Ikea to pay $46m to parents of child killed by tipped-over dresser

Associated Press


Ikea to pay $46m to parents of child killed by tipped-over dresser

Ikea will pay $46 million to the parents of a 2-year-old child crushed to death by a Malm dresser, a piece of furniture associated with several child deaths from accidental tip-overs, according to a mediated court settlement announced Monday. Jozef Dudek died in 2017 in Buena Park, Calif., when he climbed on the short bedroom dresser and it fell on top of him. A year earlier, the Consumer Product Safety Commission said it was aware of four children killed by Malm dressers, leading the CPSC and the Swedish furniture retailer Ikea to launch a massive product recall. About 8 million Malm chests and drawers were recalled, along with 21 million other pieces of furniture. Consumers were given the option of a refund or a kit to anchor the furniture to a wall. But the Dudeks never knew about the recall and Ikea never contacted them about it, the family’s attorneys said Monday. Product recalls are known to be ineffective. And Ikea took the unusual step of re-announcing the same recall after Jozef’s death as the number of fatalities continued to climb. — WASHINGTON POST


Borden filing for bankruptcy

Borden Dairy Co. filed for bankruptcy, becoming the second major milk producer in as many months to seek Chapter 11 protection. Chief executive Tony Sarsam said the company’s debt burden, coupled with industry head winds, left Borden with few options. ‘‘This was our final resort,’’ he told The Washington Post on Monday. From major corporations to small farmers, milk processors are seeing their margins pinched as wholesale milk costs climb and consumption falls amid the rising popularity of dairy-free options such as almond, soy, and oat milk. Dean Foods, the nation’s largest milk producer, filed for bankruptcy protection in November. The 163-year-old company has a storied history in American dairy production. Borden was the first to patent its process for condensing milk and the first to use glass milk bottles. It’s iconic mascot, Elsie the cow, debuted in 1936. — WASHINGTON POST



Penn Station to expand

New York Governor Andrew Cuomo announced plans to expand train capacity at Pennsylvania Station by 40 percent and create new, larger terminals. His plan includes acquiring the block south of Penn Station, which would allow for the addition of at least eight new underground tracks, he said. — BLOOMBERG NEWS



Hallmark to cut 400 jobs, most of them at its Missouri headquarters

Hallmark Cards Inc. will cut about 400 jobs worldwide, including 325 at its headquarters of Kansas City, Mo., the company said Monday. Hallmark will offer buyouts before turning to layoffs. The company said affected workers will receive severance pay and assistance as they seek new jobs. CEO Mike Perry said the “rapidly evolving retail and consumer environments” requires the company to transform the way it does business. Hallmark employs about 3,400 people in Kansas City and 30,000 people worldwide. In addition to greeting cards, it owns the Hallmark Channel on cable TV, Hallmark Gold Crown stores, the Crayola brand of art supplies, and a real estate development company that oversees Kansas City’s Crown Center complex, where the headquarters is located. — ASSOCIATED PRESS


New Jersey mega-mall almost completely leased

When shoppers visit the long-awaited American Dream mega-mall in New Jersey this spring, they can expect to see it crammed with stores, restaurants, and entertainment activities. It didn’t always seem that way. Developers have leased almost 90 percent of its available 3.3 million square feet, a figure which rises to nearly 100 percent when leases under negotiation are included, according to a filing. In particular, all retail anchor stores have been spoken for — which is critical for malls because those locations, typically department stores, are key in driving foot traffic. That the $5 billion behemoth is close to full capacity appears to buck the slow demise of physical retail, where shoppers have been lured away by the convenience of online options. Fewer than half of US malls are expected to survive ongoing store closings, according to Bloomberg Intelligence. — BLOOMBERG NEWS



Bed Bath & Beyond sells off real estate

Bed Bath & Beyond Inc., the home-goods retailer mired in a lengthy sales slump, rose after selling some real estate in a deal that generated net proceeds of more than $250 million. The properties represent about 2.1 million square feet of space, including retail stores, a distribution facility, and offices, the company said Monday. It is leasing back the space in the transaction with an affiliate of Oak Street Real Estate Capital. Bed Bath & Beyond has struggled against competition from online retailers, discount and big box stores. Last month, six senior executives left the company, part of a management shake-up by new chief executive Mark Tritton as he works to turn the retailer around. — BLOOMBERG NEWS


Prices at the pump up two cents

The average price of a gallon of gasoline in Massachusetts is up 2 cents, AAA Northeast reported Monday. Self-serve regular is now selling for an average of $2.54 per gallon, according to the organization’s latest price survey. That is 4 cents lower than the national average of $2.58, but a nickel higher than the average price in Massachusetts a year ago. Massachusetts prices varied widely, from a low of $2.32 per gallon for regular, to a high of $3.05. — ASSOCIATED PRESS



Pandora shows signs of a turnaround

The world’s biggest maker of jewelry added more than a tenth to its market value on Monday after reassuring investors it would reach the upper end of its profit forecast for 2019. Shares in Copenhagen-based Pandora rose 12 percent, as it released some preliminary figures ahead of its Feb. 4 annual results. The company now expects its profit margin for 2019 to be in the higher end of the previously guided range of 26-27 percent. Pandora said its strategy to turn the company around is on track, after a number of turbulent years in which it became a target of hedge funds amid concerns about US demand. — BLOOMBERG NEWS


Citigroup to hire 2,500 programmers

Citigroup Inc. plans to recruit 2,500 programmers this year for the unit that houses its traders and investment bankers, bulking up on coders and data scientists as technology reshapes the business. Roughly three-quarters of the company’s trade orders last year were electronic, according to Stuart Riley, global head of operations and technology for the bank’s Institutional Clients Group. The ICG arm will add programmers in locations from New York to Chennai, India. — BLOOMBERG NEWS


Trump’s re-election not assured, Morgan Stanley strategists say

Investors should be careful about assuming that strong US economic conditions guarantee that President Trump will win another term in November, Morgan Stanley strategists warned. “The most common misconception among investors we talk to is that solid economic growth assures the president’s re-election,” strategists at the Wall Street bank including Michael Zezas wrote in a note Monday. A key statistical problem with coming up with rules of thumb for presidential elections is that there’s a small sample size. Another problem, for Trump, is that the general observation that presidents win re-election when the economy is doing well conflicts with the accepted wisdom that incumbents with net negative approval ratings lose. — BLOOMBERG NEWS