Category: Business

Business news and market updates

  • Aramark is out as food provider for new South Philly arena slated for 2030

    Aramark is out as food provider for new South Philly arena slated for 2030

    Aramark will not be the official food, beverage, and hospitality provider at the new South Philadelphia arena where the 76ers, Flyers, and the city’s new WNBA team are expected to play.

    Harris Blitzer Sports & Entertainment, which owns the Sixers, and Comcast Spectacor, which owns the Flyers and Xfinity Mobile Arena, announced that Levy Restaurants will take over food and beverage duties in the new arena, which is slated to open by 2030.

    “Very few cities are as devoted to their teams as Philadelphia, the loyalty and passion are part of the DNA that make the community so special. It’s both an honor and an invigorating opportunity to help amplify the best of Philadelphia,” Levy CEO Andy Lansing said in a statement.

    Smoked chicken cheesesteak is on the 2025-26 menu at the Xfinity Mobile Arena.

    Aramark has overseen hospitality at the Sixers’ and Flyers’ arena since it opened in 1996. Lincoln Financial Field and Citizens Bank Park hospitality services are still operated by the Philadelphia-based food services provider.

    A spokesperson for the arena said that the decision to go with a new provider was not based on Aramark’s performance, but was the result of a standard pitch process.

    “We have a great relationship with our friends at Aramark,” Comcast Spectacor chairman and CEO Dan Hilferty told SportsBusinessJournal. “We have, on both sides, committed that while Xfinity Mobile Arena is still in operation, we’re going to deliver the best possible product.”

    Aramark will continue its tenure at Xfinity Mobile Arena until the new arena opens. The new arena was announced last year after plans to build a Center City arena for the Sixers were abandoned in favor of a new building at the South Philly sports complex.

    Xfinity Mobile Arena used to be known as the Wells Fargo Arena, from 2010 into August 2025.

    “Our team is fully committed to delivering memorable game day experiences, and we are grateful for the many decades spent fueling the passion and energy of the fans,” an Aramark spokesperson said in a statement.

    The hometown food service provider has come under fire in recent years over labor disputes with the thousands of people who work in the stadiums. Before Unite Here Local 274 won its latest contract, fewer than 100 workers represented by the union had year-round healthcare. The contract, signed last March, increased wages and brought hundreds of workers onto the union healthcare plan.

    Levy’s portfolio includes nearly half the NBA/NHL shared arenas, such as Los Angeles’ Crypto.com Arena, according to a Sixers spokesperson. Levy, which has headquarters in Chicago, also provides services for such large events as the Kentucky Derby and the Grammys.

  • King of Prussia’s David’s Bridal is staging an AI-fueled, post-bankruptcy comeback. Next up: a docuseries.

    King of Prussia’s David’s Bridal is staging an AI-fueled, post-bankruptcy comeback. Next up: a docuseries.

    David’s Bridal, the King of Prussia-based wedding dress retailer, is getting into the documentary business.

    Next week, the company will drop the first episode in its new series Breaking Bridal, which follows real-life couples and focuses on unique elements of their weddings.

    The show’s trailer teases some of the stories: One couple said, “I do,” on an active volcano, and another tied the knot at a Universal Studios theme park.

    The series is also set to feature a Philly couple whose nuptials David’s Bridal CEO Kelly Cook officiated in Times Square on Valentine’s Day.

    “‘Breaking Bridal’ reflects how we’re evolving David’s Bridal into a content-driven, culture-focused ecosystem, not just a retailer,” company president Elina Vilk said in a statement.

    Company executives said in a news release that the show represented the start of a “new era” for the company and would be “the first installment in a growing slate of original programming to come.”

    It also marks something of a comeback for the 76-year-old retailer that three years ago filed for Chapter 11 bankruptcy amid declining demand for formal wear. It was the company’s second bankruptcy in five years.

    Since 2023, David’s Bridal has laid off thousands of employees, reduced its store count by about a third, and relocated its headquarters. In 2024, it moved from a building it owned in Conshohocken to a smaller leased space in nearby King of Prussia.

    David’s Bridal is now owned by business development company CION Investment Corp., which bought the retailer for $20 million in 2023.

    The company still operates several physical stores in the Philadelphia region, including in Deptford, Feasterville, Maple Shade, and Plymouth Meeting.

    David’s Bridal is known for its relative affordability in an industry rife with extravagance. Weddings in the Philadelphia region can easily cost between $40,000 and $50,000. A section of David’s Bridal website is dedicated to dresses under $500.

    A woman shops for a wedding dress at David’s Bridal in Feasterville in 2023.

    Cook, formerly David’s Bridal’s president of brand, technology, and finance, took over as chief executive officer in April and has spearheaded a new AI-fueled personalization of the wedding planning experience. The company calls the strategy “Aisle to Algorithm.”

    “We’ve done an AI analyzer on your Pinterest boards,” Cook told the New York Times in June. “So we’re taking AI and we’re building an experience around everything that you’ve told us that you want to see.”

    Cook added: “We have a machine learning tool that’s saying, ‘OK, when girls watch Aruba videos and then they search for beachwear and then they buy a dress with no sleeves, the odds are they’re going to want these kinds of other dresses and these shoes.’”

    Cook told the Times that she wants future David’s Bridal customers to be able to see a lifelike mock-up of their wedding day on a digital screen using augmented reality.

    As part of the company’s strategy shift, it has also rolled out an AI-powered wedding planning platform called Pearl By David’s and a targeted-ad system called Pearl Media Network. Next week, it will add streaming series to the list.

    “We’re leaning into original programming because modern couples aren’t following a template; they’re writing their own,” Cook said in a statement.

    Breaking Bridal is set to premiere Wednesday on the company’s YouTube channel (youtube.com/@davidsbridal) and on its website (DavidsBridal.com/breakingbridal).

    New episodes will be released every other Wednesday, according to the company. Later this year, plans call for the show to be available for streaming on Amazon Prime Video, Sling, Roku, and Tubi.

  • The hypothetical nuclear attack that escalated the Pentagon’s showdown with Anthropic

    The hypothetical nuclear attack that escalated the Pentagon’s showdown with Anthropic

    As a standoff between artificial intelligence firm Anthropic and the Pentagon deepened this week, the two sides offered starkly different accounts of a key discussion about a hypothetical nuclear strike against the United States, revealing the intensity of their showdown over the American military’s potential use of lethal autonomous weapons.

    A defense official said the Pentagon’s technology chief whittled the debate down to a life-and-death nuclear scenario at a meeting last month: If an intercontinental ballistic missile was launched at the United States, could the military use Anthropic’s Claude AI system to help shoot it down?

    It’s the kind of situation where technological might and speed could be critical to detection and counterstrike, with the time to make a decision measured in minutes and seconds. Anthropic chief executive Dario Amodei’s answer rankled the Pentagon, according to the official, who characterized the CEO’s reply as: You could call us and we’d work it out.

    An Anthropic spokesperson denied Amodei gave that response, calling the account “patently false,” and saying the company has agreed to allow Claude to be used for missile defense. But officials have cited this and another incident involving Claude’s use in the capture of Venezuelan leader Nicolás Maduro as flashpoints in a spiraling standoff between the company and the Pentagon in recent days. The meeting was previously reported by Semafor.

    A face-to-face meeting Tuesday between Amodei and Defense Secretary Pete Hegseth escalated the situation, the Washington Post reported. The two sides are now careening toward a defining power struggle over whether the U.S. government should have the freedom to spy on or kill humans using the potent new technology, based in part on extreme hypotheticals and games of telephone.

    The Pentagon had given Anthropic until 5:01 p.m. Friday to drop its objections to using Claude in relation to autonomous weapons and mass surveillance of U.S. citizens. If not, officials had said they may use government authority to force Anthropic to hand over the technology anyway — while also blacklisting the company from future defense work.

    Sean Parnell, the Pentagon’s chief spokesman, said in an X post Thursday that the department had no interest in conducting mass domestic surveillance nor deploying autonomous weapons, but wanted to use AI for “all lawful purposes.”

    “This is a simple, common-sense request that will prevent Anthropic from jeopardizing critical military operations and potentially putting our warfighters at risk,” Parnell said.

    Amodei said in a statement late Thursday that his company was ready to continue working with the Pentagon, but would not change its stance. Current AI systems are not reliable enough to power robotic weaponry without putting troops and civilians alike at risk, he said, and existing laws on domestic surveillance do not account for the sweeping potential of AI snooping tools.

    “In a narrow set of cases, we believe AI can undermine, rather than defend, democratic values,” Amodei said in his first public comments on the battle. “Two such use cases have never been included in our contracts with the Department of War, and we believe they should not be included now.”

    Anthropic did not expect to end up in a fight with Pentagon leaders when it became the first major AI lab to strike a deal to work on classified U.S. military networks in late 2024. But the dispute highlights how the startup, founded in 2021 by safety-minded refugees from ChatGPT-maker OpenAI, has struggled to deftly navigate Washington in the second Trump administration. (The Washington Post has a content partnership with OpenAI.)

    Anthropic recently added a former deputy chief of staff to President Donald Trump to its board and explored taking investment from a fund led by Donald Trump Jr., according to people familiar with the pitch. Yet its leaders have also repeatedly clashed with the White House in public.

    In a coruscating post on X in October, David Sacks, Trump’s top AI adviser, accused the company of “fear-mongering” and pursuing “regulatory capture” in an attempt to bend the government to its will. Anthropic leaders have criticized one of the administration’s key AI policies in recent weeks, even as the dispute with the Pentagon was brewing.

    “There’s the subtext of Anthropic not being aligned with the MAGA agenda,” said Steven Feldstein, a senior fellow at the Carnegie Endowment, who researches the use of AI in war. “This is as much of a political fight as a military use issue.”

    Experts say the outcome of the clash could shape the trajectory of the burgeoning relationship between the AI industry and the U.S. military, potentially signaling to other leading firms that the cost of doing business with the Pentagon could be losing control of their innovations.

    Unlike a gun or a jet engine, the uses that AI might find on future battlefields keep changing. The U.S. already pushes autonomy into its weapons and AI-enabled systems are a part of almost every drone, ship, or aircraft under production or envisioned in the future force. The Trump administration is embarking upon a vast expansion of the military’s use of AI.

    But leading figures in the development of the technology have long had ethical and legal concerns about giving AI the power to make life-and-death decisions or turbocharging surveillance.

    Emil Michael, a former Uber executive who is now undersecretary of defense for research and engineering, has taken the lead in the discussions with Anthropic. He has argued the government and not individual tech firms should have the final say in how the technology is used, according to a person familiar with the discussions, who spoke on the condition of anonymity to describe internal deliberations. Michael did not respond to a request for comment.

    To the Pentagon that means having a policy permitting what Parnell called “all lawful purposes.” Amodei has held firm that Anthropic has red lines around autonomous weapons and surveillance, a stance that has won support from his employees and could serve as a recruiting tool for idealistic engineers as the company heads toward an expected initial public offering.

    Late Thursday, Michael accused Amodei of having a “God-complex” in a post on X. “He wants nothing more than to try to personally control the US Military and is OK putting our nation’s safety at risk,” Michael wrote.

    The escalating dispute has baffled people who study how the military uses AI.

    Dean Ball, a former Trump administration AI adviser, said he hoped the two sides could still find a way to step back from the brink. “The solution to that problem is to cancel the contract,” Ball said. “Going on a jihad against Anthropic is whole other layer of escalation.”

    Leapfrogging off Amazon

    Anthropic owes its head start at the Pentagon in part to a partnership the intelligence community forged with Amazon in 2013, which paved the way for classified material to be handled in Amazon’s cloud. Over the course of the next several years, the tech giant built out secure computing infrastructure for the intelligence community, beating out rivals for coveted contracts to house classified and top secret data.

    In 2023 and 2024, Amazon invested billions into Anthropic. The relationship greased the AI start-up’s path into the military’s closely guarded systems, according to a person familiar with the relationship, who spoke on the condition of anonymity to describe it. Amazon declined to comment. (Amazon founder Jeff Bezos owns the Post.)

    Anthropic also found an ally in software analytics firm and longtime defense contractors Palantir, which in 2024 teamed up with the AI firm and Amazon to offer Claude on its systems used by military and spy agencies. Anthropic said the partnership would boost the military’s ability to process huge amounts of data and make good decisions, saying it was proud to take on the work.

    Anthropic has “first mover status and their product is good,” said another person familiar with the military’s work with AI companies, who spoke on the condition of anonymity to describe sensitive issues relating to national security.

    Since Claude’s deployment with the Pentagon, Anthropic said Thursday, its technology has been put to use analyzing intelligence, planning operations and in cyberwarfare. The company has deepened its work with the government since Trump returned to office and pushed federal agencies to rapidly scale up their use of AI. In July it signed a $200 million contract with the Defense Department and made a deal the following month to provide its system to civilian agencies for a dollar apiece.

    But the company’s advantage has eroded as competitors like Google, OpenAI and xAI make deals of their own with the Pentagon. Officials say the other leading firms have agreed to its “all lawful purposes” policy for unclassified work, and that xAI has also signed a deal for classified systems. The three companies did not respond to requests for comment.

    Anthropic has differed from its rivals in simultaneously courting the administration for contracts while opposing it in other areas of policy.

    When the White House was pushing an executive order that would preempt restrictive state-level AI laws this winter, Anthropic was promoting a safety-oriented AI bill in California.

    Amodei has also criticized the Trump administration’s drive to allow exports of American AI chips to China. On the sidelines of the World Economic Forum in Davos, Switzerland last month, Amodei compared the policy to “selling nuclear weapons to North Korea.” After meeting with Amodei this month on Capitol Hill, Sen. Elizabeth Warren (D., Mass.) said she would introduce legislation to sharply limit any exports.

    Anthropic has also hired several former Biden administration officials.

    “The administration just wants everyone to bend the knee and [Amodei] won’t,” said an investor who works on defense technology, who spoke on the condition of anonymity to avoid getting into conflicts with any of the parties.

    In the past year, Anthropic has made moves that could smooth its relationship with the Trump administration. The company ramped up its lobbying in Washington, spending $3.1 million and bringing on a former senior aide to Secretary of State Marco Rubio, according to disclosures compiled by transparency group Open Secrets. It announced this month that it was adding Chris Liddell to its board, a former tech executive who served in the first Trump White House.

    The company also recently explored an investment from the Trump-allied venture capital firm 1789 Capital for funding, but was turned down, according to two people familiar with the pitch, who spoke on the condition of anonymity to describe private business discussions. Donald Trump Jr. is a partner at the firm, alongside Chris Buskirk, an ally of Vice President JD Vance.

    ‘Once and for all’

    Insiders in the world of defense technology argue that the current fight between the Pentagon and Anthropic appears to be more philosophical than technical, and that the administration had already soured on the AI company — even as rank-and-file military personnel were finding its services increasingly useful.

    “The administration and the Republicans are looking for ways to get rid of Anthropic once and for all,” the person familiar with the military’s work with AI companies said. The Pentagon clash could provide an opportunity to carry that through. In January, Hegseth issued a directive for the military to embrace AI as though the country were at war.

    The U.S. has committed to some guardrails on autonomous weaponry. France, the United Kingdom, China, and the U.S. all previously said they would require a human to be involved in all decisions to deploy nuclear weapons. In a statement to the Post, the Pentagon said the Trump administration intends to maintain that pledge.

    “It remains the Department’s policy that there is a human in the loop on all decisions on whether to employ nuclear weapons,” a senior defense official said. “There is no policy under consideration to put this decision in the hands of AI.”

    But that still leaves room for AI to influence decisions on targets and speed of response. In a recent nuclear war game at King’s College London, many leading language models including versions of ChatGPT, Claude and Google’s Gemini all quickly favored launching warheads. That could influence a human’s decision to fire, said Paul Dean, vice president of the global nuclear program at the nonprofit Nuclear Threat Initiative.

    “It’s not simply ensuring that there’s a human being in the decision-making loop,” Dean said. “The question is, to what extent will AI impact that human decision-making?”

    Neither side in this week’s faceoff knows for certain what AI’s use in war will ultimately look like, but both seem unwilling to trust in the other’s future decisions.

    “The Pentagon does not trust that Anthropic will be a reliable vendor, and Anthropic worries about misuse of its technology,” said Michael C. Horowitz, a director at the University of Pennsylvania who oversaw AI weapons policy during the Biden administration.

    Because Claude is already in use across the Defense Department, exiling Anthropic and switching to a rival could prove costly. Although Defense officials have suggested they could use the Defense Production Act to force the AI company to share its systems, experts are split on whether the law could be applied.

    Doing so would send a chilling message to the AI firms the Pentagon hopes to lean on that they may risk of having their own innovations seized if the government sees something it wants.

    That would cross a troubling line, said Katie Sweeten, a former liaison for the Justice Department to the Pentagon, and a partner at Scale LLP. “This is a literal nuclear option which I think rightfully companies should be very concerned about.

  • Noel Mayo, groundbreaking Black industrial designer and college professor, has died at 88

    Noel Mayo, groundbreaking Black industrial designer and college professor, has died at 88

    Noel Mayo, 88, formerly of Philadelphia, widely recognized as the first Black owner of an American industrial design firm, first Black American college chair of an industrial design department, first Black industrial design graduate of Philadelphia College of Art, award-winning super mentor, and champion of professional diversity, equity, and inclusion, died Thursday, Jan. 29, of a probable heart attack at an assisted living center in Delaware County.

    Rejected for an industrial design job after college because he was Black, Professor Mayo went on to found Noel Mayo Associates Inc. in Philadelphia in 1964. He spent 11 years in the late 1970s and ’80s as a professor and first Black chair of the industrial design department at what became the now-defunct University of the Arts, and 27 years, from 1989 to 2016, as a governor-appointed eminent scholar in art and design technology at Ohio State University.

    “Dr. Mayo leaves behind a transformative legacy,” former colleagues at Ohio State said in a tribute, “whose impact shaped generations of students, elevated the field of design, and advanced diversity and inclusion across the profession.”

    As the trailblazing owner and president of Noel Mayo Associates for decades, he and his staff designed all kinds of products, interiors, exteriors, graphics, mobile exhibits, and signage systems for companies and private clients around the world. He worked with NASA, IBM, Black & Decker, Philadelphia International Airport, museums, government agencies, and public institutions.

    He collaborated with Lutron Electronics for 45 years and is named on hundreds of its design and utility patents. In 1984, he remodeled the mayor’s City Hall office after Wilson Goode replaced Bill Green. In 1988, he advised officials at the old Spectrum on the placement of a Julius Erving statue in South Philadelphia.

    He designed computer-driven telephones in the 1980s that could dial 96 phone numbers automatically and leave messages. “I realize how pressured this is,” he told the Daily News for a 1984 story about design and technology’s effect on modern life. “But people want it.”

    Professor Mayo was featured in a 1977 story by Inquirer design critic Ellen Kaye, and she praised the “visual fluidity” he created in a refurbished Bala Cynwyd high-rise condo. She wrote about his work again in 1978, and he said design “revolves around problem-solving from a logical point of view.”

    In a 1995 story, Inquirer design critic Thomas Hine noted his commercial success with early light-dimmer switches and said it “helped Lutron to transform itself from a small manufacturer to an important name in its industry.” In a recent video interview, Professor Mayo said: “I see the problems as kind of opportunities that other people didn’t see. … So I look for opportunities for innovation.”

    Professor Mayo was featured in The Inquirer in 1995.

    As chair at Philadelphia College of Art and its successor, University of the Arts, he grew the industrial design department from the school’s ninth largest to its third largest. In online tributes, former students called him “a true icon” and “a doorway into a world of possibility, dignity, and community.”

    He told The Inquirer in 1978: “Something looks good when it looks rational. That is how I work myself, and that is what I try to teach my students.”

    At Ohio State, Professor Mayo taught product, interior, and graphic design courses, and researched accelerated learning processes using music, color, relaxation techniques, interactive computers, and video. Former colleagues there praised “his blend of rigor, generosity, calmness, and mentorship” in a tribute.

    Professor Mayo worked hard to recruit Black and other minority designers and students to his company and college courses. He created mentoring programs and developed an extensive network of minority business contacts.

    Professor Mayo designed this telephone.

    “He did not treat diversity as a slogan,” a former colleague said in an online tribute. He earned lifetime achievement awards from the Industrial Designers Society of America in 2006 and the Design Management Institute in 2019. In 2021, Ohio State alumni created and funded the Mayo Mentoring Program.

    He was one-time president of the Philadelphia Economic Council and the Greater Philadelphia Community Development Corp. He wrote articles for many publications and served on boards at University of the Arts, the Society for Environmental Graphic Design, and other groups.

    He was a fellow of the Interior Design Council of Philadelphia, a juror for art and design competitions, and a member of the Philadelphia Art Commission. Asked to advise young designers in the recent video interview, he said: “Try to be as innovative as you can. … Ask questions. … Being open is critical.”

    Noel Mayo was born Dec. 30, 1937, in Orange, N.J. He attended a boarding school in Chester County and earned a bachelor’s degree in design in 1960 at what became Philadelphia College of Art and then University of the Arts.

    Professor Mayo designed this exterior.

    He married, divorced, and later married Leslie Butler.

    Professor Mayo enjoyed roller skating, was good at darts, and earned an honorary doctorate from Massachusetts College of Art and Design.

    “He was easygoing with a great sense of humor,” said Virginia Gehshan, a design colleague and longtime friend. “He was really an amazing genius. He was ahead of his time.”

    In addition to his wife, Professor Mayo is survived by other relatives.

    A celebration of his life is to be held later.

    Professor Mayo received the Design Pioneer Award in 2019.
  • Fletcher Cox’s $1.5 million Mullica Hill home is on the market

    Fletcher Cox’s $1.5 million Mullica Hill home is on the market

    The South Jersey home of Eagles great Fletcher Cox is on the market for $1.5 million.

    The dominant defensive tackle, who retired in 2024 after 12 seasons with the Birds, lived in the nearly 6,000-square-foot Mullica Hill home for most of his career.

    “It’s got him all over it,” said Lynne Stamm, a sales associate with Berkshire Hathaway HomeServices Fox & Roach, Realtors. “He put his heart and soul into the house as a young kid” who moved into the property when he was in his early 20s.

    Cox, a Mississippi native, bought the house for $550,000 in 2014, according to Gloucester County property records.

    Fletcher Cox’s design touches are seen throughout his Mullica Hill home, said the listing agent. They include this $15,000 chandelier in the foyer.

    Since then, Cox, now 35, has regularly updated the home, Stamm said. He installed a $15,000 chandelier in the foyer and created “a complete resort area” in the backyard with a dark-finish pool, a built-in bar, and an outdoor kitchen with a pizza oven.

    The home has four bedrooms, three full bathrooms, and two half bathrooms.

    The first floor features a marble foyer, gourmet kitchen, comfortable living areas, and two-story windows that Stamm said let in abundant natural light.

    The first floor of Fletcher Cox’s $1.5 million Mullica Hill home features two-story windows that let in abundant natural light.

    On the second floor, the bedrooms include a large primary suite and a new Jack-and-Jill suite.

    The basement, referred to in the listing as an “entertainment hub,” could be outfitted as a gym, home theater, and game room, with a pool table included as part of the sale. The house also has an epoxy-finished three-car garage.

    With its open floor plan and indoor and outdoor gathering spaces, Stamm said the home would be ideal for a buyer “who really likes high-end entertaining.”

    The property is also turnkey, she said, due to all the upgrades Cox made over the years.

    Fletcher Cox’s Mullica Hill home includes an epoxy-finished three-car garage.

    He loved the house so much that he was “reluctant” to sell, Stamm said. But the agent said Cox is excited about his new home, just a few miles away and nearly double the size, with an expansive pole barn for his race cars. Cox has owned a drag-racing team for about a decade and started driving in retirement.

    His Mullica Hill home made headlines in 2019 when a man tried to break in with a baseball bat in search of his ex-girlfriend. Cox called 911 and told an operator that he was armed with a shotgun. The assailant fled but was later arrested and indicted on charges related to the incident, according to New Jersey court records.

  • THC drinks in beer stores? New hemp regulation effort is brewing in Pennsylvania amid federal crackdown

    THC drinks in beer stores? New hemp regulation effort is brewing in Pennsylvania amid federal crackdown

    While Congress debates the impending ban on hemp-derived THC, a smaller push for regulation is brewing in Pennsylvania that hopes to put THC drinks in beer stores and regulate hemp alongside medical marijuana.

    State Rep. Steven Malagari (D., Montgomery) plans to introduce a bill that could put THC drinks in beer stores, while State Sen. Dan Laughlin (R., Erie), a major proponent of weed legalization — unlike his party’s leaders — is working on legislation that would open the door to hemp-derived THC being regulated like medical marijuana. Pennsylvania hemp businesses look toward these efforts with optimism, but as the clock races down, stakeholders are asking for urgency.

    Representatives from the hemp, medical marijuana, and beer wholesaler industries spoke to state regulators at January’s Pennsylvania Farm Show about shielding the hemp industry from the Nov. 12 deadline that would outlaw all intoxicating hemp products, including Delta-9 THC and CBD, which is what the majority of hemp is grown for in Pennsylvania. Under new rules, many of the state’s hemp farmers would be out of business by fall.

    Across all competing interests, industry representatives said one thing was clear: Lawmakers need to regulate the billion-dollar state hemp market.

    Testifying before the Center for Rural Pennsylvania, stakeholders, including Montgomery County District Attorney Kevin Steele, agreed, stressing the need for safeguards.

    “It’s not about taking away people’s livelihoods in hemp farming and people working in this industry,” Steele said during his testimony. “It’s about community safety and establishing guardrails through legislation to oversee that safety.”

    But, as Congress disagrees on when and if it will regulate hemp-derived THC — including if the ban deadline should be extended — those delays cascade to the states, where local lawmakers await federal guidance before regulating it themselves. While any state proposals for regulation are purely speculative until Congress passes hemp legislation, Laughlin’s and Malagari’s efforts in Pennsylvania imagine what is possible.

    It is important to note, however, that regulating intoxicating hemp products is an uphill battle in a state where recreational marijuana legalization is opposed by Republican state leadership.

    Whether these bills become law or save the state’s hemp industry as it currently stands is up in the air with federal delays, but local hemp businesses choose to be optimistic.

    A view of Tyler Shannon’s Adams County hemp farm. Unless regulations change, he will have to shut down his hemp farm by next year.

    What does any of this mean for Pennsylvania hemp?

    For Tyler Shannon, an Adams County hemp farmer, a full ban on hemp products would be devastating. With the vast majority of Pennsylvania’s hemp grown for cannabinoids, such as Delta-9 THC and CBD, it means that “if hemp is not saved, my family will lose everything, including our farm,” Shannon said.

    Shannon is not alone. Beau Whitney, a leading cannabis market analyst who testified at the January hearing, estimated that Pennsylvania’s cannabinoid market generates just under $1 billion in revenue annually. In his latest report, he found that the majority of Pennsylvania’s hemp-derived THC and CBD products were sold “legally” through semi-regulated channels, in stores or online. “As a result, there were 9,500 jobs, generating $382 million in wages in Pennsylvania,” Whitney said.

    Those in the local hemp industry are confident that a deadline extension will help protect them, but planting season is fast approaching, while hemp farmers have no reassurance that their crops will be legal come fall, Shannon said. His family farm is holding off on a planned $175,000 facility expansion due to the looming ban.

    As of now, no federal or state legislation has been passed to avert the impending doomsday scenario for hemp, and despite the constant regulatory discussions, small hemp farmers and businesses don’t feel on solid ground, Sebastian Stelmach of Manayunk’s Keystone Dispensary said.

    “It’s just scary to think that come November, I might be unemployed and close up shop,” Stelmach said. “A lot of lawmakers realize that we can’t let this industry die. I believe that they’re going to do something, but what that is, I don’t know.”

    Trade organizations, like the U.S. Hemp Roundtable, are lobbying Congress to extend the federal ban deadline by one year, giving regulators time to flesh out less restrictive standards for hemp products.

    “Even [federal agencies] said they don’t have enough time to enforce the rules under the current bill,” said Jonathan Miller, U.S. Hemp Roundtable’s general counsel. “We’ve created a mess here, and we really need this extension to be more deliberate and responsible.”

    In this 2019 file photo, Steve Groff is getting ready to harvest his first crop of hemp plants at his farm in Holtwood, Lancaster County.

    Intoxicating hemp regulated like marijuana

    Laughlin’s bill to establish a Cannabis Control Board would see the state’s medical marijuana program come under new oversight, similar to the liquor and gaming control boards.

    While hemp is not the primary focus of that legislation, organizations like the Pennsylvania Cannabis Coalition (PCC), which represents the state’s medical marijuana industry, hope to see hemp included in Laughlin’s bill to open the doors for more responsive hemp regulation.

    “The Cannabis Control Board would have the authority to deal with hemp products and decide what is safe for consumers as a single regulatory body,” said Meredith Buettner, executive director of PCC. Buettner said it makes the most sense for intoxicating hemp products to be regulated alongside cannabis.

    Laughlin argues that “if it’s a consumable cannabis product, it should fall under one clear regulatory structure.”

    How and where specific hemp THC products would be sold will be worked out in the legislation, but “intoxicating products should be sold through appropriate, regulated channels,” he said.

    Jake Sitler, who owns Lancaster-based Endo THC drinks and testified at the January regulatory hearing, is ready to support any regulation that saves the current hemp framework, like incorporating hemp into a control board, but worries small businesses will get cut out of the deal.

    “The hemp industry concern is where our seat is at the table and to make sure new laws are appropriate for our farmers and our industry,” Sitler said. “And that any new regulation isn’t used as a guise to out-regulate small business down the road.”

    THC and CBD-infused beverages on the shelves of Free Will Collective, an Ardmore smoke shop and wellness store owned by Will Angelos. As Congress moves to ban most intoxicating hemp products, business owners like Angelos aren’t sure they will be able to keep the doors open long past 2027 if current regulations go into effect.

    Delta-9 THC drinks in Pennsylvania beer stores

    The bill from Malagari would carve out regulation for hemp-derived Delta-9 THC drinks, which are among some of the most popular intoxicating hemp products, with a national market of $1.5 billion in annual sales.

    Malagari, who previously worked in beverage wholesale, wants to see THC drinks regulated similarly to beer and malt-beverage products in Pennsylvania.

    Pennsylvania operates a three-tiered system for beer, with licenses at the manufacturing level, distribution level, and retail level. THC drinks would be incorporated into this system, which would begin by allowing established three-tiered license holders to manufacture and sell hemp-derived Delta-9 THC drinks.

    Jake Sitler and his wife, Jamie, standing inside the Endo drinks warehouse. The Lancaster couple founded one of Pennsylvania’s first hemp-derived THC drinks and is grappling with the fact that their business might have to shut down if Congress doesn’t rework its hemp regulations.

    Common retail spaces for beer and malt beverages include beer distributors, grocery stores, restaurants, and bars.

    This legislation, if passed and signed into law, would not prohibit THC drinks from being sold in medical marijuana dispensaries and could work alongside Laughlin’s CCB bill, Malagari said. But he believes that lawmakers should approach THC beverages differently from hemp-derived flower and vapes.

    As an owner of a hemp beverage company, Sitler could benefit from Malagari’s bill, but also wonders if it is too early for beverage carve-outs before a fuller state framework is in place. “A hemp beverage bill with no overarching regulation is putting the cart a bit before the horse,” Sitler said.

  • Franklin Mall in Northeast Philly to reopen Friday after small fire last weekend

    Franklin Mall in Northeast Philly to reopen Friday after small fire last weekend

    Franklin Mall will reopen Friday after being temporarily shut down since a small fire last weekend at the once-popular Northeast Philadelphia retail destination, property management said Thursday.

    The mall has been closed since a fire on Saturdaywithin a single tenant space, management said. The city Department of Licenses and Inspections “issued a temporary closure notice while required inspections are completed to ensure building safety and building structural integrity.”

    Management said on Thursday that “following this due diligence Franklin Mall has officially been granted permission to reopen” from L&I.

    Franklin Mall will be open for normal business hours, but the management requested “patience with the property’s appearance while teams are actively making repairs to the affected areas within the mall while preserving a safe environment for shoppers.”

    The Inquirer reported in early December that Franklin Mall, which many locals still call Franklin Mills, was listed for sale and that the 36-year-old, 1.8-million-square-foot facility at Knights and Woodhaven Roads could be repurposed or demolished for non-retail uses.

    The mall opened in 1989 to great fanfare as the largest outlet mall ever, with a zigzag-shaped, one-story-tall concourse that stretched for 1.2 miles.

    Franklin Mills once attracted 20 million visitors annually, but now the current version of the mall has less than a third of that traffic.

    Under new ownership, it was renamed Philadelphia Mills, and most recently it has been called Franklin Mall, though a main entrance sign still says Philadelphia Mills.

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  • Anthropic CEO says AI company ‘cannot in good conscience accede’ to Pentagon’s demands

    Anthropic CEO says AI company ‘cannot in good conscience accede’ to Pentagon’s demands

    WASHINGTON — Anthropic CEO Dario Amodei said Thursday the artificial intelligence company “cannot in good conscience accede” to the Pentagon’s demands to allow wider use of its technology.

    The maker of the AI chatbot Claude said in a statement that it’s not walking away from negotiations, but that new contract language received from the Defense Department “made virtually no progress on preventing Claude’s use for mass surveillance of Americans or in fully autonomous weapons.”

    The Pentagon’s top spokesman has reiterated that the military wants to use Anthropic’s artificial intelligence technology in legal ways and will not let the company dictate any limits ahead of a Friday deadline to agree to its demands.

    Sean Parnell said Thursday on social media that the Pentagon “has no interest in using AI to conduct mass surveillance of Americans (which is illegal) nor do we want to use AI to develop autonomous weapons that operate without human involvement.”

    Anthropic’s policies prevent its models, such as its chatbot Claude, from being used for those purposes. It’s the last of its peers — the Pentagon also has contracts with Google, OpenAI, and Elon Musk’s xAI — to not supply its technology to a new U.S. military internal network.

    Parnell said the Pentagon wants to “use Anthropic’s model for all lawful purposes” but didn’t offer details on what that entailed. He said opening up use of the technology would prevent the company from “jeopardizing critical military operations.”

    “We will not let ANY company dictate the terms regarding how we make operational decisions,” he said.

    During a meeting on Tuesday between Defense Secretary Pete Hegseth and Amodei, military officials warned that they could cancel Anthropic’s contract, designate the company as a supply chain risk, or invoke a Cold War-era law called the Defense Production Act to give the military more sweeping authority to use its products, even if the company doesn’t approve.

    Amodei said Thursday that “those latter two threats are inherently contradictory: one labels us a security risk; the other labels Claude as essential to national security.”

    Parnell left out the threatened use of the Defense Production Act in the Thursday post on X and said Anthropic has “until 5:01 PM ET on Friday to decide.”

    “Otherwise, we will terminate our partnership with Anthropic and deem them a supply chain risk,” he wrote.

    The talks that escalated this week began months ago. Amodei said that given “the substantial value that Anthropic’s technology provides to our armed forces, we hope they reconsider.” But if they don’t, he said Anthropic “will work to enable a smooth transition to another provider.”

    Sen. Thom Tillis, a North Carolina Republican who is not seeking reelection, said Thursday that the Pentagon has been handling the matter unprofessionally while Anthropic is “trying to do their best to help us from ourselves.”

    “Why in the hell are we having this discussion in public?” Tillis told reporters. “This is not the way you deal with a strategic vendor that has contracts.”

    He added, “When a company is resisting a market opportunity for fear of negative consequences, you should listen to them and then behind closed doors figure out what they’re really trying to solve.”

    Sen. Mark Warner of Virginia, the ranking Democrat on the Senate Intelligence Committee, said he was “deeply disturbed” by reports that the Pentagon is “working to bully a leading U.S. company.”

    “Unfortunately, this is further indication that the Department of Defense seeks to completely ignore AI governance,” Warner said in a statement. It ”further underscores the need for Congress to enact strong, binding AI governance mechanisms for national security contexts.”

    As Pentagon officials say they always will follow the law with their use of AI models, Hegseth told Fox News last February, weeks after becoming defense secretary, that “ultimately, we want lawyers who give sound constitutional advice and don’t exist to attempt to be roadblocks to anything.”

  • Walmart delivery drivers in Pa. to receive $1.4 million as part of multi-state settlement over withheld tips and other fees

    Walmart delivery drivers in Pa. to receive $1.4 million as part of multi-state settlement over withheld tips and other fees

    Walmart Spark Program Delivery drivers in Pennsylvania will receive about $1.4 million as part of a multistate settlement in which the retail giant was accused of pocketing a portion of tips and other payments meant for drivers.

    Pennsylvania’s share is part a larger $100 million settlement from the complaint brought by the Federal Trade Commission and 11 states, according to a news release from the Pennsylvania Attorney General’s office.

    Of that total, $79 million will go to drivers, $11 million will go to states, and $10 million will be paid to the FTC to provide refunds to customers.

    Walmart allegedly deceived both customers and delivery drivers, leading them to believe that drivers would get the entire tip customers left for them when, in fact, Walmart was retaining a portion and in some cases the entire tip.

    Tips were only one payment the drivers were misled about, the lawsuit alleged. Drivers were also shortchanged on pre-tip amounts, base pays, and incentive pays that were inaccurately advertised to them, according to the suit.

    “Walmart was aware almost immediately of issues with the program, and drivers being paid less than face value, yet did nothing to remedy the situation,” Pennsylvania Attorney General David Sunday said in a statement. “Time and time again, Spark drivers did not receive tips they were entitled to — this settlement goes a long way to making those harmed Pennsylvanians whole.”

    In response to the settlement, Walmart said that it was working to improve procedures and ensure fairness and transparency with drivers and that it was issuing payments to impacted drivers. When asked whether those were the payments legally mandated by the settlement, a Walmart spokesperson said they were.

    “We value the hard work and dedication of the drivers who deliver great service and products to our customers,” the spokesperson said in a statement.

    The Spark program started in 2018 and enrolled nearly one million drivers across the country who collectively made more than 272 million deliveries, according to the Attorney General’s release.

    Walmart now will be required to operate an earnings-verification program and submit annual reports to the FTC for the next 10 years. The company is not allowed to modify orders after drivers have accepted them nor misrepresent how much a driver will earn from an offer.

  • FedEx joins other U.S. companies in seeking a refund after Trump tariffs are ruled illegal

    FedEx joins other U.S. companies in seeking a refund after Trump tariffs are ruled illegal

    FedEx is suing the U.S. government, the latest company to request a refund on what it paid for tariffs set by President Donald Trump last year after the Supreme Court ruled that the tariffs are illegal.

    More than 1,000 companies have filed suit in the U.S. Court of International Trade in efforts to recoup costs from the illegal tariffs, including large U.S. corporations such as Costco and Revlon. Most of the lawsuits were already in process ahead of the Supreme Court decision Friday.

    FedEx said in a filing with the U.S. Court of International Trade that they have “suffered injury” from having to pay the tariffs and that the relief they’re seeking from the court would redress those injuries.

    Tim Meyer, a law professor at Duke University, said each case is likely to have to be tried individually.

    “We’re going to have to wait and see how the government decides to handle the refund claims,” he said. “And then if the government chooses not to set up a process for the refunds, ultimately the Court of International Trade is going to have to adjudicate over a thousand cases.”

    The National Retail Federation said in a statement on Friday that the Supreme Court’s ruling provided certainty for U.S. businesses and manufacturers.

    “We urge the lower court to ensure a seamless process to refund the tariffs to U.S. importers,” it said. “The refunds will serve as an economic boost and allow companies to reinvest in their operations, their employees and their customers.”

    The Supreme Court struck down Trump’s far-reaching global tariffs on Friday. Trump said he was “absolutely ashamed” of some justices who ruled 6-3 against him, calling them “disloyal to our Constitution” and “lapdogs.” At one point he even raised the specter of foreign influence without citing any evidence.

    The court’s ruling found tariffs that Trump imposed under an emergency powers law were unconstitutional, including the sweeping “reciprocal” tariffs he levied on nearly every other country.

    The Treasury had collected more than $133 billion from the import taxes the president has imposed under the emergency powers law as of December, federal data shows. The impact over the next decade has been estimated at some $3 trillion. A study by the Federal Reserve Bank of New York found U.S. businesses and consumers are paying nearly 90% of the tariffs that Trump has imposed.

    Trump has vowed to collect tariffs through other means. He reached for a stopgap option immediately after his defeat Friday at the Supreme Court: Section 122 of the Trade Act of 1974 allows the president to impose tariffs of up to 15% for up to 150 days. But any extension beyond 150 days must be approved by a Congress likely to balk at passing a tax increase as November’s midterm elections loom.