United ‘likely’ to end company pension plan

Cash-strapped United Airlines said in a bankruptcy court filing Thursday that it “likely” would be necessary to terminate and replace its employee pension plans.

The carrier cited the size of further cost cuts and the need to find bankruptcy-exit financing as reasons for such a drastic move. If United ends its four employee pension funds, it would represent the largest pension default ever by an airline.

Above, a United Airline passenger jet leaves Chicago’s O’Hare International Airport in this 2002 file photo.

Lawrence

Tobacco store to close

A Lawrence tobacco shop is set to close, but its demise is not directly related to the city’s smoking ban.

The Smoke Shop, 17 W. Ninth St., will close by the end of this month, said owner Jonathan Levine. Levine said the store could close earlier than Aug. 31 depending on when it sells out of its inventory.

Levine said he was closing the nearly 6-year-old store for health reasons but said the city’s new ban on smoking in public places played a role in his decision.

“Basically, I figured that the sales I have now probably will be the best I’ll ever have,” Levine said. “It will be a downhill battle from here on out, and when you can’t grow your business, you lose a lot of motivation.”

Earnings

Gap sales slump widens

Gap Inc.’s sales and profits fell in the second quarter because of disappointing summer clearance sales and the cost of retiring some debt early, the company reported Thursday.

For the second quarter, Gap earned $194 million, or 21 cents per share, compared with profits of $209 million, or 22 cents per share, in the same period last year.

Utility

Aquila to raise $402M

Aquila Inc. has priced common stock and convertible note offerings that will raise $402 million, the utility company said on Thursday.

The Kansas City, Mo., company priced its offering of 40 million shares of common stock at $2.55 a share for a total of $102 million. It will raise another $300 million through convertible notes. Aquila is the natural gas provider in Lawrence.

Retail

Sears to mark project

Lawrence’s Sears store, 2727 Iowa St., will have a ribbon-cutting celebration Saturday to officially open the remodeled portion of its store.

The Lawrence store was one of about 100 across the country that was chosen for a major revamping. The store expanded its display space for appliances and added new shelving, flooring and other amenities to several other departments.

The ceremony will begin at 7:40 a.m. and will include prize giveaways to the store’s first 125 customers.