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20110110-NEWS--0001-NAT-CCI-CD_-- 1/7/2011 6:29 PM Page 1 ® www.crainsdetroit.com Vol. 27, No. 2 JANUARY 10 – 16, 2011 $2 a copy; $59 a year ©Entire contents copyright 2011 by Crain Communications Inc. All rights reserved Page 3 Potential fines nearly crushed DMC purchase More red flags up at Borders When it comes to firing the Analysts: Chapter 11 an option; company needs a strategy, too football coach, athletic BY DANIEL DUGGAN And even with Chapter 11 as an week, setting a price target of 50 the remaining stores. directors can’t win CRAIN’S DETROIT BUSINESS option, there are questions of cents on the stock — which traded But it needs a strategy as well. whether that will solve the prob- at a 12-month high of $1.60 and an “If they could emerge from a Withholding payments to sup- lems. all-time high of $37 in 1998. The Chapter 11 filing, they still don’t pliers, senior executives resigning “Right now they’re mired in stock closed Friday at $. have the kind of e-book strategy in and difficulty getting loans are problems with their balance-sheet He said that restructuring debt place to really compete,” Souers among the red flags being raised woes; and they’re in a transform- is a priority for the company and said. “Close to 10 percent of book by Ann Arbor-based Borders Group ing industry, but they don’t have that a Chapter 11 bankruptcy fil- sales are online now, and if it Inc. the capital to alter their business ing may resolve some of the issues. keeps growing at the current pace, The recent moves have financial enough to compete,” said Mike By restructuring its debt to a low- we’re looking at 25, maybe 30 per- analysts urging caution of a near- Souers, an industry analyst cover- er level, and terminating leases cent of all sales in the next five term bankruptcy, and Wall Street ing Borders for S&P Equity Re- where stores are unprofitable, the years.” is worrying about a company that search. company will have more money to leases office space to Borders. No new models at auto show Souers downgraded Borders last devote to competing online and at See Borders, Page 16 — only product specialists Inside Cancer isn’t Detroit finances still rocky, but, hey, report’s in on time, Barden’s Page 8 Mike Fezzey only battle Health Care Extra was president and general manager at WJR Wife’s petitions may Hospitals’ one-two punch: 760 AM before Costs rise, reimbursements Huntington Bank hired him start assets fight fall, Page 9 last week as BY DANIEL DUGGAN president of the bank’s CRAIN’S DETROIT BUSINESS Southeast Detroit business icon Don Bar- This Just In Michigan den will face battles for his busi- region. Widlak’s bank on path ness, his health and his wife in NATHAN SKID/CRAIN’S DETROIT BUSINESS 2011. to Nasdaq delisting While being treated for lung cancer, Barden A bad year got worse for is facing bank- beleaguered Community Cen- ruptcy of his tral Bank Corp. of Mt. casinos in Indi- Clemens. Community ties that bind ana, Colorado It filed a report with the and Mississippi, U.S. Securities and Exchange and, as of last Commission Thursday that it Huntington banks on Fezzey’s contacts to land clients week, a legal was notified Dec. 30 by the battle with his Nasdaq Stock Exchange that it BY TOM HENDERSON Ohio-based Huntington Bancshares bechler was named president of wife of 22 years. is in violation of listing rules CRAIN’S DETROIT BUSINESS Inc., quickly grew its presence in the Detroit Tigers in 1990. His wife, Barden because the market value of the Grand Rapids area. It has been Dunlap says the veteran Wayne County its publicly held shares had Jim Dunlap found a direct cor- a major lender to the Medical Mile, bankers reporting to Fezzey can COO Bella Marshall, filed a petition been below $1 million for 30 relation between high-profile a complex of some 10,000 doctors give him the help he needs with Jan. 6 to have a Wayne County consecutive business days. community and research employees, and an technical, legal and regulatory is- judge appoint a conservator, saying It faces delisting if it does- involvement CHANGING TIMES early supporter of ArtPrize, the 2- sues. What Huntington didn’t the cancer has spread to his brain n’t get back into compliance and increas- year-old arts contest that has have was someone with Fezzey’s and he is at a stage in which he can by June 28. ing a bank’s WJR: Station drawn national interest and tens community ties and with his po- no longer make rational decisions. The stock opened Friday at commercial thrived as AM radio of thousands of tourists to the re- tential for luring new commercial faded, Page 18 Additionally, Marshall filed a 49 cents. It hit its low of 26 lending after gion. customers. complaint for “separate mainte- cents on Dec. 27. The last he took over Dunlap hopes that the correla- A native Detroiter, Fezzey has nance” a legal tool in which the as- time it traded at $1 or above in 2006 as Grand Rapids-based tion holds for the Troy-based served on the boards of the Corner- sets of a marriage are divided as in was on Sept. 21, two days af- president of Huntington Bank’s Southeast Michigan region. There stone Schools, New Detroit, the Chil- a divorce, but the pair can remain See This Just In, Page 2 Michigan region. are few more active in this com- dren’s Center, Habitat for Humanity, technically married. The office, part of Columbus, munity than the new president he the Detroit Economic Club, The Pa- Barden’s attorney, Henry hired last week, Mike Fezzey, the rade Co., For the Kids Foundation, Baskin, said Friday he planned to longtime president and general Sweet Dreamzzz Detroit and Forgot- file an answer in court today, re- manager at WJR 760 AM. ten Harvest. butting her explanation of his That Fezzey, 53, had no back- Fezzey is also the former chair- client as being “no longer physi- ground in banking other than man of the marketing committee cally or mentally capable” of rep- signing checks and had been a fix- of the Detroit Regional Chamber and resenting his own interests. ture for three decades at the clear- former president of the Detroit Ad- “I just spent two hours with him channel powerhouse made this vertising Association and has been and that’s pretty far from the NEWSPAPER the most high-profile career change locally since Bo Schem- See Fezzey, Page 18 See Barden, Page 18 20110110-NEWS--0002-NAT-CCI-CD_-- 1/7/2011 6:12 PM Page 1 Page 2 CRAIN’S DETROIT BUSINESS January 10, 2011 the issue with the Obama admin- istration and members of Michi- Kowalski: Hamtramck location a money-loser THIS JUST IN gan’s congressional delegation and continues to seek a waiver of Every day Kowalski Cos. stays in put his plans on hold. so closely associated to.” ■ From Page 1 at least the interest. Stephen its current Hamtramck location it Kowalski said he was looking at Kowalski made sure to point loses money, says Michael Kowal- locations in Novi and Livonia but out that it is possible the company Geskey, director of the Michigan Un- ter President and CEO David Wid- ski, CEO of the longtime Ham- ultimately decided to hold off until may remain in Hamtramck, but employment Insurance Agency, said lak went missing. His body was tramck-based sausage maker. the economic turmoil subsided. he said a lot has to happen in or- that because the issue affects found a month later by duck It operates in about 90,000 With the economy on the der for the company to stay. Stay- about 30 states that are among the hunters, and his death is consid- square feet in three buildings, mend and real estate prices sig- ing in Hamtramck would require largest in the country, he hopes ered a likely suicide by the Ma- each less than a mile apart. nificantly lower than three years tearing down and building new, Congress will support extending comb County Sheriff’s Department. The company is leaning toward ago, Kowalski has signed a letter which is more expensive than the interest-free provision. — Tom Henderson housing all three of its businesses of intent to buy a 100,000-square- buying existing space in Madison But even if the solvency tax re- — manufacturing for the Kowalski foot building at 800 E. 14 Mile Heights. Hamtramck officials Thousands of employers face mains in place, it’s not going to Sausage Co., its distribution/ware- Road in Madison Heights. could not be reached for comment generate enough to pay Michi- house operation, and Homestyle “At this point we are wasting late Friday. additional unemployment tax gan’s interest bill. The tax is ex- Foods Inc., a maker of premade sal- money, so the sooner we get out “Even if we end up staying, we pected to produce $45 million by ad dishes — under one roof. of this building the better, but it won’t be the ones to save the With no reprieve delivered by Sept. 30, when the interest pay- Kowalski said he has been has to be the right move,” Kowal- city,” he said. Washington, an additional unem- ment is due. Geskey said the state looking for places to move the ski said.
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