China has become the first nation to outlaw the Tesla-style concealed door handle. Demanded by Elon Musk against the safety concerns of his own engineers, the handle and its electronic opening mechanism have been implicated in multiple fatal incidents where trapped passengers couldnt open their doors from the inside, and emergency rescuers could not access from the outside.The Chinese Ministry of Industry and Information Technology issued new safety rules, mandating all cars sold in the country must feature a mechanical release accessible from both the inside and outside. The new lawwhich takes effect on January 1, 2027kills the flush, electronic handles that have increasingly become the norm in the electric vehicle market.An animation demonstrating the use of the exterior handles in a Tesla model 3, taken from the user guide. [Image: Tesla]This regulation marks a critical turning point in the automotive industry, perhaps signaling that the era of prioritizing sleek aesthetics over basic human survival is finally ending for good. While regulators in the United States and Europe are still investigating the hazards of electronic latches, it may be Beijings massive market leverage that forces a return to traditional, safer mechanical controls. A detail showing interior electronic door release button in a Tesla model 3, taken from the user guide. [Image: Tesla]It is a necessary correction to a broader trend of manufacturers replacing reliable physical hardware with cheap electronic substitutes and touch interfacesa design choice that can lead to distracted driving and accidents. According to the state newspaper China Daily, 60% of China’s top 100 selling EVs have these doors, from the popular Xiaomis SU7 to Teslas Model Y and Model 3 (the vehicles that popularized the feature). Anticipating the regulatory crackdown, some major players like Geely and BYD had already begun pivoting back to traditional mechanical handles on new and incoming models. The door of a Tesla Model S, 2025. [Photo: David Paul Morris/Bloomberg/Getty Images]New rules to stop a growing problemUnder the new Chinese rules, automakers must meet precise manufacturing specifications that ensure a human hand can always open a car door. The regulations dictate that the door’s exterior must have a recessed space measuring at least 2.4 inches by 0.8 inches to allow for a firm manual grip. The interior must also feature clear signage, no smaller than 0.4 inches by 0.3 inches, indicating exactly how to operate the emergency release. While the primary ban starts in 2027, models currently in the final stages of approval have been granted a grace period until January 2029 to retool their assembly lines.The mandate arrives after a series of tragedies exposed the lethal flaw of relying on electronic controls to open a door. The popular Xiaomi SU7 electric sedan was involved in two separate fatal crashes in Chinaone in March and another in Octoberwhere power failures reportedly prevented the doors from unlocking, trapping victims in fires. A Xiaomi SU7 interior, 2025. [Photo: FOTO/Future Publishing/Getty Images]The incidents mirror the deaths of four friends in Toronto last October, who perished inside a burning Tesla Model Y after its electronic opening mechanism failed, leaving a single survivor who only escaped because a bystander smashed the window with a metal bar. A December 2025 Bloomberg investigation uncovered that at least 15 people have died in a dozen U.S. crashes over the past decade specifically because Tesla doors wouldn’t open. More than half of those deaths occurred since November 2024, indicating a worsening crisis as these vehicles proliferate and age. For years, manufacturers have justified these mechanisms with claims of improved aerodynamics and range efficiency. Technical studies cited by Chinese media reveal that hidden handles improve a vehicle’s drag coefficient by a negligible 0.005 to 0.01, a figure so small it has virtually no impact on real-world driving. Wei Jianjun, chairman of the Chinese car group Great Wall Motor, has publicly slammed the design as being “detached from users’ needs,” noting that it fails to lower power consumption while introducing severe risks like freezing shut in cold weather or pinching fingers.Back to basicsWe can only hope that this norm to reclaim door reliability and safety turns into a more vigorous push for physical controls everywhere in the car, worldwide. While the European New Car Assessment Program announced that starting in 2026, vehicles will be penalized with a lower safety score if they lock essential functions behind touchscreens, that doesnt have the legally binding power that Beijing has imposed on one of its most powerful industries.For now, China’s decision effectively locks in a new global standard. As Bill Russo of the consultancy Automobility told Bloomberg, China is shifting from being a mere consumer market to a rule-setter for vehicle technology. This may work in a way similar to the European Union banning Apples Lightning Port and other non-standard phone ports in favor of USB-C, forcing a design change worldwide.These markets are too large to ignore for international giants. Hopefully the EU and U.S. will follow Chinas lead. Better yet, they could one-up China and mandate physical controls everywhere in the car, leading to vehicles with doors that open properly and radios with volume knobs. What a concept.
Finally, some good news: the Tiny Chef, who captured the hearts of internet users around the world this summer, when his Nickelodeon show was cancelled, will finally grace our screens again. This time, hes making Swedish meatballs.
The Tiny Chef Show was a Nickelodeon series that aired from September 2022 to March 2025. In it, the Tiny Chef (a stop-motion creature vaguely resembling a sentient pea) made plant-based meals for his friends from his home inside a tree stump. But in June, 2025, the Tiny Chef took to his YouTube channel to announce in a heartwrenching video that his series had been canceled unexpectedly by Nickelodeon. It now has nearly two million views and 8,000 comments, nearly all of which are expressing an outpouring of support for Cheffy.
Months later, Tiny Chefs ardent supporters wishes have been answered: According to a press release, hes teaming up with Ikea for a three-episode series, the first of which is out now. Its a welcome job success story to kick off 2026.
Tiny Chef’s return (with Ikea)
In the months since Tiny Chef was cut off by Nickolodeon, hes struck out on his own. Series creators Rachel Larsen and Ozlem Akturk have kept the character alive on socials, where he posts recycled clips frequently, and via a website where theyre currently crowdsourcing to keep Cheffy afloat in some capacity.
In a November article for the Los Angeles Times, Larsen and Akturk said theyd raised $130,000 in one-time donations and launched a new fan club, merch, and brand partnership wing to maintain their 20-person team. That work has clearly paid off through this new partnership with Ikea, which will introduce the character to a new audience and potentially set the stage for future collaborations.
Per the press release, the three-episode miniseries will begin with the Tiny Chef visiting an IKEA store in search of a spatula, only to find a job application. He will then become an ambassador for Ikeas new falafel balls (a vegan dish made from chickpeas, which Ikea recently added to its iconic meatball line-up) and join the brands restaurant team.
We are excited to partner with Tiny Chef, showing people that plant-based eating should be joyful, creative, and full of flavour, not just better for the planet, Lorena Lourido Gomez, Ikea Retails global food manager, said in a press release. We believe this partnership will bring a smile, while inspiring people to try something new.”
In the wake of a year full of job market uncertainty and endless layoff news, the Tiny Chefs positive work update is the win we all needed.
The Trump administration plans to deploy nearly $12 billion to create a strategic reserve of rare earth elements, a stockpile that could counter China’s ability to use its dominance of these hard to process metals as leverage in trade talks.
The White House confirmed on Monday the start of Project Vault, which would initially be funded by a $10 billion loan from the U.S. Export-Import Bank and nearly $1.67 billion in private capital. The minerals kept in the reserve would help to shield the manufacturers of autos, electronics, and other goods from any supply chain disruptions.
During trade talks last year, spurred by President Donald Trump’s tariffs, the Chinese government restricted the exporting of rare earths that are needed for jet engines, radar systems, electric vehicles, laptops, and phones.
China represents about 70% of the worlds rare earths mining and 90% of global rare earths processing. That gave it a chokehold on the sector that has caused the U.S. to nurture alternative sources of the elements, creating a stockpile similar to the national reserve for petroleum.
The strategic reserve is expected to be the highlight of a ministerial meeting on critical minerals that Secretary of State Marco Rubio will host at the State Department on Wednesday, according to a U.S. official who spoke on the condition of anonymity because details of the event have yet to be released.
Vice President JD Vance plans to deliver a keynote address at the meeting, which officials from several dozen European, African, and Asian nations plan to attend. The meeting is also expected to include the signing of several bilateral agreements to improve and coordinate supply chain logistics.
The government-backed loan funding the reserve would be for a period of 15 years. The U.S. government has previously taken stakes in the rare earths miner MP Materials, as well as providing financial backing to the companies Vulcan Elements and USA Rare Earth.
Bloomberg News was the first to report the creation of the rare earths strategic reserve.
Trump is scheduled on Monday to meet with General Motors CEO Mary Barra and mining industry billionaire Robert Friedland.
Josh Boak and Matthew Lee, Associated Press
President Donald Trump said Monday that he plans to lower tariffs on goods from India to 18%, from 25%, after Indian Prime Minister Narendra Modi agreed to stop buying Russian oil.
The move comes after months of Trump pressing India to cut its reliance on cheap Russian crude. India has taken advantage of slacked Russian oil prices as much of the world has sought to isolate Moscow for its February 2022 invasion of Ukraine.
Trump said that India would also start to reduce its import taxes on U.S. goods to zero and buy $500 billion worth of American products.
This will help END THE WAR in Ukraine, which is taking place right now, with thousands of people dying each and every week! Trump said in a Truth Social post announcing the tariff reduction on India.
Modi posted on X that he was delighted by the announced tariff reduction and that Trump’s leadership is vital for global peace, stability, and prosperity.
I look forward to working closely with him to take our partnership to unprecedented heights, Modi said.
Trump has long had a warm relationship with Modi, only to find it complicated recently by Russia’s war in Ukraine and trade disputes.
In June, he announced the United States would impose a 25% tariff on goods from India after his administration felt the country had done too little to narrow its trade surplus with the U.S. and open up its markets to American goods. In August, Trump imposed additional import taxes of 25% on Indian products because of its purchases of Russian oil, putting the combined rate increase at 50%.
Historically, Indias relationship with Russia revolves more around defense than energy. Russia provides only a small fraction of Indias oil but the majority of its military hardware.
But India, in the aftermath of the Russian invasion, used the moment to buy discounted Russian oil, allowing it to increase its energy supplies while Russia looked to cut deals to boost its beleaguered economy and keep paying for its brutal war.
The announced tariff reduction comes days after India and the European Union reached a free trade agreement that could affect as many as 2 billion people after nearly two decades of negotiations. That deal would enable free trade on almost all goods between the EUs 27 members and India, covering everything from textiles to medicines, and bringing down high import taxes for European wine and cars.
The deal between two of the worlds biggest markets came as Washington targets both the Asian powerhouse and the EU bloc with steep import tariffs, disrupting established trade flows and pushing major economies to seek alternate partnerships.
In recent months, India has accelerated a push to finalize several trade agreements. It signed a deal with Oman in December and concluded talks for a deal with New Zealand.
Trump seemed to hint at a positive call with Modi on Monday morning, posting to social media a picture of the two of them on a magazine cover.
When the pair met last February, the U.S. president said that India would start buying American oil and natural gas. But the talks faltered and the tariffs imposed last year by Trump did little to initially change India’s objections.
While the U.S. has been seeking greater market access and zero tariff on almost all its exports, India has expressed reservations on throwing open sectors such as agriculture and dairy, which employ a bulk of the countrys population for livelihood, Indian officials said.
The Census Bureau reported that the U.S. ran a $53.5 billion trade imbalance in goods with India during the first 11 months of last year, meaning it imported more than it exported.
At a population exceeding 1.4 billion people, India is the worlds most populous country and viewed by many government officials and business leaders as geopolitical and economic counterbalance to China.
Josh Boak, Aamer Madhani and Rajesh Roy, Associated Press
When President Donald Trump announced on social media February 1 that the John F. Kennedy Center for the Performing Arts in Washington D.C. would close for two years of “construction, revitalization, and complete rebuilding,” many observers were dismayed that the politicization of the center has gone this far.
Among them is famed architect Steven Holl whose firm Steven Holl Architects designed a $250 million expansion of the Kennedy Center called the REACH that opened less than seven years ago.
In an email to Fast Company, Holl expresses skepticism about the nature of Trump’s plan.
“The REACH Expansion of the Kennedy Center, which opened in 2019 under the direction of Deborah Rutter and David Rubenstein, is a much loved and needed facility for the practice of artists in all cultural activities. We hope they will allow it to remain open if they are closing the main building. As a living memorial to John F. Kennedy, the Kennedy Center was the soul of culture in Washington DC its manipulation today is absurd,” Holl writes.
Both Rutter, the former president of the Kennedy Center, and Rubenstein, its former board chair, were ousted from the organization in February 2025 by Trump, along with half of the board. His appointed replacements then elected him the new chair. In the months since, the Kennedy Center has become increasingly politicized. Trump had his own name added to the facade of the building. Meanwhile, a long line of artists have cancelled planned performances, audiences have shrunk, and notable officials have resigned.
Does the Kennedy Center need a renovation?
The two-year closure Trump proposes would be used to fix what he calls a “tired, broken, and dilapidated” facility.
In a 2025 dinner with his newly installed board, Trump bemoaned the conditions of the Kennedy Center, claiming the previous board misspent millions in funding. “They certainly didn’t spend it on wallpaper, carpet or painting,” he said at the time. Shortly after her ouster, Rutter countered these assertions, blaming any perceived shabbiness on a lack of federal support. “Due to the limited and decreased funding from the federal government, there is a backlog of maintenance that has been prioritized to mirror the appropriated funding,” she said in a statement to NPR.
Originally opened in 1971, the Kennedy Center is, like many half-century-old buildings, in need of regular maintenance. And as host to more than 2,200 performances and events per year, it is a heavily used facility. The REACH Expansion project, and Holl’s design, were intended to lessen the burden on the historic building by adding new rehearsal rooms, education areas, and performance spaces both inside and outside of the 72,000-square-foot, multi-pavilion complex. Natural light filters into the performance and practice rooms, and the sculptural forms of the pavilions turn them into backdrops for outdoor performances and events overlooking the Potomac River.
The project was seen as an investment in the future of the Kennedy Center, and a way to augment the existing facility while reducing the toll of its heavy use on the aging central building. “More and more, today’s audiences crave connectionwith art and with each otherwhile artists and arts organizations desire customized spaces that nurture their creative endeavors. The REACH will fulfill many of those needs, all within a one-of-a-kind design that is a work of art in and of itself,” Rutter said at the time of its opening.
Under Trump’s plan, the Kennedy Center would close on July 4. No detailed plans have yet been announced, and the White House did not respond to a request for additional information, so the extent of this proposed closure and reconstruction is unclear. Whether it would affect Holl’s still-new addition remains to be seen.
Its fair to say that Minneapolis-based Target is going through a rough patch as a result of declining sales and customers. After facing boycotts, tariffs, and a massive surge of federal U.S. Immigration and Customs Enforcement (ICE) operations in its hometown, Target, long overdue for a big change, made one this weekendappointing a new CEO.
Michael Fiddelke, who began his career at Target more than two decades ago, officially took over as chief executive officer on Sunday. He was previously Targets chief operating officer and its former chief financial officer. (Last summer, the retailer announced he’d be succeeding longtime CEO Brian Cornell.)
“While we have real work to do, we are clear on who we are, our unique place in retail and in the hearts of our guests,” Fiddelke said in a statement on Monday, acknowledging the long road ahead. We are equally clear on the opportunity in front of us . . . its what grounds the important work in front of us now.”
Target CEO Michael Fiddelke [Photo: Target]
Fiddelke said he’ll focus on four priorities: “bringing together design, style and value”; making store visits and digital interaction “easier and more welcoming”; “accelerating technology” to remove friction and to create a more personalized experience; and “strengthening the team by building future-ready skills” alongside the communities they serve.
Shares of Target (NYSE: TGT) were up over 3% in midday trading Monday at $108.75, at the time of this writing.
Target financials
Target Corp. reported third-quarter earnings results of $25.27 billion in revenue, just short of analyst expectations of $25.32 billion, and adjusted earnings per share (EPS) of $1.78, beating expectations of $1.72.
Its sales have been roughly stagnant for four years due to a number of factors, including higher inflation, changing consumer habits, concern about the economy, and boycotts triggered by its rollback on diversity, equity, and inclusion (DEI) policies.
William Mays home in Pacific Palisades was destroyed in the L.A. wildfires in January 2025. Hes still haunted by the memory of the fireball burning everything in its path on that hellish day. And all he wants to do is rebuild his beautiful home, where the retired pediatrician lived with his wife.
Since then, hes been fighting with State Farm, his property insurer, to get the money he said he needs to rebuild his home. Back in 2017, when he bought the two-story home, he said it was valued at $1.7 million. But the insurer gave him an estimate of only $1.35 million after the fire, and May said hes driven himself into debt trying to rebuild the couples home while they wait for State Farm to reassess their claim. Property values in the neighborhood have increased 50% from $2.1 million on average in December 2017 to $3.076 million in December 2025, according to Zillows Home Values Index.
How can it be worth less now than it was when it was new?
May blames State Farms use of an AI-powered software called Xactimate, which the insurer employs to estimate property repair, rebuilding, and cleaning costs. They use this reductive method. Its a phony way of calculating every screw, every bolt, and coming up with a profit for State Farm by undervaluing the house.
May considers himself lucky, since he has the resources to rebuild, noting that many of his neighbors cant afford to do that and face similar problems with their insurers. He also blames Verisk, the data analytics company that makes Xactimate.
Im pretty sure these companies make these programs just to sell to insurance companies so that they can lowball people because the insurers are interested in squeezing people for profit, he said.
A spokesperson for State Farm told Capital & Main: State Farm remains committed to helping our customers throughout the entire recovery process and paying them all benefits available under their policies. So far, weve issued over $5 billion in payments to families whose homes, cars, and property were damaged or destroyed in the fires. We encourage any customer with questions or concerns to reach out to us.
A spokesperson for Verisk said that Xactimates AI capabilities support tasks such as summarizing information or labeling photos and always operate under human review and control. She added that Xactimate does not generate repair costs using AI, and AI does not determine the price of materials, labor or reconstruction. Xactwares construction cost database is market-based, transparent and rooted in human-validated data. It is intended as a flexible benchmark that users can adjust for specific jobs and local conditions.
State Farm, along with other major property insurers, is increasingly turning to artificial intelligence to increase efficiency and improve risk modeling. The insurer posted a net income of $5.3 billion in 2024, a turnaround from a $6.3 billion loss in 2023. In late 2024, the companys former vice president of innovation and venture capital, Haden Kirkpatrick, said in an interview that AI and other emerging technologies will help the industry better predict and prevent losses.
As the insurance industry grapples with the climate crisis more extreme weather events destroying homes, leading to greater losses and skyrocketing premiums AI has been touted as a game-changing asset. By analyzing vast datasets, the technology has the potential to predict and manage risk more accurately, improving underwriting efficiency and even enabling insurers to offer coverage in areas that otherwise would be considered uninsurable due to climate volatility.
Yet AIs performance in recent years has been criticized for inaccurate predictions when it comes to climate change, algorithmic bias, privacy concerns, lack of transparency, and incorrect outputs such as hallucinations. Industry watchdogs have raised concerns that insurers could rely on the technology to make quick decisions in the name of cost efficiency with complicated claims that require human analysis.
From California to Alabama to Illinois, policyholders and prosecutors have filed lawsuits claiming that property insurers use of AI has allowed them to underpay claims, discriminate against nonwhite customers, and drop coverage altogether. The class-action suits have focused on whats called AI-washing when the technology is misapplied to manage risk in a way that hurts policyholders.
In the wake of complaints by homeowners like May, Los Angeles County recently announced a probe into State Farms use of AI tools that allegedly delayed or denied claims. The countys counsel sent a letter to the insurer in November seeking documents related to the L.A. wildfires: Any and all documents, including but not limited to memoranda, bulletins, manuals, training materials, policy statements, guidelines, or directives that reflect, describe, or constitute State Farms use of Artificial Intelligence (AI) tools in the claims review process.
State Farm announced in March 2024 that it would not renew about 72,000 California property insurance policies through 2025, citing wildfire risks and associated costs.
The insurer said in an online update on its California recovery response: Recovery, following a catastrophe, doesnt move in a straight line. It added that many families are engaged in the process of rebuilding and recovering from the devastation and that many families continue to navigate through parts of the claims process, with State Farm trying to address the needs of their unique circumstances.
The insurance industry touts AI as a tool to help it with risk modeling as climate change increases in severity. Its also optimistic that the technology will help it curb losses and improve its bottom line. In a policy paper by Bain & Co., consultants said they anticipate that generative AI will lead to a 30% to 50% decrease in total leakage the difference between what is paid vs. what is owed per the contract, which occurs when adjusters deviate from policy guidelines or when supply chain problems cause unanticipatedcosts.
In a recent white paper by CAPE Analytics, which specializes in AI-powered property risk intelligence it sells to insurers, the company noted several reasons why the technology is needed to sift through a mountain of contradictory data, and noted that it can help insurers avoid providing too much coverage at low rates. Without AI, The consequences of operating with raw data or drawing the wrong conclusions from it can lead to excessive exposure when quotes are too low and premium loss when theyre unnecessarily high.
To insurance professionals and advocates for policyholders, that raises concerns that insurers will rely on the technology to make hasty decisions in often-complicated claims processes.
For example, there is the potential for AI systems to make decisions based on incomplete or biased data, leading to unfair treatment of policyholders, noted Chip Merlin, a Florida lawyer who has represented policyholders.
He cited a 2022 class-action suit brought by homeowners in Illinois who claimed that State Farms use of algorithms in its claims-processing methods disproportionately impacts Black policyholders, causing delays in repairs and the payment of benefits. The case is pending, and the insurer insists that its practices do not violate federal law.
The biggest factors impacting the affordability and availability of insurance are climate change and technology like AI, said Amy Bach, the executive director of United Policyholders, an advocacy group.
Now theyre no longer willing to insure many people, and a lot of that is because of data and the use of AI in predictive analytics, as well as aerial surveillance. When people ask me, What benefits are consumers getting from AI? Im like, in the insurance context, none.
Monica Palmeira, associate director of economic equity at the nonprofit Greenling Institute, said that AI could be used to increase bluelining a modern version of redlining, describing a practice in which financial institutions and insurers withdraw from poor neighborhoods or dramatically hike rates in areas considered high risk for climate change.
When Palmeira and her colleagues started studying communities considered vulnerable to climate impacts, We saw this pattern of the same communities that were excluded from financial services in the past continue to come up for exclusion today.
Insurance, she said, is one of the first ways that communities experience that withdrawal of financial services and now its starting to be whole areas that cant get insurance and that means they cant get mortgages. So this contagion starts to happen.
To address such concerns, states are taking action to protect consumers. One of the common themes of such measures is greater transparency requiring that consumers be informed when AI is used in decision making, that companies maintain guidelines for the responsible use of AI, and make their policies and procedures for the use of AI publicly accessible. Those requirements are included in a guidance from the National Association of Insurance Commissioners, which provides a framework for the responsible use of AI.
At the same time, some lawmakers are pushing for human review in decision making by insurers. State Rep. Hillary Cassel, a Florida lawmaker, recently sponsored legislation that seeks to ensure humans make the ultimate decisions when it comes to insurance claims.
I think insurance companies should be allowed to use AI as a tool because premiums are very high across the country, especially here in Florida, and if insurance companies can use it to aggregate their resources and pass that savings on to consumers by using those types of tools, she told Capital & Main. But we also know that AI can be used for nefarious reasons, and I thought it was really important that in the space of dealing with denials that computers dont always get it right.
The state-level action gives hope to Palmeira that consumers will start to see the level of review and transparency that they really deserve. She noted that the National Association of Insurance Commissioners experienced protests by consumers at a meeting, shortly before it announced its guidance on AI. The way the insurance industry has been able to exert its power over insurance regulation has been so dominant for so long that were finally maybe starting to see a small shift in the tide.
Palmeira acknowledged that climate change might make certain parts of the country uninsurable and that AI can be utilized in beneficial ways by insurers to improve their risk modeling and predictive analytics.
But it shouldnt be black box models without a human check on their decisions or without working with communities to make informed decisions about their livelihoods and wellbeing.
One potential tool is parametric insurance which utilizes data such as satellite imagery, IoT (Internet of Things) sensors that detect changes in the environment and weather feeds to trigger automated payments to policyholders when specific weather conditions are met for a particular home. It can be a really useful tool to make sure folks have some kind of baseline coverage in a way that can be deployed very efficiently, Palmeira said.
In addition, she suggests more community-based measures such as a local government purchasing an insurance policy for an entire neighborhood or where there needs to be more sensitive and serious conversations about relocation in very defined areas.
Marcus Baram
Since 1920, the outdoor recreation brand Eddie Bauer has pioneered innovative apparel and sports gear designs for outdoorsmen in America.
Now, in another blow for physical retailers, sources say that all of the brands North American stores are on the chopping block amid an impending bankruptcy filing.
According to a person close to the matter, the company that owns the license to operate Eddie Bauer stores in both the U.S. and Canada, Catalyst Brands, is gearing up for a Chapter 11 bankruptcy filing that could potentially shutter all of the brands North American stores. The bankruptcy would be limited to the entity that operates the stores, the person said.
Catalyst Brands did not respond to Fast Companys request for comment.
Eddie Bauer operates 180 locations in the U.S and Canada and about 20 international locationsmeaning this filing could almost entirely eliminate the brands physical operations.
It would be the second bankruptcy to impact Eddie Bauer, which sought Chapter 11 protection in 2009 in the wake of the financial crisis.
The news comes as the so-called “retail apocalypse continues to slowly subsume brick-and-mortar stores of all specialties across the United States.
In 2025, store closures struck major retail chains like Macys, 7-Eleven, Walgreens, Party City, and Big Lots, and the internet grieved the final days of beloved brands like Joann and Claires.
And just this month, Saks Global announced the closure of most of its Saks Off 5th brand, while Francescas, another mall staple, began quietly shutting down its stores.
Which Eddie Bauer stores are closing?
Catalyst Brands, which also oversees operations for brands including Lucky Brand, Aéropostale, Nautica, Brooks Brothers, and JCPenney, has not yet announced details of its rumored Chapter 11 filing for Eddie Bauer or the specific stores that it intends to close.
Its likely that the move will encompass all of the brands North American locationshowever, sources say that there are several outside parties interested in purchasing at least part of the total fleet.
According to the publication WWD, which reported on the potential bankruptcy last week, the filing is expected to go through sometime in February.
In the absence of any official news from Catalyst, local media has been independently reporting on closures.
These include a 30-year-old location that closed its doors in Flagstaff, Arizona; a defunct mall spot in Amarillo, Texas; and a shuttered 20-year-old store in Naperville, Illinois, to name a few.
A full list of Eddie Bauers retail locations is still up on its website.
What does this mean for the Eddie Bauer brand?
The reported bankruptcy filing could spell the end of Eddie Bauers physical presence in the U.S., but it doesnt mean that the brand is going away entirely.
Eddie Bauers assets are technically controlled by three separate entities: Catalyst, which owns the license to operate stores in the U.S.; Authentic Brands Group, which owns Eddie Bauers global brand IP; and Outdoor 5, which recently acquired the licenses to Eddie Bauers manufacturing, e-commerce, and wholesale operations.
Thus, while Catalyst might shutter the brands North American stores, Outdoor 5 will continue to manage its digital sales and distribution channels to other retailers.
Eddie Bauer has been signaling a retreat from its brick-and-mortar business for years.
Back in 2023, when the brand ditched its cursive logo for a new sans serif mark, then-CEO Tim Bantle told Fast Company that wholesale retail and international distribution were two of his top priorities for the company.
Americans lived through the worst bout of inflation in about 40 years at the start of this decade, but the sting of higher prices differed significantly depending on where you live. Even though wages also rose during that period, residents of only nine states have actually come out ahead, according to a new study.
From 2020 to 2024, consumer prices for things like housing, groceries, energy, and everyday essentials climbed 21%, as measured by the consumer price index. During that same period, the average American workers pay rose 18%, from about $64,000 to $75,600, according to figures from the Bureau of Labor Statistics.
Those differences illustrate what many Americans have experienced: Inflation erased much of the apparent progress of wage increases, according to a recent analysis by MyPerfectResume, an online resume building site. In fact, the typical U.S. worker is now earning approximately 2.6% less in real termsafter adjusting for inflation and cost of livingthan in 2020, the study found.
The findings highlight a crucial truth: A high-paying job doesnt automatically mean a higher standard of living, Jasmine Escalera, a certified career coach who provides career advice for MyPerfect Resume, wrote in the report. The nation got a pay raise on paper, but a pay cut in reality.
Thats because inflation has erased years of progress and workers paychecks arent stretching so far, according to MyPerfectResume, which didnt immediately respond to an interview request from Fast Company.
And despite a recent claim by President Donal Trump that inflation has been defeated, economists expect it to tick up from a 2.7% annual rate in 2025. Inflation is forecasted to increase at an annual rate of 2.9% in 2026, according to the consensus forecast of about 50 professional economic forecasters surveyed by the Federal Reserve Bank of St. Louis.
WHERE WORKERS CAME OUT AHEAD
The sting of inflation hasnt been the same for all Americans. Residents in 40 states lost purchasing power from 2020 to 2024, while Utahns saw no change in their standard of living during that same period, MyPerfectResume found, based on an analysis of the changes in real earnings and purchasing power across all 50 U.S. states from 2020 through 2024.
But Americans in the following nine states, mostly concentrated in the West and South, saw their paychecks stretch farthest:
Idaho: +3.1%
Florida: +2.6%
Washington: +2.3%
Montana: +2.3%
Wyoming: +1.8%
South Carolina: +1.5%
North Carolina: +0.9%
Tennessee: +0.9%
Maine: +0.5%
Workers there actually came out ahead once inflation and local prices were taken into account, Escalera wrote.
WHERE WORKERS ARE FALLING BEHIND
Workers in the vast majority of states, however, are grappling with higher paychecks that feels like less money to spend on essentials.
The analysis pointed to particular pain for workers on the East Coast, where the decline in real purchasing power from 2020 to 2024 was worstled by New Jersey:
New Jersey: -7.0%
Rhode Island: -6.9%
Maryland: -5.4%
New York: -5.3%
Massachusetts: -5.3%
For workers in these states, nominal wage growth was insufficient to keep pace with inflation and high living costs, in some cases prompting workers to choose job security over career moves, Escalera wrote.
SIDE GIGS
To grapple with paychecks that buy less today than they did just a few years ago, many Americans rely on supplemental income or side gigs.
In fact, MyPerfectResume conducted a recent survey that found that 72% of American workers currently rely on at least one source of secondary income, with the majority citing inflation as making such side gigs more necessary.
What began as a stopgap during high inflation has transformed into a long-term financial strategy, shaping how Americans navigate rising costs, stagnant wages, and economic uncertainty, Escalera wrote in that report.
Wild swings that swept through financial markets overnight eased after Wall Street opened for trading on Monday. U.S. stocks rose modestly following gains in Europe and sharp drops in Asia, while gold and silver prices rallied back from severe earlier losses.
The S&P 500 added 0.5% and is on track to snap a three-day losing streak. The Dow Jones Industrial Average was up 317 points, or 0.6%, as of 10:15 a.m. ET, and the Nasdaq composite was 0.6% higher.
Stocks of companies that make computer storage helped lead the market, adding to gains from last week following several profit reports that topped analysts’ expectations. Airlines and cruise-ship operators were also strong, benefiting from a sharp easing of oil prices.
The center of the action in financial markets was again precious metals, where momentum suddenly halted after golds price roughly doubled in 12 months.
Gold briefly dropped below $4,500 per ounce in the overnight hours, down more than $1,000 from its high point reached just last week. It later pulled back to $4,742.80, down 0.1% from Friday.
Silvers price has been on an even wilder ride recently, and it swung from a 9% loss overnight to a 0.3% gain.
Gold and silver prices had earlier been surging as investors looked for safer things to own amid a wide range of worries, including a Federal Reserve that may be set to become less independent, a U.S. stock market that critics say is expensive, threats of tariffs, and heavy debt loads for governments worldwide.
Their prices cratered on Friday, including a 31.4% plunge for silver. Some on Wall Street saw it as a result of President Donald Trumps nomination of Kevin Warsh as the next chair of the Fed. Warshs reputation as a former Fed governor may have raised expectations among some investors that he may keep interest rates high to fight against inflation, which would reduce the need to hide out in gold and silver for protection.
But many on Wall Street are also skeptical of that initial reading and say the expectation from Trump is likely that Warsh will cut interest rates, something the president has been demanding. That could give the economy a boost, but also inflation.
The Fed chair has a big influence on the economy and markets worldwide by helping to dictate where the U.S. central bank moves interest rates. That affects prices for all kinds of investments, as the Fed tries to keep the U.S. job market humming without letting inflation get out of control.
The recent swoons for gold and silver are likely more about the washout for some traders who had borrowed money to bet on metals prices continuing to soar, rather than about a wholesale change in expectations for demand for metals, according to Darrell Cronk, chief investment officer for Wealth & Investment Management at Wells Fargo
On Wall Street, Sandisk leaped 11.4% to lead the S&P 500. The data-storage company added to its 6.9% gain from Friday, after it reported stronger profit for the latest quarter than analysts expected. It credited demand created by the artificial-intelligence boom, among other things.
That helped offset a 1.3% drop for Nvidia, whose chips are powering much of the worlds move into AI technology. The losses were worse in Asia, where AI winners plunged. South Koreas Kospi fell 5.3% from its record for its worst day in almost 10 months after chip company SK Hynix lost nearly 9%.
In the bond market, Treasury yields edged higher after a report said that U.S. manufacturing grew last month, when economists were expecting a contraction. The yield on the 10-year Treasury erased an earlier dip and rose to 4.27%, up from 4.26% late Friday.
Oil prices dropped more than 4% after Trump told reporters that Iran is seriously talking to us. Its a potential signal of improving relations between the two countries, which could prevent a possible disruption to the global flow of oil.
In stock markets abroad, European indexes rose nearly 1% following Asias washout. Japans Nikkei 225 fell 1.3%, while stocks fell 2.2% in Hong Kong and 2.5% in Shanghai.
By Stan Choe, AP business writer
AP Business Writers Matt Ott and Elaine Kurtenbach contributed.
