Shoppers at a Macy's store in San Francisco. The retailer had to revise years of financial statements due to an employee's mistake.
Shoppers at a Macy's store in San Francisco. The retailer had to revise years of financial statements due to an employee's mistake.David Paul Morris/Bloomberg
RETAIL
Macy’s tightens financial controls after employee covered up what became a $151 million mistake
Macy’s said Wednesday that it has tightened internal financial accounting measures after completing a probe of a rogue employee who hid $151 million in delivery expenses over a span of nearly three years. A probe into the coverup forced Macy’s to postpone the release of its full third-quarter earnings report late last month. The intention of the employee was to cover up the mistake and not to steal the money, chairman and CEO Tony Spring said on a call following the earnings report. The employee told investigators that an error was initially made in accounting for small parcel delivery expenses, and then the person intentionally made errors to hide the mistake, according to source close to the probe but wanted to remain anonymous because of the private nature of the information. While the company said Wednesday that former employee’s obfuscation would have no material impact on company finances, it had to revise years of financial statements. — ASSOCIATED PRESS
LABOR
TD Garden concession workers contemplate strike ahead of holidays
The concession workers who staff the pizza stalls and beer taps at TD Garden will decide whether to strike on Sunday, after three months of stalled union contract negotiations with management. The union representing around 600 employees, from the suites to the merchandise stands, says that New York-based Delaware North has shrugged off its calls for better pay and protections, even as two Celtics’ Finals runs, March Madness, and other events have bolstered business in and around the arena. Should a strike vote pass, the Garden could be without hundreds of employees to staff concerts, holiday events, and Bruins and Celtics games. In a statement, United Food and Commercial Workers Local 1445 said its members are seeking stronger retirement benefits, protection from efforts to automate their jobs, and higher commission rates — a percentage return on sales for employees, which have not been raised in roughly a decade. Workers’ last three-year contract expired in August. Delaware North was not immediately available to comment. Employees’ fears about automation and artificial intelligence follow moves at the Garden and Fenway Park to streamline service. Neither accepts cash anymore, and Fenway debuted AI-powered checkout two years ago. Moves that allow people to buy a Coke and peanuts without a cashier “could significantly reduce the workforce,” the union’s statement read. Garden concession workers also considered a strike in 2020 near the end of the last round of contract negotiations. — DITI KOHLI
DINING
Flour Bakery to open in Boston Common concessions pavilion
Flour Bakery will fill the empty Boston Common concessions pavilion, Mayor Michelle Wu and the Boston Parks and Recreation Department announced Wednesday. “Flour Bakery will be a great fit for this treasured space in our country’s oldest public park, the Boston Common,” Wu said in a news release. “As we continue investing in a vibrant Downtown, we’re thrilled to see local businesses creating new opportunities at the forefront.” The city announced in October that it was seeking a vendor for the space, with the aim of selecting one that would provide high-quality food and drinks and contribute to “a welcoming and thriving Downtown,” according to the release. Flour was selected after the city sought requests for proposals and underwent a competitive process, officials said. Boston Common will become the 10th location of Flour, a local minority- and women-owned bakery, more than two decades after it first opened in 2000 in the South End. Flour plans to renovate the space this winter and has tentative plans to open in the spring, according to the release. — STELLA TANNENBAUM
GROCERY
Albertsons backs out of merger deal and sues Kroger after court rulings
The grocery chain Albertsons said Wednesday that it had backed out of its $25 billion merger with Kroger and sued its rival for failing to adequately push for regulatory approval, after both a federal and state judge blocked the deal Tuesday. The deal, which would have been the biggest grocery store merger in US history, faced three separate legal challenges — one filed by the Federal Trade Commission — over concerns that the combined company would reduce competition and raise prices. Judge Adrienne Nelson of US District Court for the District of Oregon temporarily halted the deal Tuesday, siding with federal regulators who have argued that the merger would lessen competition at the expense of consumers and workers. Another decision blocking the merger in Washington state court, issued by Judge Marshall Ferguson just one hour later, added to the hurdles facing the companies. — NEW YORK TIMES
CYBERSECURITY
Krispy Kreme hack disrupts online ordering, other operations
Krispy Kreme Inc. said a cybersecurity incident had disrupted some of its operations, including online ordering in parts of the United States. The company said in a regulatory filing Wednesday that it was notified on Nov. 29 of unauthorized activity in parts of its IT systems and immediately began an investigation. The company’s stores remain open and customers are able to place orders in person, the company said. But Krispy Kreme is experiencing “certain operational disruptions, including with online ordering in parts of the United States,” according to the filing. The company’s shares ended down less than 1 percent in New York trading on Wednesday. “We, along with our external cybersecurity experts, continue to work diligently to respond to and mitigate the impact from the incident, including the restoration of online ordering,” a company spokesperson said in a statement. — BLOOMBERG NEWS
WEALTH
Elon Musk’s net worth tops $400 billion, a historic first
Elon Musk has become the first person to reach $400 billion in net worth, the latest milestone for the world’s richest individual. The most recent catalyst was an insider share sale of his privately held SpaceX, which boosted Musk’s net worth by roughly $50 billion in one fell swoop to $439.2 billion, according to the Bloomberg Billionaires Index. Musk’s fortune has staged a dramatic turnaround since late 2022, when at one point he saw his net worth drop by more than $200 billion. But it’s been especially turbocharged of late after Donald Trump’s election win last month, with Musk being his most prominent political donor and advocate. Tesla Inc.’s stock is up about 65 percent since before the election, buoyed by expectations that Trump will streamline the rollout of self-driving cars and eliminate tax credits for electric vehicles that help Tesla’s competitors. Musk is slated to occupy a key role in the new administration as co-head of the newly created Department of Government Efficiency, giving him a bully pulpit in Washington and a direct line to the Oval Office. — BLOOMBERG NEWS