WASHINGTON (AP) — A House Democratic lawmaker has become the first in the party to publicly call for President Joe Biden to step down as the party's nominee for president, citing Biden’s debate performance against Donald Trump failing to “effectively defend his many accomplishments.”
Rep. Lloyd Doggett of Texas said in a statement Tuesday that Biden should “make the painful and difficult decision to withdraw.”
“My decision to make these strong reservations public is not done lightly nor does it in any way diminish my respect for all that President Biden has achieved,” Doggett said. “Recognizing that, unlike Trump, President Biden’s first commitment has always been to our country, not himself, I am hopeful that he will make the painful and difficult decision to withdraw. I respectfully call on him to do so.”
Doggett, who represents an Austin-based district and is serving his 15th term in Congress, is the first sitting lawmaker in his party to publicly state what many have been privately whispering behind closed doors since last week’s debate. Biden’s weak performance caused immediate panic among even his most ardent supporters, leading many to question whether the 81-year-old career politician is the strongest Democratic candidate to take on Trump, the presumptive Republican presidential nominee, in November.
“I represent the heart of a congressional district once represented by Lyndon Johnson,” Doggett, who is the No. 2 Democrat on the powerful House Ways and Means Committee, continued. “Under very different circumstances, he made the painful decision to withdraw. President Biden should do the same.”
Biden himself conceded the debate didn't go well for him, but he insisted he was ready to fight for a second term as president. White House press secretary Karine Jean-Pierre, asked Tuesday about growing concerns among Democrats, said they respect the opinions and thoughts of concerned party members, adding, “that’s what makes this party different than the other side.” As for Doggett, she said: “He’s going to have his thoughts. That’s for him to speak to.”
Beyond the White House, control of both chambers of Congress is also hanging in the balance in November, and Democrats find themselves defending far more Senate seats than Republicans. The Democrats hold the Senate with a slim 51-49 majority, while Republicans control the House by only a handful of seats.
Doggett's explosive statement came minutes after former House Speaker Nancy Pelosi, D-Calif., told MSNBC that she believes "it is a legitimate question" whether Biden's halting performance is just “an episode or is this a condition.”
“When people ask that question, it’s legitimate -- of both candidates,” Pelosi said.
Pelosi said she had not spoken with Biden since the debate, but she emphasized that the president is on “top of his game, in terms of knowing the issues and what is at stake.”
It all amounts to a stunning and swift turn of events for Biden, his campaign and his allies on Capitol Hill, who have spent the better part of the last several years combatting criticism about the president's fitness and defending his ability to serve another four-year term, at the end of which he would be 86 years old.
But Biden's shaky performance during the debate with Trump has shaken Democratic support to its foundations, with members of the party at all levels entertaining the possibility that he can no longer be the nominee.
Rep. Jamie Raskin, the top Democrat on the House Oversight Committee and an influential voice in the caucus, over the weekend, broached the possibility of Biden stepping aside ahead of the Democratic convention in August.
“So whether he’s the candidate or someone else is the candidate, he is going to be the keynote speaker at our convention,” Raskin told MSNBC about Biden. “He will be the figure that we rally around to move forward.”
Other elected Democrats said they were caught off guard by Biden's rambling and raspy performance. Sen. Sheldon Whitehouse, of Rhode Island, said that he has known Biden for years and served in the Senate with him, but had “never seen that happen before.”
“I think people want to make sure that this is a campaign that’s ready to go and win, that the president and his team are being candid with us about his condition — that this was a real anomaly and not just the way he is these days,” Whitehouse told WPRI on Monday.
And then there is a faction of the Democratic party who are deeply disappointed by Biden's performance, but point to the political reality that less than two months from the Democratic National Convention and four months from election day, the path to an alternative candidate is rocky and uncertain.
Sen. Bernie Sanders, Biden's one-time Democratic opponent, told The Associated Press in an interview Tuesday that while he's not confident the president can win in November, he doesn't want him to step aside, considering what the party views as the greatest threat to Democracy in Trump.
“A presidential election is not a Grammy Award contest for the best singer or entertainer. It’s about who has the best policies that impact our lives,” Sanders said. “I’m going to do everything I can to see that Biden gets reelected.”
Associated Press writers Kevin Freking and Stephen Groves in Washington and Steve Peoples in New York contributed to this report.
Sen. Bernie Sanders, I-Vt., speaks to reporters about his support for New York Democrat Rep. Jamaal Bowman in a contested primary next week and the influence of big money SuperPACs, at the Capitol in Washington, Thursday, June 20, 2024. (AP Photo/J. Scott Applewhite)
President Joe Biden listens during a visit to the D.C. Emergency Operations Center, Tuesday, July 2, 2024, in Washington. (AP Photo/Evan Vucci)
President Joe Biden speaks during a visit to the D.C. Emergency Operations Center, Tuesday, July 2, 2024, in Washington. (AP Photo/Evan Vucci)
FI"LE - Rep. Lloyd Doggett, D-Texas, listens during a news conference on Capitol Hill in Washington, June 16, 2015. Doggett has become the first in the party to publicly call for President Joe Biden to step down as the Democratic nominee for president, citing Biden's debate performance failing to "effectively defend his many accomplishments." (AP Photo/Lauren Victoria Burke, File)
NEW YORK (AP) — The parent company of Saks Fifth Avenue has signed a deal to buy upscale rival Neiman Marcus Group, which owns Neiman Marcus and Bergdorf Goodman stores, for $2.65 billion, with online behemoth Amazon holding a minority stake.
The new entity will be called Saks Global, creating a luxury powerhouse at a time when the arena has become increasingly fragmented with different players, from online marketplaces that sell luxury goods to upscale fashion and accessories brands opening up their own stores.
The new organization will comprise the Saks Fifth Avenue and Saks OFF 5TH brands, Neiman Marcus and Bergdorf Goodman, as well as the real estate assets of Neiman Marcus Group and HBC, a holding company that purchased Saks in 2013.
The stores will continue to operate under their own brand names.
HBC has secured $1.15 billion in financing from investment funds and accounts managed by affiliates of Apollo, and a $2 billion fully committed revolving asset based loan facility from Bank of America, which is the lead underwriter, Citigroup, Morgan Stanley, RBC Capital Markets, and Wells Fargo.
The deal, announced Thursday, comes after the two department store chains had been negotiating a deal for about a year. But the twist is Amazon’s minority stake, which adds “a bit of spice” to an otherwise anticipated pact, according to Neil Saunders, managing director of GlobalData, a research firm. Amazon will be working with Saks Global to offer its expertise in logistics and personalization technology. Salesforce, a cloud-based software powerhouse, will also become an investor at closing.
The Wall Street Journal first reported the impending deal Wednesday.
“For years, many in the industry have anticipated this transaction and the benefits it would drive for customers, partners and employees," said Richard Baker, HBC executive chairman and CEO in a statement. “This is an exciting time in luxury retail, with technological advancements creating new opportunities to redefine the customer experience, and we look forward to unlocking significant value for our customers, brand partners and employees."
Marc Metrick, who is CEO of Saks' e-commerce business, will become CEO of Saks Global. He told The Associated Press on Thursday during a phone interview that consumers are increasingly demanding more access to designer product, easier ways to shop and more personalized experiences.
“This type of combination was the next move to make in order to put Saks, Neiman Marcus and Bergdorf Goodman where they need to be for the consumer, ” he said.
Both Saks and Neiman Marcus have struggled as shoppers have been pulling back on buying high-end goods and shifting their spending toward experiences, like travel and upscale restaurants. The two iconic luxury purveyors have also faced stiffer competition from luxury brands, which are increasingly opening their own stores.
The deal should help reduce operating costs and create more negotiating power with vendors. The new entity will also give shoppers better access to more designers, particularly up-and-coming ones as it will have more financial flexibility. Shoppers will also see their experiences more personalized through improved use of artificial intelligence, Metrick said.
Saks Fifth Avenue currently operates 39 stores in the U.S., including its Manhattan flagship. In early 2021, Saks spun off its website into a separate company, with the hopes of expanding that business at a time when more people were shopping online.
Neiman Marcus filed for bankruptcy protection in May 2020 during the first months of the coronavirus pandemic but emerged in September of that year. Like many of its peers, the privately held department store chain was forced to temporarily close its stores for several months.
Meanwhile, other department stores are under pressure to keep increasing sales.
Storied Lord & Taylor announced in late August 2020 it was closing all its stores after filing for bankruptcy earlier that month. It's operating online. Macy’s announced in February of this year that it will close 150 unproductive namesake stores over the next three years including 50 by year-end.
Consumers have proven resilient and willing to shop even after a bout of inflation, though behaviors have shifted, with some Americans trading down to lower-priced goods.
A deal between the two luxury retailers does not resolve all the issues, especially when high-end shoppers are looking to buy luxury goods online or at luxury brands' own stores, Saunders said.
“As a larger entity, negotiating power will be a little better with the brands, but even a combined chain would not match the heft and power of the global luxury conglomerates, which would still hold most of the cards,” Saunders said. “As such, there is a risk that the deal might end up creating an even bigger headache for Saks.”
Saunders noted that Amazon's stake in the business makes sense, as it has ambitions to play more heavily in the luxury arena. Saunders said Amazon could use its ability to streamline logistics and e-commerce and create an advantage for the new entity in a market where online shopping has become more important to shoppers — especially younger ones, which both chains need to do more to attract, he said.
Saks Global will also include HBC’s U.S. real estate assets and Neiman Marcus Group’s real estate assets, creating a $7 billion portfolio of retail real estate assets in top-tier luxury shopping destinations. Ian Putnam, currently president and CEO of HBC Properties and Investments, will become CEO of Saks Global Properties and Investments, which will manage the company’s portfolio of assets.
Both Metrick and Putnam will report to Baker, who will serve as executive chairman of Saks Global.
FILE - Shoppers walk into the Neiman Marcus retail department store at NorthPark shopping center in Dallas, March 30, 2023. The parent company of Saks Fifth Avenue has signed a deal to buy upscale rival Neiman Marcus for $2.65 billion. The buyout was announced Thursday, July 4, 2024, after months of rumors that the department store chains had been negotiating a deal. (AP Photo/LM Otero, File)
FILE — A Saks & Company doorman opens the 50th Street store entrance for customers, in New York, May 21, 1996. The parent company of Saks Fifth Avenue has signed a deal to buy upscale rival Neiman Marcus for $2.65 billion. The buyout was announced Thursday, July 4, 2024, after months of rumors that the department store chains had been negotiating a deal. (AP Photo/Richard Drew, File)
A Neiman Marcus sign is shown in San Francisco, Sunday, March 17, 2024. The parent company of Saks Fifth Avenue has signed a deal, Thursday, July 4, 2024, to buy upscale rival Neiman Marcus for $2.65 billion.(AP Photo/Jeff Chiu)
