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Supervalu Announces Earnings
Supervalu reported first quarter fiscal 2011 net sales of $11.5 billion and net earnings of $67 million, or $0.31 per diluted share. When adjusted for $25 million in net after-tax charges, or $0.12 per diluted share, primarily related to retail market exits in Connecticut and Cincinnati and the impact of the labor dispute at Shaw's supermarkets, first quarter net earnings were $92 million, or $0.43 per diluted share. In the first quarter of fiscal 2010, the company reported net sales of $12.7 billion and net earnings of $113 million, or $0.53 per diluted share, including after-tax costs of $3 million related to store closures, or $0.02 per diluted share. First quarter retail food net sales were $9.0 billion compared to $9.9 billion last year, a decrease of 9.6 percent, primarily reflecting the impact of identical store sales of negative 7.2 percent and previously announced market exits.

Supervalu Loses CFO
Pamela Knous, EVP and CFO of Supervalu has decided to leave the company to pursue other career interests. Knous will step down from her role as CFO effective July 30, and has agreed to remain available to Supervalu to assure a smooth and seamless transition of her responsibilities to her successor. Supervalu has retained a search firm and expects to fill the CFO position by the time the company reports its second-quarter results in October. Sherr Smith, currently SVP finance, will serve as interim CFO until the search is completed.

Office Depot Announces Earnings
Office Depot, Inc., a leading global provider of office products and services, announced results for the fiscal quarter ending June 26, 2010. Total Company sales in the second quarter of 2010 were $2.7 billion, a 4% decrease compared to the second quarter of 2009. The Company reported a loss, after preferred stock dividends, of $19 million in the second quarter of 2010, compared to a loss of $82 million in the second quarter of 2009. The loss per share was $0.07 for the quarter, versus a loss per share of $0.31 in the same period one year ago. Second quarter 2010 results included significant tax benefits and second quarter 2009 results include charges related to restructuring activities which negatively impacted earnings by $0.09 per share.

BlockBuster Fighting to Avoid Bankruptcy
Blockbuster Inc. is testing a humorous advertising campaign in Reno, NV and Charlotte NC touting the 28-day advantage it has over rivals Netflix Inc. and Redbox for some new movie releases. Blockbuster has been feverishly working on a recapitalization plan to avoid a bankruptcy filing. The 30-second spot shows people being told they'll have to wait 28 days for various things-a flight to Honolulu for a family already at the airport, a table at a posh restaurant for a couple already there, the orthodontist to come once a teenager is in the chair and prepped. Blockbuster has exclusive agreements allowing it to rent out some, but not all, studios' new releases the same day they are available for sale on DVD. Meanwhile, Netflix and Coinstar Inc.'s Redbox have generally agreed with the studios to delay new-release rentals in exchange for what they say are better terms acquiring DVDs.

Blockbuster's class A shares, delisted earlier this month from the New York Stock Exchange, recently rose 2 cents to 17 cents in over-the-counter trading, while class B shares changed hands at 8 cents, up less than a penny. The question is whether the 28 day headstart is enough of an advantage to boost sales significantly at Blockbuster. Netflix recently reported a 42% year-over-year increase in subscribers and has added one million subscribers since the first quarter, when it had 14 million. A group of Blockbuster shareholders representing more than 20% of outstanding shares has urged the company to boost advertising spending to get the word out "full force." Bondholders earlier this month agreed to let Blockbuster put off a $42.4 million debt payment without triggering a default. The forbearance runs through Aug. 13 but can be extended.

Winn-Dixie to Close 30 Stores
Winn-Dixie Stores, Inc. announced that it will close 30 non-remodeled, underperforming stores. The Company will also consolidate its four operating regions into three and reduce its workforce at the field and corporate support levels.

Bankruptcy Judge Denies TRO
Controladora Comercial Mexicana SAB, the third-largest food retailer in Mexico, held a July 19 hearing for a temporary restraining order intended to stop creditor actions in their U.S. Bankruptcy. Judge Stuart M. Bernstein denied the TRO, although he scheduled a hearing for July 28 where the company again can ask for an injunction after creditors have had more time to respond. Bernstein also scheduled a hearing for Aug. 19 where Controladora will ask the judge to declare that the reorganization proceedings in Mexico meet the standards demanded in Chapter 15 ( the purpose of Chapter 15 is to provide effective mechanisms for dealing with insolvency cases involving debtors, assets, claimants, and other parties of interest involving more than one country). If Bernstein finds that Mexico is properly home to the "foreign main proceeding," creditors' suits in the U.S. will be halted automatically. Chapter 15 doesn't have a so- called automatic stay like Chapters 11 or 7. Controladora's Chapter 15 petition is intended to help the company in carrying out a reorganization that has support from holders of 85 percent of the debt.

Wet Seal CEO to Leave
The Wet Seal, Inc. a leading specialty retailer to young women, announced that Edmond S. Thomas, President, Chief Executive Officer and Director, has informed the Board of Directors that he will step down on October 8, 2010, the date his employment agreement terminates. In the event that Wet Seal has not found a successor by then, Mr. Thomas has indicated he is willing to serve as Interim CEO. They have engaged an executive recruiting firm to find a successor.

Jones Apparel Group Reports 2Q Results
Jones Apparel Group, Inc.reported results for the second quarter ended July 3, 2010. Revenues for the second quarter of 2010 were $860 million, as compared with $804 million for the second quarter of 2009. The Company reported adjusted earnings per share ("EPS") of $0.45 for the second quarter of 2010, as compared with adjusted earnings per share of $0.29 in the same period last year.

VF Corp Increases Profits By 47%
VF Corp., parent of Wrangler, Lee jeans, North Face coats and John Varvatos designer outfits, said its second-quarter profit increased 47%, helped by lower product costs and higher demand across all divisions. Net income rose to $110.8 million, or $1 a share, from $75.5 million, or 68 cents a share, a year earlier. Revenue, including royalty income, rose 7% to $1.59 billion from $1.49 billion. The Greensboro, N.C., company raised its profit forecast to $6.10 a share from its previous guidance of $5.90 a share. It expects revenue to increase as much as 5% compared with its prior projection of as much as 4%. The guidance factored in a negative 1% impact from a decline in the value of the euro since April.  Analysts estimated VF would earn 77 cents a share in the second quarter and $5.97 for the year.

Safeway To Sell $500 Million Notes
Safeway Inc., the food and drug retailer, is planning to sell $500 million of notes which will mature in 2020, according to a prospectus filed with the Securities and Exchange Commission. Proceeds will be used to repay $500 million of 4.95 percent notes that mature Aug. 16, 2010 according to the document, which didn't specify the size or timing of the sale. This comes less than a week after Safeway reported second-quarter earnings of 37 cents a share, compared with 57 cents for the comparable 2009 period, and lowered its profit forecast on deflation expectations, according to a filing with the SEC.

A&P Appoints New CEO; Reports Loss of $122M
Supermarket chain A&P has appointed former OfficeMax executive Sam Martin as its new CEO, succeeding Ron Marshall, who has left the company after serving less than six months at the helm. The news came as the grocer reported a first-quarter net loss of $122 million and a 7.2% drop in same-store sales. For the first-quarter, sales were $2.6 billion versus $2.8 billion in the year-ago period. Same-store sales dropped 7.2%. Net loss for the quarter totaled $122 million, or a loss of $4.83 per share, compared with a loss of $65 million, or $3.64 a share, in the year-ago period.

CVS Caremark Reports Earnings
CVS Caremark Corporation announced revenues for the three months ended June 30, 2010. Net revenues for the three months ended June 30, 2010, decreased $864 million, or 3.5% to $24.0 billion, down from $24.9 billion in the prior year period. Revenues in the Pharmacy Services segment decreased 9.0% to $11.8 billion in the three months ended June 30, 2010 over the prior year period. Revenues in the Retail Pharmacy segment increased 3.7% to $14.3 billion in the three months ended June 30, 2010 and total same store sales increased 2.1% over the prior year period.

Amazon Announces Sales Increase of 41%
Amazon.com announced that net sales increased 41% to $6.57 billion in the second quarter, compared with $4.65 billion in second quarter 2009. Excluding the $48 million unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales would have grown 42% compared with second quarter 2009. Net income increased 45% to $207 million in the second quarter, or 45 cents per diluted share, compared with net income of $142 million, or 32 cents per diluted share, in second quarter 2009.

Brookstone Reports 4.7% Sales Increase, with a loss
Brookstone, Inc. announced financial results for the second quarter ended July 3, 2010. For the 13-week period ended July 3, 2010, Brookstone reported total net sales of $76.4 million, a 4.7% increase from the 13-week period ended July 4, 2009. Same-store sales for the 13-week period ended July 3, 2010 increased 4.1% as compared to the same 13-week period last year. For the 13-week period ended July 3, 2010, Brookstone reported a loss from operations of $12.5 million, compared to a loss from operations of $10.5 million for the 13-week period ended July 4, 2009. Excluding a charge of approximately $0.9 million related to certain share-based compensation, for the 13-week period ended July 3, 2010, Brookstone reported a loss from operations of $11.6 million, compared to a loss from operations of $10.5 million for the 13-week period ended July 4, 2009. For the 26-week period ended July 3, 2010, Brookstone reported total net sales of $146.1 million, an 8.7% increase from the 26-week period ended July 4, 2009. Same-store sales for the 26-week period ended July 3, 2010 increased 8.5% as compared to the comparable 26-week period last year.

CIT Reports Income of $142.1M
CIT Group Inc., a leading provider of financing to small businesses and middle market companies, reported net income for the quarter ended June 30, 2010 of $142.1 million, $0.71 per diluted share, up from $97.3 million and $0.49 per diluted share last quarter. Net income increased from the quarter ended March 31, 2010, as gains on sales of assets and recoveries of pre-FSA charged-off receivables more than offset a higher provision for credit losses and costs for an employee retention program announced last quarter. The second quarter results include pre-tax net accretion and lower depreciation of $407 million resulting from fresh start accounting ("FSA") balance sheet adjustments recorded in December 2009. Net interest revenue declined $31 million on lower financing assets and less net FSA accretion. However, total net revenues increased 28% sequentially as an increase in other income offset the decline in net interest revenue. Net finance revenue (which includes operating lease rentals and depreciation) as a percentage of average earning assets was 4.03% compared to 4.09% last quarter and includes a 3.72% benefit from FSA. Excluding the impacts from FSA and prepayment penalty fees on high cost debt, margin was 0.68% up slightly from the first quarter.

Duane Reade Has New President
Duane Reade has promoted Joe Magnacca to President. Magnacca previously served as SVP and Chief Merchandising Officer.

Walmart Apparel Chief Resigns; Hires Conroy to Lead Russian Office
Walmart Stores Inc. Apparel Chief Dottie Mattison resigned, less than two months after her responsibilities were split with Lisa Rhodes because of slow growth in clothing sales. The resignation was effective on July 22nd . Mattison reported to Chief Merchandising Officer John Fleming, who is leaving Aug. 1.

Walmart Stores hired Avril Conroy, an executive from BP Plc's Russian oil joint venture, to help lead its Moscow office ahead of a possible expansion into the country. They have not released her title or start date yet. Walmart currently doesn't have any stores in Russia and is examining how to enter the country using acquisitions. Buying a retail chain would help Walmart grow faster than if it opened its own stores.

Gamestop Acquires Kongregate
GameStop Corp. is acquiring Kongregate, a social gaming destination and community for core gamers representing the fast-growing free-to-play gaming market. Kongregate will operate as a wholly owned subsidiary of GameStop Corp., and will maintain its current offices in San Francisco. The deal is expected to close on Aug. 1.

Consumer Confidence Decreases In July - again
The Conference Board, a private research group, reported the Consumer Confidence Index dropped to 50.4 in July, down 3.9 points from the revised 54.3 in June. This follows last month's drop of almost 10-points from 62.7 in May. This report is raising questions about the recovering economy and the back-to-school season. One part of the Consumer Confidence Index, which measures how people feel about the economy now, declined to 26.1, from 26.8. The other barometer, which measures outlook over the next six months, declined to 66.6, from 72.7 last month. The index had been recovering since hitting an all-time low of 25.3 in February 2009. Economists are concerned because consumer spending accounts for about 70 percent of U.S. economic activity and is critical to a strong recovery. A reading above 90 indicates the economy is on solid footing.

The Conference Board survey, which was mailed to 5,000 households from July 1 to July 21, showed the assessment of the job market was more negative than the previous month. Those claiming that jobs are "hard to get" increased to 45.8 from 43.5 percent, while those saying jobs are "plentiful" remained unchanged at 4.3 percent. Consumers are more negative about future job prospects with those expecting more jobs in the months ahead declining to 14.3 percent from 16.2 percent and those anticipating fewer jobs rose to 21.1 percent from 20.1 percent. The proportion of consumers expecting an increase in their incomes declined to 10 percent from 10.6 percent.

Renting Comes Back Into Fashion
The Commerce Department reported the percentage of privately owned homes in the U.S. slid in the second quarter, but rental vacancies held steady. Many adults are no longer interested in owning a home and are perfectly happy just to rent, especially since many home owners lost equity in the recession. At Trulia.com about 30 percent of visitors are "crossover" home shoppers looking at both ownership and renting at the same time, says Tara-Nicholle Nelson, a Consumer Educator for the company. "This is very new," Nelson says. "This represents a wholesale rethink of whether the American dream includes homeownership." To help the "crossover" home shopper, Trulia publishes research on the "price-to-rent" ratio in major American cities, comparing the annual cost of ownership to the annual cost of renting comparable condos/townhomes and apartments. While consumers use factors aside from cost to make their decision, Nelson says, the index can give them an idea whether ownership and renting conditions are improving or worsening over time.

The current homeownership rate of roughly 67 percent could fall to 62 percent over the next two to three years, according to John Burns, Chief Executive Officer of John Burns Real Estate Consulting of Irvine, Calif. He estimates that six million of eight million American homeowners currently in default won't be able to modify or otherwise resume paying their mortgages and will be forced to return to renting. "The wild card is government intervention," Burns says. The ultimate homeownership rate could be affected by how the government addresses the role of government-controlled mortgage companies Fannie Mae or Freddie Mac. Burns says that his research indicates once consumers have seen the market behave the same way for three or four years straight, they assume it will stay that way forever. "When housing bubbles burst, homeowners think of real estate as a poor investment," he says. "It may take awhile for this idea to work itself out of the collective psyche."

Durable Goods Take Surprise 1% drop
The Commerce Department announced that orders for durable goods are down by 1.0% in June, the second straight monthly decline and the biggest drop in 10 months. Economists had been looking for a 1% gain. Junes' decline in orders are consistent with other economic indicators signaling a slowdown in manufacturing in recent months. While the decline was mainly in transportation, there was also declines in electronics, metals, and machinery. Computers were the one increase.

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Riviera Holdings Corporation: Filed Chapter 11 on July 12, 2010 in Las Vegas, NV.

Planet Organic: Sold its assets to creditor Catalyst Capital Group to wipe out $31.1 M in debt.  Deal closed on June 4, 2010. 

Gems TV: Filed Chapter 11 on April 5, 2010 in Wilmington, DE and is liquidating its assets.

Rock & Republic: Filed Chapter 11 on April 1, 2010 in New York, NY. It plans to reorganize.

BKV, Inc, d.b.a. Tellos: Filed Chapter 11 on March 19, 2010 in Boston, MA. It plans to close three of its eight clothing stores.

Swoozie's, Inc.: Filed Chapter 11 in Atlanta, GA on March 2, 2010 and was purchased by Gart Capital Partners.

Movie Gallery, Inc.: Filed Chapter 11 in Virginia on February 2, 2010. It plans to close all of its stores.

Southern Golf Partners: Filed Chapter 11 on January 20, 2O10 in Atlanta, GA.

Bernie's Audio Video TV Appliance: Filed Chapter 11 on January 14, 2010 in Hartford, CT and is liquidating.

E.R.T. Sales of Hawaii: Filed Chapter 11 on January 12, 2010 in Hawaii and plans to reorganize.

The Walking Co. Holdings: Filed Chapter 11 on December 7, 2009 in California and filed a reorganization plan on February 2. It emerged from bankruptcy on April 28, 2010.

Penn Traffic Co.: Filed Chapter 11 on November 18, 2009 in Wilmington, DE. It sold its 79 supermarkets to Tops Friendly Markets.

Finlay Enterprises: Filed Chapter 11 on August 6, 2009 in New York, NY and sold its assets to liquidator Gordon Brothers.

Station Casino's: Filed Chapter 11 on July 28, 2009 in Las Vegas, Nevada and is reorganizing.

Bashas' Inc.: Filed Chapter 11 on July 12, 2009 in the U.S. Bankruptcy Court in Phoenix, AZ. The grocer filed a plan of reorganization and hopes to emerge from Chapter 11 by August 2010.

Bi-Lo LLC: Filed Chapter 11 in March 2009 and emerged with a reorganization plan on April 29, 2010. 

Crabtree & Evelyn Ltd: Filed Chapter 11 on July 1, 2009 in New York, NY. It emerged from Chapter 11 at the end of January 2010.

Other retailers which have filed Chapter 11 since late 2008 include: