More Fuel for May Takeover Speculation
New York City, Federated Department Stores chief Terry Lundgren yesterday didn’t deny that his chain was interested in acquiring May Department Store Co. Today, the Wall Street Journal reports that the two rivals are in talks to create a $30 billion department store chain. When asked about a possible merger, Lundgren told the audience at the National Retail Federation convention that speculation and rumors aren’t worthy of response. May became a subject of takeover speculation when CEO Gene Kahn abruptly resigned from the St. Louis-based chain last week.
Limited Reorganizes Operations
Columbus, Ohio Columbus, Ohio , Limited Brands. Inc. is reorganizing its operations and into three business groups—lingerie; beauty and personal care; and apparel—with each group led by a president who will provide oversight for the brand and its products across all distribution channels.
Jay Margolis, formerly president/COO of Reebok Int., has joined Limited Brands as group president, apparel, with oversight for The Limited and Express. Len Schlesinger, vice chairman and COO, will now also oversee beauty and personal care, including the Bath & Body Works division. Chairman and CEO Leslie Wexner will assume group leader responsibilities for lingerie, including Victoria’s Secret. Wexner and Schlesinger will share responsibility for Henri Bendel and Victoria’s Secret Beauty.
In addition, Deborah Fine, founder and president of Avon Future, will join the company as CEO of Victoria’s Secret’s Pink division.
“We are poised for accelerated future growth and we need the depth and breadth of leadership to achieve it,” Wexner said. “This newly assembled leadership team will provide the intense focus and oversight in lingerie, beauty and personal care and apparel to maximize our growth potential.”
Second Canadian Wal-Mart Store Gets Union Certification
Toronto, Asecond Wal-Mart store in Quebec received union certification after a majority of the store’s employees signed cards indicating the Canadian arm of the United Food and Commercial Workers Union was their official agent for collective bargaining, the union said.
Andrew Pelletier, spokesman for Wal-Mart Canada, said the company is reviewing all of its options, including a legal challenge to the decision by the Quebec Labour Relations Commission that automatically certified the union after the majority of the 200 employees of the store, located in the town of Ste. Hyacinthe, signed union cards. In remarks to Dow Jones Newswires, Pelletier said the store associates were not given the opportunity to express their views about the union in a democratic, secret-ballot vote.
The union and Wal-Mart Canada, a unit of Wal-Mart Stores, already are negotiating a contract for another store in Quebec. The store was automatically certified in August. An arbitrator was appointed at Wal-Mart’s request and meeting dates have been scheduled through March 15.