Payless pact hints at New York move

Payless ShoeSource Inc., in its new chief executive officer’s employment agreement, hinted that it could move its corporate headquarters from Topeka to New York City.

The company, which operates more than 4,600 retail stores worldwide, filed the employment agreement for Matthew Rubel with the Securities and Exchange Commission this week. The former Nike Inc. executive takes over the company next month.

In the agreement, Payless said Rubel can resign for “good reason” and provides him, as part of his compensation, $75,000 “in connection with the purchase, preparation and decoration of your new home in Kansas.” Area Realtors say he bought a home in Mission Hills.

The agreement adds: “Your place of performance will be in Topeka, Kansas, or such other place as the board determines to locate the company’s headquarters, subject to your right to resign for ‘Good reason.”‘

Among those rights to resign, the agreement said, is if the company moves the headquarters or Rubel’s main office from where it was on his start date and increases his commute by more than 35 miles, “unless such relocation is to the New York City metropolitan area.”

Employment

Interstate Bakeries to slice sales force

Interstate Bakeries Inc. said Thursday it would consolidate its Southern California sales operations and cut about 350 jobs as part of the bankrupt company’s continuing efforts to reduce costs.

The Kansas City, Mo.-based company, whose products include Wonder Bread and Hostess Twinkies, said the changes were expected to be completed by Aug. 24.

Economy

Jobless claims, home sales decline

The annual rate of existing home sales fell slightly in May, to 7.13 million homes, slightly off the 7.18 million pace recorded in April, the National Association of Realtors reported Thursday.

The number of Americans filing new applications for unemployment benefits also fell, signaling to analysts that job growth should remain strong in the months ahead.

The Labor Department reported Thursday that new claims for unemployment benefits fell by 20,000 last week to total 314,000, the lowest level in nearly two months.