Page 24 - ARUBA TODAY

Tuesday 13 June 2017 BUSINESS
A24

Gymboree files for bankruptcy protection to reduce debt

WASHINGTON (AP) — Chil- majority of its 1,300 stores January said it would close said. It operates its name- vate in 2010 when it was
dren’s clothing seller Gym- during the restructuring. its 171 stores. sake stores as well as Cra- bought by private equity
boree Corp. has filed for Gymboree is the latest re- Gymboree says it secured zy 8 and Janie and Jack firm Bain Capital for $1.8
Chapter 11 bankruptcy tailer this year to file for a total of $308.5 million in shops. billion.
protection, the latest sign Chapter 11, close stores or financing to keep the com- “We expect to move The company also an-
of traditional retailers’ go out of business entirely. pany operating through through this process quickly nounced that its chief fi-
struggles as shoppers shun Shoe chain Payless Shoe- the Chapter 11 process. and emerge as a stronger nancial officer, Andrew
stores and buy online. Source filed for bankruptcy Some of its stores will be organization that is better North, is stepping down.
The San Francisco-based protection in April and The closed as part of the re- positioned in today’s evolv- Liyuan Woo, a director at
company said it is seeking Limited closed all 250 of its structuring, but the timing ing retail landscape,” CEO consulting firm AlixPartners,
to reduce its debt load by remaining stores early this of that and which shops will Daniel Griesemer said in a was named interim CFO
$900 million. It expects to year. be closed have yet to be statement issued Sunday. while a replacement for
operate its business and Teen retailer Wet Seal in determined, the company Gymboree was taken pri- North is sought. q
Immelt shook up GE’s business model, but not its stock price

pliance unit and the NBC ahead of the economic
television business. crisis. It sank as low as $6.66
The 61-year-old Immelt will in March 2009 in the depth
stay on as chairman until of the crisis, and closed at
his retirement from the posi- $27.94 a share Friday.
tion at the end of the year, Analyst Robert McCarthy
with the 55-year-old Flan- at Stifel Nicolaus wrote in a
nery stepping into the role note to clients that the tim-
after that. ing of the change in lead-
GE traces its roots to 1878, ership was “unsurprising
when inventor Thomas Edi- since the serial underper-
son formed the Edison Elec- formance of the stock.” GE
tric Light Co. in New York said the moves were part
City after having opened of its succession plan.
his famous laboratory in An investor who bought
Menlo Park, New Jersey. $1,000 in GE stock when Im-
The next year, Edison in- melt took over would have
vented the first success- $1,243 today, including div-
ful incandescent electric idends. The same amount
lamp. invested in the S&P 500 in-
Recent reports say GE is dex would be worth $3,206
considering selling the light- today.
In this April, 2016 photo, General Electric CEO Jeff Immelt speaks during a news conference in ing business, which could GE’s stock rose 4.1 percent
Boston. General Electric announced Monday, June 12, 2017, that Immelt is stepping down after
16 years as CEO of the iconic conglomerate. Immelt took the helm in 2001 from legendary CEO fetch about $500 million. to $29.10 in afternoon trad-
Jack Welsh. John Flannery, president and CEO of the GE’s health care unit, will take over as CEO While GE credits Immelt ing Monday.
in August 2017. with improving its financial Immelt spent the second
(AP Photo/Steven Senne) performance and its focus, half of his time as CEO re-
NEW YORK (AP) — Gen- vive its lagging stock price. nancial crisis, he sharply GE’s stock price has trailed turning the company to
eral Electric’s Jeff Immelt John Flannery, president pared down the financial the market with him as its less-risky industrial roots.
is stepping down after 16 and CEO of the GE’s health services business that Welsh CEO. In 2007, GE’s finance arm
years as CEO of the iconic care unit, will take over as had built up and went on a The stock was worth a bit accounted for about 55
conglomerate, having suc- CEO in August, the com- spending spree to acquire less than $40 on Immelt’s percent of its profits, but its
ceeded in repositioning pany said Monday. businesses in the power first day in 2001, with the large exposure to commer-
the company as a produc- Immelt took the helm in and oil and gas sectors. U.S. in the middle of a re- cial real estate left it vulner-
er of large industrial prod- 2001 from legendary CEO During his tenure Immelt cession. The stock briefly able during the financial
ucts but failing to fully re- Jack Welsh. After the fi- also disposed of GE’s ap- rose above $40 in 2007, just crisis. q
Opel CEO steps down ahead of sale to French rival

By DAVID McHUGH immediately but would ine Zeitung daily that Opel and perceived to be, and and Astra compact face
AP Business Writer remain a member of top had to become profitable the more British the sister a tough European market
FRANKFURT, Germany (AP) Opel management until by 2020 in order to gener- company Vauxhall is, the with lots of competitors.
— The head of France’s the sale goes through. ate the cash needed to more they complement our The company has also
PSA Group, the maker of Neumann was replaced by invest in new models, mar- brands Peugeot, Citroen struggled against strict
Peugeot and Citroen cars, the chief financial officer, kets and ideas. and DS,” he was quoted as worker protections that
says his goal is to see Opel Michael Lohscheller. The goal is to have Opel saying. have slowed efforts to re-
make money by 2020 — The company said reach PSA’s levels of prof- Formally called Adam Opel duce costs and lessen un-
but he’ll be doing it without Lohscheller’s appointment itability — 6 percent oper- GmbH, the German com- derused factory capacity.
Opel’s CEO Karl-Thomas would “ensure continuity” ating profit margins — by pany has scored successes General Motors an-
Neumann. and a “seamless manageri- 2026. like its Mokka small SUV but nounced in March it would
Neumann is stepping down al transition” as Opel builds Tavares stressed that Opel has tended to lack models unload Opel and its Vaux-
ahead of the completion a new strategic plan for needed to remain a Ger- that bring high per-vehicle hall brand for $2.3 billion af-
of the unit’s sale by Gen- its future under PSA Group man brand, and likewise profits. ter losing money in Europe
eral Motors to PSA. ownership. with its right-hand-drive As a mass-market carmak- for years.
Opel said in a statement PSA Group CEO Carlos Ta- Vauxhall models sold in Brit- er, mainstay offerings in the The deal will make PSA the
Monday that Neumann vares was quoted as saying ain. lower price categories such No. 2 European automaker
was leaving his post as CEO by the Frankfurter Allgeme- “The more German Opel is, as its small Adam city car after Volkswagen. q