Consumer Affairs & Relations

PHILADELPHIA — Pep Boys has put an end to the proposed merger between itself and investment firm The Gores Group.

The potential merger was first announced on Jan. 30, and The Gores Group has agreed to pay Pep Boys a fee of $50 million and to reimburse Pep Boys for certain merger-related expenses. The special meeting of Pep Boys’ shareholders, which was scheduled to be held on May 30, has been canceled.

New York -- William Ackman, founder and CEO of Pershing Square Capital Management, said that J.C. Penney Co. should start to see “real progress” in early 2013. Ackman made his comments in an interview Tuesday on CNBC’s “Squawk Box.” Pershing Square owns about 18% of J.C. Penney.

Washington, D.C. -- The Retail Industry Leaders Association (RILA) issued the following statement in response to the announcement that New Jersey Governor Chris Christie has reached an agreement with Amazon.com requiring the online retailer to begin collecting state sales tax on purchases made in New Jersey by July 1, 2013.

"Today's announcement ends the practice of giving out-of-state retailers like Amazon.com an unfair advantage over those retailers who are an integral part of communities across New Jersey," said RILA president Sandy Kennedy

New York -- Consumer confidence in May rose to the highest level since October 2007, according to the Thomson Reuters/University of Michigan final index of consumer sentiment. The index rose increased to 79.3 from 76.4 the prior month. 

Industry analysts said a decline in gas prices and an improving housing market is helping offset slower job growth and volatile stock prices.

Estimates for the confidence measure ranged from 76 to 79, according to a Bloomberg survey of 60 economists.
 

CINCINNATI — Kroger has launched a new campaign to generate $4 million in cash and good donations to assist 80 local food banks in the communities it serves.

New York -- The Los Angeles City Council voted 13-1 to ban plastic bags at supermarket checkouts, becoming the largest city in the nation to approve such a law.

The council voted to phase out plastic bags during the next 16 months at an estimated 7,500 stores, meaning shoppers will need to bring reusable bags or purchase paper bags for 10 cents each.

CHESAPEAKE, Va. — Dollar Tree has approved a 2-for-1 stock split in the form of a 100% common stock dividend. The new shares will be distributed June 26 for shareholders of record as of the close of business on June 12.

With the stock split, the number of outstanding shares of the company's common stock will increase from approximately 116 million shares, pre-split, to approximately 232 million shares, post-split.

Hingham, Mass. -- Talbots said Friday that Sycamore Partners had walked away from negotiations over a proposed $215 million buyout of the retailer. The company, which also reported first quarter results, said it was exploring other strategic alternatives.