The Bon-Ton Strikes Executive Agreement with Chairman of the Board
York, Pa., The Bon-Ton Stores, Inc. said it has struck an Executive Transition Agreement with Tim Grumbacher, Chairman of the Board of Directors and its former CEO. Under the Agreement, Grumbacher will serve as Executive Chairman of the Board of Directors and a member of the Executive Committee of the Board. Grumbacher stepped down as CEO in Aug. 2004 when Bud Bergren was appointed to the post.
Bud Bergren, president and CEO, said in a statement, “Tim has been an important part of the development and growth of Bon-Ton and most recently in pursuing and closing the acquisition of Elder-Beerman Stores Corp. I, personally, appreciate the role Tim is playing in the leadership transition of the Company. The sharing of his knowledge and experience will contribute greatly to the future success of our Company.”
Investors Bid $5 Billion for Toys ‘R’ Us
Paramus, N.J., Aprivate-investment group led by Cerberus Capital Management LP has offered to buy Toys “R” Us Inc. for about $5 billion, according to today’s Wall Street Journal. Reportedly, the bid was placed last month, but garnered a cool response from Toys “R” Us.
In addition to Cerberus, the investment group includes Goldman Sachs Group Inc. and Kimco Realty Corp. Other suitors for the toy retailer reportedly include Kohlberg Kravis Roberts & Co.; a partnership between Apollo Advisors LP and Permira Advisors Ltd.; and an alliance between Bain Capital LLC and Vornado Realty Trust.
Staples to Sell Office Supplies in Ahold Stores
Framingham, Mass., Staples and Ahold USA forged an alliance under which the office-products retailer will sell its goods in Staples-branded aisles at Ahold supermarkets.
Staples will make its debut at Ahold’s 550 Stop & Shop and Giant-Landover supermarkets in July, in time for the back-to-school selling season. The aisles will stock between 500 and 1,200 school and office supplies, a good chunk of the 7,500 items Staples stores typically carry.
The arrangement mirrors a deal under which Albertsons sells some toys in its stores through a collaboration with Toys “R” Us. Albertsons also has a similar arrangement in some markets with Staples rival Office Depot.