Legislative, Regulatory & Legal

Arlington, Va. -- The Retail Industry Leaders Association (RILA) said Friday it is applauding the impending implementation of sales tax fairness in California, which stands to even the playing field between bricks-and-mortar retailers and online competitors.

Well paid teachers who receive generous benefits are on strike in Chicago and reminding Walmart why organized labor is a bigger threat to its business than any competitor.

Hoffman Estates, Ill. -- Sears Holdings disclosed in a regulatory filing that "because we believe that the company has substantial liquidity and financial flexibility," the company has elected to contribute an additional $203 million to its domestic pension plan on Sept. 14, after which the plan will be 80% funded under applicable law.

New Delhi, India -- India’s government said Thursday that it has OK’d plans to permit foreign retailers to open stores that sell more than one brand, paving the way for retailers such as Wal-Mart Stores and Carrefour SA to expand their presence in the country.

The approved plan calls for overseas companies to put half of their investment in infrastructure such as processing, manufacturing, storage, warehouses and packaging.

Dover, Del. -- A Friday report by the Associated Press said that Staples Inc. will pay $8.9 million to settle an abandoned property dispute with the state of Delaware.

A final payment is slated to be paid by Staples on Monday to settle the two-year-old suit that involved Delaware’s method of calculating liability for abandoned property. Staples argued that unclaimed customer rebates should not be considered abandoned property, but a judge disagreed.

Columbus, Ohio -- DSW Inc. said Thursday that it has been awarded $7.2 million as a result of litigation with its insurance carrier stemming from its credit card data breach in 2005.

The $7.2 million award represents damages plus accrued interest.

In other news, DSW has declared a special dividend totaling $91 million to be paid on Oct. 26 to shareholders. According to president and CEO Mike MacDonald, the special distribution, which is in addition to the regular dividend, represents “significant cash flow generation.”

New York -- Hobby Lobby Stores Inc. filed a federal lawsuit on Wednesday challenging the mandate in the health care overhaul law that requires employers to provide coverage for the morning-after pill and similar drugs. Hobby Lobby calls itself a "biblically founded business" and its stores are closed on Sundays.

Jacksonville, Fla. -- Stein Mart said Thursday that it received a notice of non-compliance on Wednesday from Nasdaq; specifically the retailer has not filed its second-quarter report.

By rule, Stein Mart has 60 days to submit a plan to regain compliance.

The retailer cited the replacement of its legacy merchandise information system, which delayed accounting reconciliations. It said it will file within the prescribed 60-day time frame.