Former Kmart CEO Cleared
Chicago, Former Kmart CEO Charles Conaway was cleared of wrongdoing in a civil lawsuit that was filed by former creditors of Kmart. The CEO was accused of contributing to Kmart’s 2002 bankruptcy. An arbitration panel unanimously ruled that the Kmart Creditors Trust is not entitled to any damages from Conaway. The trust was created to recover money during Kmart’s reorganization process, giving 2% to shareholders who lost investments when Kmart’s stock was cancelled.
The trust has filed lawsuits against several former Kmart executives, including Conaway, charging that they enjoyed high salaries and other perks while the company was rapidly losing money. The lawsuit against Conaway blamed him for $1.7 billion in economic harm. The panel, however, found that Conaway acted properly in his role and only tried to keep Kmart from going bankrupt.
Target Adds Smith & Hawken to Stores
Minneapolis, Target has signed a deal with Smith & Hawken that will bring the upscale gardening and outdoor living brand to Target garden centers by late this year and to Target stores nationwide by March 2006.
According to Smith & Hawken president Barry Sanders, the company will design an exclusive line of items specifically for Target.
Sears Hiring Once More
Hoffman Estates, Ill., Four months after firing 850 workers, Sears Holding Corp. has posted nearly 100 help-wanted notices on Monster.com. The corporate headquarters jobs range from women’s apparel buyer to VP of financial services.
Some Sears workers who lost their jobs in April are speculating that the new jobs will be on a different pay structure than prior jobs—lowering base salaries to bring costs down.