Steve Madden rival, Freebird, shuts 14 stores amid retail crisis
A much-loved footwear chain has shuttered the majority of its stores as it teeters on the edge of bankruptcy. Freebird, founded in Denver in 2009, rose to prominence selling a range of boots and other niche footwear.
However, the brand -once a rival of major brands such as Steve Madden - has fallen on tough times and has now shuttered 14 of its 20 locations. The retailer has blamed the rising cost of staff wages, dips in consumer spending and supply chain issues made worse by Trump's recent tariffs.
The company's woes were laid bare last month when KeyBank sued in an attempt to recoup some of the $15.4 million they claim Freebird owes the bank, The Sun reported. A court ordered financial firm Ampleo to take control of the company and instigate turnaround efforts. Ampleo consultant Doug Charboneau soon told the court that Freebird was in a 'severe liquidity crisis.'
On top of its KeyBank debt the footwear maker also owes $6 million to the Mexico-based manufacturer that supplies 85 percent of its products. However, this supplier has now ceased operations, according to the publication. Ampleo said it is in negotiation with two companies interested in buying Freebird.
However, if a deal is not forthcoming then it will close four more of its remaining stores. This would leave Freebirds at risk of a bankruptcy filing and full liquidation. As the chain's future looks uncertain shoppers may be able to pick up sale bargains as it tries to shift its inventory. All sales in store and online are now final, and returns will not be accepted. It comes just weeks after another popular shoe chain filed for bankruptcy as in-person store's continue to struggle in a tough retail landscape.
Soleply, known for its high-end brands like Kanye West's Yeezy, filed for Chapter 11 bankruptcy in New Jersey back in March. Soleply - which also sells t-shirts, sweatshirts, jackets and hoodies - has up to $10 million in debts, according to court filings.
The premier sneaker retailer currently has six locations across Delaware, Connecticut, Maryland, Rhode Island, New Jersey and Pennsylvania. Major footwear brands are also struggling with Nike recently reporting a shocking sales collapse. Nike's sales dropped 9 percent in the first quarter of the year, a staggering $1.16 billion drop.
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NBC News
an hour ago
- NBC News
Young Chinese consumers are spending to feel good amid slower economic growth
HONG KONG — Young people in China may not be buying cars or houses, but there's always money for milk tea and toys. It's a challenging time to be a young person in China: The world's second-biggest economy is growing far slower than it was when their parents were their age, with the U.S.-China trade war threatening to further weigh on growth. Competition for jobs is cutthroat and monthly youth unemployment stands at about 15% on average, with Chinese universities churning out a record 12.22 million new graduates this year. Feeling 'besieged' in life in the face of these economic obstacles, young Chinese consumers at home and abroad are finding comfort in smaller purchases. 'I spend to make myself happy,' said Kitty Lu, a 23-year-old Chinese student in Melbourne, Australia. 'It sounds a bit reckless, but I do have a number in my mind.' Lu said most of her spending goes toward supporting celebrities she likes. Occasionally, she allows herself a 'small indulgence' in the form of 'blind box' toys such as Disney dolls or the Labubu monster figurines that have become a global frenzy. 'To be honest, I'm not that into these dolls,' she said, adding that the purchase is more about having fun with friends as they open the blind box together to see which doll is inside. Lu's spending habits reflect a growing trend in recent years among young Chinese who show 'low interest' in big purchases such as houses and cars but are embracing food and cultural products that offer 'instant emotional gratification,' according to the Fudan Development Institute, a Shanghai-based think tank. This phenomenon, also known as 'emotional consumption,' has resulted in average annual growth of about 12% in industries including films and games since 2013, according to a report in March by the Chinese software and internet services company Kingsoft. The overall market for emotional consumption is projected to exceed $270 billion this year, the report said. Sweet drinks, low prices, happier life One of the biggest beneficiaries of Chinese consumer trends has been the country's beverage sector, which according to S&P Global is expected to grow up to 6% this year. Mixue, a bubble tea chain known for its cheap drinks, now has more stores worldwide — over 45,000, with nearly 10% of them outside mainland China — than any other food and beverage chain, including McDonald's, which has a global store count of 43,000, and Starbucks, with 38,000. In March, Mixue's shares jumped more than 40% on its market debut in Hong Kong. The brand's success stems largely from its low prices and rapid expansion, especially in less developed cities, as Chinese people adjust their spending habits while grappling with job security and other economic concerns. Kelsey Yu, 23, a graduate student in Beijing, said she bought a bottle of lemonade from Mixue for the equivalent of less than $1 on a visit in April to the southern Chinese city of Jieyang. 'The drink quenched my thirst. It had a large portion and was cheap,' she said, adding that Mixue's items are 'better value for money' than those of many local competitors. Yu said that as a foodie, she drinks tea-based beverages at least once or twice a week and may 'indulge a bit more' while traveling. 'I usually order milk tea when I'm feeling tired or if I just want to have a good time,' she said. 'But I have self-control. So I won't have it every day.' A complicated picture of Chinese consumption While U.S. officials often say Chinese consumers are not spending enough, the situation is not as clear-cut as it is portrayed, analysts said. In the past quarter-century, China's consumer spending has grown an average of 8% or more each year, one of the highest rates among major economies. But it has been outstripped by investment, making consumption a smaller part of China's overall GDP. Speaking at the World Economic Forum's 'Summer Davos' event in Tianjin on Wednesday, Chinese Premier Li Qiang said China sought to become a 'mega-sized consumption powerhouse.' Boosted by government subsidies, China's retail sales grew 6.4% in May, the fastest rate since late 2023. Sales during this year's monthlong 618 online shopping festival, which ended June 18, were a record 855.6 billion yuan ($119 billion), according to retail data provider Syntun, 15.2% higher than last year. Young Chinese in particular are 'living frugally to spend big,' according to state-backed research. Though they are budget-conscious when it comes to daily necessities, they 'don't hesitate to splurge' for their hobbies and happiness, it said. 'I'd rather spend 300 yuan ($42) on a great meal, and if the food is really good, I would think it's totally worth it,' Yu said. 'But if it's a 300-yuan piece of clothing, I might hesitate.' Amid China's economic challenges, middle-class consumers are less brand-conscious and prefer cheaper alternatives, said Yaling Jiang, founder of ApertureChina, a consulting firm that specializes in consumer research. 'Now saving is seen as cool, and seeking value is seen as cool,' Jiang said. 'I think the downturn definitely changed the culture of spending.' Chinese mallgoers these days spend money almost exclusively on the first and second floors, where food and beverage shops are concentrated, Jiang said. 'People are walking around the mall with a cup of milk tea or coffee,' she added, looking at what's available in stores before going home to buy cheaper alternatives online. China's luxury market, which had accounted for almost a third of global sales, declined 18% to 20% last year, according to a January report by Bain and Company. 'I think there is less focus on the social status comparison, and more focus on what brings them personal happiness,' said Lynn Song, chief economist for greater China at ING, a post-pandemic change that has also been seen elsewhere. Consumers in China are both trading up and spending down, depending on the sector, said Shan Guo, a partner at Hutong Research, an investment advisory group based in Hong Kong. 'They are not buying luxury bags, but they are buying Pop Mart,' Guo said, referring to the Chinese retailer behind the Labubu toys. 'Labubu can be quite expensive.' Despite concerns about slower economic growth in China and elsewhere, Lu, the Melbourne student, said her friends are still 'quite willing to spend for fun.' 'They're not big spenders,' she said. 'They're just happy to treat themselves when having a good time.'
North Wales Chronicle
3 hours ago
- North Wales Chronicle
Trump says he is terminating trade talks with Canada over tax on tech firms
Mr Trump, in a post on his social media network, said Canada had just informed the US that it was sticking to its plan to impose the digital services tax, which applies to Canadian and foreign businesses that engage with online users in Canada. The tax is set to go into effect on Monday. 'Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately. We will let Canada know the Tariff that they will be paying to do business with the United States of America within the next seven day period,' Mr Trump said in his Truth Social post. Mr Trump's announcement was the latest move in the trade war he has launched since taking office for a second term in January. Progress with Canada has been a roller coaster, starting with the US president repeatedly suggesting it would be absorbed as a US state. Canadian Prime Minister Mark Carney said on Friday that his country would 'continue to conduct these complex negotiations in the best interests of Canadians. It's a negotiation'. Mr Trump later said he expects that Canada will remove the tax. 'Economically we have such power over Canada. We'd rather not use it,' Mr Trump said in the Oval Office. 'It's not going to work out well for Canada. They were foolish to do it.' When asked if Canada could do anything to restart talks, he suggested Canada could remove the tax, predicted it will but said: 'It doesn't matter to me.' Mr Carney visited Mr Trump in May at the White House. Mr Trump last week travelled to Canada for the G7 summit in Alberta, where Mr Carney said Canada and the US had set a 30-day deadline for trade talks. The digital services tax will hit companies including Amazon, Google, Meta, Uber and Airbnb with a 3% levy on revenue from Canadian users. It will apply retroactively, leaving US companies with a two billion US dollar (£1.4 billion) bill due at the end of the month. 'We appreciate the Administration's decisive response to Canada's discriminatory tax on US digital exports,' Matt Schruers, chief executive of the Computer & Communications Industry Association, said in a statement. Canada and the US have been discussing easing a series of steep tariffs Mr Trump imposed on goods from America's neighbour. The Republican president earlier told reporters that the US was soon preparing to send letters to different countries, informing them of the new tariff rate his administration would impose on them. Mr Trump has imposed 50% tariffs on steel and aluminium as well as 25% tariffs on cars. He is also charging a 10% tax on imports from most countries, though he could raise rates on July 9, after the 90-day negotiating period he set would expire. Canada and Mexico face separate tariffs of as much as 25% that Mr Trump put into place under the auspices of stopping fentanyl smuggling, though some products are still protected under the 2020 US-Mexico-Canada Agreement signed during Mr Trump's first term. Addressing reporters after a private meeting with Republican senators on Friday, Treasury Secretary Scott Bessent declined to comment on news that Mr Trump had ended trade talks with Canada. 'I was in the meeting,' Mr Bessent said before moving on to the next question. About 60% of US crude oil imports are from Canada, and 85% of US electricity imports as well. Canada is also the largest foreign supplier of steel, aluminium and uranium to the US and has 34 critical minerals and metals that the Pentagon is eager to obtain. About 80% of Canada's exports go to the US. Daniel Beland, a political science professor at McGill University in Montreal, said it is a domestic tax issue, but it has been a source of tensions between Canada and the US for a while because it targets US tech giants. 'The Digital Services Tax Act was signed into law a year ago so the advent of this new tax has been known for a long time,' Mr Beland said. 'Yet, President Trump waited just before its implementation to create drama over it in the context of ongoing and highly uncertain trade negotiations between the two countries.'
The Herald Scotland
4 hours ago
- The Herald Scotland
Trump says he is terminating trade talks with Canada over tax on tech firms
'Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately. We will let Canada know the Tariff that they will be paying to do business with the United States of America within the next seven day period,' Mr Trump said in his Truth Social post. Mr Trump's announcement was the latest move in the trade war he has launched since taking office for a second term in January. Progress with Canada has been a roller coaster, starting with the US president repeatedly suggesting it would be absorbed as a US state. Canadian Prime Minister Mark Carney (Patrick Doyle/The Canadian Press via AP) Canadian Prime Minister Mark Carney said on Friday that his country would 'continue to conduct these complex negotiations in the best interests of Canadians. It's a negotiation'. Mr Trump later said he expects that Canada will remove the tax. 'Economically we have such power over Canada. We'd rather not use it,' Mr Trump said in the Oval Office. 'It's not going to work out well for Canada. They were foolish to do it.' When asked if Canada could do anything to restart talks, he suggested Canada could remove the tax, predicted it will but said: 'It doesn't matter to me.' Mr Carney visited Mr Trump in May at the White House. Mr Trump last week travelled to Canada for the G7 summit in Alberta, where Mr Carney said Canada and the US had set a 30-day deadline for trade talks. The digital services tax will hit companies including Amazon, Google, Meta, Uber and Airbnb with a 3% levy on revenue from Canadian users. It will apply retroactively, leaving US companies with a two billion US dollar (£1.4 billion) bill due at the end of the month. 'We appreciate the Administration's decisive response to Canada's discriminatory tax on US digital exports,' Matt Schruers, chief executive of the Computer & Communications Industry Association, said in a statement. Canada and the US have been discussing easing a series of steep tariffs Mr Trump imposed on goods from America's neighbour. The Republican president earlier told reporters that the US was soon preparing to send letters to different countries, informing them of the new tariff rate his administration would impose on them. Mr Trump has imposed 50% tariffs on steel and aluminium as well as 25% tariffs on cars. He is also charging a 10% tax on imports from most countries, though he could raise rates on July 9, after the 90-day negotiating period he set would expire. Canada and Mexico face separate tariffs of as much as 25% that Mr Trump put into place under the auspices of stopping fentanyl smuggling, though some products are still protected under the 2020 US-Mexico-Canada Agreement signed during Mr Trump's first term. Addressing reporters after a private meeting with Republican senators on Friday, Treasury Secretary Scott Bessent declined to comment on news that Mr Trump had ended trade talks with Canada. 'I was in the meeting,' Mr Bessent said before moving on to the next question. About 60% of US crude oil imports are from Canada, and 85% of US electricity imports as well. Canada is also the largest foreign supplier of steel, aluminium and uranium to the US and has 34 critical minerals and metals that the Pentagon is eager to obtain. About 80% of Canada's exports go to the US. Daniel Beland, a political science professor at McGill University in Montreal, said it is a domestic tax issue, but it has been a source of tensions between Canada and the US for a while because it targets US tech giants. 'The Digital Services Tax Act was signed into law a year ago so the advent of this new tax has been known for a long time,' Mr Beland said. 'Yet, President Trump waited just before its implementation to create drama over it in the context of ongoing and highly uncertain trade negotiations between the two countries.'
