Bon-Ton to Cut 1,150 Jobs, Bonuses
York, Pa. Bon-Ton Stores Inc. said Thursday that it will eliminate about 1,150 jobs, get rid of 2008 senior executive bonuses and cut 2009 merit-based raises as it tries to slash costs to contend with the ongoing recession.
The department store operator anticipates the moves will result in annual savings of $70 million.
Bon-Ton said its actions will also include suspending company contributions to the 401(k) program, adjusting inventory levels and lowering capital spending to $40 million.
The moves, which will occur in fiscal 2009, will result in one-time costs of approximately $3 million.
The company also said it is looking at the value of its intangible, long-lived and tax assets and anticipates a non-cash charge related to lowering the assets’ reported value.
Bon-Ton said the amount of the charge would be determined later in the year.
Best Buy to reduce headquarters staff
MINNEAPOLIS Best Buy will lay off an unspecified number of headquarters employees on Feb. 19. The move is on top of the 500 voluntary layoff workers agreed upon earlier this month. The move reduces the corporate headcount to 3,500.
According to reports, average non-managerial employees will receive six months of severance pay.
Tractor Supply posts 1.3% comps gain in Q4
BRENTWOOD, Tenn. Tractor Supply Company announced that net sales for the fourth quarter increased 10.5% to $799.5 million from $723.3 million in the prior year’s fourth quarter. Same-store sales increased 1.3% compared with a 3.8% gain in the prior year’s fourth quarter.
Net income for the quarter was $24.7 million, or 67 cents per diluted share, compared to net income of $30 million, or 77 cents per diluted share, in the fourth quarter of the prior year.
For fiscal 2008, net sales increased 11.3% to $3.01 billion from $2.70 billion and same-store sales increased 1.4% compared to 3.4% for fiscal 2007.
Net income for fiscal 2008 was $81.9 million, or $2.19 per diluted share, compared to net income of $96.2 million, or $2.40 per diluted share, for fiscal 2007.
During fiscal 2008, the company opened 91 new stores and relocated one store. This compares to 89 new store openings, 12 relocations, and selling its only Del’s store located in Canada in fiscal 2007.