- Clarks, Skechers Among Shoe Brands Hit by QVC Bankruptcy
Apr 17, 2026
Home shopping network QVC Group Inc. has filed for Chapter 11 bankruptcy court protection in Texas to cut $5.3 billion off its debt load.
Among the shoe vendors in its top 30 list of creditors holding the largest unsecured claims are C&J Clark America Inc., Waco Shoe Co LLC, and Skechers USA Inc. C&J Clark, the U.S. subsidiary of British footwear firm Clarks, is owed $6.27 million. Waco, which sells shoes for men and women that help with relief from plantar fasciitis and heel pain, is owed $2.91 million. Skechers, the popular comfort shoe brand, is owed $1.65 million.
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Other fashion brands holding trade claims include beauty brand Beekman 1802, owed $3.15 million; Diane Gilman Jeans LLC, owed $2.21 million, and denim brand NYDJ, owed $2.15 million.
QVC said Thursday night that it has entered into a restructuring support agreement with the majority of its lenders. The bankruptcy is a voluntary pre-packaged Chapter 11 filing that includes a restructuring plan that should enable the company to exit bankruptcy proceedings within a 90-day period. QVC’s international operations are not a part of the bankruptcy process. The restructuring support agreement with creditors would cut QVC’s debt load from $6.6 billion to $1.3 billion. The petition listed total estimated assets and liabilities each at between $1 billion to $10 billion.
QVC said that the terms of the agreement with creditors provides for paying vendors, suppliers and other general unsecured creditors to be “paid in full for all goods and services.” The company added that there are “no planned layoffs or furloughs” in connection with the financial restructuring process.
The home shopping firm said all QVC Group brands are operating as usual across its platforms for QVC, HSN (formerly Home Shopping Network), and Cornerstone Brands. Cornerstone is the group that includes its Ballard Designs, Frontgate, Grandin Road and Garnet Hill home and apparel lifestyle brands.
“QVC Group is uniquely positioned to compete and win in live social shopping, and we are seeing early momentum in our WIN Growth Strategy,” David Rawlinson, QVC Group’s president and CEO, said. “Over the past year, we have become a top seller on TikTok Shop U.S. while expanding our business on streaming and other platforms.”
Rawlinson also said the company has consolidated its HSN and QVC operations, struck new deals with critical social and media partners, and rebalanced sourcing to account for the changing tariff environment.
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He emphasized that the support of lenders and a more appropriate capital structure will allow the company to deliver on its WIN Growth Strategy.
Rawlinson said the company remains focused on serving its customers and that the Chapter 11 process “will allow for QVC Group to have the financial structure it needs to accelerate our return to growth.”
Consumption of traditional cable television — historically the foundation of QVC’s business model — has experienced a structural decline as social platforms and streaming services have changed how consumers. While the company has leaned in on live social shopping, it didn’t move fast enough on that front. The business was also impacted by tariffs imposed under the Trump administration, and had to pivot its sourcing of goods away from China.
QVC said its three-year WIN Growth Strategy (2024 to 2026) to reposition QVC Group to drive live social shopping focuses on reaching customers wherever they shop while also driving operating efficiencies with new ways of working. It said the transforming moves are already showing results.
“QVC Group acquired nearly 1 million new U.S. customers on TikTok Shop in 2025, leading QVC US to grow its total customer file last year for the first time in over four years,” the company said, adding that the QVC+ and HSN+ streaming service now has 1.5 million monthly active users and sales attributed to streaming grew 19 percent in 2025.
The company said it has over $1 billion in cash and cash equivalents as of Dec. 31, 2025, and that together with cash generated from ongoing operations, QVC Group has “ample liquidity to meet its business obligations during the U.S. court-supervised process.”
Data from S&P Global Market Intelligence said last week that court-supervised bankruptcy filings in the U.S. are expected to remain elevated this year. According to S&P data, large U.S. corporate bankruptcies rose in March to 69 from 54 in February, marking the highest monthly total of the first quarter. The number of large corporate filings for the three months totaled 180.
Of the 10 largest U.S. bankruptcies filed since Jan. 1, with more than $1 billion in liabilities, two were fashion companies. Saks Global Enterprises filed on Jan. 13, while Eddie Bauer LLC submitted its petition on Feb. 9. Lycra Co. LLC was the third fashion firm to file last month, with between $100 million to $500 million in liabilities. Now QVC Group can be added to the list.
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- Skechers Opens First Flagship Store in Copenhagen
Apr 9, 2026 · businesswire.com
COPENHAGEN, Denmark--(BUSINESS WIRE)--SKECHERS OPENS FIRST FLAGSHIP STORE IN COPENHAGEN.
- SKECHERS OPENS FIRST FLAGSHIP STORE IN COPENHAGEN
Apr 9, 2026
COPENHAGEN, DENMARK--(BUSINESS WIRE)--SKECHERS OPENS FIRST FLAGSHIP STORE IN COPENHAGEN.
- Allbirds’ Struggles Left It With Few Buyer Options
Apr 2, 2026
When Allbirds said on Monday it would be acquired by American Exchange Group for $39 million, the transaction with the brand management firm said a lot about the shoe company’s extreme distress.
“Accounting for intraday declines, the company’s market capitalization sits below its cash balance, while shares trade at approximately 0.1 times our 2026 sales estimate, for which we have limited visibility,” noted William Blair analyst Dylan Carden.
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The annual report for Allbirds, filed Tuesday with the Securities and Exchange Commission, said the company isn’t profitable and that it has “incurred significant losses since inception” in 2015. The filing also noted “substantial doubt” about the company’s ability to continue as a going concern. According to public filings, net losses at one point reached a high of $152.5 million in 2023, on revenues of $254.1 million. In 2025, the net losses totaled $77.3 million, but the net revenues for the year fell to $152.5 million.
Gil Harrison, an investment banker for 47 years — he founded boutique investment firm Financo is now a consultant at Harrison Group — said struggling brands often don’t have much of an operation left, leaving them with a big problem. Without any ability to project forward-looking growth, there’s little to no interest from either the strategic or financial buyers.
That means if that if the brand had a decent following as was the case with Allbirds, the limited pool of buyers that might venture forth to kick the tires just for the intellectual property (IP) assets are essentially a group known as brand management firms. Brand management firms have been active in the shoe market in early 2026 after mergers and acquisitions in general heated up in the footwear space last year.
In 2025, the industry saw Skechers engineer the biggest footwear buyout in history with its $9 billion go-private deal with 3G Capital. And Dick’s Sporting Goods shook up the athletic landscape with its move to buy rival Foot Locker for $2.4 billion. Both deals closed last year.
And among the brands, Caleres acquired Tapestry’s Stuart Weitzman brand for $105 million last August. Last year also saw company founder and majority stakeholder Giuseppe Zanotti buy back the 30 percent stake in his namesake brand from L Catterton. Golden Goose ended 2025 with a new owner as international venture capital and private equity firm HSG acquired a majority stake in the business, as did Philippe Model Paris, which saw Italian fashion group Swinger International taking control of the sneaker brand.
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Dealmaking continued into 2026. The year began with Marubeni Consumer Platform US acquiring Jacobson Group, the owner of footwear brands that include Gola. RG Barry’s CEO Bob Mullaney — a brand owned by Marubeni and is best known for its slippers — is building a framework for a shoe platform aimed at expansion. As for future Marubeni deals that would be integrated into the shoe platform, Mullaney said: “We’re definitely not done.”
Other deals earlier this year include Next Plc acquiring British footwear brand Russell & Bromley for 2.5 million pounds, Anta Sports scooping up a 29 percent stake in Puma in a $1.8 billion deal, and the brand management arm of Gordon Brothers snapping up shoe brand LK Bennett. Both Russell & Bromley and LK Bennett were acquired while the brands were in administration, the U.K. equivalent of a bankruptcy in the U.S. Gordon Brothers also acquired the intellectual property (IP) of the assets of the Chinese Laundry brand, which includes the labels Chinese Laundry, Dirty Laundry, CL by Laundry and 42 Gold.
The American Exchange deal for Allbirds is the latest deal this year. Executives at American Exchange did not respond to a query regarding the planned purchase of Allbirds. The brand management firm’s shoe portfolio, owned and licensed, include Aerosoles, Born, Cliffs by White Mountain, White Mountain, and Island Surf, among others.
Brand management firms, including Gordon Brothers, aren’t new to the equation, but the company has been increasing its focus on footwear.
While it’s best known as a liquidator, the company’s brands department has been around since before 2016 with investments in Polaroid and The Sharper Image. It went on to acquire the intellectual property assets of Laura Ashley, which was later sold to Marquee Brands, and Nicole Miller, which Gordon Brothers still owns.
While American Exchange Group and Gordon Brothers are edging in on smaller deals, Authentic Brands Group — which is named as a potential suitor for almost any big brand on the block — has an even larger shoe platform, which includes Reebok, Nine West, Frye, Sperry, Hunter, Rockport, Airwalk, Tretorn, Bandolino, and Tapout, among other labels.
Other brand management firms with a presence in fashion include Iconix International, which owns the IP for Candie’s, Pony, and Hoodrich. Its skate brand Zoo York has a range of product categories that include shoes.
Harrison noted that the IP purchases by these brand management firms aren’t without risk. “These firms license out the footwear brand. Licenses have minimum guarantees. The question for me is what happens if the sales don’t materialize and the minimum guarantees aren’t met. How is the license structured? Is there a default? Who gets the brand back?” the investment banking consultant said.
In the case of Allbirds, which is expected to close in the second quarter pending shareholder approval, the plan is for a winding down of the public company. The sneaker brand completed its initial public offering in November 2021, and eventually hit a valuation of $4.1 billion before a series of missteps contributed to its reversal in fortunes.
As is the case with many digitally native brands operating as fashion-tech firms, Allbirds’ ownership structure might have contributed to its subsequent sale to a brand management firm interested only in licensing out the IP. Allbirds went public at a time when fashion-tech executives were able to retain control of the companies they founded.
The ownership structure consisted of two tiers of stock. Class A common stock and Class B shares reserved for the founders. The big difference in Class B shares is that each one has 10-times the voting power of a Class A share. The dual structure ensures that the founders are in firm control of the company.
Company founders Tim Brown, a former New Zealand professional soccer player, and Joey Zwillinger, a biotech engineer, grabbed the market’s attention with its Wool Runner, a shoe crafted from merino wool and recycled plastic shoelaces and a proprietary sugarcane-based SweetFoam midsole that gave the shoe a lightweight and bouncy feel. As founders, they own the Class B shares and the sizable amount of voting control.
Zwillinger was succeeded as CEO in March 2024 by Joe Vernachio, the company’s chief operating officer. Zwillinger retained his board seat even after stepping down from the CEO role. Brown stepped down as co-CEO a year earlier in May 2023 and shifted to the role of chief innovation officer. The belief is that they retained their Class B shares.
In the company’s annual report, Form 10-K that was filed on Monday, Allbirds included boilerplate language about the dual class common stock structure.
“Since the beginning of our history, our founders have been singularly focused on building a sustainable business that demonstrates profitable growth because it is sustainable. This is also true for the stockholders who have partnered with us since the early stages of our journey,” the company said. “We have prioritized protecting the ability of our founders and our early financial partners to continue driving that vision by implementing a dual class common stock structure that is designed to allow for a thoughtful calibration of long-term objectives with short-term demands.”
Without that tight grip, a floundering brand might have been pushed to sell the company sooner rather than later. The advantage would have meant potentially a better return to shareholders at an earlier stage of a downward cycle. The lack of that tight control also could have ensured a sale earlier in the Allbirds timeline when a buyer might have had a better shot at effecting a successful turnaround of the brand.
“When you give founders a 10-to-1 voting advantage, you are fundamentally agreeing to prioritize found autonomy over immediate shareholder liquidity. It’s a calculated risk,” said Jared Brenner, partner at the law firm Stubbs Alderton & Markiles, LLP. “While a Class A structure might have allowed investors to force a sale earlier, the dual-class structure did exactly what it was engineered to do: give the founders the absolute final sale, for better or worse.”
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- Catalyst Watch: Jobs report, Nike earnings, and Apple turns 50
Mar 27, 2026
[Stock Market Ticker Display]
bymuratdeniz
Welcome to Seeking Alpha's Catalyst Watch - a breakdown of some of next week's actionable events that stand out. Read more about the events that may impact stock prices next week.
MONDAY - MARCH 30
* VOLATILITY WATCH - AXT (AXTI [https://seekingalpha.com/symbol/AXTI]) and Bloom Energy (BE [https://seekingalpha.com/symbol/BE]) are set up for a volatile week of trading based on options volume. The most overbought stocks per their 14-day relative strength index include Transcontinental (TCLAF [https://seekingalpha.com/symbol/TCLAF]), Kore Group (KORE [https://seekingalpha.com/symbol/KORE]), and Assertio Holdings (ASRT [https://seekingalpha.com/symbol/ASRT]). The most oversold stocks per their 14-day Relative Strength Index include Vital Farms (VITL [https://seekingalpha.com/symbol/VITL]), American Vanguard (AVD [https://seekingalpha.com/symbol/AVD]), and FuboTV (FUBO [https://seekingalpha.com/symbol/FUBO]). Short interest is elevated on car rental stocks Hertz Global (HTZ [https://seekingalpha.com/symbol/HTZ]) and Avis Budget (CAR [https://seekingalpha.com/symbol/CAR]).
* EARNINGS WATCH - Notable companies due to report include Fermi (FRMI [https://seekingalpha.com/symbol/FRMI]) and Progress Software (PRGS [https://seekingalpha.com/symbol/PRGS]).
* DIVIDEND WATCH - Companies that have an ex-dividend date coming next week include Micron (MU [https://seekingalpha.com/symbol/MU]), Deere (DE [https://seekingalpha.com/symbol/DE]), Nucor (NUE [https://seekingalpha.com/symbol/NUE]), and Cisco (CSCO [https://seekingalpha.com/symbol/CSCO]).
* IPO WATCH - HMH Holding (HMH [https://seekingalpha.com/symbol/HMH]) is expected to price its IPO and begin trading. The IPO lockup expires on certain blocks of shares of Neptune Insurance (NP [https://seekingalpha.com/symbol/NP]), Knorex (KNRX [https://seekingalpha.com/symbol/KNRX]), Commercial Bancgroup (CBK [https://seekingalpha.com/symbol/CBK]), and Energys Group (ENGS [https://seekingalpha.com/symbol/ENGS]). The quiet period expires on MiniMed Group (MMED [https://seekingalpha.com/symbol/MMED]) to free up analysts to post ratings.
* ALL DAY - The four-day World Vaccine Congress will begin. Merck (MRK [https://seekingalpha.com/symbol/MRK]), Tonix Pharmaceuticals (TNXP [https://seekingalpha.com/symbol/TNXP]), and Valneva (VALN [https://seekingalpha.com/symbol/VALN]) are some of the notable companies presenting.
* ALL DAY - It is the 55th anniversary of the founding of Starbucks (SBUX [https://seekingalpha.com/symbol/SBUX]). The first location was in Seattle's Pike Place Market.
* ALL DAY - The Group of Seven energy and finance ministers are due to discuss the turmoil in the Middle East.
* 10:30 A.M. Federal Reserve Chairman Jerome Powell will participate in a discussion at the Harvard University Principles of Economics Class.
TUESDAY - MARCH 31
* EARNINGS WATCH - Notable companies due to report include Nike (NKE [https://seekingalpha.com/symbol/NKE]), McCormick (MKC [https://seekingalpha.com/symbol/MKC]), and PVH (PVH [https://seekingalpha.com/symbol/PVH]).
* ALL DAY - Hershey (HSY [https://seekingalpha.com/symbol/HSY]) will hold its Investor Day event. CEO Kirk Tanner and CFO Steve Voskuil will discuss the company's key strategic and financial priorities.
* ALL DAY - New Coca-Cola (KO [https://seekingalpha.com/symbol/KO]) CEO Henrique Braun will take over the top spot from James Quincey, who will transition to the executive chairman position.
* ALL DAY - Brent crude oil May futures expire amid a very volatile period for the oil market.
* ALL DAY - Royal Gold (RGLD [https://seekingalpha.com/symbol/RGLD]) will hold an Investor Day event.
* 3:30 P.M. Federal Reserve Governor Michael Barr will discuss stablecoin regulation at an event.
* 4:15 P.M. Nike (NKE [https://seekingalpha.com/symbol/NKE]) will hold its earnings conference call. The company frequently issues its guidance during the call and provides an in-depth outlook by region and product type. Options trading on Nike implies a 9% post-earnings move. The update from management on trends in China will also be closely watched by other consumer companies with a higher exposure to the nation, including Starbucks (SBUX [https://seekingalpha.com/symbol/SBUX]), Estee Lauder (EL [https://seekingalpha.com/symbol/EL]), and Skechers (SKX [https://seekingalpha.com/symbol/SKX]), while On Holdings (ONON [https://seekingalpha.com/symbol/ONON]) has the closest trading correlation to Nike over the last year.
WEDNESDAY - APRIL 1
* EARNINGS WATCH - Notable companies due to report include Conagra Brands (CAG [https://seekingalpha.com/symbol/CAG]), Lamb-Weston (LW [https://seekingalpha.com/symbol/LW]), and Cal-Maine Foods (CALM [https://seekingalpha.com/symbol/CALM]). Options trading implies a double-digit move for Tilray Brands (TLRY [https://seekingalpha.com/symbol/TLRY]) after it reports.
* DATA WATCH - Key data reports are due to arrive during the first few days of the month, including updates on deliveries from Tesla (TSLA [https://seekingalpha.com/symbol/TSLA]), NIO (NIO [https://seekingalpha.com/symbol/NIO]), XPeng (XPEV [https://seekingalpha.com/symbol/XPEV]), Rivian Automotive (RIVN [https://seekingalpha.com/symbol/RIVN]), Li Auto (LI [https://seekingalpha.com/symbol/LI]), ZEEKR Intelligent (GELYF [https://seekingalpha.com/symbol/GELYF]), Polestar Automotive (PSNY [https://seekingalpha.com/symbol/PSNY]), and Lucid Group (LCID [https://seekingalpha.com/symbol/LCID]). Quarterly sales reports from General Motors (GM [https://seekingalpha.com/symbol/GM]), Ford Motor (F [https://seekingalpha.com/symbol/F]), and Toyota (TM [https://seekingalpha.com/symbol/TM]) will also be closely watched. Other reports of high interest to investors will be the monthly Macau gross gaming revenue release, the monthly update on Class 8 truck orders, firearm background check data from the FBI, and discount broker DARTs reports.
* ALL DAY - Apple (AAPL [https://seekingalpha.com/symbol/AAPL]) will mark its 50th anniversary since its founding by Steve Jobs, Steve Wozniak, and Ronald Wayne. The company is celebrating the milestone with global events and a message reflecting on its history, innovation, and impact.
* ALL DAY - The highly anticipated Aptiv (APTV [https://seekingalpha.com/symbol/APTV]) spinoff of its electrical distribution systems business will become effective. Shareholders are slated to receive one Versigent share for every three Aptiv shares they owned as of March 17.
* ALL DAY - Universal Pictures (CMCSA [https://seekingalpha.com/symbol/CMCSA]) will debut _The Super Mario Galaxy Movie_ in the U.S. The highly anticipated film was produced by Illumination and Nintendo (NTDOY [https://seekingalpha.com/symbol/NTDOY]).
* 8:30 A.M. The February Retail Sales report will be released by the U.S. Census Bureau.
* 8:30 A.M. St. Louis Federal Reserve President Alberto Musalem will speak on the economy and monetary policy.
THURSDAY - APRIL 2
* EARNINGS WATCH - Notable companies due to report include Acuity (AYI [https://seekingalpha.com/symbol/AYI]) and Lindsay (LNN [https://seekingalpha.com/symbol/LNN]).
* ALL DAY - Booking Holdings (BKNG [https://seekingalpha.com/symbol/BKNG]) will begin trading on a split-adjusted basis following its 25-for-1 stock split.
* ALL DAY - Shareholders with Black Hills (BKH [https://seekingalpha.com/symbol/BKH]) and NorthWestern Energy (NWE [https://seekingalpha.com/symbol/NWE]) will vote on the planned merger between the companies.
* 8:30 A.M. Economists forecast the U.S. trade balance will widen once again from the prior month despite the tariff backdrop.
FRIDAY - APRIL 3
* ALL DAY - The U.S. stock market and bond market will be closed for observance of the Good Friday holiday.
* 8:30 A.M. The March jobs report will be released. Economists expect 56K job additions for the month and for the unemployment rate to remain at 4.4%.
_Seeking Alpha Editor Josh Fineman contributed to this story._
MORE ON THE MARKETS
* Federal Reserve - Guardian Of Monetary Stability - Records 3rd Consecutive Annual Loss [https://seekingalpha.com/article/4886522-federal-reserve-guardian-of-monetary-stability-records-3rd-consecutive-annual-loss]
* The Truth Social Posts Are Losing Their Impact [https://seekingalpha.com/article/4886548-truth-social-posts-are-losing-their-impact]
* Citi holds firm on S&P 500 target despite Iran tensions and the current market pullback [https://seekingalpha.com/news/4569862-citi-holds-firm-on-s-and-p-500-target-despite-iran-tensions-and-the-current-market-pullback]
* SA Analyst: Traders are struggling to interpret Iran war headlines [https://seekingalpha.com/news/4569567-sa-analyst-traders-are-struggling-to-interpret-iran-war-headlines]
- Birmingham Phoenix Announces Skechers as Lead Partner
Mar 5, 2026 · businesswire.com
LONDON--(BUSINESS WIRE)--Birmingham Phoenix Announces Skechers as Lead Partner. The Phoenix Shirt Now Features Skechers Branding on the Front.
- BIRMINGHAM PHOENIX ANNOUNCES SKECHERS AS LEAD PARTNER
Mar 5, 2026
LONDON--(BUSINESS WIRE)--BIRMINGHAM PHOENIX ANNOUNCES SKECHERS AS LEAD PARTNER. THE PHOENIX SHIRT NOW FEATURES SKECHERS BRANDING ON THE FRONT.
- Footballer Sem Steijn Joins Team Skechers
Mar 5, 2026 · businesswire.com
WAALWIJK, Netherlands--(BUSINESS WIRE)--Footballer Sem Steijn Joins Team Skechers Dynamic Eredivisie midfielder to play in Skechers Football boots.
- FOOTBALLER SEM STEIJN JOINS TEAM SKECHERS
Mar 5, 2026
WAALWIJK, NETHERLANDS--(BUSINESS WIRE)--FOOTBALLER SEM STEIJN JOINS TEAM SKECHERS DYNAMIC EREDIVISIE MIDFIELDER TO PLAY IN SKECHERS FOOTBALL BOOTS.
- Trump Faces 2,000 Tariff Lawsuits Following Supreme Court Loss
Feb 27, 2026
Photographer: Kyle Grillot/Bloomberg
(Bloomberg) -- In the days since the US Supreme Court declared most of President Donald Trump’s global tariffs illegal, more than 100 companies filed new lawsuits, underscoring widespread concerns that the administration won’t readily refund the billions of dollars it’s already collected.
Public companies and household names are joining the clamor. FedEx Corp. filed suit on Monday, followed by Dyson Inc., Dollar General Corp., Bausch & Lomb Inc., Brooks Brothers, and Sol de Janeiro USA Inc. Units of cosmetic giant L’Oreal SA and shoe companies On Holding AG and Skechers USA Inc. also filed suit to recoup what they’ve paid on imports.
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The justices were silent on the refund question, leaving questions of payback to the New York-based US Court of International Trade.
On Friday, the Justice Department is due to weigh in on immediate next steps in the original litigation that went before the Supreme Court, which could indicate how quickly – or slowly – the government is willing to move to resolve the mounting claims.
Trump has suggested his administration might oppose refunds, or at least not make the process easy for the importers that have paid more than $170 billion in tariffs in the past 10 months. “I guess it has to get litigated,” he said after the Feb. 20 ruling, speculating it could take years to play out.
The latest cases have pushed the total number of tariff lawsuits above 2,000, according to a Bloomberg News analysis. It’s already a hefty caseload for the trade court to manage and represents only a small fraction of the hundreds of thousands of importers that paid the tariffs that the justices struck down.
In a statement, FedEx said it “has taken necessary action to protect the company’s rights as an importer of record to seek duty refunds” following the Supreme Court’s ruling. “If refunds are issued to FedEx, we will issue refunds to the shippers and consumers who originally bore those charges.”
Representatives for the other companies declined to comment or didn’t respond to requests to comment. Spokespeople for the Justice Department and White House didn’t respond to requests for comment.
Most of the companies suing have been smaller businesses. While many large public companies were able to shift supply chains, negotiate with vendors and factories, or simply absorb the hit of tariffs, smaller firms don’t always have the same flexibility or clout.
Story Continues
But the entrance of major, publicly listed companies such as FedEx creates additional momentum for other firms to file suit.
When executives at smaller businesses see a filing from a big company that has in-house attorneys and Washington connections, they think “maybe they know something I don’t know,” said Jason Kenner, a trade lawyer who represents plaintiffs in refund cases.
There’s also political safety in numbers, said David Craven, a trade lawyer pursuing refund cases. When large companies like FedEx and Costco get involved, it reduces the “fear of retaliation” from the White House, Craven said.
Still, some firms may wait to sue until the next phase of the legal proceedings is clear, and regardless, no one expects a speedy resolution. “This is not money that in any way you can count on in any short-term period,” said Nate Herman, executive vice president at the American Apparel & Footwear Association, a lobby group.
Next Steps
The trade court has been automatically pausing tariff cases until the Supreme Court action is over. It can normally take more than a month for the high court to formally close out a case, but companies already have been urging lower courts to take steps to reopen the proceedings so they can press for refunds as soon as possible.
Lawyers involved in these cases have been highlighting past statements by the Justice Department assuring at least some importers they would be repaid – with interest – if they won, and that the administration would make concessions about the trade court’s authority to order refunds.
The trade court has experience overseeing a mass refund process, though never at this scale. After the Supreme Court struck down a harbor maintenance tax on exports in 1998, the court managed several thousand claims for repayment.
The refund battle between importers and the government could trigger other legal fights, such as disputes between importers and retailers or other companies that agreed to share the costs of the tariffs.
A New York man filed a proposed class action lawsuit against eye-wear giant EssilorLuxottica SA this week arguing to recoup the extra money he says he paid for Ray-Ban sunglasses because of tariff-related price hikes. EssilorLuxottica, which has a pending refund lawsuit, did not immediately respond to a request for comment.
Consumers can’t seek refunds from customs authorities, even if companies passed on the cost of higher levies by raising prices. Prominent Democratic lawmakers have called for the administration to directly send refund checks to American households.
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