FINANCE

Report: Movie Gallery to file bankruptcy

BY CSA STAFF

Wilsonville, Ore. A late Wednesday report by Wall Street Journal said that Movie Gallery will file for Chapter 11 bankruptcy as early as next week.

The filing will mark the second time in two years the owner of Hollywood Video stores has sought protection from creditors.

Movie Gallery has not yet responded publicly, but WSJ cited people familiar with the matter as saying Movie Gallery could seek Chapter 11 protection from creditors as soon as Tuesday of next week, and that it could try to close about two-thirds of its outlets, or 1,800 stores. Those closures could lead to significant job losses at the company, which employs about 21,000 people.

Movie Gallery filed for bankruptcy in October 2007 and emerged from that in May 2008. Sopris Capital Advisors LLC acquired the company in 2008, when it last emerged from court protection.

Movie Gallery’s negotiations center on a plan that would exchange debt for equity in a reorganized company, the Journal reported. The company’s debt grew in 2005 when it bought Hollywood Entertainment Corp.

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Williams-Sonoma CEO retires, new leader named

BY CSA STAFF

SAN FRANCISCO Williams-Sonoma announced that Howard Lester will retire from his position as chairman and CEO and as a member of the board at the May 2010 annual shareholders’ meeting. He will continue, however, to assist the company in a consulting and advisory role through December 2012 and have the title of chairman emeritus.

Lester has led the company since 1978 when he purchased it from its founder, Chuck Williams. At that time, the company had four stores, a small catalog and $4 million in revenue.

 

 

Williams-Sonoma said that its board intends to appoint Laura Alber as the company’s CEO as well as a nominee to the board of directors. Alber joined the company in 1995 and was appointed to her current role as president in 2006.

Alber stated, “It is an exceptional honor to follow in the footsteps of one of the most highly esteemed executives in retail. Howard has been an outstanding mentor, and he is retiring at a time when the foundation of the company has never been stronger. We are confident in our direction and, together with the leadership team, ready to execute against those strategies that will grow and improve our businesses, deliver great products and services to our customers and enhance shareholder value.”

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Costco honored for sustainability efforts

BY CSA STAFF

INDIANAPOLIS SustainableGrocer.com, an organization which manages sustainability practices within the food and grocery retail sector, has named Costco as the 2009 Sustainable Grocer of the Year.

Costco received the award for its sustainable efforts including energy reduction, offering a wide selection of organic food and its recycling programs. The company was also recognized for reducing packaging waste and working to reduce its carbon footprint through effective delivery systems which utilize the most efficient trucks available.  

 

 

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