1. Why is LVMH trying to get out of its Tiffany deal? A possibility is that chairman Bernard Arnault is interested in pursuing alternative opportunities. One recurring scenario is that LVMH could look to make a bid for Cartier-owner Richemont, which would be a much bigger acquisition than Tiffany, giving Arnault an even more dominant position in luxury. Annual sales of the combined group would be four times that of nearest rival, Gucci-owner Kering. – Read More on Bloomberg
2. US bankruptcies surpass 500 mark as coronavirus takes toll: A total of 509 companies have gone bankrupt this year as of Oct. 4, exceeding the number of filings during any comparable period since 2010. – Read More on S&P Global
3. J. Crew’s parent company faces uncertainty post-bankruptcy: The fragility in the apparel market and uncertainty from the ongoing pandemic will make it difficult for the company, which emerged from Chapter 11 bankruptcy on September 10, to make great strides in any turnaround. – Read More on Retail Dive
4. ESG Investing Looks Like Just Another Stock Bubble: “Do-the-right-thing” investments have been outperforming, but that has been driven by liquidity and flows rather than an effective strategy. – Read More on Bloomberg
5. Fashion’s great inventory pullback: As brands embark on a market season unlike any we’ve seen before, many are showing abbreviated versions of their typical collections to retailers that are overwhelmingly risk-averse and low on cash. “It’s kind of like what we saw after 2008. At first, there is this pullback and it’s a bit overly conservative and they’re buying just the bestsellers.” – Read More on Vogue Business
6. RELATED READ: From Hermès and Chanel to Louis Vuitton and Gucci, What Will Fashion’s Impending Shift Actually Look Like?In the first scenario, brands are likely to move more upmarket and eschew the usual barrage of trend-specific creations on a seasonal basis in favor of fewer – and almost certainly more expensive – offerings. It is relatively easy to envision brands like Chanel and Hermès cutting back on the dozens of garments and accessories they offer up each season in favor of even higher-end offerings. – Read More on TFL