Wal-Mart sues CVS over hiring of former exec
New York City — Wal-Mart Stores has filed suit against CVS Caremark Corp. to prevent CVS from hiring former Wal-Mart executive Hank Mullany, according to a Friday report by Bloomberg.
CVS’s hiring of Mullany, former president of Wal-Mart’s northern U.S. division, would violate a noncompete agreement, Wal-Mart said in the complaint filed Thursday in Delaware Chancery Court.
According to Wal-Mart’s complaint, CVS has indicated that it intends to hire Mullany without regard to the agreement.
“Mullany’s employment with CVS will necessarily require Mullany to use and disclose Walmart’s confidential information,” Wal-Mart said in its complaint. “Knowledge of Walmart’s confidential information would be extremely valuable to CVS and will be used by CVS to gain competitive advantage.”
Mullany, who was hired by Wal-Mart in 2006, was responsible for overseeing operations at 587 Wal-Mart stores in 13 states including Pennsylvania, Virginia, New Jersey and New York, according to the complaint. He was “privy” to Wal-Mart’s national strategies and responsible for implementing those strategies in the northeastern United States, the complaint said.
According to Bloomberg’s report, Mullany signed a non-compete agreement in December 2009 when he was promoted to president of Wal-Mart North. His new role put him in charge of real estate and supply chain functions for 1,312 stores in 19 states. The non-compete agreement barred him from working for a competitor for two years after leaving Wal-Mart. He resigned in October 2010 and left the company on Nov. 5, 2010.
Loehmann’s files reorganization bankruptcy plan, must seek asset sale
New York City — Loehmann’s Holdings filed a Chapter 11 reorganization plan that includes a stock-rights offering backed by its Dubai-based owner, according to a Friday report by Bloomberg. The plan also includes a requirement that the Loehmann’s seek approval to sell its assets.
The bankrupt apparel retailer will sell $25 million in convertible preferred stock as part of its Chapter 11 plan, according to papers filed Wednesday in U.S. Bankruptcy Court in Manhattan. A motion to authorize the sale of assets must be filed by mid-January, according to Bloomberg.
New York City-based Loehmann’s filed a Chapter 11 plan on Nov. 15, which was negotiated with Loehmann’s owner Istithmar Retail Investments and a noteholder Whippoorwill Associates.
Istithmar and Whippoorwill both agreed to backstop the stock-rights offering.
Under terms of a $45 million financing agreement with Crystal Financial that will allow the company to exit bankruptcy, Loehmann’s agreed to a series of deadlines for actions including the pursuit of an asset sale. By Jan. 14, Loehmann’s must seek bankruptcy court “authorization to conduct a sale of all or substantially all of their assets, as either a going concern business or through ‘going out of business’ sales,” according to the disclosure statement, which explains the reorganization plan.
Other deadlines in the financing agreement are Feb. 7 for the entry of an order confirming the Chapter 11 plan and Feb. 18 for its effective date, when Loehmann’s would emerge from bankruptcy. If the plan isn’t confirmed, an order authorizing the sale of the assets must be filed by Feb. 23, reported Bloomberg.
Top 10 “Unmissable” Stores
New York City — Forever 21’s massive Times Square flagship, a shop that sells ice cream made to order and frozen with liquid nitrogen, and a new beauty-and-wellness concept in Hong Kong are on a list of the hottest new stores around the globe.
The list comes from the folks behind the cutting-edge, London-based retail consultancy echochamber.com:
- Forever 21, Times Square, New York City
- H&M flagship, Paris
- Selfridges, shoe galleries, London
- Kurt Geiger, London
- One New Change, London
- Chin Chin Laboratorists, London
- The Eye Hub, Melbourne
- Kmart, store of the future, Melbourne
- F&H by Fanci, Hong Kong
- Eataly, New York City
Click here for more information.