Retail Industry

CIT Group Inc., the struggling lender denied more federal aid last week, may be close to securing needed funding to avoid bankruptcy, a source close to the matter said. A deal could be struck as early as today, said the source, who spoke on condition of anonymity because the talks were confidential. The company's board met Sunday night to discuss its options, the source said.

Just as the retail industry is starting to find its footing after the upheaval of the last holiday season, a new storm is brewing. CIT Group Inc., the giant finance company, disclosed this week that it was talking to federal regulators about steps to keep it afloat. The New York company's financial troubles could weigh heavily on retailers this holiday season.

The worst may be over for some of the nation's retailers, but experts say the industry will remain stuck in neutral for several months. After a glimmer of hope from February's better-than-expected retail sales, major chain stores saw sales fall 2.1% in March compared with the same month in 2008, the International Council of Shopping Centers said Thursday. Most of the 33 chains surveyed -- including Abercrombie & Fitch Co., Nordstrom Inc. and Costco Wholesale Corp.

SACRAMENTO -- Faced with a likely veto by the governor, a state lawmaker agreed Wednesday to postpone a bill that would impose a controversial container fee at the ports of Los Angeles and Long Beach aimed at easing congestion and air pollution. State Sen. Alan Lowenthal (D-Long Beach) agreed with Gov.

Macy's wants to be America's department store, but America isn't entirely buying it -- and that could mean the entire company could soon be sold. Buyout king Kohlberg Kravis Roberts & Co. is close to reaching a deal to buy Macy's Inc. for $24 billion, Women's Wear Daily reported Wednesday. Both sides declined to comment on the report, but investors greeted the news by bidding up Macy's shares $3.06, or 8%, to $43.09.

Holiday sales are expected to rise 5% this year -- less than last year's 6.1% increase -- as shoppers deal with higher energy costs, rising interest rates and a cooling housing market, the National Retail Federation said Tuesday. The retail group estimated that total retail sales in November and December will be about $457.4 billion, compared with $435.6 billion in the same period last year.

Burlington Coat Factory Warehouse Corp. said Wednesday that it had agreed to be bought by affiliates of private equity firm Bain Capital Partners for $45.50 a share in cash, or about $2.06 billion. The deal marks another retail industry buyout by private equity investors, who are attracted by the industry's real estate portfolios and the prospect of turning around underperforming companies and selling them at a premium.

Isao Nakauchi, 83, who founded supermarket chain Daiei and revolutionized Japan's retail industry, died of a stroke Monday at a hospital in Kobe, Japan, according to officials at a university where he worked. The Kobe-based Daiei Inc. was founded in 1957 by Nakauchi, a charismatic businessman who was praised for bringing U.S. large-scale discount retail methods to a nation long dominated by mom-and-pop stores. Daiei grew to become the biggest Japanese retailer during the 1970s.

J.C. Penney Co. shares rose more than 8% on Thursday on speculation that two investment firms have joined forces to bid for the 100-year-old retail icon. An acquisition of the nation's No. 2 department store chain would mark the third blockbuster retail deal this year. And with a purported price tag of as much as $18 billion, a sale of Penney would be the second-largest leveraged buyout ever.

Mexico's antitrust watchdog Thursday approved a purchasing alliance among three retailers seeking to cut costs and lower prices to compete with mighty Wal-Mart de Mexico, commonly known as Walmex. The Federal Competition Commission overturned its earlier finding that the venture could lead to price-fixing by retailers Gigante, Soriana and Comerci. Facing growing market dominance by Walmex, an affiliate of No. 1 global retailer Wal-Mart Stores Inc. of Bentonville, Ark.