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Superstore Macy’s takes a hit in decapitation case

By Alyssa Sellors     Aug 13, 2014 in Business
A major settlement was negotiated on Monday, August 11th, between Macy’s and the family of a 65-year-old man, Roy Polanco, who was decapitated in 2009 by machinery at a distribution center.
Macy’s Corporate Services, Inc. will end up paying a $950,000 fine to the family as part of the settlement, after “pleading no contest to a misdemeanor count of corporate criminal liability,” reports The Chicago Tribune.
The incident reportedly occurred when Polanco was working at a Macy’s distribution center in East L.A. when he fell into an unguarded opening of the cardboard baling and compactor machine he was using at the time. He was then crushed to death and decapitated by the hydraulic compacting ram of the machine.
In addition to the large fine paid out, The Consumerist reports that Macy’s will also have to undergo a safety audit, also part of the settlement. This means that Macy’s “must conduct an audit of balers and compactors at its California stores and distribution centers,” and the audit must receive approval by the Los Angeles County district attorney’s office as well.
Unfortunately, this is the last thing Macy’s needs right now as they are also facing the decision to make major cuts after a “snowy” first quarter of lower sales, and second quarter earnings that also “fell short of analysts’ estimates,” lowering its sales outlook for the year, reports USA Today. Stocks are also falling, with a 5% drop this week to $56.75. Yet, despite it all, Macy’s stays optimistic hoping for a full 2014 sales increase overall increase of about 2 to 2.5 percent, down from previous aspirations of an increase closer to 3 percent. While CEO Terry J. Lundgren is still faulting the failing economy, some analysts think Macy’s may be taking an overall turn for the worse.
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