Jan 23, 2023
The Weekly Scan January 23, 2023
Find out what’s happening in the world of business this week
Welcome to the Weekly Scan. Here’s what we’re following for the week of January 23, 2023.
Hastings hits the road. Netflix’s founder Reed Hastings announced last week that he will be stepping down as co-CEO of the streaming business. Hastings’ current counterpart Ted Sarandos will stay on, and chief operating officer Greg Peters will take over Hastings’ role. Hastings has held the position of CEO since he started Netflix in 1997 and will now serve as executive chairman, where he plans to serve for “many more years to come.” The change in leadership came alongside its most recent earnings report.
Debt drama continues. As predicted by Treasury Secretary Janet Yellen, the U.S. hit the debt ceiling—$31.4 trillion—on Thursday, January 19. The Treasury will take “extraordinary measures” to prevent the U.S. from defaulting on its debt, according to Yellen. Those measures are set to protect the U.S. from defaulting until June 5, 2023. Yellen has called upon Congress to raise the debt ceiling, but Democrats and Republicans have already expressed an unwillingness to compromise. Things could become even more difficult as Republicans have control of the House of Representatives, while Democrats hold a majority in the Senate, and the executive branch.
Party pooper. Party City has filed for Chapter 11 bankruptcy, as the pandemic and changing consumer behaviors challenged the party supplier’s business. The chain of party stores made a deal with creditors that will support the company as it restructures. The creditors will also convert Party City’s debt to equity, and the company plans to exit bankruptcy in four months. Party City has attributed its woes to smaller gatherings due to the pandemic, lower consumer demand, supply chain issues, and inflation.
Something’s fishy. Sales of canned tuna are reportedly on the rise, thanks in part to TikTok. In 2022, sales of canned seafood increased by 9.7% to $2.7 billion as young people look for cheaper food options. The hashtag #tinnedfish, which has more than 25 million views on TikTok, is also reportedly driving demand to younger consumers. Canned fish makers like Wildfish Cannery and Bumble Bee Foods are investing in new marketing campaigns and increased output to meet demand.