Fashion Frozen: Brick & Mortar Retail from Limbo to a Crawl.

From mid-March to mid-June 2020, all retail and restaurants (and most businesses) have been operating at low capacity (or not at all) due to the Covid-19 quarantine and social distancing laws. Retail fashion and jewelry retail businesses have been hit extremely hard (and their bottom line) financially.

Now in the midst of phase 2 and drifting towards phase 3, retail as well as restaurant operations are allowed to sell via curb-side pick ups, and restaurants can now have outside dining/seating that will generate much needed cash…….but is it enough to keep them afloat while riding out the pandemic?

The Black Lives Matter movement (and protests) compelled retail store fronts boarded up their windows and operated online (due to “smash & grab looting), creating a visage of New York looking like a ghost town.

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Now that quarantine restrictions have been loosened a bit, retail/restaurants have started to remove the wood from their windows and store fronts, and consumers can now shop inside brick & mortar retail stores (a few at a time while wearing face masks) and can enjoy drinking and dining (at certain restaurants that have outdoor seating) outside at tables on the sidewalk or patios.

However due to some states in the U.S. rushed to open up businesses to early (ignoring safe metric guidelines for re-openings) which resulted in spikes in Covid-19 cases which can have a ripple effect on other states, and with summer 2020 in full swing, many are not wearing face masks nor observing social distancing measures. This could result in New York returning as a pandemic “Hot-Spot” which could result in another quarantine shut down.

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Go safely everyone! (And Wear A Mask).

Fashion News: LVMH Tiffany’s Buyout deal Stalled.

 

LVMH’s acquisition of  Tiffany’s & Co has been stalled due to the global pandemic and Black Lives Matter protests, which has caused an economic fallout which now has LVMH reconsidering it’s $16.2 billion buyout of the luxury jewelry company.

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Situation’s continue to jeopardize what would be the largest luxury buyout in history. On Tuesday June 2nd Tiffany & Co shares fell 9%, fueling fears that Tiffany will not be able to meet it’s debt repayment obligations stipulated in the buyout deal.

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A board meeting on Monday by LVMH in Paris to discuss the takeover deal with management, showed major concern with the economic fallout caused by Covid-19 and racial unrest as first reported by WWD, putting the deal in doubt. No decision has been reached as of yet.