KB Toys Reorganization Plan Approved
Pittsfield, Mass., KB Toys Inc. got approval from U.S. Bankruptcy Court for reorganization. The plan involves the investment of $20 million by KBT Funding LLC, an affiliate of Prentice Capital Management LP.
The court made Aug. 12 the deadline for creditors to vote on the plan and scheduled a confirmation hearing on Aug. 18. If approved, KBT will gain control of the 650-store toy retailer. The company expects to emerge from bankruptcy before the 2005 holiday season.
Kroger and Six Other National Retailers File Antitrust Suit Against Visa
Cincinnati, Charging that Visa unlawfully fixed credit-card interchange fees and restricted competition, The Kroger Co., announced today it has filed a federal lawsuit against Visa USA and Visa International Service Association. Joining Kroger in the suit, filed in the Southern District of New York, are Walgreen Co., Safeway, Eckerd Corp., Albertson’s, Ahold USA and Maxi Drug.
The lawsuit alleges that Visa has unlawfully set the interchange fees that are charged to Kroger and other merchants each time a customer makes a purchase with a Visa credit card. The suit also charges Visa with creating and imposing rules and restrictions on merchants that preclude Kroger from being able to negotiate lower fees.
The complaint seeks injunctive relief to stop the anticompetitive practices, plus unspecified damages.
Safeway Names Cominiello Eastern President
Pleasanton, Calif., Safeway Inc. named Hank Cominiello president of the company’s eastern division, which he has been heading on an interim basis for the past nine months. Cominiello joined Safeway in 1970 as a courtesy clerk and progressed through a range of retail store and district manager assignments in the company’s Denver division. He was promoted to VP, Retail Operations, in Safeway’s Eastern Division in 1998 and acting Division President in November 2004.