Retail Roundup: Vendors vs. Department Stores, Goody's May Liquidate, More

Apparel vendors aim to chip away at department-store margins — Clothing makers are aiming to force department stores that spent the holidays hacking away at prices to eat more of their markdowns in the aftermath of one of the dreariest Decembers in decades. Liz Claiborne Inc. is among the apparel companies demanding that stores that drastically slashed prices lower their profit margins accordingly. “We’re asking department stores for concessions,” says Lou Breuning, present of HMS, which sells garments through Dillard’s Inc. and Macy’s Inc. Retail analysts suggest higher-end department stores might agree to a maintained profit margin of 35 percent, down from the common practice of vendors guaranteeing 40 percent. Meanwhile, lower-priced chains might agree to 30 percent, down from about 35 percent. [Source: The Bulletin]

Reports indicate Goody’s has been asking suppliers for concessions — Goody’s Family Clothing could be on the verge of liquidation, according to reports that the chain pleaded with suppliers last month for concessions to stay in business. A vendor told the New York Post that the retailer sought looser credit terms during a conference call with suppliers the week of Christmas. “They were asking for significant concessions in order to help them stay in business,” the unidentified exec said, noting he stopped shipping merchandise to Goody’s. [Source: Knoxvillebiz.com]

Tyson CEO resigns — Dick Bond, CEO of Tyson Foods Inc., stepped down from his post as head of the meat producer on Monday amid turmoil in the poultry industry. “I have decided it is in both my best interest personally and the best interest of the company for me to move on and pursue other interests,” Bond said in a statement following the surprise announcement. The 61-year-old will be replaced by former CEO Leland Tollett on an interim basis. In its last fiscal year, Tyson’s profit fell 68 percent to $86 million. [Source: CNN]

Waterford Wedgwood files for insolvency — Waterford Wedgwood PLC, the world-famous maker of fine crystal and ceramics filed for insolvency administration Monday after failing to win a reprieve from lenders. The heavily indebted company’s filing had been a long time coming: The company had struggled for years against mounting competition from modern, less-expensive tableware labels. The company’s owners had been racing to lock in a private-equity buyer but weren’t able to close a deal in time to satisfy the banks. [Source: WSJ]