Legislative, Regulatory & Legal

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.

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.

New York -- Ritz Camera & Image LLC plans to go out of business after 94 years and close its remaining 137 stores after it failed in a bankruptcy auction to find a buyer to keep the camera chain afloat, the Chicago Tribune reported.

U.S. bankruptcy judge Kevin Gross in Wilmington, Del., approved a plan to turn over most of Ritz's assets to Gordon Brothers Retail Partners LLC and Hilco Merchant Resources LLC.

Washington, D.C. -- The National Retail Federation told a congressional panel Wednesday that the Departments of Health and Human Services, Labor and Treasury have used too much informal guidance and not enough formal rulemaking in developing regulations to implement the new healthcare reform law, complicating retailers’ and other employers’ ability to plan for what will be required in 2014. NRF is concerned that the situation is the latest example of regulatory uncertainty that is hampering businesses’ attempts to expand and create jobs.



Baton Rouge, La. -- Cafeteria-style restaurant chain Piccadilly Restaurants filed for Chapter 11 bankruptcy protection on Friday, citing a breakdown in talks with its lender Atalaya Capital Management.

Atalaya had recently purchased part of Piccadilly’s debt, which hasn’t been quantified by the chain.  

Piccadilly was given a commitment for debtor in possession financing of up to $5 million, providing the company with ample liquidity, Piccadilly said.

Matthews, N.C. -- Family Dollar Stores said Wednesday it plans to settle a class-action matter with more than 1,700 New York store managers who filed suit on claims of unpaid overtime wages.

The preliminary settlement provides for a maximum payment of $14 million by Family Dollar. Settlement terms are pending court approval, and the discounter plans to record a fourth quarter charge to cover the costs.