Retail roundup: Rue La La, Blockbuster, Sears
-- Boston-based Kynetic, which operates designer discount website Rue La La, underwent major layoffs and intends to close its SmartBargains.com site, a report says.
The Boston Business Journal reported that Kynetic laid off 11% of its 550 workers as part of a restructuring designed to allow the company to “double down” on its core business. Part of the shake-up involves outsourcing the sales force for Rue La La’s city-specific portals called Rue Local.
“These moves unfortunately resulted in the elimination of some staff positions,” the company said.
-- More Blockbuster stores are scheduled to close.
Dish Network Corp., which scooped up the video rental chain for $320 million last year, will be shuttering more Blockbuster stores than originally planned, Reuters reported.
At the Consumer Electronics Show in Las Vegas, Dish Chief Executive Joe Clayton said that all unprofitable stores will be closed and that some remaining shops will be converted partially into customer service stations for Dish subscribers. He did not give a timeline for the closures.
-- Sears Holding Corp., operator of the Kmart and Sears chains, said John Goodman, its chief of apparel and home division, had resigned.
Hired two years ago, Goodman was tasked with turning around the troubled retailer’s clothing business. Sears, which has been trying to upgrade the style of its apparel, rolled out a lifestyle line designed by the Kardashian sisters last year.
Sears said last month that it planned to close as many as 120 outlets after reporting yet another holiday sales slump.
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