ONE PRICE TO LIQUIDATE: After seeking protection from creditors in U.S. Bankruptcy Court last week, One Price Clothing Stores Inc. said Monday it will lay off 200 workers at its Duncan, S.C., headquarters and prepare for liquidation sales at all 494 stores. The decision came after negotiations broke down with creditors over the weekend. "Once final approval from the bankruptcy court is received, we plan to proceed with the sale of store leases and "going out of business' sales" over the next two months, said John Disa, One Price president and chief executive. One Price, which specializes in budget-priced apparel, has six stores in the Tampa Bay area.
GERDAU BUYS POTTER FORM: Gerdau Ameristeel Corp. of Tampa said it will buy Potter Form & Tie Inc. of Belvidere, Ill., to expand production of steel for the construction industry. The North American unit of Gerdau SA, Latin America's largest steelmaker, didn't disclose the price of the acquisition, which is likely to be completed in March. Buying Potter Form's plants in six cities will help the company expand in the Midwest, Gerdau Ameristeel said.
CINGULAR, VODAPHONE RAISE BIDS: Cingular Wireless and Britain's Vodafone Group PLC boosted their bids to $38-billion for AT&T Wireless Services Inc. on Monday as the board of the nation's third-largest mobile phone provider mulled which company would ultimately buy it, the Associated Press said, citing people familiar with the talks. Vodafone matched Cingular's offers in each stage of the process and did so again Monday, the AP quoted a source as saying on condition of anonymity. There was no timetable on when AT&T Wireless' board, meeting in New York, would choose an offer.
KIRCH INVESTIGATION TRIMMED: German prosecutors dropped part of their investigation of Leo Kirch, founder and former chief executive of insolvent media company KirchMedia GmbH, after concluding allegations related to a $64-million money transfer were unfounded. The prosecutor in Munich found no evidence of wrongdoing in payments Kirch made over three years to a London company, Anton Winkler, a spokesman for the prosecutor, said. KirchMedia filed for protection from creditors in April 2002 and since then has been under the administration of insolvency lawyer Michael Jaffe.
AHOLD DROPS TWO FROM BOARD: The global grocery retailer Ahold said Monday two of its seven board members will step down in response to a new Dutch corporate governance code. Ahold said board member Bob Tobin wasn't independent enough under the code because he was once CEO of Ahold's Stop & Shop chain in the United States, while Roland Fahlin once headed Ahold's Scandinavian joint venture ICA. Ahold is under investigation by the Justice Department and Securities and Exchange Commission and Dutch authorities after the company overstated earnings by more than $1-billion from 2000 to 2002, mostly at its U.S. Foodservice division.
WAL-MART PAYS OFF FOR STEWART: As Martha Stewart was promoting her line of housewares at Kmart Corp. in 2001, her stock portfolio was getting a boost from the retailer that would soon drive Kmart into bankruptcy - Wal-Mart Stores Inc. Stewart's investment in the biggest competitor of her retailing partner was disclosed in a worksheet on her account at Merrill Lynch submitted as evidence in her New York trial on obstruction and security fraud charges. Stewart held 4,000 shares of Wal-Mart on Dec. 20, 2001, and had a 220 percent return on the stock. At the time, Wal- Mart's low prices were driving Kmart to slash its prices, which helped push it into bankruptcy protection in January 2002.
