Uber Drama Revs Up; Gymboree’s Next Chapter in Life: 11; Aldi Ready to Feed You For Less. Much Less

These are the days of Uber’s life…

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The Silicon Valley soap opera we call Uber is making awkward, unpleasant headlines again. This time it’s because the rumor mill is swirling with talk that Uber CEO, Travis Kalanick, is about to take a leave of absence. Which begs the question about how this new development will affect Uber, if at all. Then we turn our attention to the now ex-number two honcho at the ride-sharing company, Emil Michael, who has left the Uber building. It’s doubtful he’ll be missed that much since he was apparently pressured to step down. In fact, Kalanick was advised to let Michael go earlier this year, however he declined to entertain that suggestion – a decision that eventually bit him in his corporate butt. Perhaps had Kalanick let Michael go when asked to do so, he might not find himself figuring out how to spend all his newfound free time. All this unpleasantness – well for Kalanick and Michael, anyway – ensued following a meeting with Eric Holder’s law firm. You remember him, dontcha? He’s the former U.S. Attorney General and if he’s got some recommendations, it’s prudent to follow them. Holder’s firm was retained by Uber to conduct internal investigations following accusations of sexual harassment and gender bias. The findings, his firm reported, were “ugly.” That doesn’t bode well for the world’s most valuable privately held company, now does it?

Another one bites the dust…

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Today’s Chapter 11 bankruptcy filing is brought to you by Gymboree, the children’s clothing store chain which can be found in just about any mall in the United States. Well, maybe not for much longer. The company still plans to remain in business, it’s just going to be shuttering anywhere from 375 to 450 of its stores. But rest assured, if you’re a frequent patron of the chain, there will still be well over 800 stores left from which to do your kids’ clothes shopping. If you are at all shocked about the store closures and bankruptcy filing, then clearly you aren’t one of the many creditors Gymboree refused to pay in the last few months. With increasing online competition and a major slowdown in mall traffic, it’s no wonder Gymboree just couldn’t make bank. The company is staring down the wrong end of $1.4 billion worth of debt and hopes to nail down a plan to help it shed about $1 billion of it.  The kicker, though, is that the company is still profitable, a bonus that a lot of analysts think will help propel Gymboree towards a bright, shinier fiscally nourishing future.

Grab your cart…

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Grocery chain Aldi has got some lofty goals. And if you’re thinking you’ve never heard of the chain, then just wait. The company just announced a $3.4 billion plan to make sure you do. Aldi has set its grocer sights on becoming the third largest grocery chain behind Kroger and Walmart. The grocery store chain currently boasts 1,600 locations from which to purchase your groceries, but by 2022, it expects to have 2,200 stores gracing the country.  Some 1,300 of its pre-existing stores are also being treated to a $1.6 billion remodel. And who doesn’t love a little remodel? However, the biggest thrill of all is that Aldi is going to attempt to price its merchandise over 20% lower than its rivals while adding 25,000 jobs in the process. If that doesn’t sound appetizing, the I don’t know what does.

Amazon’s Kindness Almost Knows No Bounds; Uber Cleans House; Crew-Cut: CEO Drexel Waves a Preppy Goodbye

Yep, they went there…

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It’s the American Dream. Well, for Amazon anyway. Rather than worry about disenfranchising an entire portion of the population that can’t comfortably afford Amazon’s Prime subscription service, the e-commerce giant is now offering this highly esteemed membership privilege for a 50% discount to those on government assistance. All it takes is a valid Electronic Benefits Transfer card. Because why should the fact that someone is receiving government assistance stand in the way of their Amazon shopping experience, right? It is incredibly thoughtful of Amazon to think of those less fortunate by reducing the cost of subscription for them. However, if it were not to Amazon’s fiscal advantage, then this latest initiative might not have been unveiled. That fiscal advantage comes in the form of a competitive edge over Walmart, whose low prices have attracted the very countless customers that Amazon is trying to woo with this new incentive. After all, studies have shown that once customers sign up for Prime status, they tend to beef up their orders. So, we’re talking a win-win for Amazon. And a lose for Walmart.

Job openings…

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Looks like karma may finally be catching up with some folks over at Uber, as the ride-sharing company just fired 20 employees over sexual harassment claims. Apparently 215 claims were leveled against these 20 individuals, which sort of begs the question: Was there anybody left at Uber who didn’t get sexually harassed? The investigation was conducted by law firm Perkins Coie and disturbingly enough, it found that no action was even taken in 100 of those claims. Oh, and there are still even more claims being investigated.  In addition to the 20 terminated fiends, seven other employees received written warnings, while 31 more employees need to get “special training” to teach them how not to harass people and behave like stupid, thoughtless destructive pieces of trash. CEO Travis Kalanick launched the investigation back in February after a former Uber employee named Susan Fowler wrote in a blog post about her personal experiences of sexual harassment and gender bias at the company. However, when asked about the issue back in May, Uber’s head of HR, Liane Hornsey, said it wasn’t an issue that had come up. Especially if you had your head firmly entrenched in the sand, of course.

And that’s a wrap…

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After 14 years, J. Crew’s Mickey Drexler is calling it quits and handing over the reins to West Elm CEO James Brett. While Drexler may be out as CEO, he’ll still stay on as Chairman. And why not? After all, he owns 10% of the preppy apparel company. Drexel decided to step down from his role after declining sales – 6% in just the last year – led to a whole bunch of other problems including restructuring, layoffs and the departure of its pseudo-celebrity, high-profile creative director, Jenna Lyons. Not that any of that was entirely Drexel’s fault. Only a bit of it, some might argue. Because apparently the problems and challenges he faced were industry wide for apparel companies in general, as so many of them continue to struggle to get a leg up on fast-fashion, affordable competitors like Zara and H&M.