Roundup: American Eagle Outfitters to close Marshall facility in July; more
American Eagle facility in Marshall to close in July
American Eagle Outfitters will close a distribution center in Marshall where 200 people work at the end of July.
The South Side-based teen apparel retailer announced the closure two years ago in conjunction with building a larger center in Hazleton but hadn't set a date for the shutdown.
American Eagle is giving workers a chance to transfer to Hazelton or other facilities in the company, and it's offering severance benefits and a transition package to the displaced workers.
Hearing scheduled on $175M grant from Highmark to AHN
The state Department of Insurance will hold a hearing May 4 in Harrisburg on a request by Highmark Inc. to give $175 million to Allegheny Health Network.
The hearing will focus on the financial condition of the health insurer and its sister organization of hospitals. Highmark asked the state to approve the grant in March, saying that the network needed the money to cover expansion projects.
Under an agreement that allowed Highmark to buy the former West Penn Allegheny Health System, the insurer is required to obtain the state's permission for large investments.
Sunoco Logistics to be fined for pipeline project mud spills
The state Department of Environmental Protection is planning to fine Philadelphia-based Sunoco Logistics for spilling drilling mud during its Mariner East pipeline project, department spokesman John Poister said Monday.
The amount of the fine has not been finalized, but Poister said it would be “significant.” He could not say when it would be imposed.
Sunoco declined to comment.
The fine stems from at least six instances last year when drilling mud leaked into streams in Westmoreland, Washington and Allegheny counties, according to the DEP. Bentonite, a nontoxic absorbent clay used in drilling mud, was spilled while the company drilled horizontal holes underground for its pipeline, which will transport natural gas liquids, Poister said.
No fish or other wildlife were harmed, but the company waited more than 24 hours to clean up the spill, which will increase the fine, Poister said.
Frederick's of Hollywoodfiles for bankruptcy protection
Frederick's of Hollywood Group Inc., known for its racy women's lingerie, filed for bankruptcy protection, having closed all its stores and reached a deal to sell the company as an online-only venture to Authentic Brands Group LLC.
The Los Angeles-based company notified customers on its website that it closed all its brick-and-mortar locations. The company listed $36.5 million in assets and $106 million in debt in Chapter 11 papers filed Sunday in U.S. bankruptcy court in Wilmington, Del.
Frederick's reached an agreement with Authentic Brands to sell its e-commerce operations, inventory and intellectual property for $22.5 million in cash and 25 percent of future brand revenue, according to court filings. The company will run a court-authorized sale process and hold an auction if other offers surface.
Frederick's was taken private last year for about $24.8 million by investors led by a unit of New York-based Harbinger Group Inc., according to a statement. At the time of the Harbinger deal, Frederick's had 94 women's clothing stores. At its height, it had more than 200.
ESPN objects to Verizon's flexible plans
ESPN is objecting to how Verizon is giving its FiOS TV customers more choice.
In plans that went into effect Sunday, Verizon made the ESPN and ESPN2 sports channels optional, but ESPN said its contracts with Verizon prohibit the channels from being in a separate sports package.
Verizon will continue to offer big bundles of channels, but it has been under pressure to reduce prices in light of cheaper online options. So to target the cost-conscious customer, Verizon began offering a FiOS plan that starts at $55 a month for a basic tier of 35 channels, plus two themed channel packs.
The basic channels that everyone gets include local broadcast stations, AMC, CNN and Food Network — but not ESPN or ESPN2.
Verizon Communications Inc. did not respond to requests for comment Monday.
Wal-Mart shut stores to hurt organizing workers, union claims
A union Monday asked the National Labor Relations Board to force Wal-Mart to reinstate employees at five stores, accusing the retailer of closing the locations to retaliate against workers for attempting to organize for better pay and benefits.
Wal-Mart Stores, which announced last week that it was temporarily closing five stores in Texas, Oklahoma, Florida and California to fix plumbing issues, denied the union's claims. It said it would work to reopen the stores, which employed about 2,200 people, as quickly as possible.
“We don't believe there is any basis for an injunction,” the world's largest retailer wrote in a statement.
The United Food and Commercial Workers International Union said Wal-Mart closed a store in Pico Rivera, Calif., because it has been a center of worker activism in recent years, including having the first U.S. strike in 2012. The union claimed Wal-Mart shut down the other four stores as a cover for the move.
GE in talks with Wells Fargo to sell U.S. lending, leasing portfolio
General Electric Co. is in early-stage talks with Wells Fargo & Co. about selling its $74 billion U.S. commercial lending and leasing portfolio to the bank, according to a source familiar with the situation.
The discussions with Wells Fargo started last week, and other parties may hold talks with GE about buying the whole American lending and leasing portfolio, the source said. GE is exploring selling the U.S. CLL portfolio piecemeal and could decide to break the business up, the source added.
The source asked not to be identified because the talks are confidential. GE and Wells Fargo declined to comment.
The talks with Wells Fargo underscore GE's urgency in looking to dismantle its GE Capital business and free itself from the financial regulatory pressures that come with it.
— Staff and wire reports
