Labor & Employment

Boise, Idaho – As part of divestures to receive FTC clearance of their proposed January 2015 merger, AB Acquisitions Inc. (Albertsons) and Safeway Inc. will sell 146 stores to Pacific Northwest grocery chain Haggen. With this acquisition, which remains subject to FTC approval, Haggen will expand from 18 stores with 16 pharmacies to 164 stores with 106 pharmacies.  

Los Angeles – Change is occurring at American Apparel Inc., and it may be coming from external as well as internal sources. The board of directors of American Apparel has confirmed that it has received an indication of interest to acquire the struggling company for $1.30 to $1.40 per share.    The identity of the potential buyer has not been disclosed, but in a press release American Apparel said it “takes these matters seriously, and will evaluate this proposal in the ordinary course of business. 

Gap has appointed a new CEO. Art Peck, currently president of the company’s growth, innovation and digital division, will succeed Glenn Murphy as the company’s next executive chief, effective Feb. 1, 2015.

The company said that after seven years in his role, Murphy made the personal decision to leave the company at the end of the fiscal year. Under Murphy’s stewardship, the company acquired new brands and globalized its business by expanding store locations from 10 to 50 countries, including China.

Embattled retailer American Apparel Inc. is restructuring its board amid rumors that the company is evaluating an offer to sell itself at a hefty premium.

The company, which recently ousted its chief executive and founder Dov Charney, announced that Allan Mayer and David Danziger have stepped down as co-chairmen of the board and will be replaced by board member Colleen B. Brown as chairperson. Mayer and Danziger will continue to serve as members of the board and will retain their positions as chairs of the compensation and audit committees, respectively.

Little known food retailer Haggen Northwest Fresh will grow its store base more than 800% following a Federal Trade Commission mandate that Albertson’s and Safeway divest 168 stores.

Few people have heard of Haggen outside Washington and Oregon, where the company operates 18 stores, but now the food retailer is about to get dramatically bigger and expand its presence to three more western states.

Executives from The Home Depot, Warby Parker and Chico’s will receive top honors from the retail industry next month when the National Retail Federation convenes its annual Big Show in New York.

Mexico City - Wal-Mart de Mexico said that that Enrique Ostale, Walmex chairman and Latin America CEO for Wal-Mart Stores, will also take over as CEO of the Mexican company, effective January 1.  

New York - A federal judge has ruled that customers suing Target for last year’s data breach may move forward with their claims.   U.S. District Judge Paul Magnuson in St. Paul, Minn., dismissed claims by plaintiffs in certain states but largely denied Target's request to toss out the proposed class action lawsuit. Magnuson rejected Target's argument that the consumers lacked standing to sue because they could not establish any injury.  

Oakbrook Terrace, Illinois - Mid-America Real Estate Corporation recently announced the promotions of two employees to Principals and two employees to Senior VPs.   Joe Girardi is a member of Mid-America’s Shopping Center Investment Sales team, and has been promoted to a Principal of Mid-America Real Estate Corporation. He has been with Mid-America since 2003, and has been directly involved in the completion of over $2 billion of retail investment sale transactions.   

San Jose, Calif. – The New Year is looking very happy for EBay CEO John Donahoe and CFO Bob Swan. In a securities filing, EBay said that Donahoe will get a severance package worth $23 million and Swan will get a severance package worth $12 million when the company spins off its PayPal unit in 2015. Both men said they would leave their positions after the split occurs when EBay first announced the spinoff plan in September.