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Can Google Guy Turn Around AOL? CNYB 05-11-09 A 1 5/8/2009 7:58 PM Page 1 INSIDE BRAVE TOP STORIES NEW Landlords balk WORLD as tenants queue Retailers up for rent cuts ® race to embrace PAGE 2 cheap chic PAGE 2 After the stress tests: Let the bank VOL. XXV, NO. 19 WWW.CRAINSNEWYORK.COM MAY 11-17, 2009 PRICE: $3.00 tag sales begin PAGE 3 Why our schools are better-off under the mayor’s control VIEWPOINT, PAGE 8 INSIDE THE PANIC SPECIAL REPORT SMALL BUSINESS MADE IN NEW YORK AT RESERVE FUND Veteran NYC manufacturers offer five tips for success E-mail trail reveals world crashing down on PAGES 11-16 G Be high-end, like money-market pioneer Bruce Bent and son custom furniture maker Joe Lawrence BY AARON ELSTEIN AND MEGAN JOHNSTON PAGE 12 G Be local. Bakery the evening of sept. 15, 2008, was the worst of Bruce Bent II’s owner Matthew career. Panicked investors, who woke up that Monday morning Reich shows why PAGE 12 to news of Lehman Brothers’ bankruptcy, had yanked billions of dollars out of the money-market fund Mr. Bent ran with G Be networked. Just his father, money-market fund inventor Bruce Bent Sr. ask garment legend The business the Bent family had dedicated their lives to, Ramdat Harihar Reserve Management Co., faced disaster if the run on PAGE 14 See INSIDE on Page 17 G Be lean. Parts maker Briggs Forelli pushes efficiency frontier PAGE 15 G Be nimble, as food BENTS OUT OF SHAPE: company owner Bill The feds say Reserve’s Levine proves Bruce Bent Sr., left, and PAGE 16 Bruce Bent II misled investors last fall during a two-day, $40 billion run on their money funds. buck ennis; inset: levine karjean BUSINESS Bulk sales LIVES Can Google guy SUMMER FUN Eat a Maine lobster, ride of condos the Aces and other ideas turn around AOL? for any budget PAGE 21 spreading claim the “magic” of the AOL Spinoff could bring name. That might not seem a INDEX stretch to someone whose résumé Developers try Time Warner unit includes building Google’s ad sales business into a juggernaut from package deals IN THE MARKETS _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _4 out of tech dark age scratch. REAL ESTATE DEALS to lure investors _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _7 The only problem is Mr. Arm- THE INSIDER _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _10 BY MATTHEW FLAMM strong is not at Google anymore. BY AMANDA FUNG CLASSIFIEDS _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _18 AOL’s third chief executive in since he took the reins of AOL three years has been handed a com- CORPORATE LADDER _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _22 just a month ago, Tim Armstrong pany that’s like a 21st-century ver- after nine months and a total of WWW.CRAINSNEWYORK.COM has been traveling the globe, get- sion of the Edsel. Despite operat- only four tentative sales at its six- /EXECMOVES EXECUTIVE MOVES ting a feel for the long-troubled ing popular niche sites like gossip bloomberg news story condominium in Harlem, /EVENTS See AT DEADLINECALENDAR on PageLISTINGS 2 Time Warner division. heavyweight TMZ and Engadget, RESTORING A RELIC: Tim Armstrong runs owner Gaetano Development His goal, he has said, is to re- AOL is still associated with the In- the 21st-century version of the Edsel. Group decided the time had come ternet’s dial-up days—and with for a radical change of tack. Last 19 the most disastrous corporate month, the company began mar- 5 merger in history. likely spinoff, which would allow keting substantially discounted Mr. Armstrong and fellow Time Warner Chief Executive Jef- bundles of some of the 18 unsold Google alum Jeff Levick, who was frey Bewkes to finally rid the media units at its Lore Condominium— recently named president of global giant of a property that has been a not to people looking for a home, ELECTRONIC EDITION advertising,have a lot of damage to drag on its stock price since 2001. but to investors looking to make a undo. The spinoff would also be good killing in a depressed market. NEWSPAPER See TURNING on Page 20 See CONDOS on Page 17 71486 01068 They’ll be preparing AOL for a 0 CNYB 05-11-09 A 2,3 5/8/2009 7:46 PM Page 1 IN BRIEF THE ECONOMIC CRISIS HAS CLAIMED ANOTHER RETAIL VICTIM: PLUS SIZES. In cheap-chic Women’s clothier Ann Taylor Stores Corp. recently stopped ordering size 16 apparel for its brick-and-mortar Ann Taylor and Loft stores. Beginning this spring, the size will be available era, retailers only online. A company spokeswoman blamed low demand, but some industry experts speculate that the change is really a cost-cutting measure. Ann Taylor has had to close more than 150 alter plans stores, and has suffered double-digit percentage declines in same-store sales in both divisions. TAILOR, A CRITICALLY ACCLAIMED Aim for value, lean inventory, ‘buzz’ RESTAURANT IN SOHO, FILED FOR BANKRUPTCY protection after its unpaid bills and taxes piled blitzes, embrace their winners and cast up to more than $300,000—nearly half of BY ADRIANNE PASQUARELLI off their dogs, and—of course—empha- which is owed to the state Department of size “value” to their customers. Taxation.The 18-month-old restaurant, at 525 a year ago, fern penn, owner of SoHo “Businesses are sensitive to the con- Broome St., is also being sued by its landlord boutique Rosebud, would never have straints on the consumer’s budget and are for back rent. Owner Lauren Weiss is hoping to dreamed of joining forces with a similar trying to come up with innovative and cre- save the business by reorganizing under shop down the street to drum up busi- ative ways to drive traffic into the stores,” Chapter 11. ness. Competition was cutthroat. says Lori Holliday Banks, a senior analyst These days, though, she is regularly at fashion consulting firm Tobe. TODAY, STELLA D’ORO BAKERY WORKERS, WHO on the phone with specialty stores Hat Retailers need as much help as they can HAVE BEEN ON STRIKE SINCE AUGUST, WILL Shop and Olive & Bette’s,brainstorming get. Average same-store sales have fallen take their protest from the Bronx to ideas for drawing shoppers to the neigh- for five of the past seven months. In the Greenwich, Conn., where they’ll rally outside borhood, and even raffling off gift cards past two years, the S&P retail index of 35 ROSEBUD’S FERN PENN is throwing her the headquarters of Brynwood Partners. After for her former rivals. stores has fallen 35%. And lot in with former the private equity firm proposed slashing wages “You never would talk to this year consumer spend- rivals to drum up and benefits, 136 workers walked off their jobs your neighbor next door—it ing is expected to fall for the business in the area. at the iconic biscuit company’s northwest Bronx was one of the unwritten rules first time in 14 years, ac- plant.The National Labor Relations Board has of retail,” says Ms. Penn, who cording to industry experts. filed a complaint against Brynwood for refusing runs the six-year-old Rose- To survive the storm, buck ennis to bargain in good faith, and a trial before a bud with her husband,Leslie. retailers are making as federal administrative law judge is scheduled to “But now, we’re promoting many adjustments as they Oak, which has a store in lower Man- begin Tuesday. each other’s business.” can as fast as they can—be- hattan as well as in Williamsburg, This cross-pollination ginning with slashing Brooklyn, recently launched A.OK, a THE CITY’S ECONOMIC DEVELOPMENT CORP. marketing technique is just BRAVE prices. Preppy chain J. more affordable division located in its IS BRINGING THE WORLD’S LEADING one of several ways the city’s Crew Group Inc. and clas- two stores and online as of this week. In- amusement experts together this week for a two- apparel and accessories re- NEW sic handbag purveyor stead of items ranging from $40 (for a day conference to help shape the future of Coney tailers are altering their Coach Inc. both lowered T-shirt) to $1,500 (coats) at Oak, at Island’s rides and attractions.The gathering, plans in the face of the crisis initial prices on spring A.OK, shoppers can find $15 T-shirts which begins Tuesday and will include eight that has wreaked havoc on WORLD merchandise this year. J. and $65 jeans.
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