Consumer stocks are lower this afternoon, with shares of
consumer staples companies in the S&P 500 down less than 0.1%.
Shares of consumer discretionary firms in the S&P 500 are off
In company news, YRC Worldwide (
) was higher Thursday after saying it has resumed talks with the
International Brotherhood of Teamsters in a bid to revise contract
terms that were voted down by union employees last week.
The trucking and logistics company has been seeking to refinance
two series of convertible notes in a bid to reduce its debt load by
around $300 million. The deal calls on investors to pay $250
million in cash for newly issued YRCW stock priced at $15 a share.
The remaining $50 million in debt will be cut by its conversion
But YRCW creditors conditioned their agreement to refinance the
company's debt on the union's accepting a contract extension that
would have kept a 15% wage cut in place through 2019 as well as
delaying scheduled pay increases and reducing vacation time.
Teamster employees at YRCW voted down those terms with 61% of the
"It is clear the Teamsters understand the urgency of the current
situation," CEO James Welch said in prepared remarks. "Although the
company must achieve operational costs savings in the agreement, we
also understand that simply re-voting the same proposal is not an
YRCW shares were up 18.6% to $15.16 apiece in recent trading,
earlier climbing to an intra-day high of $15.86 a share - although
the stock still has considerable distance before recovering all of
32.2% decline from $18.66 a share after the Jan. 8 vote was
In other sector news,
(+) CEC, (+12.4%) The corporate parent of the Chuck E Cheese
restaurant chain agrees to $1.3 bln private equity buyout by an
affiliate of Apollo Global Management (
), with shareholders receiving $54 per share in cash.
(-) JCP, (-3.4%) Discloses plans to close 33 underperforming
stores, eliminating 2,000 jobs. The retailer said the closings
should save around $65 million per year, starting in 2014. It will
take $26 mln charge in Q4 and $17 mln in future periods.
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