A New York-based apparel company, PSK Collective, has filed a federal lawsuit against Kohl’s Corp., alleging fraud and breach of contract over $7.8 million in unpaid clothing orders from 2021 to 2022. PSK claims it fulfilled 600 purchase orders by supplying 600,000 clothing units and submitted 1,500 invoices, but Kohl’s refused to pay despite written notices and internal documentation showing receipt of shipments. The company alleges Kohl’s falsely promised payment and engaged in deceptive practices, including signing documents acknowledging receipt without expressing dissatisfaction. PSK seeks a court order declaring the breach and a jury trial. Kohl’s has not responded to the lawsuit and is currently facing financial and operational challenges, including store closures, declining sales, and the firing of its CEO over misconduct related to vendor transactions involving undisclosed conflicts of interest.

A New York-based apparel company, PSK Collective, has filed a federal lawsuit against Kohl’s Corp., alleging fraud and breach of contract over $7.8 million in unpaid clothing orders from 2021 to 2022. PSK claims it fulfilled 600 purchase orders by supplying 600,000 clothing units and submitted 1,500 invoices, but Kohl’s refused to pay despite written notices and internal documentation showing receipt of shipments. The company alleges Kohl’s falsely represented its intent to pay, engaged in empty promises, and made false statements to induce PSK to fulfill orders. PSK seeks a court order declaring the breach and a jury trial. Kohl’s has been facing financial and operational challenges, including store closures, declining sales, and the firing of its CEO over ethical violations related to vendor transactions.

The Sparks Police Department, in partnership with Walmart and Kohl's, conducted a retail theft operation that resulted in the arrest of three individuals and the issuance of tickets to six others. The charges included petit larceny, obstructing/resisting, possession of a controlled substance, obtaining money under false pretenses, three felony warrants, and one misdemeanor warrant. Officers recovered approximately $1,034 in stolen merchandise during the operation.

In 2025, several major U.S. retailers announced store closures due to declining performance and increased online competition. Key closures included Forever 21 shutting down all its 354 U.S. stores after filing for bankruptcy, Joann Fabrics closing approximately 850 stores including 17 in Arizona, Macy's closing 65 stores nationwide and one in Mesa, Arizona, Party City closing all stores including 15 in Arizona, Dollar General closing 168 stores since March 2024, Nordstrom closing two stores in St. Louis and Santa Monica, Hooter's filing for bankruptcy with no impact on Arizona operations, Kohl's closing 27 underperforming stores, and Kroger announcing plans to close about 60 stores over the next 18 months, though no Arizona locations are affected. The closures reflect broader trends in retail decline driven by digital competition and shifting consumer behavior.

A hotter-than-expected wholesale inflation report showed the Producer Price Index (PPI) rose 0.9% in July, exceeding economists' expectations of a 0.2% increase and marking the largest monthly jump since March 2022. This has fueled concerns about rising consumer prices and reduced spending, particularly as shoppers show increasing caution by cutting back on non-essential purchases and trading down to cheaper brands. As a result, stocks of several retail companies—including American Eagle, Kohl's, Petco, Abercrombie and Fitch, and Burlington—fell in the afternoon session. American Eagle dropped 4.6%, Kohl's fell 3.1%, Petco declined 4.2%, Abercrombie and Fitch dropped 3.1%, and Burlington fell 3.2%. The market's reaction reflects sensitivity to inflation data, with investors concerned about potential cost passes to consumers. Meanwhile, recent CPI data suggested inflation may be under control, increasing optimism for a Federal Reserve rate cut in September, which could boost consumer spending and support retail stocks in the long term.