On January 22, 2020, it was reported, in a letter to employees, Dominique Schurman, COO of Schurman Retail Group, which owns Papyrus stores, said the company would close its doors. The company has hired liquidation firm Gordon Brothers to assist with the going-out-of-business sales, according to the letter, viewed by Retail Dive. Schurman cited "current challenges of the retail industry" and said the company had been "diligently working to revitalize our business" for months beforehand. Schurman thanked employees and told them more information would follow "as we navigate this difficult time." "This decision is heartbreaking for me, personally of course, and also because I know how dedicated you all have been to your stores and this company," Schurman said.
On January 17, 2020, it was reported, Gap Inc. will remain whole. The apparel retailer is scrapping plans to spin off Old Navy into a separate public company, citing the cost and complexity involved in the split. In other news, Gap announced that Neil Fiske, president and CEO of its namesake brand, will leave the company. "The plan to separate was rooted in our commitment to value creation from our portfolio of iconic brands," stated Robert Fisher, who was named interim president and CEO of Gap Inc. following the abrupt departure of Art Peck in November. "While the objectives of the separation remain relevant, our board of directors has concluded that the cost and complexity of splitting into two companies, combined with softer business performance, limited our ability to create appropriate value from separation." Gap announced its plan to spin off its fast-growing value brand Old Navy and split into two public companies last February. But the brand's sales have slumped in recent months, making it less attractive to investors. Comparable sales fell 4% at Old Navy Global in the third quarter, and were down 7% at Gap Global. Banana Republic Global's same-store sales fell 3%.
On January 16, 2020, it was reported, for the second time in less than three years, Payless ShoeSource has exited bankruptcy with plans to refocus its business. It also has a new management team with Jared Margolis, previously president of licensing group CAA-GBG, leading the company as CEO, according to a press release. In its current incarnation, the shoe retailer has a store footprint spread across Latin America, Southeast Asia and the Middle East, after liquidating all its stores in the U.S., Canada and Puerto Rico last year. Justo Fuentes, former president of BATA Latin America, will serve as head of Payless' Latin American business, its largest unit with more than 1,000 stores. Margolis said in the release that the reorganized company's "biggest growth opportunity" was the United States.
On January 13, 2020, it was reported, mattress company Casper filed a document with the Securities and Exchange Commission for an initial public offering on the New York Stock Exchange under the symbol CSPR. The price range of the initial public offering price has yet to be determined, according to the filing. Casper reported $312.3 million in revenue for the nine months ending in September 2019, up 20% from the year ago period, and $67.4 million in losses, a 4.9% increase from the previous year. Additionally, the company spent $423 million on marketing expenses from 2016 through 2019.
