Good morning, MBA readers,
As you return from the long weekend and embark on a Tuesday that feels a little like a Monday, we’re here to help you get oriented with the business news of the day. Today’s top stories include a Mallinckrodt spinoff, new state action in response to flooding and mounting investor pressure on Centene.
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Mallinckrodt to spin off generics business
The new generics company, to be called Mallinckrodt Inc., will remain in the St. Louis area and is expected to emerge with less debt than previously projected. A deal has been anticipated since December. (Reuters)
St. Louis Outlet Mall kicks out tenants as it negotiates potential sale
Property owners handed out eviction notices to the building’s last remaining tenants. The letter cited financial hardship as the reason for the closure. (St. Louis Post-Dispatch)
Creditors want bankruptcy for Here Today
Water Tower Development, Edge Imports and others filed a petition seeking Chapter 7 bankruptcy for the discount retailer. In December, Here Today announced it would close eight stores. (St. Louis Business Journal)
Another hedge fund raises possibility of Centene sale
Third Point, which has invested at least $300 million in Centene, wants executives to consider selling the company instead of buying WellCare Health Plans. (Wall Street Journal)
Glyphosate use soars among Midwestern farmers
In a 12-state region that includes Missouri, use of the weedkiller increased nearly 40 times between 1992 and 2016. Meanwhile, glyphosate has become less effective and juries have awarded billions in damages in court cases linking glyphosate to cancer. (St. Louis Post-Dispatch)
Springfield passes ordinance regarding medical marijuana facilities
Council members formalized a regulation mandating that dispensaries be at least 1,000 feet away from schools, day cares and churches. They had been working on the measure for about a month. (Springfield News-Leader)
We just activated @Missouri_NG to assist in flood fighting.
As our state continues to recover from severe storms & damaging flooding, and local resources deplete, I am confident in the Guard’s capabilities to make a difference at this critical time.
— Governor Mike Parson (@GovParsonMO) May 27, 2019
Gov. Mike Parson activated the Missouri National Guard on Monday as the state continued to respond to fallout from last week’s severe storms and prepare for the threat of more damaging weather and flooding. Guard units are being deployed to help with sandbagging efforts in north-central Missouri and assist with flood response in Jefferson City, according to the governor’s office.
Missouri cities like Mosby are used to floods. Over the past three decades, federal and local governments have spent more than $5 billion across the country buying land in places like Mosby that are vulnerable to flooding. The cost of those buyouts is rising, according to an analysis by the Associated Press. Funding for a federal mitigation program has increased from $25 million in 2015 to $250 million this year.
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A Red Circle
The closure of several Shop ‘N Save stores last year left residents of north St. Louis with fewer options for buying fresh food. A Red Circle, a local nonprofit focused on racial equality through economic development, is offering new programming to address that issue. The organization will host a monthly farmers market this summer and offer classes on topics like health and exercise, St. Louis Public Radio reports.