Business in brief: Holiday sales worst since ‘02
The nation’s retailers reported dismal December sales results.
Many merchants who reported sales figures Thursday failed to meet already lowered sales projections, making this the weakest holiday season since 2002. Their performance led a string of stores to reduce earnings outlooks for the fourth quarter.
The weak results crossed all retail categories. Particularly hard hit were apparel sellers including Limited Brands Inc. and AnnTaylor Stores Corp., as well as department stores, including Macy’s Inc.
Among the few bright spots were low-price operators like Wal-Mart Stores Inc., which posted results that exceeded Wall Street expectations.
Such sluggish holiday results are expected to force retailers to cut inventory, reduce store personnel and shutter stores.
WASHINGTON
Clear Channel gets FCC OK
The Federal Communications Commission has signed off on the $19.5 billion deal that will take the nation’s largest radio broadcaster private, an agency official said Thursday.
San Antonio-based Clear Channel Communications Inc. grew into a media giant and punching bag for foes of media consolidation following a 1996 law that eliminated the national limit on how many radio stations a company can own.
Clear Channel is being taken private by a group led by Thomas H. Lee Partners LP and Bain Capital Partners LLC for $39.20 a share. Shareholders already have approved the transaction.
An agency official, who asked not to be identified because the approval has yet to be announced, said all five commissioners had approved the deal.
The buyout still needs approval from the Justice Department.
BRUSSELS, Belgium
Sparkling wine destroyed
Belgian authorities said Thursday they have destroyed a shipment of more than 3,000 bottles of California-made sparkling wine as part of a New Year’s crackdown on illegally labeled Champagne.
The destruction of the U.S. bubbly highlights a global battle by European food and drink producers to protect their brands by enforcing laws that say only products made in their original regions can carry names such as Champagne, Parma ham or Danish blue cheese.
In the European Union and in non-EU nations that recognize label of origin rules, Champagne can only come from the region of the same name in France.
” ‘Champagne’ is a protected appellation of origin which can only be attributed to wines coming from the Champagne region,” said Bruno Paillard, representing vintners from the French region.
The EU protects hundreds of products under its rules – including British ales, German sausages and nine varieties of Portuguese honey.
Paillard said selling other wines with the Champagne label amounts to counterfeiting that cheats consumers.