Must-Read Money Stories for Monday, Jan. 9

by January 9, 2017
In a surprise move quietly announced on its website, The Limited shuttered all 250 of its brick-and-mortar women’s clothing stores over the weekend and shifted to an online-only platform. (Image “The Limited” by Nick Richards via Flickr, CC license by 2.0.)

In a drastic move quietly announced on its website, The Limited shuttered all 250 of its brick-and-mortar women’s clothing stores over the weekend, shifting to an online-only platform.
(Image “The Limited” by Nick Richards via Flickr, CC license by 2.0.)

The Limited closes brick-and-mortar stores

The Limited clothing retail chain, which has been a mainstay in U.S. shopping malls for much of its 54-year history, permanently shuttered all 250 of its brick-and-mortar stores Sunday and subsequently laid off roughly 4,000 employees. The move made national headlines after the women’s retailer quietly posted the announcement to its website over the weekend, while reassuring shoppers that its clothing products will still be available online. Retail experts say it’s yet another example of a brick-and-mortar retailer falling victim to the rise in e-commerce and failing to keep up with the latest fashion trends, according to the Washington Post.

AT&T, Time Warner aim to bypass feds

The proposed $85 billion mega-merger between AT&T Inc. and Time Warner Inc. has a challenging road ahead, with numerous regulatory hurdles amid widespread public scrutiny. The corporate giants, however, now say they may have found a way to speed things up by sidestepping one of their most significant roadblocks altogether: the Federal Communications Commission. In filings with the U.S. Securities and Exchange Commission, the companies disclosed a unusual plan  to potentially bypass an FCC review, which Bloomberg says can be much harsher than a potential Justice Department antitrust investigation.

Theranos slashes its workforce

In a move characterized as “further re-engineering,” blood-testing company Theranos announced Friday it was purging 155 positions—shrinking its workforce by nearly half. This comes just three months after an even deeper round of job cuts as well as closures to all of its laboratories and wellness centers. It marks the latest in a string of unabated hardships for the once-esteemed company and its young CEO Elizabeth Holmes that began a year and a half ago, when federal regulators unearthed multiple compliance issues, according to the Washington Post.

Snapchat accused of duping investors

The parent company of Snapchat is facing accusations by a former employee that raise questions about the data being used to lure investors. This comes ahead of its anticipated $25 billion-initial public offering this spring, according to the Los Angeles Times. Anthony Pompliano filed a lawsuit last week alleging he was fired in September 2015 after he raised concerns that the financial and corporate-performance data being prepared for the IPO was inflated. The lawsuit is separate from the IPO, which was secretly filed with the U.S. Securities and Exchange Commission before the November presidential election. But the Times notes that it could be particularly distracting given that it calls into question the very information inherent to potential investors’ decision-making.