Circuit City to Appeal RadioShack Licensing Ruling
Richmond, Va., Circuit City Stores Inc. today said it would appeal a Texas district court ruling that RadioShack Corp. could end a licensing contract with its InterTan unit. The court ruled that Circuit City and its spin-off unit InterTan Inc. must stop using the RadioShack brand name in store signs, products, packaging and advertising in Canada after June 30. RadioShack sued InterTan in 2004 on grounds that the unit violated its contracts, and sought to terminate the licensing agreement. InterTan, a 1987 spin-off of RadioShack, operates 980 company-owned and dealer stores in Canada.
“We respectfully believe the court has erred in the partial ruling entered yesterday, and we will use every means of relief possible to exercise our rights under the agreements, including all appeal rights,” W. Alan McCollough, Circuit City chairman and CEO, said in a statement. “The company believes the positions taken by InterTan are correct and believe InterTan will ultimately prevail in the legal proceedings.”
Disney Store Expands to Outlet Arena
Glendale, Calif., Disney Store North America, a wholly owned subsidiary of The Children’s Place Retail Stores, will expand into the retail outlet arena. Its first outlet will measure more than 7,000 sq. ft. and will open in New York this weekend at the Woodbury Common Premium Outlets. Five additional outlets are planned to open this year in California, Arizona, Illinois, Tennessee and Ontario, Canada. The move marks the first adjustment to Disney Store’s real estate strategy since The Children’s Place acquired the chain in November.
Barnes & Noble to Repurchase $200M in Stock
New York City, Barnes & Noble Inc. has authorized a share repurchase program of up to $200 million of its common shares. The repurchase program follows a previous, $250 million program that the retailer recently completed.