Kmart Seeks to Remove Footstar
White Plains, N.Y., Sears Holdings Corp.’s Kmart has requested that a federal judge allow the company to oust Footstar Corp. from 43 stores that are being renamed as a result of the Sears Roebuck-Kmart combo.
Kmart told the U.S. Bankruptcy Court that Footstar, which has a contract to sell shoes at Kmart, is unable to staff the 43 shoe departments.
This is at least the third request on file from Kmart to break its contract with Footstar, which filed for bankruptcy in 2004.
Dollar General Plans Ninth DC
Goodlettsville, Tenn., Dollar General plans to build a distribution center in Marion, Ind.—the ninth facility in the retailer’s distribution network. The 1.1 million-sq.-ft. facility will be located on a 188-acre site on State Route 18, near Interstate 69.
Saks Top Executives Ousted After Internal Investigation
Birmingham, Ala., Saks Inc. yesterday said it has ousted three top executives, including its chief accounting officer, after an internal investigation into improper collections of markdown allowances found that $20 million was inappropriately taken from vendors from 1999 to 2003.
Saks, which maintains that no improper collections seem to have taken place last year, has said that it will reimburse the vendors. The retailer is facing an informal inquiry by the Securities & Exchange Commission and the U.S. Attorney’s office in Manhattan.
The company said it has sought the resignation of its chief accounting officer Donald Wright and Saks Fifth Avenue chief administrative officer Donald Watros. Senior VP and brother of Saks CEO R. Brad Martin, Brian Martin, formerly Sak’s general counsel, was also asked to resign. Saks said that other employees “directly involved in the over-collection” will also be asked to resign. Sak’s audit committee of the board of directors has also recommended the elimination of bonuses for both its CEO and CFO, according to reports.