5 Executives at J. W. Robinson to Leave Firm : May Dept. Stores Is Eliminating 2 Units
Five top officials are leaving J. W. Robinson Co. as the chain’s new owner begins a restructuring that includes the elimination of two corporate units and the reassignment of more than 100 employees, officials said Thursday.
May Department Stores of St. Louis, which acquired Robinson’s last summer, said that key executives of Robinson’s fashion merchandise, marketing and visual merchandising groups are leaving.
In addition, Robinson’s is phasing out its fashion merchandise and visual display groups, which operated out of the chain’s downtown headquarters. The two departments employed 110 people, most of whom have been reassigned within Robinson’s, said spokesman Jim Abrams.
“The changes were made to align these functions with the way May Department Stores are operated across the country,” he explained, adding that Robinson’s began a gradual phasing out of the two functions a few months ago. Some employees, however, insisted that the changes were abrupt and came with no warning.
Industry watchers had expected May’s acquisition to result in some changes at Robinson’s, which has been performing under expectations for the last two years. Last October, David C. Farrell, chairman of May, told analysts: “We have to stop the bloodletting at Robinson’s; we have to put a tourniquet on that.”
Denies Consolidation
May insisted at the time of the acquisition last summer and again on Thursday that the moves were not aimed at consolidating operations at Robinson’s and May Co. California. “We have made very clear that those two operations will continue to operate separately.
The May spokesman said four Robinson’s executives had left the company, but declined to say whether they resigned or were fired. The four include Sarah Worman, vice president and director of fashion merchandising and product development; Steve Regur, vice president of management information systems and marketing; Ed Edson, home store fashion merchandising director and Stephanie Wargo, men’s fashion director.
The company also said that Jack Hruska is resigning as vice president-visual merchandising. His department, which employed 76 people, was responsible for store displays. Company insiders say Robinson’s tried to discourage Hruska from leaving by offering him more money, but he declined the offer because of the cutbacks in his department. He could not be reached for comment.
The changes were reportedly announced internally by Alfonso Schettini, president of Robinson’s. Tom L. Roach, who became chairman and chief executive last March, is vacationing this week, the May spokesman said.
