West Coast port congestion issues could cost retailers as much as $7 billion this year, according to an analysis by Kurt Salmon. Work stoppage threats and major trade associations’ calls for federal intervention have retailers and consumer products companies on high alert. But even if contract talks succeed in overcoming the stalemate between dockworkers and port terminal operators, the challenges for the retail industry are just starting, and consumers – and investors – could feel it in their wallets. The ports are simply not structured to manage the combination of large ships and high volume. Retailers need to investigate new supply chain options – fast. “Recent earnings reports make clear that port issues are already causing headwinds for retailers, and they’re bracing for gales,” said Frank Layo, retail supply chain strategist, Kurt Salmon. “Our clients who are able have already begun to shift shipments to East Coast ports, or upgrade them to hit delivery dates. They’re laying out capital to buy and hold extra inventory to carry them through dry periods.”
Meredith, the publishing company that is slowly dismantling the portfolio of iconic Time-Life magazine titles that it acquired in 2018, has sold Sports Illustrated to Authentic Brands Group (“ABG”). Well, kinda.
The press release announcing the sale of Sports Illustrated begins with the somewhat obtuse statement that “Global Brand Owner Purchases a Sports Media Icon and Forges a Strategic Partnership with Meredith Corporation to Build a Global Platform Converging Sports, Culture and Entertainment.” My BS antenna went up with that description of the deal as a “Strategic Partnership,” since in my world of M&A transactions this euphemism is often code for something other than a real sale. Digging deeper into the details reveals that what the branding company really acquired was the intellectual property of the Sports Illustrated brands, including two million photos and the rights to use and sell licensed uses of the names Sportsperson of the Year, Sports Illustrated Kids, Sports Illustrated TV, and of course, the famous Sports Illustrated Swimsuit.
What ABG did not buy for its $110 million purchase price was the obligation to continue publishing the magazine. Meredith was apparently unable to find a buyer that would assume the legacy responsibilities of producing insightful editorial content, obtaining stunning photographs, and in general being bogged down in the nitty gritty world of publishing. In an odd twist, Meredith has agreed to operate the Sports Illustrated printed magazine and the accompanying website for at least two years. Odder yet, Meredith will pay ABG a licensing fee for the use of the Sports Illustrated brand, the brand it just sold.
more at source: https://www.piworld.com/article/the-target-report-sports-illustrated-print-edition-heads-to-hospice/