Heywood wilansky biography of christopher

Retail Ventures is cutting at least $1 million in expenses by deciding not to renew the contract of its president and chief executive.

Heywood Wilansky, who has served in that role since 2004, will leave the chain effective Jan. 31, the company said yesterday. The Columbus-based company called it a cost-saving move.

Wilansky's departure "will contribute to cost-savings objectives consistent with the company's new corporate structure," the company said in a statement.

Wilansky and company officials couldn't be reached to comment. There was no word on when or whether a replacement would be sought.

While getting rid of a CEO for purely financial reasons is rare, such departures aren't, especially in such tough economic times, said John Challenger, president of Challenger, Gray & Christmas Inc., a global outplacement-consulting firm based in Chicago.

"There's no question that there's a lot of pressure on companies' bottom lines because of the problems in the sluggish economy," he said. "As a result, the CEOs often end up taking the hit."

A total of 848 CEOs have lost their jobs this year, up 5percent compared with the same period last year, Challenger said.

He said Wilansky's departure is "very unusual, unless they don't plan to replace him."

"Usually, if you let a CEO go, you've got to find someone to replace him, and usually have to pay market price, so (it's likely) they won't be saving too much."

The company brought in Wilansky to run Filene's Basement, the company's discount-fashion division.

He was hired at an annual base salary of $1 million, which increased 2.5 percent each year after the 2006 fiscal year, according to a 2004 Securities and Exchange Commission filing. The contract also called for a performance-based bonus.

Once his contract ends, Wilansky will receive his base salary and health benefits for 18 months, according to the SEC filing.

Retail Ventures sold 81percent of its struggling Value City department-store chain in October as part of its plan to focus on its two other divisions, DSW and Filene's Basement. The company also eliminated an undisclosed number of jobs at its Value City stores during that time.

Retail Ventures is a public company that is 55 percent owned by the Schottenstein family of Columbus. The company operates 36 Filene's Basement stores and 274 DSW stores nationwide.

The cost-cutting move comes as Retail Ventures reported that same-store sales decreased 5.1percent during the second quarter.

The news sent shares down 31 cents, about 7 percent, to $4.14 yesterday. The stock has traded between $3.29 and $13.64 in the past 52 weeks.

tturner@dispatch.com