True Value files for bankruptcy as Do it Best bids to acquire assets

Oct. 14, 2024 / 

Hardware retailer True Value announced Monday it has filed for Chapter 11 bankruptcy and is entertaining a bid to sell its assets to competitor Do it Best. If approved, the deal would create a network of 8,000 stores in the United States and around the world. File Photo by Ammodramus via Wikimedia Commons

Oct. 14 (UPI) -- Long-time hardware retailer True Value announced Monday it has filed for Chapter 11 bankruptcy and is entertaining a bid to sell its assets to competitor Do it Best.

The home improvement industry deal, if approved, would create a network of more than 8,000 stores in the United States and around the world.

"After a thorough evaluation of strategic alternatives, we determined that the sale of our business was the path forward to maximize value and best serve our retail partners and other stakeholders into the future," said Chris Kempa, True Value's chief executive officer.

"We believe that entering the process with an agreed offer from Do it Best, which has a similar decades-long history in the home improvement space and also operates with a focus on supporting members and helping them grow, is the most beneficial next step for True Value and our associates, customers and vendor partners," Kempa added. "We thank these valued stakeholders for their continued loyalty as we work to secure a stronger future for True Value."

True Value, which is based in Chicago and has been in the home improvement business for more than 70 years, was founded in 1948 and serves more than 4,500 stores worldwide with total retail sales of $10 billion, according to the company.

Ace Hardware interested in buying competitor True Value

In 2017, Ace Hardware expressed an interest in buying True Value, amid reports True Value was considering putting itself up for auction with a potential asking price of $800 million. Ace Hardware is also based in Illinois.

True Value currently operates as a wholesaler cooperative that sells its products to hardware sellers and garden centers. Independently owned True Value stores are not part of the bankruptcy.

If Do it Best is the winning bidder for True Value's assets, the transaction could be on track to close by the end of the year, pending regulatory and court approval.

"A successful acquisition of True Value assets would represent a strategic milestone for Do it Best and home improvement retailers around the world," said Dan Starr, Do it Best president and CEO.

"Do it Best has a proven track record of driving profitability through the most efficient operations in the industry," Starr added. "This acquisition, if consummated, would provide True Value and independent hardware stores the strongest opportunities for growth for years to come."

True Value declares bankruptcy and sells itself to a hardware rival

True Value is selling "substantially all" of its business to rival Do it Best.

 · CNN Business · Helen H. Richardson/The Denver Post/Getty Images

Jordan Valinsky
Updated Mon, October 14, 2024 

True Value, a 75-year old hardware store brand, has filed for bankruptcy and is selling substantially all of its operations to a rival, the company announced Monday.

In a press release, True Value said it will continue day-to-day operations of selling hardware and other homeware tools to its 4,500 independently operated locations during the Chapter 11 process, which includes a $153 million stalking horse bid from rival company Do it Best.

True Value said its stores will remain open, because they are not part of the bankruptcy proceedings.

In bankruptcy court filings, True Value said it faces a significant cash crunch as the housing market stalled and consumers have become far more picky about discretionary purchases like hardware. Bigger rivals like Home Depot and Lowe’s have also been in a yearslong slump since the pandemic boom, but they remain in a significantly stronger financial situation than True Value.

Still, a number of other chains have voiced similar problems that also tipped them into bankruptcy, including Big Lots and LL Flooring.

“After a thorough evaluation of strategic alternatives, we determined that the sale of our business was the path forward to maximize value and best serve our retail partners and other stakeholders into the future,” said True Value CEO Chris Kempa in a release.

Do it Best is a member-owned wholesaler that sells hardware, lumber and other home goods to independent stores.

“Do it Best has a proven track record of driving profitability through the most efficient operations in the industry,” said Do it Best CEO Dan Starr in a statement. “This acquisition, if consummated, would provide True Value and independent hardware stores the strongest opportunities for growth for years to come.”

The transaction with Do it Best is expected to close by the end of the year, unless there’s better offers.

North Carolina's Wolfspeed to receive $750 million for semiconductor plant

ALL CAPITALI$M IS STATE CAPITALI$M


Commerce Secretary Gina Raimondo speaks during a House Subcommittee on Innovation, Data, and Commerce on June 26. She announced a $750 million investment to help North Carolina's Wolfspeed build a facility on Tuesday. File Photo by Bonnie Cash/UPI | License Photo

UPI

Oct. 15, 2024 

Oct. 15 (UPI) -- The Biden administration said on Tuesday that North Carolina's Wolfspeed Inc. has entered into an agreement with the Commerce Department to receive $750 million to help create a new silicon carbide wafer manufacturing facility.

The plant, which will be built in Siler, N.C., will help the country build a reliable domestic supply of semiconductors during the artificial intelligence boon and future energy economy, the Commerce Department's National Institute of Standards and Technology said in a statement.

The funds will come from the CHIPS and Science Act.

"Artificial intelligence, electric vehicles and clean energy are all technologies that will define the 21st century and thanks to proposed investments in companies like Wolfspeed, the Biden-Harris administration is taking a meaningful step toward reigniting U.S. manufacturing of the chips that underpin these important technologies," Commerce Secretary Gina Raimondo said in a statement.

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Wolfspeed said it is the largest producer of silicon carbide technology in the world, pioneering the technology more than three decades ago. It is one of the fastest-growing components of the broader semiconductor industry.

"As a key player in the semiconductor industry, this proposed investment will enable us to solidify our leadership position with a first-of-its-kind 200-mm silicon carbide manufacturing footprint in upstate New York and central North Carolina, while contributing to the resilience and competitiveness of the U.S. supply chain," said Wolfspeed CEO Gregg Lowe said in a statement.

North Carolina Gov. Roy Cooper said the CHIPS and Science Act is allowing local semiconductor companies like Wolfspeed have an international impact by building their domestic capacity.

"Wolfspeed is a homegrown semiconductor innovator and manufacturer creating great jobs in North Carolina and it's important they receive this major grant," Cooper said.

Walgreens reveals 1,200 stores to close by 2027, company earnings on par

Despite closures, Walgreens report 'sales growth across all segments.'

Oct. 15, 2024 

 On Tuesday during an earnings call with Walgreens CEO Tim Wentworth, he said the closures will give the company a “healthier store base” and “will enable us to respond to shifts in consumer behavior and buying preferences.”

 File Photo by Billie Jean Shaw/UPI

Oct. 15 (UPI) -- Walgreens on Tuesday reported growth within its business segments but said it will shutter more than 1,000 stores over the next few years following June's announcement it would close "underperforming" U.S. stores.

Walgreens announced that it will close roughly 1,200 of its stores through 2027. The company looks to close at least 500 stores by next year alone.
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Of roughly 8,700 U.S. store locations, Walgreens said a quarter of them are unprofitable.

Despite this, Walgreens stock shares jumped 12% as of just before noon and new information released by Walgreens on Tuesday reflected "sales growth across all segments," according to a company release.

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Walgreens CEO Tim Wentworth said during an earnings call that the closures will give the company a "healthier store base" and "will enable us to respond to shifts in consumer behavior and buying preferences."

Wentworth added that Walgreens hopes to keep on a majority of its workforce impacted by the pending store closures but for now how many will lose jobs or otherwise be impacted is not entirely clear.

Walgreens is estimated revenue for the year to be somewhere between $147 billion to $151 billion. Meanwhile, Wall Street analysts estimated roughly $147.3 billion.

In its statement on Tuesday, Wentworth said FY 2025 "will be an important rebasing year as we advance our strategy to drive value creation."

"This turnaround will take time," he said. "But we are confident it will yield significant financial and consumer benefits over the long term."

For fiscal 2024 sales, Walgreens saw a 6.2% bump to $147.7 billion, which company officials say is up 5.7% on a constant currency basis.

But in better news for Walgreens, the company outpaced Wall Street estimates and reported profit in its fourth quarter for this fiscal year.

Walgreens reported its 2024 fourth-quarter loss per share was $3.48 versus a loss per share of $0.21 in the year-ago quarter.

But fourth-quarter sales increased 6% year-over-year to $37.5B, which Walgreens said is up 6.1% on a constant currency basis.

This appears to be the follow-up to Wentworth's revelation in June that Walgreens had plans to close a "significant portion" of its "underperforming" 8,500 U.S. stores.

But this arrives during a rocky year for the retail chain still seeing highs and lows.

Walgreens recently agreed to pay a $106.8M fine for alleged fraudulent federal billing.

The company, however, reported $28.5 billion in revenue during the second quarter of FY2024, which was up slightly over the same period last year but still below expectations.
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However, Walgreens has made efforts over recent months to put itself in a better financial position.

June's announcement slashed 10% of Walgreens employees at its Chicago corporate offices after it was forced to pay nearly $6 billion to settle opioid lawsuits with several states.

Following its numerous legal battles, the company reported earnings per share were down 20.3% for the second quarter of fiscal year 2023.

Iowa Supreme Court mulling Summit pipeline lawsuit


Oct. 15, 2024 

 Iowa landowners and opponents to the Summit Carbon Solutions pipeline project rally outside the Iowa State Capitol in Des Moines on Oct. 8, during a state supreme court hearing. 

Photo courtesy of Bold Alliance

Oct. 15 (UPI) -- The Iowa Supreme Court is weighing a decision that could uphold a pipeline company's eminent domain right to survey property without landowner permission.

The state's high court held a hearing last week over the appeal of a district court decision. A landowner brought the appeal to the supreme court after the lower court ruled in favor of Summit Carbon Solutions in a lawsuit against him.

Kent Kasischke, a landowner in Hardin County, Iowa, was sued by Summit for refusing to allow surveyors onto his property to survey for its pipeline project. The Iowa Utilities Commission approved Summit's petition to build nearly 700 miles of CO2 pipeline across the state.

There are conditions Summit must meet before it can begin construction. Conditions include obtaining approval from other states that the pipeline will be built in, maintaining at least $100 million in liability insurance and offering to purchase voluntary easements from affected landowners under the same terms offered to landowners prior to the board's decision.

Summit must submit additional filings and prove it has met these conditions before the board will fully grant a permit. The board has ruled that the pipeline serves a public benefit, granting it eminent domain rights.

The pipeline project is planned to transport CO2 through Iowa, Nebraska, Minnesota and South Dakota to North Dakota where it will be stored at a sequestration site. It was originally slated to be completed in 2024 but has faced setbacks due to permitting issues and resistance from landowners.

Brian Jorde is the attorney representing Kasischke in his appeal to the Iowa Supreme Court. Jorde is representing more than 1,000 landowners against the pipeline, including landowners in South Dakota. He also represented South Dakota landowners in a case against the Navigator pipeline project. Navigator canceled that project last year after losing the case.

"It's not a public use," Jorde told UPI of Summit's proposed pipeline. "I don't know if the court wants to deal with that now. There will be at some point a determination whether transporting waste to never be put out to commercial use is in fact common carriage or not."

Jorde and Kasischke have three main arguments against Summit. First, they argue Summit is not a pipeline company as described by Iowa code. The code defines a pipeline company as one that transports a liquid, solid or gaseous substance except for water.

Summit plans to transport CO2 in a supercritical state.

Summit, represented by Des Moines-based attorney Ryan Koopmans, pushes back on the argument that it does not fit the description of a pipeline company due to it planning to transport CO2 in a supercritical state. Koopman writes in his briefing that this is a "hyper-technical interpretation" that ignores the intent of the legislature when it established the code.

"As the district court observed, it is 'clear that Summit's proposed pipeline is the exact type of hazardous liquid pipeline that the Iowa Legislature intended to be governed by Chapter 479B, regardless of the fact that the carbon dioxide being transported may not always meet a scientifically precise definition of 'liquefied' at every moment in the transportation process,'" the briefing reads.

Second, Kasischke argues he was not given proper notice by Summit that his land would be surveyed. Iowa code requires a pipeline company to give 10 days notice before entering a person's property.

Summit says it submitted evidence during the lower court trial in Hardin County that it sent three notice letters by restricted certified mail to Kasischke in 2022 and 2023, notifying him of its intention to access his property for surveys. The first letter was delivered and returned with Kasischke's signature. The next two were refused.

Kasischke's argument about being notified also claims that Summit's earliest attempts to notify him did not comply with Iowa code because they did not include the endorsement "Deliver to Addressee Only" on the envelope. Jorde writes that Summit admitted to not complying with this requirement initially and claiming at trial that it did not have to before changing course in subsequent mailings.

Summit responded in its briefing that it sent notices marked "Restricted Delivery" by certified mail, claiming this is a "functional equivalent."

Third, Jorde cites the U.S. Supreme Court decision in Cedar Point Nursery vs. Hassid. The court ruled that government regulations allowing access to private property can be considered as taking that property, requiring compensation to the property owner. Jorde says Iowa's code is too broad as it is and must be either narrowed or considered unconstitutional.

"In essence, if Summit will just say they will not use eminent domain ever and they're only going to work with people who want the project, that would be a thing a good company would do," Jorde said. "They know, because this project is so wildly unpopular, that without eminent domain they won't be able to build what they want."

Koopmans raises concern that ruling the Iowa code unconstitutional could have ramifications on survey access across the board. He notes that courts have recognized that entities with eminent domain rights have the right to enter private land to conduct surveys.

Tuesday's hearing was held at Iowa's historic supreme courtroom in the capitol building instead of its usual location at the Iowa Judicial Branch Building. This was due to the expectation that there would be a larger than usual crowd. An overflow room was also filled to capacity.

Emma Schmit, director of the Pipeline Fighters hub with Bold Alliance, attended the hearing. While she is confident in the arguments made by Jorde, she is hesitant to anticipate who Iowa's seven supreme court justices will rule.

"It wasn't as positive as we got from South Dakota but it also wasn't negative," Schmit told UPI. "They don't like to issue split decisions if they can avoid it."

A decision could come at any time, Schmit said. The court's term ends in June.

Kasischke is not the only landowner who has refused Summit's bid to survey their property, nor is he the only one Summit has filed a lawsuit against. Schmit is aware of at least seven more Iowa landowners who have been sued for refusing surveys. Some of those lawsuits were dropped before the Iowa Utilities Board hearings last fall.

"One of our speakers at the rally before the supreme court hearing shared his story of being sued," Schmit said. "It was an intimidation tactic. Kent is one of the first landowners to get a court date so his lawsuit wasn't dropped."

The pipeline project has drawn the interest of the legislature. Iowa House Speaker Pat Grassley said in a statement that the state utility board's approval of the project's route makes landowner rights a priority.

"This just further confirms what we already knew -- that the Legislature must conduct a comprehensive review and update the state's eminent domain laws," Grassley said. "We will seek feedback from Iowans on the best way forward and in the meantime, I stand ready to assist my constituents however I can."

Thirty-seven Republican legislators filed a lawsuit against the Iowa Utilities Commission last month in an attempt to stop the project. When the group, Republican Legislative Intervenors for Justice, filed a motion for the IUC to reconsider, it was critical of the board for being dismissive of the many public comments and testimonies it received.

In the board's final ruling, it notes that it conducted a hearing that spanned eight weeks, amassed a 7,500-page transcript and received about 4,200 comments. It also received 50,000 pages of prefiled testimony and exhibits. It refers to the large amount of testimony "unduly repetitious."

"Few developments could be more of an affront to democracy than a government agency -- this government agency -- dismissing the considered views of Iowans under its thumb as 'repetitious,'" the RLIJ wrote in its motion to the board. "The Board's complete dismissal of the 'repetitious' engagement by affected citizens is a tacit admission that the Board has pulled loose from its Constitutional moorings."

The Republican lawmakers also note that Summit Carbon Solutions has not made its shareholders known. This is something opponents of the pipeline have objected to since the project was announced.

"We've seen Democrats and Republicans on the same side of this issue which is not something you can say about most issues," Schmit said.

HOTEL RWANDA

Rwanda detention abuses make jail 'place of fear', HRW report says

 

AFP

Issued on: 15/10/2024 -

Video by:Nadia MASSIH

Rwandan authorities are perpetrating serious human rights abuses in detention facilities, including torturing inmates, Human Rights Watch said Tuesday, denouncing a lack of accountability for those responsible. Under President Paul Kagame's three-decade rule, political dissent and free speech have been crushed, with international campaigners long decrying the shrinking civil rights space in the small east African country. HRW's report is based on interviews between 2019 and 2024 with almost 30 people, including former inmates, as well as court documents and interviews shared online. For more, FRANCE 24's Nadia Massih is joined by Clémentine de Montjoye, Senior Researcher in the Africa division of Human Rights Watch.

Draft UN climate pact leaves open thorny question of money

Paris (AFP) – The latest draft of a UN climate deal published Tuesday narrows the options for increasing funding to poorer countries, but leaves unresolved the thorny question of how much they should receive.

Nations meeting at the COP29 climate summit in Azerbaijan in November are supposed to agree how much money should go to poorer countries to help them combat global warming © TOFIK BABAYEV / AFP

Nations at the COP29 summit in November are aiming for a new finance goal to replace the $100 billion a year that rich countries pledged to help the developing world tackle global warming.

That goal expires in 2025 and is considered well below what the world's most climate vulnerable nations need to prepare for the future and reduce their own planet-heating emissions.

Rich country donors, including the United States and European Union, have agreed to keep paying climate finance, but have baulked at demands for $1 trillion a year or more.

They have not made an offer, but COP29 hosts Azerbaijan on Monday indicated that hundreds of billions of dollars in public money would be a "realistic" target.


The latest draft of the funding pact, released by the UN climate secretariat, refines an earlier version by putting three distinct pathways on the table but leaves much unsettled.

The first option presents the deal sought by developing countries -- namely that rich, industrialised nations most responsible for climate change to date pay from their budgets.

This would entail annual payments up to $2 trillion a year in "grant-equivalent terms" over an unspecified timeframe, the draft stated.

The second option "encourages" other countries to share the burden, a key demand of developed countries, especially those weathering budget and political pressure at home.

This proposal calls for "all sources" of finance -- public and private -- to play a part.

The third options puts forward a mix of the other two.

The question of how much rich nations are actually willing to pay -- no concrete figure has been put forward during months of protracted negotiations -- remains open.

The EU, the largest contributor of climate finance, on Monday announced its negotiating position for COP29 but did not propose an amount.

It said however that "public finance alone cannot deliver the levels of finance needed" and that private investment would need to make up the majority.

Azerbaijan will host the COP29 summit between November 11 - 22 in Baku.

© 2024 AFP

Boeing to raise up to $25 bn as strike weighs on finances

New York (AFP) – US aircraft manufacturer Boeing unveiled measures meant to replenish its cash flow Tuesday, including an intention to raise up to $25 billion, as it navigates recurrent production problems and a major US strike.

Boeing has recently announced a series of belt-tightening measures and production delays © Jason Redmond / AFP


In a regulatory filing, the aviation giant indicated plans to raise the funds by selling stock and debt.

It also earlier announced that it was in an agreement to obtain $10 billion in credit from multiple banks.

The moves come amid a machinist strike in the Seattle region which effectively shut down assembly plants for the 737 MAX and 777.

About 33,000 Boeing workers in the Pacific Northwest have been on strike for nearly a month in a fight focused on higher wages and improved retirement benefits.


Workers complain of more than a decade of near-flat wages during a period when inflation has risen.

Boeing staff with the International Association of Machinists and Aerospace Workers (IAM), walked off the job on September 13 after overwhelmingly rejecting a contract offer.

The direct financial impact of the first month of the strike cost Boeing more than $3 billion, according to Anderson Economic Group.
Stalled negotiations

The IAM said in a statement last week that it is "ready and willing to resume negotiations at any time."

But it added Monday: "While it is important to return to the table, the Union remains firm on securing an agreement that truly reflects the respect our members have earned and deserve."

Last week, Boeing said it planned to cut 10 percent of its workforce as it projected a large third-quarter loss in the wake of the labor action.

The cuts of 17,000 positions globally will include executives, managers and employees, according to Chief Executive Kelly Ortberg, who added that the company must "reset our workforce levels to align with our financial reality."

Details of the cuts are expected to come this week.

The work stoppage has only added to the company's litany of problems.

As a result of the strike, Boeing has said it is pushing back first delivery of the 777X to 2026 from 2025. The much-delayed jet was originally supposed to enter service in January 2020.

Boeing sank into further turmoil in January when a panel blew out mid-flight on an Alaska Airlines plane, necessitating an emergency landing on a 737 MAX, the aircraft involved in two fatal crashes in 2018 and 2019.

That led to the Federal Aviation Administration tightening oversight of Boeing's production processes, capping the company's output. Production on the MAX is now halted due to the IAM strike.

© 2024 AFP

WHIPSAWING

Strike-hit Boeing leaves experts puzzled by strategy


By AFP
October 14, 2024


Despite contract negotiations that began in May and intensified in mid-September, the disagreement between Boeing and the IAM machinists' union persists, with relations appearing to be at an all-time low - 

Copyright GETTY IMAGES NORTH AMERICA/AFP/File STEPHEN BRASHEAR

Elodie MAZEIN

A historic round of cost-cutting measures at Boeing has left experts perplexed and wondering whether the aviation giant, plagued by a month-long strike, is sacrificing its future.

“I’m not sure I see the bigger plan here,” Richard Aboulafia, a consultant with AeroDynamic, told AFP.

“Getting rid of a lot of talent when there’s a serious aerospace talent shortage doesn’t seem like the smartest move,” he added.

The company announced a series of belt-tightening measures and production delays on Friday, as the strike of 33,000 workers has added to Boeing’s litany of problems.

Boeing staff with the International Association of Machinists (IAM) and Aerospace Workers walked off the job on September 13 after overwhelmingly rejecting a contract offer.

Boeing plans to reduce its workforce by around 10 percent over the next few months. It employed almost 171,000 people by the end of 2023, including 41,000 outside the United States.

“There may be some fat, but the idea that there’s 10 percent fat, I can’t imagine in what universe that could be true,” said Aboulafia.

According to analysts at TD Cowen, the group is carrying out a “strategic reset” to raise capital and fill its coffers by as much as $10 billion, in the absence of aircraft deliveries.

Boeing has been struggling after the crashes of 2018 and 2019 (346 deaths in total) and the Covid-19 pandemic. The company’s cash position is rapidly diminishing as the strike continues.

Despite negotiations that began in May and intensified since mid-September, the disagreement between the IAM machinists’ union and Boeing persists, with relations appearing to be at an all-time low.

Boeing withdrew its latest offer after a third round of government-mediated talks last week and filed an accusation of unfair labor practice with the federal labor agency (NLRB), matching a similar move by the union in September.



– Need cash –



According to Melius Research, a fundraising effort would “strengthen Boeing’s negotiating position,” as it would remove the urgency of finding an agreement to restart production.

The direct financial impact of the first month of the strike reached $5 billion, including $3.26 billion for Boeing, according to Anderson Economic Group.

The remainder included losses on industry wages, suppliers, Boeing customers and the Seattle area beyond those directly hit by the strike.

Another option for recovering fresh cash is to sell off non-strategic assets, noted TD Cowen, which identified some $20 billion dollars in potential value.

Emirates airline boss Tim Clark told specialist website The Air Current, “Unless the company is able to raise funds… I see an imminent investment downgrade with a Chapter 11 (bankruptcy proceeding) looming on the horizon.”

Negotiations are stalling over pay raises – Boeing has gone from a 25 percent increase to 30 percent over four years, while the union is demanding 40 percent.

The union also wants the reinstatement of a pension scheme that was abolished in 2008, which is a nonstarter for Boeing.



– Siege mentality –



Melius Research suggested that the strike is not really a surprise, as it is “a symptom of a bigger problem.”

Workers feel they have made many sacrifices for Boeing over the past 20 years.

Meanwhile, between 2010 and 2019, the group paid out $68 billion to shareholders in dividends and share buybacks.

Boeing also announced $5 billion in pre-tax charges in the third quarter — to be published on October 23 — partly due to the strike, as well as the halt in production of the 767 Freighter.

The union insisted that “Machinists did not cause” the job cuts or the halt to the 767 program, stating that the walkout was “a direct outcome of poor decision-making by Boeing’s executives.”

For its part, Boeing said: “We really want to reach an agreement that offers our employees better pay and market-leading benefits,” accusing the IAM of making “misleading” statements.

Both sides are “preparing for a siege,” said consultant Aboulafia.

K-pop star tells South Korea lawmakers of workplace bullying

Agence France-Presse
October 15, 2024 

K-pop star Hanni testified that she overheard a manager of another idol group linked to her parent agency instructing members of another girl group to spurn her (KIM Min-Hee/AFP

A member of chart-topping K-pop group NewJeans tearfully testified to South Korean lawmakers Tuesday as part of an enquiry into workplace harassment, amid a boardroom drama over her super producer.

In recent years, South Korea's K-pop industry has become a global juggernaut powered by the success of groups like BTS, but domestically it is known for imposing strict standards and controls on fledgling stars.

Rising K-pop idols are expected to adhere to their powerful agency's behavior and appearance guidelines, with many stars describing receiving extreme backlash from fans over perceived mistakes in their personal lives, for example dating.

Hanni, 20, who is Vietnamese-Australian, testified that she overheard a manager of another idol group linked to her parent agency instructing members of another girl group to spurn her.

"I saw a manager along with three members from another group and said hello... When the manager saw me, she told the members to 'ignore her as if you didn't see her,'" she told lawmakers.

"I could not understand why I had to go through this."

The alleged event took place amid a dispute between NewJeans' producer and mastermind, Min Hee-jin, and HYBE, the South Korean agency that manages BTS, after HYBE filed a legal complaint against Min for breach of trust in business.

Min, who headed the HYBE subsidiary ADOR which manages NewJeans, was replaced as ADOR's president in August amid the boardroom conflict.

During the livestream in which Hanni had raised the harassment claim, all NewJeans' members demanded that Min be reinstated as ADOR's CEO.

Multiple court cases on the issue are ongoing.

- Unfair treatment -

Hanni acknowledged that the ongoing dispute between the parent company and Min was related to the bullying she had experienced.


"It couldn't have been unrelated. But they didn't need to bring that issue into the workplace," she said.

"I felt I couldn't just sit idly by while such behaviour continued to repeat," she added, noting NewJeans members had been subjected to other unfair treatment by HYBE, such as discrediting their performance in Japan.

ADOR CEO Kim Ju-young, who succeeded Min, told lawmakers that while she personally believed Hanni's account, no CCTV evidence was available to support it.


Hanni's testimony was given to South Korean lawmakers who serve on the parliamentary committee overseeing workplace conditions and safety, which is not an investigative body.

ADOR's Min, who joined the industry in the early 2000s, is widely regarded as one of the most successful producers in the K-pop scene, having worked with stars such as Girls' Generation, EXO and SHINee, among others.

NewJeans, produced by Min, is among HYBE's most successful K-pop groups, alongside BTS, which is currently on a hiatus as some members perform South Korea's mandatory military service.


BTS member J Hope is scheduled to finish his military service this Thursday.

"I am grateful for the attention people have shown to this issue. I hope my fellow colleagues and (K-pop) trainees won't have to experience such concerns," Hanni said tearfully in her closing remarks.

EMOTIONAL PLAGUE

'Lethal syndrome': Epidemiologist says MAGA 'disease' causes Trump followers' violence

Matthew Chapman

RAW STORY
October 15, 2024 

Supporters of Republican presidential nominee and former U.S. president Donald Trump raise MAGA hats, on the day Trump returns for a rally at the site of the July assassination attempt against him, in Butler, Pennsylvania, U.S., October 5, 2024. REUTERS/Brian Snyder

Former President Donald Trump's movement should be considered a contagious disease with a primary symptom of violence, an epidemiologist argued Tuesday.

Dr. Gary Slutkin, who says his work abroad gave him 15 years' experience dealing with dictatorships, compared Trump's MAGA movement to a pathological phenomenon in conversation with Salon's Chauncey DeVega.

"In these countries, you can’t speak or act freely and don’t want to live there," Slutkin said. "Life is fear. People fear the government, their neighbors and even their family and friends. Businesses and the press can be taken away. People become suddenly imprisoned or disappear."

Slutkin argued the same kind of "epidemic" fear and hate that keeps people in line under such regimes has built the MAGA movement.

"I understand MAGA as an epidemic disease, infecting many through what I call 'brain flaws,'" he said. "There are brain pathways for copying and following others — in the cortex, dopamine system, and pain centers, to motivate conformity and violence ... Violence is a disease, and specifically, a contagious disease. The disease spreads through these brain processes."

In essence, Slutkin believes Trump's movement "is a dangerous and lethal syndrome of what I describe as 'Authoritarian Violence Disorder.'"

Under this interpretation, Trump is a "massive superspreader" using "streams of lies" to reprogram people's brains into a pathological state, causing them to "abandon their own decision-making and obey," the epidemiologist argued.

An Election Day victory for Vice President Kamala Harris could help contain the disease and allow the nation to heal, Slutkin argued — but the disease could worsen should Trump win.

"There will be more state violence, violence from private militia groups and other violence including mass deportations and promised detention or concentration camps," he argued.