A&P Reports $89 Million Loss
Montvale, N.J., A&P reported a net loss of $89 million for the first quarter of the fiscal year ending June 18. Sales for the first quarter were $3.4 billion, a 3.1% increase. The loss includes $68 million worth of charges.
Christian Haub, CEO of A&P, said the company plans to complete the sale of its Canadian stores in the second quarter. He said A&P will use the proceeds of the sale to counter the loss and remodel stores. According to Haub, A&P is getting good returns on full-scale remodels of stores, which cost $1.5 million each, so the company plans to do more remodeling.
Iconix to Buy Joe Boxer
New York City, Iconix Brand Group has entered into a letter of intent to purchase the high-profile Joe Boxer intimates brand. Iconix, which went by the name Candie’s until last month, said it was negotiating a definitive purchase agreement subject in part to the company’s ability to obtain financing, among other contingencies.
The Joe Boxer brand has had an exclusive distribution deal with Kmart since 2001. Sears Holdings Corp. carried over the agreement when Sears, Roebuck and Co. and Kmart Holding Corp. merged this year.
Attorneys Prepare Wal-Mart Defamation Lawsuit
Little Rock, Ark., Lawyers for fired Wal-Mart VP Jared Bowen sued the retailer late yesterday for defamation, claiming that Wal-Mart has characterized Bowen as “a liar, a thief and a fraud.” Bowen is accusing Wal-Mart of sullying his reputation with public criticism and reiterated claims that he was terminated after he drew attention to misspending by an upper-level executive.
Wal-Mart fired Bowen around the same time that former vice chairman Tom Coughlin was accused by the company of misspending up to $500,000. Wal-Mart has said Bowen was a part of the scheme.
Bowen’s lawsuit was filed in the Benton County Circuit Court.