New Burger King and CVS Concept Store Openings, L.L. Bean Layoffs, Few Closings

Rumors and speculation also swirled around Chrysler last week and its fast approaching restructuring deadline. Either the #3 U.S. automaker finalizes some new labor agreements and debt structures by April 30th or else its bailout allowance from big daddy government is going to be cut off. The white knight on the Italian stallion in this drama, Fiat, is reportedly ready to ride off into the sunset unless union concessions are secured. Reports today suggest that an acceptable new union agreement has been reached.

One interesting trivia fact about the Fiat and Chrysler is that Sergio Marchionne and Bob Nardelli each took the reins of their respective companies as turnaround leaders. Nardelli took over in 2007 when the company lost $1.5 billion, on top of a $1 billion loss the year before. When Marchionne took over Fiat, it was reportedly near bankruptcy, with just a 38% share of the Italian car market. Neither of the leaders had previous auto industry experience.

In two years Marchionne led his company back to profitability, doubled its stock price, and gained market share in a declining Italian auto market. In two years Bob Nardelli has led his company to an $8 billion loss in 2008, a bailout plea on Capitol Hill, and an April 30th Chapter 11 deadline. If a Fiat-Chrysler alliance is forged, it is speculated that Marchionne will take on a major executive role at Chrysler, and that Bob Nardelli will be asked to leave yet another CEO position. Unfortunately, Bob will be leaving without a gargantuan Home Depot-sized golden parachute to break his fall.

Ironically, when Marchionne took over at Fiat, there was serious talk about selling his company to GM, which, at the time, had a minority ownership. What a difference a few years and a dynamic visionary leader can make.

In less speculative retail industry news last week, major U.S. retailers committed to adding 162 stores to the 2009 store opening list. Among the openings are two new concepts, Burger King Whopper Bars and CVS Beauty 360 stores. Both concepts are extensions of the established brands and have tested well, even in recessionary conditions.

For the second week, the numbers added to the 2009 store closings list were small. It is speculated that Filene’s Basement may join the list soon, after being sold to a California-based liquidation company last week. The stores are still operating as usual, but going out of business sales are expected to start soon. Stay tuned to your favorite blogosphere rumor mill for more details about that, both real and imaginary.