Rite Aid Files Civil Suit Against Founder and Son
Harrisburg, Pa., Acivil suit launched by Rite Aid Corp. against company founder Alex Grass and his imprisoned son alleges that the pair profited from the company’s sale of a blood-plasma business.
According to the details of the suit, Alex and Martin Grass concealed information from other bidders and Rite Aid’s financial advisers in the 1994 sale of Sera-Tec Biologicals. The younger Grass is currently serving a seven-year federal prison term for conspiracy to defraud Rite Aid and obstructing government investigations.
Alex Grass calls the current lawsuit “frivolous.”
Sears Holdings to Further Cut Benefits
Hoffman Estates, Ill., In the wake of soaring costs and plummeting shares, Sears Holding Corp. announced that retirees under the age of 65 will be forced to pay for their own health care coverage. Sears said that retiree health care costs consist of 17% of the company’s operating income.
Sears shares are down 29% from an all-time high of $163.50, set in July. Sears representatives say cutting costs is necessary to stay competitive, adding that Sears remains one of the only major U.S. retailers that provides retiree health care coverage: “Our new plan continues to be more generous than most,” spokesman Chris Brathwaite said.
Sears said that because of accounting rules related to its acquisition of Kmart it no longer expects to record gains from post-retirement benefits in future years.
PETsMART Names Hardin to Board
Phoenix, Joseph S. Hardin Jr., the retired president and CEO of Kinko’s, has been named to the PETsMART board of directors, bringing its membership to 12.
Prior to his leadership position at Kinko’s, Hardin served in several executive positions at Wal-Mart over an 11-year career with the retailer.