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The Los Angeles Business Journal Digital Edition 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page labusinessjournal.com LOS ANGELES BUSINESS JOURNALL TM DIGITAL EDITION THE COMMUNITY OF BUSINESS www.labusinessjournal.com/digital WELCOME TO THE LOS ANGELES BUSINESS JOURNAL DIGITAL EDITION To read your copy of the Digital Edition INSTRUCTION Please select a reading preference FOR PC/MAC How to read LABJ Digital Edition on iPad in iBooks: 1 TAP CENTER 2 TAP ‘OPEN WITH’ 3 TAP ‘iBOOKS’ Wait for gray bar with Wait for scroll down menu menu buttons to appear on and tap the iBooks icon. top of the PDF. Wait for PDF to load in iBOOKS. 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page labusinessjournal.com LOS ANGELES BUSINESS JOURNAL Volume 33, Number 32 THE COMMUNITY OF BUSINESSTM August 8 - 14, 2011 • $3.00 Up Fitness Company Front Sweats Copycats Happy hour! LEGAL: Beachbody brings in Landmark muscle on DVD counterfeiters. Tom Bergin’s By ALFRED LEE Staff Reporter to reopen soon. From actress Demi Moore to Congressman Paul PAGE 3 Ryan, just about everyone seems to be going crazy for trendy home fitness program P90X these days. But it has also become wildly popular with a group of people that its maker, Santa Monica’s Beachbody LLC, is not happy about: counterfeiters. The fast sales of the DVD training program have led to a rise in pirated copies that even come packaged with company brochures and workout scheduling calendars. It’s no small problem. The company sold $430 mil- News & lion worth of products last year, but estimates that $75 Analysis million was lost to counterfeit sales. In response, Beach- body has had to borrow anticounterfeiting measures often used in the apparel and luxury goods industries. Please see LEGAL page 35 Business Rips Bill’s Racking Up Savings: Owner Moshe Tsabag with dress at downtown L.A.’s Velvet Heart. RINGO H.W. CHIU/LABJ Superstore Impact More old theaters are getting a GOVERNMENT: Measure would second act. This one is a new pile on another study for projects. eatery. PAGE 5 Fit for L.A. By HOWARD FINE Staff Reporter Local business groups are lining up against a proposed People Local apparel makers bring production home state law they say would add unfair and unnecessary hur- dles before any Wal-Mart-style superstore could open. By ALEXA HYLAND Staff Reporter Moshe Tsabag, founder and chief executive, The union-backed bill, which has passed the state cited two driving forces: the increasing costs of Senate, would require cities to conduct economic HE tags on nearly all the fashionable tops, labor and raw material in China, and the need for impact studies before approving new superstores such pants and dresses manufactured by Velvet quicker turnaround here at home to accommodate as Wal-Mart or Target. The business groups say forc- THeart, a downtown L.A. company that his fast-fashion retailers. ing cities to conduct these studies would delay super- makes apparel for retail chains and boutiques, “There’s a need for faster delivery, and this is store projects that could bring much needed jobs and now read: Made in USA. where Asia is not able to accomplish as much,” may even force superstores to drop expansion plans in It’s a big change at Velvet Heart, which had said Tsabag, who noted that it may take three or Los Angeles and elsewhere throughout the state. been manufacturing mostly in Asia. Only 30 per- four months to get a new item from China. “It’s hard enough to build a superstore in Los cent of its clothing was made in Los Angeles “Here, I can get the fabric in a couple of weeks, Angeles,” said Stuart Waldman, chief executive of the Why Jay Gross- until the beginning of this year. That figure is Valley Industry and Commerce Association, which man, celebrity now up to 95 percent. Please see APPAREL page 33 dentist, works Please see GOVERNMENT page 34 on the home- less. PAGE 15 There’s No Console-ing Game Maker MAIL TO: console games it developed for the last 12 years, and ENTERTAINMENT: Liquid started creating social games for Facebook and drops discs for social, mobile titles. mobile games for smart phones instead. This may not be merely one company’s change By NATALIE JARVEY Staff Reporter in direction but a sign that traditional game develop- ers are starting to see a big future in games for social Pasadena game developer Liquid Entertain- networking and mobile devices, said Billy Pidgeon, ment long made video games that were played on senior analyst with Encinitas consulting and market computers and consoles. In a typical game, players intelligence firm M2 Research. battled enemy forces. “I see Liquid as an early mover into social and But Liquid’s newest title is a Facebook game pro- mobile,” he said. “I do think that it’s the beginning duced with entertainment blog Deadline Hollywood. of a movement.” There are no battalions to marshal; instead, players Actually, Liquid’s change didn’t have an auspicious pretend they’re making it big in the movie business. RINGO H.W. CHIU/LABJ Liquid has all but stopped making the PC and Please see ENTERTAINMENT page 34 Socialite: Ed Del Castillo at Liquid in Pasadena. Loans up to $300 million, one business at a time. www.owb.com © 2011 OneWest Bank, FSB. All rights reserved. 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page 2 LOS ANGELES BUSINESS JOURNAL AUGUST 8, 2011 LOS ANGELES BUSINESS JOURNAL ® AUGUST 8 - 14, 2011 VOLUME 33, NUMBER 32 The test of time. RINGO H.W. CHIU/LABJ Page 3: From left, Elliot Dix and Don Schwarz at L.A.’s MountainGate Country Club. Columns & features – Media Watch 10, ON THE COVER Banking & Finance 12, Technology 12, APPAREL – Manufacturing in L.A. is back in News of the Week 14 fashion as production costs continue to rise overseas. PEOPLE LEGAL – Beachbody targets counterfeiters INTERVIEW – Some big-name celebrities Straight talk. Sound counsel. Practical solutions. looking to muscle in on company’s fitness have taken a shine to dentist Jay Grossman’s At Snell & Wilmer, some things never change. tape business. teeth-whitening skill. .15 GOVERNMENT – Business groups blast state bill that would require another impact www.swlaw.com report on superstore projects. THE LIST ENTERTAINMENT – Liquid Entertainment RANKING – The 20 largest telecommunica- has shelved its console focus and hopes to tion firms in Los Angeles County, ranked by click with online social games. number of county employees. .18 denver | las vegas | los angeles | los cabos | orange county | phoenix | salt lake city | tucson UP FRONT INVESTMENTS & FINANCE HOSPITALITY – New owner of Tom Columns & features – LABJ Stock Index 421 Bergin’s Tavern hopes to raise the bar for the 20, Econowatch 22 STOCKCROSS aging watering hole. .3 FINANCIAL SERVICES [email protected] COMMERCE – Business groups are heading REAL ESTATE THE BEST OFFENSE IS A to Cuba to shore up future prospects on the island country. .3 HOUSING – July fails to bring any summer GOOD DEFENSE...TAX SPORTS – Local golf tourney hopes to swing relief to the market as sales tumble year to with a group of Congressional Medal of year. .24 FREE MUNICIPAL BONDS Honor recipients. .3 CHART – A list of July home and condo sales Columns & features – Page 3, by ZIP code. .24 With the possibility of higher income tax rates right around the corner, it Regional Report 4 Columns & features – Real Estate makes good sense to consider investing in tax-free municipal bonds now! For the last 29 years in Los Angeles, I’ve made the bond market my Column 28 career... and have called the bond market my “home”. I hope to be your NEWS & ANALYSIS go-to man for tax-free municipal bonds, corporate bonds, U.S. COMMENTARY Governments or agencies, mortgage-backed securities, preferred stocks, DINING – Eatery Mohawk Bend offers dinner international and emerging market bonds and closed-end bond funds. I’ve DAVID A.BENDER but no movie at a renovated film theater in COMMENT – Charles Crumpley salutes been there to help build and manage my clients’ portfolios through good Senior Vice President Echo Park. .5 the late John E. Anderson, who got ahead Private Client Group times and tough times. REAL ESTATE D - 310.432.6985 – Downtown L.A. property by believing in people and doing the P - 888.493.7337 owner Meruelo Maddux gains ground with right thing. .36 Don’t you think it’s time for you to know what I have to say about the bond investors after bankruptcy. .5 TRANSPORTATION – David C. Murphy market? “BENDER” is the name and bonds are my game and if you’re a www.stockcross.com STAFFING – On Assignment hopes for a serious investor, you need to call me today for a free review of your current urges Beverly Hills merchants to get on board holdings! - Member - healthy revenue boost by picking up an with a proposed local subway stop. .37 NYSE SIPC FINRA Atlanta physician placement firm. .6 GOVERNMENT – John Cox proposes a Established 1971 HOSPITALITY – Slumping IHOP sales have local approach to revamping and resizing state *APY Federal & State *APY Federal & State taken a bite out of parent DineEquity’s share government. .37 5.00 % Tax Free Bonds** 5.125% Tax Free Bonds** price. .6 EMPLOYMENT – Brendan Huffman wants California Health San Diego County ADVERTISING – Online ad firm California to clock out of its strict overtime Cedars-Sinai Med Center Waterfront Park ReachLocal is seeing real-world growth laws.
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