News

Shares of Sphere Entertainment surged by 11% on Monday following the highly successful opening weekend of its new Las Vegas venue. The company, founded by New York Knicks owner James Dolan, hosted a series of rock band U2 performances, which garnered significant excitement from fans on social media. Sphere Entertainment aims to revolutionize live entertainment with its futuristic dome-shaped arena and immersive video screens. The company has also revealed plans to construct a similar venue in London, pending approvals. With a market cap of approximately $1.4 billion, Sphere Entertainment is off to an impressive start in the entertainment industry.

Rivian Automotive announced that it delivered a record 15,564 electric vehicles (EVs) in the third quarter of 2023. This surpassed Wall Street estimates and marked a 23% increase from Q2. The company also stated that it produced 16,304 vehicles during the same period at its Illinois factory. Furthermore, Rivian confirmed its commitment to producing 52,000 EVs in 2023, remaining in line with its previous guidance to investors. The company had implemented cost-saving measures earlier this year, including staff reductions and a convertible notes sale, and it had $10.2 billion in cash on hand as of June 30. Rivian will release its third-quarter earnings results on November 7.

Toys R Us, under its parent company WHP Global, is making a bold comeback in the U.S. with the announcement of expanding its brick-and-mortar presence. The plan includes opening up to 24 new flagship stores in prime cities in partnership with Go! Retail Group. Additionally, the toy retailer will launch stores at airports and on cruise ships. The first airport store is set to open in November at Dallas Fort Worth International Airport. Toys R Us aims to provide immersive shopping experiences similar to its current flagship store at the American Dream megamall in New Jersey. The expansion follows the company’s acquisition by WHP and its previous plans to open more stores after emerging from bankruptcy in 2017. The Toys R Us brand currently generates over $2 billion in global retail sales annually.

In an effort to achieve financial stability, Epic Games has announced that it will be laying off 16% of its workforce. CEO Tim Sweeney stated that about two-thirds of the job cuts will be outside of core development, allowing the company to reduce costs without interrupting major plans. Additionally, Epic will be selling its music platform, Bandcamp, to Songtradr, a music licensing platform. The company’s SuperAwesome advertising business will also be spun off as an independent company under the SuperAwesome brand. These moves come as Epic Games aims to rectify its spending and reduce losses. The layoffs at Epic Games reflect the broader trend of job cuts within the tech industry due to slowing growth and higher interest rates.

The U.S. Equal Employment Opportunity Commission (EEOC) has filed a lawsuit against Tesla, accusing the company of violating federal law by allowing racial harassment of its Black employees and subjecting them to retaliation. The complaint alleges that non-Black employees openly used slurs and epithets around work areas, while supervisors and managers failed to intervene. Tesla was also accused of neglecting to address the complaints made by Black workers. This legal action follows a previous state civil rights agency lawsuit and a $3.2 million damages ruling against Tesla for racial discrimination in 2015. The EEOC is seeking compensatory and punitive damages, back pay, and reforms in Tesla’s employment practices.

China Evergrande Group’s Chairman, Hui Ka Yan, has reportedly been placed under police surveillance, raising concerns about the embattled developer’s prospects as it faces the increasing threat of liquidation. Evergrande is the world’s most indebted developer, with over $300 billion in liabilities. The surveillance of Hui comes amidst an ongoing liquidity crisis in China’s property sector, which accounts for a significant portion of the country’s economy. While the reason for the surveillance remains unclear, it is not indicative of formal detention or arrest.

Evergrande’s offshore restructuring plan is also facing challenges, increasing the likelihood of bankruptcy or liquidation. Shares of Evergrande fell 19% following the news, adding further pressure to the troubled developer. Another major Chinese developer, Country Garden, is also facing financial troubles as it confronts a bond coupon repayment deadline. The Chinese property sector is experiencing significant distress, with concerns of further defaults and a potential ripple effect on the broader economy.

Target announced that it will be closing nine stores in major cities across the country due to violence, theft, and organized retail crime. The affected locations include Harlem in New York City, Seattle, the San Francisco-Oakland area, and Portland, Oregon. Target cited the safety of its team and guests, as well as unsustainable business performance, as the reasons behind the closures. The company has been vocal about the increase in organized retail crime at its stores, resulting in higher levels of shrink. Target’s decision to both close stores and explicitly blame retail crime sets it apart from other retailers.

The company has supported proposed legislation that aims to address organized retail crime by implementing stiffer penalties and creating a formal venue for information exchange. Store closures have been influential in motivating lawmakers to support these measures. Target’s business has faced challenges recently, including excess inventory and reduced consumer spending. The company has implemented various measures to combat retail crime, but they have not been sufficient at the affected locations. Target intends to support affected employees by offering opportunities to transfer to other store locations.

The announcement of closures coincided with the release of the National Retail Security Survey, which highlighted the ongoing impact of theft on retail sales. Target joins a growing list of retailers, such as Walmart, Nordstrom, and Walgreens, that have closed stores in major cities. These closures are attributed to factors such as market dynamics and unprofitability.