Circuit City CEO Paid $1.46M Bonus
Richmond, Va., Circuit City Stores Inc. CEO Allan McCollough was paid a $1.46 million bonus last year in addition to a salary of $975,000, the company reported today. The Richmond, Va.-based company said his salary was unchanged from last year, and indicated in a regulatory filing that he led the company through major changes, including the hiring of key management employees. The No. 2 electronics retailer currently is trying to reverse more than four years of market-share losses to rival Best Buy Co. Inc.
Fitch Lowers Blockbuster Rating
New York City, Fitch Ratings reduced Blockbuster’s debt ratings, which already had been at junk status. The arrival of Carl Icahn to the board of directors, and his previous complaints about the direction of the company, precipitated the rating change. “Fitch believes that the uncertainties related to Blockbuster’s strategic direction and fiscal policies brought on by the expected appointment of Carl Icahn and his two nominees to the board … negatively affects bondholders,” according to the New York City-based ratings service.
Children’s Retailer Carter’s to Buy OshKosh
Atlanta, Carter’s Inc. has announced that it will acquire its rival OshKosh B’Gosh for $312 million, merging two brands into one company that will generate more than $1.3 billion in annual sales.
Carter’s, which operates 181 retail stores and whose brand is sold in 3,000 department stores, will pay $26 in cash for each share of OshKosh stock; the deal includes redemption of employee stock options.
Last February, Oshkosh, Wis.-based OshKosh retained investment bank Goldman Sachs to help pursue what the company called strategic alternatives, launching speculation about the future of the brand. The retailer ran into financial trouble this year when a move into adult clothing flopped.