Wednesday’s business headlines
INDIANAPOLIS (WISH) — Here’s a look at Wednesday’s business headlines with Jane King.
Nearly $4B in debt canceled for former ITT Tech students
The U.S. Department of Education on Tuesday wiped out about $4 billion in debt owed by students who attended Carmel-based ITT Technical Institute.
The debt is being forgiven using a federal rule known as borrower defense, which is meant to protect students from colleges that make false advertising claims or otherwise commit fraud.
The agency also sought to recoup $24 million from another for-profit college chain, DeVry University, to cover the costs of discharging its former students’ loans.
Indianapolis-based Aearo Technologies files for bankruptcy
An Indianapolis-based company is at the center of bankruptcy over combat earplugs.
Aearo Technologies, a subsidiary of 3M, filed for bankruptcy in the U.S. District Court for the Southern District of Indiana and has agreed to take on the mounting liabilities facing its parent company over the earplugs.
There are more than 290,000 active claims against 3M; many have been brought by veterans who say they used the earplugs but still developed tinnitus or hearing loss.
Credit reporting agency predicts downturn in housing market
The probability of a “severe downturn” in the U.S. housing market is on the rise, according to new guidance from credit reporting agency Fitch.
Fitch’s projections suggest that U.S. home prices could sink by 10% to 15% in the case of a major housing slump, alongside a roughly 30% decline or more in housing activity over the next few years.
Meanwhile, full-service real estate brokerage company Redfin says home sale cancellations surged to another two-year high as buyers pull back over worries about a recession.
Walmart, Target say baby formula supplies improving
Walmart and Target say supplies of baby formula were improving, however, Target plans to continue purchase restrictions at its stores and online.
The shortage that began due to pandemic-induced supply chain issues worsened in February when Abbott Laboratories, the biggest U.S. baby formula supplier, recalled some products and closed a manufacturing plant after reports of bacterial infections.
Tommy Bahama to create pet apparel line
Tommy Bahama has partnered with K9Wear to create a line of pet harnesses and apparel that will actually match the patterns offered in the company’s apparel for humans.
The Tommy Bahama x K9Wear collection will launch in November for the holidays and will be sold on the Tommy Bahama website as well as at select department and specialty retailers around the country.