Business Briefing

Northwest plans to cut 2,500 jobs

Northwest Airlines Corp., which has agreed to combine with Delta Air Lines Inc., will eliminate 2,500 jobs to counter record fuel costs.

The reductions represent about 8.1% of the 31,000-person workforce at Eagan, Minn.-based Northwest, which said it would rely first on voluntary steps such as leaves to pare the number of dismissals.

Northwest's move will boost industrywide job cuts to about 20,000 as U.S. carriers park 400 jets after an 86% surge in the price of jet fuel in the last year.

Airline losses may top $13 billion in 2008, the Air Transport Assn. trade group estimates.

COURTS

Wyeth, Pfizer win cut in jury award

Wyeth and Pfizer Inc. persuaded a federal judge to throw out a $27.1-million punitive-damage award to an Arkansas woman who claimed the companies' mishandling of their menopause drugs caused her breast cancer.

U.S. District Judge William Wilson in Little Rock slashed the total $29.8-million jury verdict for Donna Scroggin to about $2.7 million in actual damages, saying the punitive award was based on faulty evidence.

It was the second time in five months that a court has reduced damages awarded to plaintiffs who accuse Madison, N.J.-based Wyeth of disregarding the health risks of its menopause drugs Premarin and Prempro.

RETAIL

Pier 1 closing additional stores

Pier 1 Imports Inc., the biggest U.S. retailer of imported furniture, will close 20 to 25 stores before the end of the year to cut costs.

The company also will eliminate excess distribution center space, it said in a regulatory filing. Costs from closing stores and terminating leases will be as much as $8 million.

Fort Worth-based Pier 1 withdrew an offer last month to buy Cost Plus Inc., saying the price would be too high, and instead decided to focus on its own turnaround.

The company has already closed 79 stores and sold its headquarters. It posted its first quarterly profit in three years in April.

CEO of Charming Shoppes resigns

Charming Shoppes Inc., owner of the Lane Bryant clothing chain, said Chief Executive Dorrit J. Bern resigned and that board Chairman Alan Rosskamm would be interim chief. The shares rose as much as 18%.

The Bensalem, Pa., company, which lost half its value in the last year, posted three straight quarterly sales declines through May 3, and analysts predict another drop for the current quarter, according to a Bloomberg survey.

Charming Shoppes also owns clothing chain Fashion Bug.

Apparel sellers have been struggling as consumers facing gasoline over $4 a gallon and higher food costs cut back on spending.

Brian Woolf, former CEO of Cache Inc., will be president of the Lane Bryant brand, starting immediately, Charming Shoppes said. He replaces LuAnn Via, who resigned to become CEO of Payless ShoeSource Inc.

Steve & Barry's seeks Chapter 11

Steve & Barry's, once a growing force in low-priced fashion retailing, said it filed for Chapter 11 bankruptcy protection, the latest merchant to succumb to a harsh consumer spending climate.

The Port Washington, N.Y., chain operates 276 locations in 39 states and made a big splash with merchandising endorsements with actress Sarah Jessica Parker, NBA star Stephon Marbury and other celebrities.

From Times Wire Services