Target Corp. agreed to sell its credit card business to TD Bank Group for about $5.9 billion.
The deal will effectively get Target out of the back end of the credit card business — a step most retailers who dabbled in holding credit card receivables have already taken. The ultimate price on the transaction will be equal the total gross value of the portfolio’s outstanding receivables when the deal closes in the first half of next year.
Target’s third-quarter bottom line will show a roughly $150 million pretax gain as the company accounts for the credit card receivables as “held for sale.” And then after closing, the retailer will see a pretax gain of $350 million to $450 million. About 90 percent of the proceeds from the deal will go to pay down debt. RELATED STORY: Target Unveils Slew of Holiday Promotions >>
The two companies also entered into a seven-year agreement that will have TD underwriting and funding Target credit card and Target Visa receivables in the U.S. The retailer will continue to service the accounts while TD handles risk management.
Shares of Target rose 0.7 percent to $62.65 Tuesday.
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“Stranger Things” is getting a new cast member for season 2. Meet @sadiesink_, the 15-year-old who will be joining the Netflix series for its new season. You may recognize her from “The Glass Castle” with Brie Larson and Woody Harrelson, but the Texas native’s next role goes in an entirely different direction. She describes her character, Max, as “a rough and tumble skater girl [who] becomes friends with the boys at school.” The second season debuts on October 27. (📷: @jgreenery) #wwdeye
Amid the Harvey Weinstein controversy, there’s another sector that’s being put under the spotlight for sexual abuse: the modeling industry. While rumors about abuse and sexual harassment of female and male models — and the photographers, agents and others who perpetrated it — have circulated within the fashion world for years, model @cameronrussell started posting stories from models on Instagram last week about abusive situations they’ve encountered — from sexual harassment and molestation to attempted rape. Over 75 have weighed in so far. Read more on WWD.com. Link in bio. #wwdnews
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