Labor & Employment

Coppell, Texas – Alco Stores Inc. reported a net loss of $8.1 million in the first quarter of its fiscal year, up from a loss of $1.7 million in the year-ago period, amid an elimination of a tax benefit. The company also announced its CFO has left the company.

Net sales decreased 4.1% to $104.7 million, compared to $109.2 million in the first quarter of fiscal 2014. Same-store sales, excluding fuel centers, decreased 7.1%. Alco president and CEO Richard Wilson cited several ongoing initiatives as providing promise for future performance.

Lancaster, Pa. -- Auntie Anne’s announced the addition of Okey M. Reese to the executive team. Reese, who has been with Auntie Anne’s since 2010, has been promoted to VP, real estate.
 
In this position, Reese will oversee the leasing, specialty retail, and franchise sales departments. His responsibilities will include the strategic oversight of identifying new growth opportunities throughout the United States, strengthening developer partnerships and assisting franchise partners in all aspects of the real estate process.

Los Angeles -- Apparel retailer American Apparel Inc. has fired its controversial founder Dov Charney as chairman, effective immediately, and has moved to fire him as CEO and president. The actions come on the heels of an ongoing investigation into alleged misconduct by Charney, who has been targeted in sexual harassment lawsuits and charged with allegations of misconduct for years.

American Apparel’s board of directors has voted to remove Dov Charney as chairman and fire him as president and CEO.

It is expected that the termination will be effective following a 30-day cure period required under the terms of Charney’s employment agreement.

For the time being, Charney is suspended from his positions as president and CEO, effective immediately, pending the expiration of the cure period. The board has appointed John Luttrell as interim CEO.

Johnson & Johnson has added UPS chairman and CEO D. Scott Davis to its board as director. Davis will serve on the audit committee and the regulatory, compliance and government affairs committee.

Davis has been with UPS for 29 years and was appointed its CEO in 2008. Under his leadership, the company has expanded its logistics network reach and capabilities throughout Europe, Asia and the Americas. Davis plans to retire Sept. 1, and will remain non-executive chairman of UPS’ board.

The Indianapolis suburb of Plainview will be home to Walmart’s newest dedicated e-commerce fulfillment center when the 1.2 million-sq.-ft. facility opens early next year.

The retailer indicated in early June that Indiana would be home to its third e-commerce fulfillment center but did not identify the community at the time. Walmart’s other online dedicated centers are located in Texas and Pennsylvania. The newest facility will employ approximately 300 people with hiring expected to begin in October.

Skechers USA has filed a lawsuit against Reebok International for selling footwear that, according to Skechers, infringes on its Go Walk product line.

The suit, filed in the United States District Court for the Central District of California, seeks compensatory and punitive damages as well as injunctive relief for infringing on Skechers’ patent and trade dress rights and for unfair competition. The suit states that Reebok is selling the infringing products under the name Reebok Walk Ahead RS.

American Standard Brands president and CEO Jay Gould was appointed to the board of directors of American Standard’s parent company, LIXIL Corporation.

Gould joined American Standard Brands in January 2012.

According to the company, Gould executed a plan that quadrupled the company's EBITA, grew sales by 10% and improved gross margins by 700 basis points.

Cincinnati -- Kroger Co. on Wednesday said it plans to withdraw from two multi-employer pension funds and will incur a charge of $56 million in the first quarter as it contributes that amount to restructure its pension obligations. The move is in line with the retailer’s desire to exert more control over employee-retirement programs.

Matthews, N.C. -- Family Dollar Stores, announced that it has named Jeffrey Thomas senior VP-merchandise operations. He replaces Scott Zucker, who left the company at the end of May.

Thomas joined Family Dollar in 2003 as a director of vendor performance. He went on to assume roles with increasing responsibilities, and in 2013, was named VP-merchant services.