NRF to Senate: Approve tax-refund amendment
Washington, D.C. The National Retail Federation on Tuesday asked the Senate to approve an amendment that would bring struggling retailers and other businesses billions of dollars by lengthening the period during which they can carry back current losses to claim a tax refund from previous years when they made a profit.
“For retailers struggling in the current recession, NOL (net operating loss) carryback provides an important source of capital to finance ongoing operations and retain employees,” NRF senior VP for government relations Steve Pfister said.
“Because retail sales have fallen so dramatically over the past year and access to capital has been so limited, retailers are experiencing severe challenges in finding the cash they need to operate their businesses as the economy moves toward recovery.”
Pfister’s comments came in a letter to leadership and members of the Senate, which is expected to consider legislation extending unemployment insurance benefits this week.
Carryback is normally limited to two years, but economic stimulus legislation signed into law in February expanded the period to five years for companies with up to $15 billion in annual gross receipts. Larger businesses are still restricted to two years.
Details are still being worked out, but the amendment is expected to expand the five-year period to include all businesses that suffer a loss regardless of size, and to give companies the choice of using the carryback for losses from either 2008 or 2009 rather than just 2008 as provided in the stimulus bill.
Olsen twins launch exclusive line for JCPenney
PLANO, Texas JCPenney has launched a new line from Mary-Kate and Ashley Olsen. The exclusive new line, Olsenboye, will be available for a limited time on jcp.com and in select JCPenney stores beginning Nov. 6, with a full launch set for spring 2010.
“Our juniors customers have grown up with Mary-Kate and Ashley and look to them not only as authentic designers, but also as style icons,” said Liz Sweney, EVP and general merchandise manager of women’s apparel at JCPenney. “The launch of Olsenboye brings aspiration and sophistication to our juniors department, while underscoring our commitment to continue to step up our style and offer our younger customers new, fashion-forward merchandise at affordable prices.”
The Olsebboye collection draws inspiration from different cities around the world and includes denim, bottoms, tops, dresses and shoes ranging in price from $20 to $50.
To help promote the new line, an Olsenboye “mobile shop” will drive around New York City offering consumers a chance to experience the brand and purchase merchandise before the launch.
Credit trends point to pressured consumers
The stock market is looking up, and there is talk of the recession being over, but one look at the trends in Target’s credit portfolio reveal that consumers are not out of the woods. The company’s receivables declined 6.8% in September compared with a year earlier, partly by design as the company sought to mitigate its exposure to charge-offs and delinquencies. Charge-offs totaled 14.37% in September, while delinquencies totaled 6.17%.