N.Y. Supermarket Sues Over Untaxed Cigarettes
New York City, Newsday reported that New York City supermarket chain Gristedes Supermarkets filed a lawsuit against two Long Island Indian nations and senior tribal officials, alleging they were participating in an illegal black market that sold untaxed cigarettes to non-Indians. The grocer said it lost more than $20 million because smoke shops on the Unkechaug and Shinnecock reservations sold untaxed cigarettes at reduced prices, undercutting sales of non-Indian businesses in the metropolitan area, the report said. The suit described the smoke shops as black market suppliers “through their knowing and intentional complicity,” funding gangs, organized crime and international terrorists such as Hezbollah, the newspaper reported.
Pier 1 Sells Subsidiary Group
New York City, Retailer Pier 1 Imports Inc. said it was selling its the United Kingdom-based subsidiary Pier Retail Group Limited to Palli Limited for about $15 million. Pier 1 said it recorded a pretax impairment charge of about $7 million in the fiscal fourth quarter related to the subsidiary.
Golf Galaxy Acquires The GolfWorks
Eden Prarie, Minn., Golf Galaxy, Inc. completed its acquisition of club-making tools and supply company The GolfWorks. The acquisition comes two days after competitor Golfsmith International filed plans with the Securities and Exchange Commission to launch an initial public offering worth approximately $115 million. Golf Galaxy paid a combination of $3.7 million in cash and assumed $5.4 million in debt from The GolfWorks, which reported net sales of $24.5 million in fiscal 2005. Golf Galaxy currently operates 52 stores in 23 states along with its e-commerce Web site.