Sears Holdings Corp. abruptly announced the departure of president and chief executive Aylwin Lewis on Monday, leaving a management void at the top of the department store chain controlled by Chairman Edward Lampert as it tries a high-stakes restructuring to reconnect with customers and reinvigorate slumping sales.
W. Bruce Johnson was named as interim CEO while the company looks for a permanent successor.
Monday’s announcement marked the latest chapter for the venerable retailer, which has seen its competitors snatch away customers since Lampert acquired Kmart in 2003 and Sears, Roebuck and Co. in 2005.
Verizon reports rise in 4th-quarter earnings
Verizon Communications Inc., the nation’s second largest telecommunications company, on Monday reported a 3.9 percent rise in fourth-quarter earnings on steady but moderate growth in its core operations. The company reported seeing no real effect of a possible economic slowdown, beyond a marginal increase in nonpaying wireless subscribers.
Fired Starbucks CEO gets fat severance
Starbucks Corp. has given the chief executive officer it fired earlier this month a severance package that includes $1.25 million the coffee retailer will pay out over the next year. The agreement, disclosed in a filing with the Securities and Exchange Commission on Monday, also allows Jim Donald to exercise options for 1.45 million shares of stock at prices of either $10.86 or $15.23. Those options are worth $9.52 million, based on Monday’s closing stock price of $19.66.
Chrysler offers buyouts of up to $100,000
Chrysler LLC is offering buyouts of up to $100,000 to hourly workers at 11 of its U.S. facilities as part of its goal to cut up to 21,000 manufacturing jobs, or nearly half its U.S. hourly work force, a company spokeswoman said Monday. Chrysler is in the midst of a restructuring after a majority stake in the automaker was sold in the summer of 2007 to private equity firm Cerberus Capital Management LP.
Record label denies pact with new service
A revamped online file-sharing service that promised to offer unlimited, free music downloads from all the major record labels hit an apparent snag Sunday after one denied it had given the service permission. Qtrax touted in a press release that it was the first Internet file-swapping service to be “fully embraced by the music industry.” Warner Music undermined that claim, declaring in a statement that it “has not authorized the use of our content” on Qtrax. Universal Music Group and EMI Group PLC later confirmed they did not have licensing deals in place with Qtrax, noting discussions were still ongoing. A call to Sony BMG Music Entertainment was not immediately returned.
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