #trucktires #tires #businessmodel #business #womanownedbusiness #womanowned #woman #joslyndent #enriquedent

Do you want to know why leadership aka the investor class is feening to force their employees back into the office? 🤔 The tallest building in Fort Worth, Texas was purchased in 2021 for 121 Million and just sold for 12.5 Million. 📉 📉 📉 For policies that don't make any sense you just have to follow the money. To quote the great Wu-Tang. Cash Rules Everything Around Me!! 💰 https://lnkd.in/ePg3Z7Vf #RemoteWork #RTO #ReturnToOffice #Hybrid #Leadership

KaDeWe files for bankruptcy: The impact of the insolvency of the Signa group is now affecting the retailers it controls with now the KaDeWe group filing for bankruptcy. Big news for this celebrated German luxury retailer who is stating high rentals in its three locations as the main reason. No doubt a move to renegotiate the agreements. The post-covid return to retail and KaDeWe's positioning was not enough to keep it in profitability and now the new leadership at KaDeWe will need to also re-look how to accentuate and further build on luxury in Germany. There is a place for KaDeWe in Germany and I hope to see it pull-through this phase.

Who is Anton Klein?   Anton was born on August 17, 1955, the son of a mathematician. He was raised in Shropshire. He began his early career in a company specialising in providing services to the retail industry and, from there, naturally progressed into the retail environment, where he worked in all aspects of the industry, from purchasing to store management.   Anton Klein, a man of significant influence and unwavering leadership, has been the sole shareholder and director, steering the development of the Packsafe Group for the past thirty-four years. His role extends to being a member of Buildsafe Trading LLP, where his brother, a Barrister and Professor, provided initial support.   The original company was set up to provide a range of services to the retail industry, including storage, distribution, pre-retail processing, packaging services, and a complete and comprehensive fulfilment service.   Over the years, Packsafe has built a solid reputation, serving a diverse range of businesses, including esteemed blue-chip household names like Peacock Stores Ltd, Wilson Sporting Goods, the Welsh Joint Education Committee, Amersham PLC, and, latterly, GE Healthcare.   In 2000, a review of the business identified that the key resources of the operation were fourfold:   ·     Flexible and extensive storage space. ·     Vehicles ranging from small vans to 17 tons. ·     Dedicated workforce. ·     A ‘Can-Do’ attitude.   Mr Klein, therefore, decided to diversify and maximise the potential assets of the existing operation. The decision was made to start a domestic and commercial removals and storage company called A to Z Removals & Storage. This business was established in 2000 and has grown steadily by sales and by acquiring the assets of several other removal companies.   Growth by acquisition took place during 2003/2004 and 2004/2005 and was funded entirely from the group’s own resources. Throughout this period, further investment was made in developing the storage space in the company premises, i.e., mezzanine floors, a container storage park, and internal self-storage units. All these developments were financed from internal funding.   In 2005, external funding helped purchase a building of some 20,000 sq. ft. and a two-acre plot of adjacent land. This acquisition facilitated the consolidation of several leased and rented properties and supported the development of the Spaceman® Self Storage business. The consolidation process continued in 2006, with the Group’s head office and internal storage units relocated.   Subsequently, Mr Klein became a professional property investor, owning commercial, residential, and buy-to-let properties and flats.   The company has invested heavily in staff, I.T., vehicle fleet, premises, advertising and administrative processes. Packsafe Group Limited has continued to grow and Spaceman® Pallet Racking and Shelving was formed as a trading name supplying new and used pallet racking nationwide for nearly 20 years.