1 big thing: Fitch flags Bed Bath & Beyond default risk

An empty shopping cart sits in front of retailer Bed Bath & Beyond's store entrance.

2. The BFD: L Catterton puts Ganni on the auction block

A model on the runway for Danish designer Ganni.

3. Retail therapy

Illustration of a large blue paper shopping bag laying on its side with two other smaller, identical shopping bags falling out

4. Retail transactions

5. It's Personnel

Situational awareness: Walgreens Boots Alliance reported Q3 results that beat expectations, but net income still fell to nearly $290 million from almost $1.2 billion a year ago. Its stock is down about 5%. 

Retail Deals

1 big thing: Interim Bed Bath CEO puts skin in the game

Bed, Bath & Beyond store in Pasadena, Calif.

2. The BFD: Juul Labs' financing effort

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📉 Situational awareness: Wells Fargo says the 34% slide YTD in consumer retail stocks may just be the start. Analyst Ike Boruchow says the "ongoing consumer spending slowdown is not yet fully priced in."

1 big thing: TradeZing brings retailers to the wild web3

Illustration of a 3D letter Z surrounded by a shower of glowing coins. 

2. The BFD: Prime Grubhub

Illustration of a handshake with shapes and dollar elements.

3. Authentic Brands and Bolt bury the hatchet

Illustration of a close of the patch on a pair of jeans with dollar bill signs printed on it. 

4. Deals 'o the day

Situational awareness: Lululemon enters Spain with two new stores and a local e-commerce site, part of the company’s goal to quadruple its international revenue by 2026.

1 big thing: Sharebite snags $39 million

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2. The BFD: Panera's SPAC deal is toast

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Illustration of a therapy sofa with five shopping bags positioned on the seats.

Hello and welcome back! Kimberly here: I'm flying solo this week while Richard is on vacation. Hit reply to send me tips!

🍗 Situational awareness: Yum Brands is in advanced discussions to sell its KFC restaurants and franchise rights in Russia to a local buyer, plotting the course for its exit out of the country, Reuters reports.

1 big thing: Shop Circle raises $65M to shop for apps

Illustration of a check folded into a paper airplane carrying an app button

2. The BFD: Kohl’s pulls the plug on sale process

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3. Hungryroot's "smart" shopping cart

Illustration of a bag of groceries surrounded by shapes and zoomed in sections of a dollar bill.

6. Last bite: Grill stocks 

🇺🇸 We're off on Monday for the holiday. Have a fun and safe Independence Day, everyone!

Amazon will take a 2% stake in Grubhub, as part of a wider agreement between the e-commerce giant and the U.S. online food delivery company.

Why it matters: The move calls into question the fate of Grubhub's sale and comes as other notable retail processes were recently shelved (Kohl’s, Walgreen’s U.K. pharmacy chain) due to deteriorating market conditions and more expensive financing.

Driving the news: Grubhub has partnered with Amazon ahead of its two-day Prime Day sale, giving U.S. Prime members a free Grubhub+ membership for a year.

Details: Amazon’s 2% stake could climb up to 15%, thanks to warrants if a certain number of new customers sign up.

Context: Grubhub was put on the auction block by owner Just Eat Takeaway.com in April, less than a year after the Amsterdam-based company bought it for $7.3 billion.

While the pandemic helped usher in a rush of customers, Just Eat is seeing a growth slowdown and exposure to the dive in technology stocks’ values.

Just Eat shareholders have also been more critical of management.

The latest: Last month, Grubhub was reported to have attracted some early interest from private equity suitors like Apollo Global Management that have billions of dollars in dry powder on tap.

Still, the offers were said to be around $1 billion, well below the price paid by Just Eat.

Amazon takes a 2% stake in Grubhub

The move calls into question the fate of Just Eat's Grubhub sale.

Amazon

Amazon will take a 2% stake in Grubhub, as part of a wider agreement between the e-commerce giant and the U.S. online food delivery company.Why it matters: The move calls into question the fate of Grubhub&#x27;s sale and comes as other notable retail processes <a class="gtmContentClick" data-vars-link-text="were recently shelved" data-vars-click-url="https://link.axios.com/click/28285237.149/aHR0cHM6Ly93d3cuYXhpb3MuY29tL3Byby9yZXRhaWwtZGVhbHMvMjAyMi8wNy8wMS9rb2hscy1wdWxscy10aGUtcGx1Zy1vbi1pdHMtc2FsZXMtcHJvY2Vzcy1mcmFuY2hpc2UtZ3JvdXA_dXRtX3NvdXJjZT1uZXdzbGV0dGVyJnV0bV9tZWRpdW09ZW1haWwmdXRtX2NhbXBhaWduPXByb19kZWFsc19yZXRhaWxfc3VicyZzdHJlYW09dG9w/6241b97a2bec4503a570c049B7fe7b10f/email" data-vars-content-id="3636ee20-d070-4069-9e3b-6e27c8a2ba83" data-vars-headline="Amazon takes a 2% stake in Grubhub" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://link.axios.com/click/28285237.149/aHR0cHM6Ly93d3cuYXhpb3MuY29tL3Byby9yZXRhaWwtZGVhbHMvMjAyMi8wNy8wMS9rb2hscy1wdWxscy10aGUtcGx1Zy1vbi1pdHMtc2FsZXMtcHJvY2Vzcy1mcmFuY2hpc2UtZ3JvdXA_dXRtX3NvdXJjZT1uZXdzbGV0dGVyJnV0bV9tZWRpdW09ZW1haWwmdXRtX2NhbXBhaWduPXByb19kZWFsc19yZXRhaWxfc3VicyZzdHJlYW09dG9w/6241b97a2bec4503a570c049B7fe7b10f/email" target="_blank">were recently shelved</a> (Kohl’s, Walgreen’s U.K. pharmacy chain) due to deteriorating market conditions and more expensive financing.

Juul Labs, the e-cigarette maker, is preparing to raise financing amid a slew of consumer lawsuits and regulatory uncertainty as the FDA seeks to pull its e-cigarettes from the U.S. market, according to Bloomberg.

Why it’s the BFD: The company is exploring its options, which could include a move toward bankruptcy, pending the FDA’s next actions and the fate of the consumer suits.

The damages being sought are in the hundreds of millions of dollars.

Driving the news: The company tapped Centerview Partners as its bankers to help it with financing and Kirkland & Ellis and Alvarez & Marsal to help with litigation and restructuring advice, Bloomberg reports, citing sources familiar.

Catchup fast: The FDA issued a ban on Juul’s products on June 23. The next day, a federal appeals court temporarily blocked the ban.

On Tuesday, the FDA issued an administrative stay on the order while it conducts a further review.

What they’re saying: "As we continue to operate in the market and go through the FDA’s appeals process, we are in the early stages of exploring a variety of options including various potential financing alternatives to protect our business,” a Juul spokesperson said in an emailed statement to Axios.

“We remain confident in our science and evidence and believe that we will be able to demonstrate that our products do in fact meet the statutory standard of being 'appropriate for the protection of the public health.'”

The big picture: The fate of Juul, one of the more popular e-cigarette brands, is being closely watched as it may have implications for the broader $23.6 billion e-cigarette market.

What’s next: It’s a waiting game, as the FDA conducts its review and the court considers Juul's appeal against the ban.

“To stay on the market, companies must show that their e-cigarettes benefit public health. In practice, that means proving that adult smokers who use them are likely to quit or reduce their smoking, while teens are unlikely to get hooked on them.” – The Associated Press

E-cigarette maker Juul Labs weighs financing options

The company is exploring its financing options as its awaits the FDA’s next move.

Illustration of a juul device forming a dissipating dollar sign in vapor 

E-cigarette

Juul Labs, the e-cigarette maker, is preparing to raise financing amid a slew of consumer lawsuits and regulatory uncertainty as the FDA seeks to pull its e-cigarettes from the U.S. market, according to Bloomberg.Why it’s the BFD: The company is exploring its options, which could include <a class="gtmContentClick" data-vars-link-text="a move toward bankruptcy" data-vars-click-url="https://link.axios.com/click/28297369.1175/aHR0cHM6Ly93d3cud3NqLmNvbS9hcnRpY2xlcy9qdXVsLWFza3MtY291cnQtdG8tYmxvY2stZmRhLWJhbi1vbi1pdHMtZS1jaWdhcmV0dGVzLTExNjU2MDc2ODk2P3V0bV9zb3VyY2U9bmV3c2xldHRlciZ1dG1fbWVkaXVtPWVtYWlsJnV0bV9jYW1wYWlnbj1wcm9fZGVhbHNfcmV0YWlsX3N1YnMmc3RyZWFtPXRvcA/6241b97a2bec4503a570c049B16358669/email" data-vars-content-id="36768ab7-1bc2-4b9d-8ed3-6c84791c92b7" data-vars-headline="E-cigarette maker Juul Labs weighs financing options" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://link.axios.com/click/28297369.1175/aHR0cHM6Ly93d3cud3NqLmNvbS9hcnRpY2xlcy9qdXVsLWFza3MtY291cnQtdG8tYmxvY2stZmRhLWJhbi1vbi1pdHMtZS1jaWdhcmV0dGVzLTExNjU2MDc2ODk2P3V0bV9zb3VyY2U9bmV3c2xldHRlciZ1dG1fbWVkaXVtPWVtYWlsJnV0bV9jYW1wYWlnbj1wcm9fZGVhbHNfcmV0YWlsX3N1YnMmc3RyZWFtPXRvcA/6241b97a2bec4503a570c049B16358669/email" target="_blank">a move toward bankruptcy</a>, pending the FDA’s next actions and the fate of the consumer suits.<ul><li>The damages being sought are in the hundreds of millions of dollars.</li></ul>

TradeZing, a live streaming web3 platform, aims to get retailers in front of the trading community of the future — millennial and Gen Z consumers interested in cryptocurrency, NFTs and the metaverse.

Why it matters: Social commerce, wherein retailers sell directly through social media, is expected to grow three times faster than traditional e-commerce and reach $1.2 trillion by 2025, according to Accenture. Gen Z and millennial consumers will account for about 62% of that spending.

How it works: TradeZing CEO and tech entrepreneur Jordan Edelson, who is behind mobile app development company Appetizer Mobile and fashion mobile app Chic Sketch, says his latest venture helps address the financial literacy gap when it comes to complex trading instruments like cryptocurrency and NFTs.

The livestreaming service, which he describes as a Discord-Instagram-Twitch mashup for financial information, allows users to find educational content through influencers in one dedicated location, Edelson tells Axios.

Retailers can create content around product launches and announcements to showcase on web3.

The latest: TradeZing recently partnered with Coinchange, an automated crypto wealth management platform, and has plans to partner with Upland, a big metaverse platform.

Michael Irvin, the former professional football player and American sports commentator, and the TV personality and influencer Foodgod will form part of its board.

What’s next: Edelson was sparse on the details of TradeZing's next fundraising round but says the company will seek more capital to weather the "potential impending storm," referring to the market downturn.

Edelson says it is looking for a lead investor that truly believes in the business.

TradeZing announced in April that it raised $5 million in pre-seed capital.

Meanwhile, the company plans to announce some partnerships with fashion brands that will be timed around New York Fashion Week in September, Edelson says.

What he's saying: Edelson says TradeZing emerges at a time when many are looking to take control of their finances and investment decisions, amid economic uncertainty.

“Nowadays, for anything, any kind of financial crisis or issue people are going to turn online. They're going to look for other kinds of unique opportunities,” he says.

The intrigue: Young investors were more likely to have pulled their money from the stock market in turbulent times, according to a MagnifyMoney survey in May.

Nearly 4 in 10 investors (38%) pulled money in the last year due to current events; Gen Zers (67%) and millennials (57%) were the most likely to have done so.

TradeZing brings retailers to the wild web3

Social commerce is expected to reach $1.2 trillion by 2025 and grow 3x as fast as traditional e-commerce.

Metaverse

TradeZing, a live streaming web3 platform, aims to get retailers in front of the trading community of the future — millennial and Gen Z consumers interested in cryptocurrency, NFTs and the metaverse.Why it matters: Social commerce, wherein retailers sell directly through social media, is expected to grow three times faster than traditional e-commerce and reach $1.2 trillion by 2025, <a class="gtmContentClick" data-vars-link-text="according to Accenture" data-vars-click-url="https://link.axios.com/click/28285237.149/aHR0cHM6Ly93d3cuYWNjZW50dXJlLmNvbS91cy1lbi9pbnNpZ2h0cy9zb2Z0d2FyZS1wbGF0Zm9ybXMvd2h5LXNob3BwaW5nLXNldC1zb2NpYWwtcmV2b2x1dGlvbj91dG1fc291cmNlPW5ld3NsZXR0ZXImdXRtX21lZGl1bT1lbWFpbCZ1dG1fY2FtcGFpZ249cHJvX2RlYWxzX3JldGFpbF9zdWJzJnN0cmVhbT10b3A/6241b97a2bec4503a570c049B0b37e712/email" data-vars-content-id="ba60ecc1-393d-4c2f-8728-9cc535c4fff0" data-vars-headline="TradeZing brings retailers to the wild web3" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://link.axios.com/click/28285237.149/aHR0cHM6Ly93d3cuYWNjZW50dXJlLmNvbS91cy1lbi9pbnNpZ2h0cy9zb2Z0d2FyZS1wbGF0Zm9ybXMvd2h5LXNob3BwaW5nLXNldC1zb2NpYWwtcmV2b2x1dGlvbj91dG1fc291cmNlPW5ld3NsZXR0ZXImdXRtX21lZGl1bT1lbWFpbCZ1dG1fY2FtcGFpZ249cHJvX2RlYWxzX3JldGFpbF9zdWJzJnN0cmVhbT10b3A/6241b97a2bec4503a570c049B0b37e712/email" target="_blank">according to Accenture</a>. Gen Z and millennial consumers will account for about 62% of that spending.

Panera scrapped plans to go public via a Danny Meyer-backed SPAC, underscoring the difficulty of tapping capital markets in this environment.

Why it’s the BFD: We’ll likely see more SPAC mergers fail, as the market corrects the fundamental miscalculation in the benefits of going public via SPAC. The pathway is vulnerable to the whims of the underlying SPAC investors, many of which may be likelier to flee (hello, transient hedge funds!) when markets move south, as they have done, Axios' Dan Primack wrote.

Driving the news: Panera, which owns both Caribou Coffee and Einstein Bros. Bagels, and Meyer's SPAC USHG Acquisition Corp. on Friday allowed their previous agreement to lapse.

The deal would’ve made USHG shareholders direct shareholders of Panera following the planned IPO. Noted restaurateur and Shake Shack founder Meyer would’ve been a lead independent board director.

The big picture: More than two dozen SPAC mergers have been called off this year during one of the worst stock market routs in decades, according to Bloomberg.

What they’re saying: “We are disappointed that market timing was not on our side,” Meyer said in a release.

His SPAC will continue to look for another merger partner, he added.

What’s next: “Panera Brands will continue to prepare for and evaluate a potential public listing should market conditions improve,” said Panera CEO Niren Chaudhary in a release.

Flashback: Last year, Panera sold bakery chain Au Bon Pain, which it acquired in 2017, to Yum Brands and 7-Eleven franchisee Ampex Brands.

Panera’s scrapped SPAC tie-up deals another blow to SPAC market

We’ll likely see more SPAC mergers fail as the underlying investors are spooked by the markets

SPAC

Panera scrapped plans to go public via a Danny Meyer-backed SPAC, underscoring the difficulty of tapping capital markets in this environment.Why it’s the BFD: We’ll likely see more SPAC mergers fail, as the market corrects the<a class="gtmContentClick" data-vars-link-text=" fundamental miscalculation" data-vars-click-url="https://link.axios.com/click/28274688.1349/aHR0cHM6Ly93d3cuYXhpb3MuY29tLzIwMjIvMDYvMDMvdGhlLXNwYWMtbWFya2V0cy1taXNjYWxjdWxhdGlvbj91dG1fc291cmNlPW5ld3NsZXR0ZXImdXRtX21lZGl1bT1lbWFpbCZ1dG1fY2FtcGFpZ249cHJvX2RlYWxzX3JldGFpbF9zdWJzJnN0cmVhbT10b3A/6241b97a2bec4503a570c049Bcd20d6b5/email" data-vars-content-id="dfc182cf-1e5b-4f54-8711-3cf89b1fc2c0" data-vars-headline="Panera’s scrapped SPAC tie-up deals another blow to SPAC market" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://link.axios.com/click/28274688.1349/aHR0cHM6Ly93d3cuYXhpb3MuY29tLzIwMjIvMDYvMDMvdGhlLXNwYWMtbWFya2V0cy1taXNjYWxjdWxhdGlvbj91dG1fc291cmNlPW5ld3NsZXR0ZXImdXRtX21lZGl1bT1lbWFpbCZ1dG1fY2FtcGFpZ249cHJvX2RlYWxzX3JldGFpbF9zdWJzJnN0cmVhbT10b3A/6241b97a2bec4503a570c049Bcd20d6b5/email" target="_blank"> fundamental miscalculation</a> in the benefits of going public via SPAC. The pathway is vulnerable to the whims of the underlying SPAC investors, many of which may be likelier to flee (hello, transient hedge funds!) when markets move south, as they have done, Axios&#x27; Dan Primack wrote.

Bed Bath & Beyond’s interim CEO is putting her money where her mouth is by snapping up some of the company’s stock. But it may not be enough to instill confidence in the company’s future.

Why it matters: Sue Gove has a colossal task ahead of her, as she needs to right-course a retailer that has suffered brutal earnings quarters and a 70% decline in its stock so far this year — all amid a teetering macroeconomic environment.

Driving the news: Gove bought $230,500 worth of BBBY stock, according to an SEC filing late Wednesday.

Shares spiked 25% to $5.61 in morning trading.

Between the lines: The company has several actions it needs to take, including bringing back a larger mix of brands to its stores, analysts say.

Bed Bath “moved too quickly rolling out proprietary brands alienating its core customers that will likely be difficult to win back,” Bank of America analyst Jason Haas said after its first-quarter earnings miss last week.

“Liquidity is now our top concern after the company burned over $500mn in 1Q,” Haas said.

The business is also burdened with excess inventory it needs to offload, a problem that has plagued other retailers that overcorrected to mitigate supply chain bottlenecks

Moreover, the fate of the buybuy Baby sale hangs in the balance, especially as several recent deals that were shopped (Kohl’s, Walgreens) got put on ice.

“The big question for the stock is the value of buybuy BABY as it appears the market is ascribing little to no (or even negative) value for Bed Bath,” Morgan Stanley analyst Simeon Gutman said.

Prior to her appointment, Gove was leading the strategic review committee for Bed Bath.

What they’re saying: “The committee is working closely with management and strategic and financial advisors to properly assess inherent value potential,” the company said last week.

It's focused on near-term actions and has identified a few strategies to drive growth for buybuy Baby, it added.

The bottom line: Gove has a steep hill to climb to win the trust and support of investors, including executive-turned-activist investor Ryan Cohen. (Bed Bath settled with the GameStop chairman in March, adding three new board members.)

Interim Bed Bath CEO puts skin in the game

Sue Gove needs to right-course after brutal earnings hit the stock.

Photo: Dania Maxwell / Los Angeles Times via Getty Images

Retail

Bed Bath &amp; Beyond’s interim CEO is putting her money where her mouth is by snapping up some of the company’s stock. But it may not be enough to instill confidence in the company’s future.Why it matters: Sue Gove has a colossal task ahead of her, as she needs to right-course a retailer that has suffered brutal earnings quarters and a 70% decline in its stock so far this year — all amid a teetering macroeconomic environment.

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Stories

E-cigarette maker Juul Labs weighs financing options

Interim Bed Bath CEO puts skin in the game

Amazon takes a 2% stake in Grubhub

TradeZing brings retailers to the wild web3

Panera’s scrapped SPAC tie-up deals another blow to SPAC market

Newsletter editions

Retail: Juul's 11th-hour moves

Retail: Prime Grubhub

Retail: 🚚 Sharebite's enterprise play

Retail: Kohl's sale canceled

Retail: Top tier credit risk