Home & Textiles Today Staff -- Home Textiles Today, November 3, 2003
JCPenney sells Mexico operation
J. C. Penney Corporation Inc. and its subsidiary, J. C. Penney Mexico Inc. entered into an agreement to sell their Mexico department store operation to Grupo Sanborns S.A. de C.V. of Mexico City.
The stock sale transaction is expected to result in a pre-tax loss of approximately $40 million to JCPenney Company, largely due to currency translation costs accumulated since operations began in 1995 and that have previously been reflected through reductions in stockholders' equity.
The transaction will result in positive cash flow of approximately $25 million, including future anticipated tax benefits. The six stores that were part of the operation are located in Monterrey, Leon, Mexico City, Chihuahua, Cancun and Merida.
ShopKo names Matt Lynch senior vp, cio
ShopKo Stores Inc. named Matt Lynch senior vp and cio for the company's ShopKo and Pamida chains. He replaces Paul Burrows, who passed away suddenly Oct. 2 from heart-related complications.
Lynch joined the company in 1998 as vp, operations and technology services. He reports to Jeff Girard, vice chairman, administration and finance.
Kmart DC workers ratify contract
Kmart employees at two distribution centers have ratified a tentative union contract that covers roughly 1,100 workers. The three-year agreement was struck between Kmart Holding Corp. and the United Auto Workers union. It covers 600 employees in Morrisville, PA, and nearly 500 in Warren, OH. Neither Kmart nor the union disclosed the terms of the agreement.
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