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CNYB 11-17-08 A 1 11/14/2008 8:43 PM Page 1 INSIDE CORPORATE LADDER NBC’s iVillage TOP STORIES installs new As art market flags, leadership galleries cut back; PAGE 37 shakeout expected ® PAGE 2 Ann Taylor can’t blame the economy VOL. XXIV, NO. 46 WWW.CRAINSNEWYORK.COM NOVEMBER 17-23, 2008 PRICE: $3.00 for all of its troubles PAGE 3 FAVORITE FIVE Some businesses More and more Asking rents, per square foot. get to stay in Willets Pt. after all room at the top THE INSIDER, PAGE 34 Last month, the company laid Wilting hedge funds off 35 employees. It now hopes to SPECIAL REPORT shed pricey space sublease one of the three floors that in trophy buildings it occupies at 599 Lexington Ave. “For most investment manage- GM Building 9 W. 57th St. Seagram Building 712 Fifth Ave. Lever House ment firms and everyone else, these BY THERESA AGOVINO are belt-tightening times,” says $125-$200+ $125-$200+ $130-$170 $90-$150 $205 Michael Boxer,a partner at Ramius. eight months ago, hedge fund Mr.Boxer believes the high-end operator Ramius moved into posh design and prime location will draw leased at eye-popping prices. hedge funds’ needs were relatively new quarters in midtown after tenants. The problem is that a Before the financial markets modest, their expense-be-damned pouring around $22 million into growing number of ailing or dis- crumbled, these companies paid up attitude helped drive all rents to everything from state-of-art tech- solving hedge funds and private eq- to $200 a square foot—more than dizzying heights everywhere. A nology to a marble reception area uity firms are also looking to unload double the average—for offices in growing number of vacancies at the and dark-wood paneling. lavishly outfitted offices that they midtown’s trophy towers. While See HEDGES on Page 8 BEST PLACES TO WORK Crain’s names the city’s 50 best workplaces, based on surveys of employees PAGES 17-27 Layoffs G These companies create a culture of respect P. 17 mount G Top 50 list,including innovative workplace policies P. 18-19 as tech G Profiles of the highest- ranking small, midsize and large companies P. 20-27 sputters Wall Street woes and ad declines hit NYC operations BY AMANDA FUNG JEFFREY one of the bright spots in the DESTEFANO has BUSINESS LIVES put $600,000 New York economy is dimming. into his company THAT LONELY FEELING A few months ago, local tech to keep it afloat. Big spenders find fewer firms planned to take advantage of friends to join them the 22,000-plus Wall Street layoffs in splurging PAGE 35 and open their doors to new talent. buck ennis But in recent weeks,tech companies have contributed to the pool of un- BUSINESS IN CRISIS employed by cutting staff. INDEX Though the number of rolling heads pales in comparison to the ALAIR TOWNSEND _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _11 carnage on Wall Street, tech com- REAL ESTATE DEALS _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _14 panies catering to such industries as THE WEEKS AHEAD _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _28 financial services are responding to Running on Empty slower demand; others are prepar- SMALL BUSINESS _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _29 ing for a prolonged downturn that CLASSIFIEDS _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _30 might affect future business. NEIGHBORHOOD JOURNAL _ _ _ _ _ _ _ _ _ _ _ _ _32 Among the firms that are cut- A litany of troubles drives a Brooklyn bus company EXECUTIVE MOVES _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _38 ting staff: men’s online video site TABLE TALK _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _39 Heavy.com,interactive agency Ra- into Chapter 11; nightly visits from the repo man See AT DEADLINE on Page 2 zorfish and mobile entertainment See TECH FIRMS on Page 7 it’s gotta be there,”Mr.Maldonado chain that secured the yard’s sliding BY DANIEL MASSEY said to himself. “Just check again,” gate had been cut. He called the 46 he told the driver. The driver police. 5 it’s hard to losea school bus.But checked again. No sign of his bus. But it turned out that creditors, when a driver for Caravan Transit Mr. Maldonado rushed to Car- not criminals, were the culprits. scoured the company’s Brooklyn avan’s headquarters and soon real- The buses had been repossessed. ELECTRONIC EDITION yard early one morning in August, ized that 24 other buses were miss- When another 13 buses van- he couldn’t find his vehicle. ing. The wire for the security ished in the middle of the night less NEWSPAPER So he called General Manager camera perched above the front en- than a month later, Caravan owner 71486 01068 Edwin Maldonado. “You’re blind, trance had been sliced. The steel See BUS COMPANY on Page 8 0 CNYB 11-17-08 A 2 11/14/2008 8:00 PM Page 1 IN BRIEF THE BLOODBATH AT CITIGROUP INC. IS JUST Art market bubble bursts BEGINNING. THE STRUGGLING BANK, WHICH reportedly plans to cut another 10,000 jobs worldwide, needs to lop off 50,000 more, to Dealers report weak about 290,000 worldwide, in order to get costs in line with those of rivals like J.P.Morgan sales, hesitant buyers, Chase & Co.That’s according to Bill Smith, chief executive of Smith Asset Management, a fewer art fair visitors; longtime Citi shareholder and critic. Citigroup some bright spots has already cut 23,000 employees this year. It employs about 25,000 people in New York. BY MIRIAM KREININ SOUCCAR TAVERN ON THE GREEN, THE CITY’S HIGHEST- GROSSING RESTAURANT, IS NOT SO FLUSH since art dealerKathleen Cullen opened with greenbacks these an exhibit of photographs by award-win- days. In response to the ning artist Joe Lewis at her Chelsea gallery WALL FIXTURES: Artwork has not been selling at weak economy and last month, not one piece has sold. Kathleen Cullen’s Chelsea consumers’ reluctance to It was the same story with her previous gallery. dine out, the restaurant is show in September of Belgian artist Marc offering its first-ever to-go Van Cauwenbergh. And a recent trip to buck ennis menu on Thanksgiving. Berlin to participate in the Bridge Art Fair Diners can pick up packages of food, including didn’t bring in any sales, either. MIXED BAG “It’s a luxury we don’t all the typical fixings, for $12.50 per person. “The Wall Streeters and real estate exec- Results from last week’s auctions at Sotheby’s and Christie’s. need right now.” utives were buying compulsively, and they Becky Smith, owner STARBUCKS IS CLOSING LOCATIONS, BUT aren’t doing that anymore,”Ms.Cullen says. of the Bellwether SMALLER CHAINS ARE JUST BEGINNING TO The bubble has finally burst in the art Gallery, has slashed her percolate in Manhattan. Roasting Plant, which market.The frenzy that made art students overhead by a third.Even opened its first store last year on Orchard stars overnight, spawned scores of fairs so, Ms. Smith says,“If no SOLD Street, is opening a second outpost at 71 around the world and turned young invest- one comes and buys a Greenwich Ave.It plans to roll out 15 more ment bankers into major collectors has not sold not sold single thing from me for stores here over the next three years. And San come to an end. four months, I will have Francisco-based Java Detour recently leased YVES KLEIN ROY FRANCIS to close my doors.” space at 600 Third Ave.; it expects to open four Weakness spreads Archisponge RE LICHTENSTEIN BACON The last time the art more spots here. for the first time in years,New York 11, from the Relief Half-Face With Study market experienced a dealers are reporting weak sales, hesitant Eponge series Collar Lines for Self-Portrait major slump was in CBS IS THE TOP-RANKED NETWORK IN PRIME buyers and fewer art fair visitors. At the 1989, about 18 months TIME, ACCORDING TO NIELSEN MEDIA Asian Contemporary Art Fair in New bloomberg news after Oct. 19, 1987, Research. But according to consumer- York earlier this month, for example, at- when stock markets perception research firm BrandIndex, Fox is tendance dropped to 12,000, from 19,000 And some hot contemporary artists re- crashed worldwide.