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.
CVS Reaches Settlement Over Tobacco Sales
Providence, R.I., CVS Corp. reached a settlement with 42 states and Washington D.C., promising to strengthen practices that keep minors from buying tobacco products. A company spokesman said although the agreement isn’t an admission of wrongdoing, CVS officials signed it to head off legal action threatened by several states for past violations. The pharmacy chain agreed to check the identities of customers who attempt to purchase tobacco products if they look younger than 27. CVS officials also agreed not to use self-service displays or vending machines to sell tobacco products and to train employees on state and local laws regulating tobacco sales. The company also will hire an independent monitor to check its compliance at 5,400 stores nationwide, and prosecutors can still bring legal action if the company fails to adhere to the settlement. Officials did not disclose the cost of the agreement.