RetailSails

A lot of interesting bits of retail news and rumors have come out over the past week:

• Multiple sources say that Radio Shack is being very actively eyed by both private equity shops and Best Buy. JP Morgan has been chosen to oversee the sales process. Radio Shack has a $290 million available fund that was intended for share re-purchase, but so far has not committed any of that money to buy back shares. That is a strong indication of an impending sale.

• Neiman Marcus is testing a new discount concept in an 11,000 square foot test store at Inwood Village, an upscale suburb of Dallas. The company is presenting brand name fashion and accessories in an environment that is a cross between a boutique and an outlet. For the moment it will operate under the Last Call nameplate, which is their current outlet, but will soon be re-named under a different new brand. The merchandise is being bought and discounted at 30-40% specifically for that store, and prices will top out at $300.

• Harley Greenfield, CEO of troubled and struggling Jennifer Convertibles, was arrested and charged with drunk driving after hitting and killing a pedestrian with his 2010 Chevy in Queens last Wednesday. Greenfield, 65, was one of the founders and a key leader of the family business which has endured losses for the last several years.

• Rock & Republic, one of the best-known premium denim companies, which filed for bankruptcy on April 1, is said to be drawing a lot of investor interest. Last year, in an effort to keep themselves in business, they took a $15 million loan from a well known California garment investor, Richard Koral, supported by his brother, Seven for Mankind owner Peter Koral. That loan, which was due on April 2, was secured by Rock’s intellectual property, valued at $50 million. The bankruptcy avoided that transfer of assets. Rock has long been well respected for its product and marketing , but less so for their ability to run and manage a business of it’s size. The company reportedly had revenues of $97 million and profits of $3 million in 2009.

• Off price mens retailer K&G, owned by Mens Warehouse, installed a former Macy’s merchant, Mary Beth Blake, as it’s President less than 2 years ago. She has dramatically increased the mix of trendy women’s apparel, including adding a designer showcase dimension, and the store is now much more competitive with other discounters. She believes they can garner market share in designer fashion while separating themselves from those discounters by being the headquarters for mens tailored clothing.