Can Google Guy Turn Around AOL?

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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. Co-owner Louis Terline leading industry executives, will help the city their industry, claiming big- In this second Crew now offers its popu- hopes the offshoot will appeal to more move forward with plans for both an interim and name victims such as Steve part of our series, lar ballet flats for $98 in- shoppers who are drawn to four-year-old a permanent amusement area at Coney Island. & Barry’s, Filene’s Base- Crain’s looks at stead of $128, while Coach Oak’s trends, but not its costliness. The temporary park could open by next summer ment and Mervyn’s. As a re- cut the price of its average and stay for five to seven years. sult,a new breed of retailer is apparel retailers handbag by $35, to $300. The young and the savvy emerging. Stores now col- who are rewriting Store owners are drawing “we were developing a really strong vol. xxv, no. 19, may 11, 2009—Crain’s New York Business (issn laborate with one-time inspiration from shops that customer base—a younger, savvy cus- 8756-789x) is published weekly, except for the 1st and 3rd week of their playbooks July, the 1st and 5th week of August, the 4th week of November competitors, hold invento- to survive in the are thriving on a diet of dis- tomer—but some couldn’t access our and the 4th week of December, by Crain Communications Inc., ries to a bare minimum, counting designer goods, price point, and we didn’t want to turn 711 Third Ave., New York, NY 10017. Periodicals postage paid at build buzz via hot new de- age of adversity them away,” says Mr. Terline. New York, N.Y., and additional mailing offices. Postmaster: Send stores such as Saks Off 5th address changes to: Crain’s New York Business, Circulation signs rather than big ad and Nordstrom Rack. Three-year-old online shop Refinery Department, 1155 Gratiot Avenue, Detroit, MI 48207-2912. for subscriber service: Call (888) 909-9111. Fax (313) 446-6777. $3.00 a copy, $59.79 one year, $109.79 two years. (GST No. 13676-0444-RT) ©Entire contents copyright 2009 by Crain Communications Inc. All rights reserved. ECONOMETER Tenants, pleading poverty, Weekly shift of the city’s economy. WHEW! Turns out that big banks can survive the Landlords in a quandary: Give current calamities and then some. Looks like we can SOFTENING MARKET begin to take our money out of mattresses, cash in ’em a break or risk a vacancy? Manhattan office space: Rents down, vacancies up our gold and start greasing the wheels of commerce. Leasing, in millions of sq. ft. Vacancy rate

POSITIVE NEGATIVE BY THERESA AGOVINO

3Q ’07 18.3 5.7% CLOUDY for many people, the eyes are the windows to the soul, but for 4Q ’07 23.6 5.7% S Y T Manhattan landlord David Levy, they are something more. He 1Q ’08 5.0 6.1% O N R sees them as portals to a tenant’s bottom line—ones he finds him- N M 2Q ’08 11.5 7.1% U self using a lot more these days amid an increase in the number of Y S tenants asking him to chop their rents. To divine who is truly in 3Q ’08 15.7 7.4% need, he begins with the eye test. 4Q ’08 19.1 8.0% “Some people sit across from you and you can just see the des- peration in their eyes,” says Mr. Levy, a principal with Adams & 1Q ’09 3.1 9.6% 539K 5.2% +7.0% Co. Real Estate, owner of 27 Manhattan office buildings. Source: Cushman & Wakefield Inc. April drop in Annualized rate Bloomberg/ nonfarm of decline in Crain’s NY stock Opportunistic or truly needy? employment, the consumer credit, index weekly smallest decline biggest in 20 change all across the city, landlords are struggling to come up ants begging for a break in the hope that in a down market, since October years with their own systems for doling out what they insist are a lim- the last thing landlords want is to lose a tenant to bankrupt- (U.S. Dept. of Labor) (Federal Reserve) ited number of rent breaks to only the neediest tenants. Mean- cy. Last December, for example, movie-rental chain Block- while, the appeals are coming in from both retail and office ten- buster Inc. sent letters to hundreds of its landlords nationwide

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IN OUT LET THE TAG SALES BEGIN ONLY A FEW MONTHS after he clinched the megamerger that created Citigroup in 1998, financial empire builder Sandy Weill made it clear that his ambitions were global when he acquired a 25% stake in Japanese securities firm Nikko Cordial. Fast-forward 11 years, and Citi—along with many other big U.S. banks—is in full retreat: Last month it agreed to sell SCARVES HANDBAGS Nikko’s brokerage operations, which it had bought SPIN: THINK CHEERFUL outright in early 2008 for $14 billion, for a mere $7.9 billion. Citi will probably have to unload even more as it—and nine other banks—try to raise capital to reach levels mandated by the government following a series of “stress tests.” Here’s how the weakest bank giants in New York might shrink, including possible sales, potential prices and likely buyers. —AARON ELSTEIN bloomberg news OUTLET STORES DEPT. STORES SPIN: LESS IS MORE

NEEDS TO RAISE bloomberg news CHEAP CHIC HAUTE COUTURE $34 Billion SPIN: SAVINGS ARE IN VOGUE ITS STRESS TEST SHOWED it must find far more capital than anyone else. Fortunately, it has many only new designers. So far, the ways to get there. strategy has paid off for founder Lisa Weiss, who works with de- ON THE BLOCK Stake in China Construction Bank signers, taking their work on con- LIKELY SALE PRICE $8 billion 29 has always been a discounter, selling proven sellers.Beginning in August,ven- signment and returning unsold items to POSSIBLE BUYER Back to the Chinese excess inventory from well-known retail- erable retailer Henri Bendel will down- keep her overhead low. ers and designers. With business hum- size its Fifth Avenue flagship from three ON THE BLOCK Columbia Asset Management ming, it is seizing this moment to ex- floors to two, stop selling clothing, and Unique offerings LIKELY SALE PRICE $3.4 billion pand.Two weeks ago, Refinery opened a offer only accessories, gifts and beauty “people shop here because they’re POSSIBLE BUYERS Black Rock, Federated pop-up shop called Save Fashion in the products. In the new world of retailing, looking for something different,” says Investors, Franklin Advisors Port Authority bus terminal. scarves, bracelets and boots far outpace Ms. Weiss. “A lot of things are one of a ON THE BLOCK First Republic Bank There, shoppers can buy designer their more expensive apparel cousins. kind.” wares at 50% to 90% off, as well as attend “An accessory is a very versatile kind The downturn gives retailers an op- LIKELY SALE PRICE $600 million the weekly launch parties Refinery of thing—you can buy a great pair of portunity, they say, to inject some old- POSSIBLE BUYER J.P. Morgan Chase throws. Within the first two days, Save shoes and wear it with many outfits,”says fashioned fun back into fashion. Ms. Fashion raked in over $100,000 in sales, Ms. Banks. Penn of Rosebud is having a blast host- and co-founders Justin Stefano and Other Big Apple retailers are turning ing Bingo night for shoppers and gossip- Philippe von Borries are considering a to new names in fashion to perk up sales. ing with the 70 other stores in her net- long-term lease as well as going national High-end department stores including work about customer motivation. April with the concept. Saks and Bloomingdale’s are jazzing up sales were even with last year, which is In addition to working with suppliers their apparel lineups by adding small or quite an improvement over the double- to cut clothing costs, many retailers are emerging designers. Meanwhile, Debut, digit declines of December. placing far smaller orders,holding inven- a small shop in NoLIta, was founded last “You have to be upbeat and give shop- NEEDS TO RAISE tories to a minimum and focusing on May with the sole mission of featuring pers something,” she says. $5.5 Billion IT’S ALREADY DUMPED its German banking operations and much of what it owns in Japan. Still, it looks like more moolah is required. ON THE BLOCK Nikko Asset Management lobby for rent reductions LIKELY SALE PRICE $2.7 billion POSSIBLE BUYERS Mitsubishi UFG, Nomura That’s because, on the one side, landlords don’t want to trig- NOTHING ON THE BLOCK Primerica VENTURED: ger a deluge of such requests,and tenants don’t want either their VENTURED: LIKELY SALE PRICE $7 billion Blockbuster sent competitors or their employees to know they need help. Then lettersletters toto hundredshundreds too, the numbers are still small. Mr. Levy,for example, says only POSSIBLE BUYER A big foreign bank or insurer of its landlords about 75 of his 22,000 tenants have asked for help. asking for a 30% rent reduction. IOUs, not gifts in response, landlords say, they are temporarily cutting rates and delaying agreed-upon increases in a few cases, but with one key caveat: Such concessions must be seen as IOUs, not gifts. Tenants must repay the landlords. Some landlords also insist NEEDS TO RAISE that they’ll only make concessions after conducting the financial equivalent of a strip search to determine the extent of a company’s troubles, its strategy for improving its business, and $1.8 Billion whether aid would help keep the enterprise viable.They say they IT ANNOUNCED LAST WEEK it would sell $5 billion are refusing to permanently lower rents to bring them more in in debt and equity. But the brokerage-turned-bank line with current market rates. holding company isn’t done remaking itself.

getty images “I want to see what else these companies have done to save money,” says Anthony Malkin, president of W&H Properties, ON THE BLOCK Proprietary trading business asking for a reported 30% rent reduction. a portfolio of nine buildings including the Empire State.“I don’t LIKELY SALE PRICE Unknown “I think requests are going on with every landlord,” says think that going to the landlord for relief should be the first call.” POSSIBLE BUYER A hedge fund, of course Robert Stella, principal at CresaPartners.“Nobody really wants Power, however, is shifting toward tenants, who are in to talk about it.” See TENANTS on Page 17

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IN THE MARKETS by Aaron Elstein and Hilary Potkewitz

At the SEC, working life isn’t quite working right onsidering that it missed Ber- COZENCOURAGE nie Madoff and slept while much Cof Wall Street binged on leverage and toxic assets, it seems safe to say the

Securities and Exchange Commission is a bloomberg news disaster. A devastating report last week by MARY SCHAPIRO the Government Accountability Office Ann Thornton Field, Trial Lawyer shows how much work new Chairman Mary Schapiro faces to revive this once-respected agency. Among the GAO findings:

We know victory in the courtroom takes more Enforcement staff fell 11.5% be- vantage.His proposal to mine an ad- than just experience or strategic planning. tween 2004 and 2008. But that’s the ditional $210 billion in tax revenue It takes courage. least of it. Investigators report a lack from overseas operations over the of paralegal and administrative staff, next 10 years could hit just about Our team of trial lawyers has an uncommonly consistent forcing employees to spend much of every multinational based here,from record of success in all facets of litigation. Whether it’s their time filing or scanning docu- Alcoa to Verizon (see the chart). our victorious summary judgments or disputes settled, ments, making travel arrangements, Consider Pfizer, which last year favorable verdicts or appeals won, we have the skill it even ordering copies from Kinko’s. reported foreign income of $11.5 takes to prevail. One attorney said such work takes billion, compared with a reported two to three hours daily. loss of more than $1.7 billion in its For worldwide offices, visit us at cozen.com. IT is so dismal that it takes weeks domestic operations.Pharmaceutical or months for legal documents to be analyst Steve Scala of Cowen & Co. downloaded on SEC computers. says the Obama tax changes could Defense lawyers routinely get asked reduce Pfizer’s earnings per share by for help with documents from SEC 8% or 9% over the next five years. staffers,“which could limit ... analy- Under current rules, profits gen- Geoffrey D. Ferrer, Office Managing Member 16th Floor, 45 Broadway sis of issues,” the report says. erated overseas are not taxed at the New York, New York 10006 Investigators do not have access full U.S. corporate rate until repatri- 212.908.1201 | [email protected] The confidence to proceed. to real-time market information. ated to the home base.There are also

® When they need it, they “manually allowances for tax credits,depending query” hundreds of brokerage hous- on the tax rate in the country where © 2009 Cozen O’Connor es, a process that produces incom- the income was generated, leaving plete data. room for creative accounting. The culture of risk aversion is so “Some of the tax planning that ingrained that investigators spend goes on is aggressive,” notes Isaac up to 40% of their time on the “in- Grossman,a partner in the tax group ternal review process.”In one case,it of law firm Morrison Cohen. “And took two and a half some of it is to get months to prepare a JUICY TAX TARGETS credit for the taxes paragraph request- that the company has ing permission to 2008 already paid abroad.” FOREIGN send a notice to a COMPANY INCOME Back to Pfizer. It party saying it faced paid a tax rate of 22% fraud charges. Dis- last year, benefiting gusted investigators $8.3 from various tax dropped the case be- IBM billion credits and deferred cause it got so old. income, here and In a written re- $921 abroad, according to sponse,Ms.Schapiro Verizon million Mr. Scala’s research. praised the GAO for He figures the Obama its “careful work.” -$2.5 tax proposal could in- The SEC,she added, billion* crease Pfizer’s effec- “must be willing to tive tax rate to 30% or find ways to improve $11.5 35% by 2013,from an how we do business.” Pfizer billion estimated 27.5% by 2013 if the current tax If tax hikes regimen isn’t changed. $177 Competitors that Time Warner million come home are based outside the U.S. would not be to haunt $3.7 subject to the new new york is home to Pepsi billion rules,so the proposed many global compa- changes would have nies, so executives $5 an “unfavorable im- (and corporate ac- Hess billion pact” on U.S. pharma countants) snapped companies, Mr. Scala to attention last $1.7 argues. Pfizer shares week when Presi- Alcoa billion closed Friday at dent Barack Obama $14.40, well off a 52- *Goldman reported a $2.5 billion loss targeted businesses from foreign operations last year. week high of $20.29 that use foreign tax Source: Company reports but ahead of an $11.29 havens to their ad- low in March. CN012877 4/14/09 3:46 PM Page 1

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NEW YORK,NEW YORK edited by Valerie Block

Tennis pro serves up story ennis phenom Rafael Nadal may soon be shopping a book. Industry sources say that literary agent Larry Kirshbaum Thas been talking to publishers about a memoir by the 22-year-old Spanish heartthrob, who is now ranked the No. 1 tennis player in the world. Mr. Nadal has won six Grand Slam singles titles as well as an Olympic gold medal while enjoying an intense rivalry with Swiss tennis great Roger Federer. Books by tennis stars have had an uneven track record, though that didn’t stop Knopf from paying $5 million two years ago for an Andre Agassi autobi- ography that will be published in November. Mr. Kirshbaum has yet to send publishers a proposal, but some editors say a book by Mr. Nadal is something they’d have to consider. “He is the best tennis player in the world right now,” says a publishing executive. “There are a lot of tennis fans around the world.” Mr. Kirshbaum did not return a call seeking comment. bloomberg news market prices surely means swagger. Circulation at the Rupert Yankees tickets heartache for speculators who Murdoch-owned daily declined falling short thought they could resell their 20% in the most recent Audit seats at a profit. Now, if only a Bureau of Circulations survey. the market for Yankees tickets Web site could cut the price of That’s not to say the News is has collapsed. Not only has the those $9 beers at the ball park. much better off.Though it still team slashed prices on the most tops its rival, its circulation expensive seats at its new stadium, dropped 15% during the same Manhattan’s 2009 but extraordinary discounts are Sandwich chain six-month period that ended available online as fans and ticket crafts dinner March 31. Rather than trying to District Attorney Debate destroy each other, the papers are Tom Colicchio’s The three announced Democratic candidates for Manhattan District celebrity chef now trying to survive the worst gourmet sandwich chain, industry advertising downturn in Attorney will discuss their backgrounds and plans for this key office ’wichcraft, just added dinner to decades. in a special Forum Debate moderated by Crain’s editorial director, the menu at its East 20th Street One observer says the tabloids’ Greg David. location. After 6 p.m., the struggle reminds him of the one waitresses show up and the between Coke and Pepsi. “They’re candles come out at the popular still fighting,” says Columbia DATE: June 2, 2009 self-service breakfast and lunch journalism professor Sree bloomberg news spot, the chain’s original location. Sreenivasan. But with new PLACE: The Roosevelt Hotel brokers race to unload even the If the move is a success, dinner competitors like Vitamin Water Madison Avenue at 45th Street most affordable seats. could be served at the other taking the spotlight, “the battle is Richard Aborn For example, on the morning of ’wichcrafts around town that boast no longer that interesting.” TIME: 8:00-8:30 am Networking Breakfast last Wednesday’s game against the a beer and wine license—only four American League champion of the 11 shops serve alcohol. Contributors: Aaron Elstein, 8:30-9:30 am Program Tampa Bay Rays, tickets behind the The new service shouldn’t Lisa Fickenscher, Matthew Flamm third-base dugout with a face value compete with Mr. Colicchio’s TICKETS: $70 for individual tickets if pre-registered of $95 were going for as little as upscale dining locations, like by May 26; $75 thereafter. $44 at FanSnap.com. Seats in the nearby Craft. Dinner will run a upper deck directly behind home thrifty $20 to $25 per person. $650 for table(s) of ten if pre-registered Leslie Crocker Snyder plate with a face value of $85 were The most expensive item on the by May 26; $750 thereafter. selling for just $40. And for the new menu: a $12 braised free- truly budget-minded, seats high in range chicken with peppers and the upper deck were quoted on olives. To register go to crainsnewyork.com, or fax your business card FanSnap at $10—less than half “We didn’t create this with the and credit card information to “DA Breakfast” at 212-210-0499. their $25 face value. economic crisis in mind,” says Prices might be temporarily Jeffrey Zurofsky, a partner in PIER PRESSURE You must be pre-registered to attend this event. All tickets are non-refundable. depressed by the lousy weather ’wichcraft. “But it is good timing For more information, please call the events hotline at 212-210-0739. WANT TO LOOK BUFF at events Cyrus R. Vance Jr. and the Yankees’ sluggish start. to make the most of everything we celebrating the 40th anniversary And bargains are harder to find are doing here.” of the Stonewall riots? Check for weekend games and matches SPONSORED BY: out Laura Miranda’s recently against hot teams like the world launched Gay Men’s Boot Camp. Philadelphia Phillies or Two losers champion A four-week course, offering legendary rivals like the Boston Red in tabloid war three classes per week, runs Sox. Still, prices have tended to new york’s tabloid war really is $359. Individual classes go for decline markedly as game day over, but alas, there’s no winner. $33. So far, 15 men have approaches, so fans looking for a The New York Post spent the signed on for the fitness pro- Sunday game could do well by better part of this century trying gram, held at the Christopher waiting until the last minute. to kick the Daily News to the curb, Street Pier. The plunge in secondary- but the paper has clearly lost its

6 | Crain’s New York Business | May 11, 2009 CNYB 05-11-09 A 7 5/7/2009 5:46 PM Page 1

REAL ESTATE DEALS Rare sight: growing architecture firm

have occupied floors 4 through 6 of according Mr. Tabano. With UN and police academy on board, the BankNote Building. Currently, “This deal is an interesting first Perkins+Will expands on Park Ave. South 275 students are enrolled at the step for us,” says Douglas Winshall, CLASS NOTE: The John V. Lindsay Wildcat Bronx campus. executive vice president of Taconic Academy will stay in the BankNote Building. n a rare show of prosperity in newed its lease for 28,800 square feet “We wanted to stay in the Bronx Investment Partners, which with its beleaguered industry, ar- at the former manufacturing facility so we can attract students from Denham Wolf Real Estate Services chitecture firm Perkins+Will located at 890 Garrison Ave. The 100- around the area,” says Ron Tabano, is renovating the 405,000-square- JVL Wildcat Academy was rep- is expanding its footprint at year-old building is undergoing a principal of the school.“We love the foot structure. “Educational institu- resented by Richard Levine of CB 215 Park Ave. South by more $25 million conversion to an office building and its history.” tions are the No. 1 target for our re- Richard Ellis Inc.The landlord was Ithan a third by subleasing 16,500 and retail complex. The asking rent The Bronx campus is home to development—four to six schools represented in house by Mr. Win- square feet. That will bring its total for the space was in the mid-$20s. the school’s culinary training pro- could co-locate at BankNote.” shall and Paul Wolf, co-president of there to 40,260 square feet. Since 1997, JVL Wildcat Acad- gram, which offers students a state- Mr.Winshall expects the renova- Denham Wolf Real Estate Services. Perkins+Will needs the new emy students from grades 9 and 10 of-the-art kitchen and dining area, tions to be completed by year’s end. —amanda fung space to accommodate employees it has hired for several prominent projects,including the renovation of the United Nations and the design of a new police academy in Queens. Perkins+Will added six people recently,bringing its total in New York City to 150.More hires are possible. Because of the expansion on Park Avenue South,the firm plans to give up a 4,500-square-foot satellite office nearby, at 11 W. 18th St. “It is easier to have everyone in the same building,” says Paul Eagle, managing director of Perkins+Will’s New York office. The firm is subleasing the entire sixth floor for four years from law firm Binder & Binder.A July move is planned; sources say the asking rent was in the high $30s a square foot. SL Green Realty Corp. Execu- tive Vice President Howard Tenen- baum and Senior Managing Direc- tor Gary Rosen represented Perkins+Will and the building’s owner,215 Park Ave.South Associ- ates, in the transaction. It was a complicated deal that took more than a year to complete. “The deal probably died five times along the way,” says Steven Strati, a broker at Cushman & Wakefield Inc., who represented Binder & Binder. Mr. Eagle says the firm consid- ered leasing elsewhere before decid- ing to sublease in its own building. “This was a solution that works for us,” says Mr. Eagle.“We love being in the Union Square area.” Binder, meanwhile, will leave Manhattan by moving into 19,000 square feet at 33-00 Northern Blvd. in Long Island City, Queens, in June. The asking rent for the deal, which runs for nearly 13 years, was about $25 a square foot, sources say. Mr.Strati says the law firm moved to take advantage of REAP, a city program that awards tax incentives to companies that relocate to upper Manhattan or the boroughs beyond. Newmark Knight Frank broker Howard Kesseler represented the Long Island City landlord, Hamp- shire Properties. —theresa agovino School reenrolls in Bronx landmark the john v. lindsay Wildcat Academy Charter School has decided to remain at its Bronx campus at the landmark BankNote Building in Hunts Point for another 12 years. The high school,which also has a campus in lower Manhattan, re-

May 11, 2009 | Crain’s New York Business | 7 CNYB 05-11-09 A 8 5/8/2009 12:41 PM Page 1

VIEWPOINT How not to improve the schools editor in chief Rance Crain publisher, vp Jill R. Kaplan editorial director Greg David ow that state legislators have education issues to a new advisory group called the Panel on EDITORIAL temporarily patched over the Educational Policy.The mayor would appoint five of the editor Xana Antunes Metropolitan Transportation Authority’s panel’s 13 members, and other politicians would choose the managing editor Glenn Coleman deputy managing editors Valerie Block, financial crisis, they will turn their remainder. While the mayor could probably find two allies Erik Ipsen attention to New York City’s public on even the most controversial issues to push through his contributing editor schools.The question is whether to renew proposals, he’d have to play politics to do so.That is precisely Elizabeth MacBride columnist Alair Townsend mayoral control of the school system, how the old and discredited Board of Education worked. senior reporters Theresa Agovino, which Mayor Michael Bloomberg won seven years ago.The Not coincidentally, the teachers union would enhance its Aaron Elstein, Erik Engquist, Lisa Fickenscher, Matthew Flamm, Miriam Kreinin Souccar answer should be yes, because mayoral control is the main N power in the schools. reporters Barbara Benson, Amanda Fung, reason the city’s schools have improved under Mr. Bloomberg. Some suggested compromises—such as giving the mayor Daniel Massey, Adrianne Pasquarelli, Hilary Potkewitz Most of the suggested “revisions” to mayoral control being a majority of the panel but limiting panel members to fixed art director Steven Krupinski discussed in Albany would reinject politics into education, terms—have the same deputy art directors Carolyn McClain, tragically undoing the gains of the past seven years. Daniel Mednick ‘Revisions’ basic flaw, as does any staff photographer Buck Ennis Nothing is more important to the economic future of the other so-called reform copy desk chief Wendy Zuckerman city than the education of its future workforce.The mayor would reinject that gives politicians copy editor Thaddeus Rutkowski research editor Denise Southwood has not only embraced the idea that he is accountable for politics into access to educators. www.crainsnewyork.com what happens in the schools, he has demanded the same of Some minor revi- web editor Brian Tracey senior producer Elisabeth Butler Cordova everyone in the management chain, from his schools education sions to the mayoral producer Kira Bindrim

chancellor to principals.The results, virtually everyone control law may be EDITORIAL AND ADVERTISING OFFICES agrees, are better-run schools, higher test scores and acceptable.The law 711 Third Ave., New York, NY 10017-5806 editorial: 212.210.0277 Fax 212.210.0799 improved graduation rates, among many other gains. could say the school advertising: 212.210.0259 Public backing of mayoral control is so strong that no one system is just like any Cable craincom nyk dares suggest it be scrapped. Instead, critics say they want to other city agency, subject to the mayor’s direction but also Fax 212.210.0499 Entire contents ©copyright 2009 Crain “improve’’ mayoral control, especially to end what they call scrutinized by the city comptroller and City Council. Communications Inc. All rights reserved. ®CityBusiness is a registered trademark of MCP the Bloomberg administration’s disregard for parents. Given the dysfunctional politics of Albany, city business Inc., used under license agreement. Beware the wolf in sheep’s clothing. leaders will need all the clout they can muster to ensure TO SUBSCRIBE: Call 888.909.9111; fax 313.446.6777. The most suspect self-styled supporter of mayoral control, that mayoral control is renewed by the Legislature in the $3.00 a copy, $59.79 one year, $109.79 two years. the teachers union, wants to hand over authority on major coming weeks. www.crainsnewyork.com ADVERTISING AND MARKETING senior account managers Cornelius P. Gore, William E. Squitieri commercial real estate sales manager LETTERS TO THE EDITOR Cory Marks account executives Jacqueline Iovino, Irene Irvill, Courtney McCombs, Anthony Mowad sales manager, classified Nothing to do with WTC memorial print & online John Gallagher sales coordinator, print & online Lulé Haznedari SILVERSTEIN IS BUILDING towers and the memorial. Silverstein has publicly committed work with smaller investment sales coordinator Anita Perrino ON OTHER SIDE OF STREET Crain’s idea that the Port to doing again and again. firms to help them access capital. credit Todd J. Masura 313.446.6097 Authority will pay above-market One final note on optimism Several years ago, our firm hired a marketing director Amy Crossman crain’s editorial “WTC rents for space demonstrates a about the future recovery of placement agent to help us raise an marketing manager Jill H. Bottomley solution hinges on Larry” (May 4) is serious lack of knowledge about downtown—which your editorial institutional private equity fund. circulation manager Andrea Richardson filled with inaccuracies. Correcting New York’s commercial real estate portrays as misplaced. As Crain’s The placement agent helped our assistant circulation manager Rosalie Ford all of the misinformation would market.The Port’s starting rent in writes on Page 20 of the very same lawyers define limited partnership take up more space Tower 4 is actually issue, it was Larry Silverstein who terms, assisted our accountants in general manager, interactive than the original SEER: It $20 a square foot correctly predicted lower auditing our track record, helped us Marc Minardo was Larry web developer, interactive editorial itself, but here Silverstein below the most recent Manhattan’s commercial resurgence draft a private placement memo- Chris O’Donnell are the most who predicted lease at 7 World while others (including Crain’s randum, designed an effective important points. downtown’s Trade Center (which editorial page) were writing presentation of our business, NEW YORK PRODUCTION The ability or resurgence. was signed in downtown’s obituary. It seems that contacted over 300 institutional production and pre-press director inability of the Port December 2008, in history is repeating itself in 2009. investors and arranged in-person Michael Corsi Authority to the middle of the c meetings with over 100 of them, advertising production manager —dara m quillan Suzanne Fleischman Wies complete and open financial sector Vice president advised us in the preparation of due the World Trade meltdown). Silverstein Properties Inc. diligence materials and assisted in PUBLISHED BY CRAIN COMMUNICATIONS INC. Center memorial by The Silverstein closing negotiations. chairman Keith E. Crain the 10th anniversary organization will PLACEMENT AGENTS The biggest firms (Goldman, president Rance Crain of Sept. 11 has ultimately receive $21 Morgan Stanley, Carlyle, etc.) secretary Merrilee Crain DO SOME GOOD Mary Kay Crain nothing to do with buck ennis bring these critical functions in- treasurer million in fees for the executive vp, operations William Morrow the buildings being developed by Freedom Tower (not the $150 the uproar regarding house. Placement agents provide a senior vp, group publisher Gloria Scoby Silverstein Properties—nothing at million you cite). But that is only placement agent impropriety “borrowed infrastructure” that group vp, technology, circulation, all. Nor does the construction of after giving the Port $1.1 billion of (April 27) has caused a predictable levels the playing field, allowing manufacturing Robert C. Adams the memorial depend in any way its insurance proceeds, turning over overreaction by officials eager to smaller firms to compete with the vice president/production & on the outcome of Silverstein’s $100 million worth of design and prove they are addressing this big boys. Barring placement agents manufacturing David Kamis discussions with the Port. construction work on the Freedom abuse of power and influence. will dramatically slant the process chief information officer Paul Dalpiaz corporate circulation director Everything Silverstein is doing is Tower, and paying more than $800 Unfortunately, the recent decision in favor of the huge Wall Street Patrick Sheposh on the east side of Greenwich million in rent to the Port Authority to bar placement agents from firms—many of whom have not Street, and the memorial, which since Sept. 11 for sites Silverstein providing introductions to public served the public particularly well founder G.D. Crain Jr. (1885-1973) the Port Authority is building, is hasn’t been able to build on. pension funds will damage many in recent years. chairman Mrs. G.D. Crain Jr. (1911-1996) located on the west side of All of the WTC insurance legitimate businesses, as well as the —nicholas bienstock Greenwich Street.There is zero proceeds are indeed being invested pension funds themselves. Managing partner connectivity between Silverstein’s in the rebuilding, as Larry Placement agents typically Savanna Real Estate Fund I

8 | Crain’s New York Business | May 11, 2009 CNYB 05-11-09 A 9 5/8/2009 2:08 PM Page 1

the larger screen, but they will include sharp graphics. I think the Kindle DX has the potential to give the ailing newspaper industry a lifeline. It’s aimed at students, who famously won’t buy newspapers. If they have the nifty gadget for reading their books, they might be moved to become subscribers. Papers like The Times are even offering to subsidize the unit’s price for long-term subscribers who can’t get home delivery. And it saves trees, making Kindle the cool, green alternative. Media economist Jack Myers is a fan. He calls Kindle and other e-readers “the future of subscription content.” He says media executives can develop new ad models to make them pay,like offering special sections for Want to STAND OUT classified ads or coupons, just as there are sections for op-ed john h. howard columns. from the crowd? Skeptics, however, abound. The industry’s problems, which include Promote your coverage with giving away content for free on the Web,“are way too big for Kindle to Crain’s Custom Reprints Kindle-ing a fire solve,” says Michael Norris, a senior analyst at book industry research firm Simba Information. for print media What’s more, Mr. Norris doubts What are the the pricey $489 Kindle DX will have mass appeal. benefits of reprints? love reading the newspaper, but I didn’t know how Yankee Group analyst Josh Mar- tin agrees that the Kindle is “no • Offer a unique opportunity to co-bbrand your much I disliked print until I got a Kindle for my birth- magic bullet.” day last year. Even Mr. Myers says the future company with a reputable news source I had always hated wrestling with the broadsheets,es- won’t come soon enough. The Kin- pecially when reading on a bus or subway. I hated dle DX arrives this summer, but the • Help underscore your PR efforts picture for newspapers grows dark- Ithe jumps. I hated the clutter from all those sections that I er by the day.The New York Times • Great addition to your press kits hadn’t gotten around to reading but felt guilty about throwing Co.lost $74 million in the first quarter of 2009. Several chains have de- • Great recruitment and retention pieces away. I rejoiced a few veniently stored on the clared bankruptcy in recent weeks, years back when The device, where I can and individual papers are shuttering • Digital reprints boost your news/press New York Times and simply forget about at a rapid clip. The Wall Street Journal them. Despite the gloom, I’m more web pages and help drive traffic to your site shrank by a half-inch And since it’s mo- optimistic about the transforma- around—the papers bile, Kindle is better tive potential of e-readers. After • Boost employee and company morale will be easier to man- than the Web. Even all, the technology is morphing so age, I thought. though I have to pay a fast. It was just February when With the Kindle, the monthly fee, a sub- Amazon introduced Kindle’s sec- negatives about getting scription is cheaper ond generation. the news disappear. I than print. Besides, what can a journalist do tend to read more now, VALERIE I’m personally in- but cling to hope? Just as the iPod because I am able to BLOCK trigued by the new Kin- has become the music industry’s breeze though without dle DX,which Amazon flawed but best defense against dig- a struggle. If I don’t hit designed especially for ital pirates, Kindle could be the all the sections, they don’t hang newspapers and textbooks.Not only print industry’s best bet for any fu- around haunting me. They’re con- will stories be even easier to read on ture at all.

Reprint (Print & Digital) Plaque CRAIN’S ONLINE POLL

Should Obama close tax loopholes for U.S.-based global firms? ASK ABOUT OUR REPRINT PRODUCTS: 281 VOTES HARD COPY REPRINTS • EPRINTS • PLAQUES Date of poll: May 5, 2009 BANNERS/BUTTONS • TRADE SHOW COLLATERAL • POSTCARDS

Yes. The companies have avoided paying No. This tax plan billions of dollars in will hurt corporate Contact Lauren Melesio at 212.210.0707 or taxes because of profits at the worst [email protected] for information on how to turn these loopholes, .74% 26%. possible time and and that cash could will further damage your Crain’s press coverage into great marketing. help pay down the shareholders and federal deficit. the U.S. economy. bloomberg news For this week’s questions: Go to www.crainsnewyork.com/poll to have your say.

May 11, 2009 | Crain’s New York Business | 9 CNYB 05-11-09 A 10 5/8/2009 2:10 PM Page 1

Modifying mayor’s school rule THE CAMPAIGN Mike’s Achilles’ heels THE INSIDER MAYOR MICHAEL BLOOMBERG’S RE-ELECTION CAMPAIGN is rolling along with momentum is building for TV ads and glossy mailers, and his poll numbers remain strong, but some Demo- by Erik Engquist and Daniel Massey amendments to mayoral control of crats believe he’s susceptible to attack on pocketbook and personality issues. the Department of Education. One One vulnerability is a tendency to speak insensitively. At a recent press con- notion gaining acceptance is that ference, the mayor seemed to say that a segment of the population wants to the city comptroller should be be homeless. “We bring them into the shelters, and they walk straight out. They empowered to audit the agency. All want to be on the streets. They want to be on the subways,” he said. four candidates for comptroller— “I am always amazed by his poll numbers, because when I go to civic The masses pan City Council Members David Yassky, meetings—and it doesn’t matter whether it’s Irish and Italian families, or black Melinda Katz David Weprin John , and and Caribbean families—they are not voting for him,” says Brooklyn CIty Liu half-baked MTA plan —endorse that position. Councilman Lew Fidler. The matter is in Albany’s hands. He adds that people are especially upset about rapidly increasing water Mr. Yassky says that when he meets he agreement reached in rates.“When you explain that the Water Board is entirely controlled by the state legislators, “I always say, Albany last week to rescue mayor, and the last Water Board chairman who criticized the system was fired Metropolitan Transporta- ‘Whatever else you do, it’s a no- the brainer that the comptroller should by the mayor, people say, ‘Hey, wait a second!’ ” Mr. Fidler says. “It’s issues T like that—his willingness to reach into your pocket—that really resonate.” tion Authority funds only two years have the same contract review and of the agency’s next five-year audit authority over the Councilman David Weprin says water rates are “becoming a back-door property tax.” Property taxes go to the city’s general fund, while water taxes capital plan. As a result, the Department of Education that he has with every other city agency.’ formerly funded the water system exclusively. Next year, the city will hijack response to the Senate plan has And they all say,‘Oh, absolutely.’ ” $220 million in water fees for the general fund.

bloomberg news ranged from tepid to hostile. A bill to make the Education But rallying opposition to Mr. Bloomberg is difficult. Mr. Fidler says the The Partnership for New York City, a business group, Department an official city agency mayor “cuts the libraries in the budget all the time” but gets a pass from library Daniel Squadron advocates. The councilman once asked them why. “One of them came over to couldn’t muster the enthusiasm to call the outcome anything is being carried by , D-Brooklyn, in the state Senate. His me and said, ‘You know, he gives a lot of money privately to more than “a good thing,” while predicting that new funding sponsorship adds weight because institutions that people on my board care about.’ They’re would be needed within two years. he was endorsed by Mayor Michael afraid to speak their minds.” Bloomberg for election last summer Silvia Alvarez, a spokeswoman for the mayor’s re- “I’m not sure the MTA is really generation and the most draconian and is not seen as a knee-jerk critic election campaign, responds: “Mr. Fidler shouldn’t fixed,” says Nicole Gelinas, a senior fel- service cuts in at least as long,” says of the mayor. Council Speaker give up his day job to become a political pundit. low at the Manhattan Institute. “It’s Paul Steely White, executive director Christine Quinn, another Bloomberg Producing solutions for all New Yorkers is what Mike definitely a stopgap measure at best.” of Transportation Alternatives, an ally, backs the premise of the bill. Bloomberg is focused on. Test scores are up, crime is Transit advocates are only anti-car advocacy group. But he A mayoral spokeswoman says, down and an overwhelming majority of New Yorkers slightly more pleased. cautions, “We’re going to be back at “We are in favor of greater account- think the mayor is doing a good job.” “We have avoided what would this juncture again, maybe even ability and transparency, and are have been the biggest fare hike in a before the year is out.” reviewing the various proposals.” bloomberg news

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10 | Crain’s New York Business | May 11, 2009 CNYB 05-11-09 A 11 5/7/2009 5:39 PM Page 1

SMALL BUSINESS ➚ON THE WEB @ WWW.CRAINSNEWYORK.COM/PROFILES SEE HOW THEY RUN: a multi- media slide show of some of NYC’s best manufacturers in action, by Crain’s photographer Buck Ennis

Lesson 2. Be Local Matthew Reich of city-centric Tom Cat Bakery PAGE 12

Lesson 1. Be High-End Made in Lesson 3. Be Networked Joe Lawrence of custom furniture maker Ramdat Harihar of plugged-in garment Anthony Lawrence-Belfair PAGE 12 district keystone R&C Apparel PAGE 14

Lesson 4. Be Lean Lesson 5. Be Nimble Briggs Forelli of highly efficient aircraft-parts Bill Levine of ever-expansive food brand manufacturer Precision Gear PAGE 15 NEW YORK Sarabeth’s Kitchen PAGE 16 News flash: Thousands of manufacturers still thrive in postindustrial New York. Even more shocking: These time-tested survivors offer every business five lessons for long-term success.

BY ELIZABETH MACBRIDE

FIFTY YEARS AGO, “Made in NY” was about as ubiquitous as “Made in China” is today. The end of that story is familiar to any New Yorker who has ever watched an abandoned factory morph into a restaurant or condos.Economics changed: Rising labor and land costs made it nearly impossible to run a prof- itable manufacturing operation here. The key word is nearly. Although manufacturing in New York City has been in decline for more than 30 years, about 7,000 companies survive (and some even thrive), employing more than 80,000 locals. The companies that remain, or that started after the economics of manufacturing changed,are often perfectly suited for life in the city.Though manufacturers may have a reputation for being stuck in the past, these companies are taking advantage of the city’s high costs, density and richness as a market. Crain’s looked at five successful small manufacturers to see what lessons could be gleaned about operating in a recession- ary climate in New York City.Their stories begin on Page 12.

May 11, 2009 | Crain’s New York Business | 11 CNYB 05-11-09 A 12 5/7/2009 5:40 PM Page 1

REPORT SMALL BUSINESS

Lesson 1. Be High-End

Mr. Lawrence’s deep knowledge of what If you want your company customers want—and what they’ll pay for— to last, you need a lasting was handed down from his father and grand- father, who had a tiny upholstery shop in reputation for quality Greenwich, Conn. The family typically saw higher profits in its higher-end furniture, so hen the depth of a pillow or the after it acquired some other upholsterers’busi- subtle turn of a furniture leg or the nesses in the late 1980s, it decided to open a Wquality of an upholstery tuck really showroom in New York City in 1990. The matters, interior designers from around the family’s acquisition in 1995 of Belfair, one of country trek to the Anthony Lawrence- the nation’s best-known curtain makers, Belfair workshop on West 23rd Street. sealed the company’s place in the market. “I know if they say this can be done, it will be done,” says Alexa Hampton, owner of de- Hiring only the best sign firm Mark Hampton. “When you think but mr. lawrence, whose sister Lana Law- of the great craftsmen, that’s the kind of dili- rence is a vice president at the company, does- gence you think of.” n’t rely on history to carry ALB. He keeps in With annual sales of $8 million to $9 mil- constant contact with designers,often working lion, Anthony Lawrence-Belfair is one of the with them in the showroom. The company is country’s top custom-furniture makers,selling religious about fixing any mistakes or address- to designers who work for people who can ing complaints from customers, says Mr. spend $25,000 on a sofa or even more than Lawrence,an attitude Ms.Hampton confirms. that on drapes. ALB hires the best mechanics—the indus- “Everything we put into it is important,” try term for upholsterers—and pays them $24 says Joe Lawrence, the third generation of his to $32 an hour, compared with the $8 to $12 family to lead the business.“Construction is of that workers for mass-market producers earn the highest quality. It’s all hand-stitched. Jute down south. webbing. Mahogany feet, if that’s what the Although ALB’s sales were down about customer wants.” 30% in the first quarter, no workers have been THE YEAST WE CAN DO: Making a product for which customers are laid off because of the recession.Mr.Lawrence “Customers’ expectations willing to pay top dollar is one way to thrive says some of his major accounts are picking up increase in a time like this,” says here. Some companies write that high-value- again, and he hopes to put his employees back Tom Cat Bakery President Matthew Reich (left, with original added mission into their business plans from on full-time schedules soon. owner Noel Labat-Comess). the get-go, says Adam Friedman, executive di- He’s not worried about what he calls a rector of the New York Industrial Retention short-term bump in the market. After all, his

Network. Others, like Anthony Lawrence- furniture is built to last, and so is his company. buck ennis Belfair, develop a high-end identity over time. “We’re very secure,” he says. Lesson 2. Be Local

The National Association for the Specialty It pays to focus on the big, Food Trade counts 200 companies in New dense, wealthy market in York City among its members, many of them manufacturers. your own backyard Of course,serving famously de- manding New Yorkers can have he baguettes, which go stale its disadvantages. Companies fastest, slide out of the Tom Cat that aim to do so must invest TBakery ovens at 3:30 a.m.Half heavily in service—Tom Cat, an hour later,the crusty loaves are for instance, will deliver or- leaving Long Island City, ders of as little as $30. Queens, for Manhattan and by The demands are only 5 a.m. are carted into the growing in the recession, kitchen at the Grand Hyatt says Matthew Reich, hotel. At 8:30 a.m., another president of 275-em- batch of baguettes comes out ployee Tom Cat,which is of the oven, and at 10:30 now coping with more a.m., another. The Grand Each morning, deliveries, as customers Hyatt gets its fresh bread place smaller orders three times a day. Tom Cat more often.“Customers’ It’s a routine made possi- expectations of service ble by the unique qualities of Bakery shows and quality increase in a CLOTH-CONSCIOUS: Joe Lawrence of Anthony the New York City market, time like this,” he says. Lawrence-Belfair, maker of where a delivery truck might that the city custom furniture and make stops at a half-dozen Expansion planned drapes, says: “Everything restaurants in a single block— itself can be sales are down about we put into it is and where restaurant cus- 10% year over year at important.” tomers readily pay for upper- the key to Tom Cat, where revenue crust niceties like loaves of was about $30 million honey wheat, filones of growth last year, and hours have semolina or those fresh been cut back for hourly baguettes. workers. But Mr. Reich, Founded 22 years ago,Tom who is part of a group of Cat has thrived by focusing on investors that purchased the big, dense, wealthy market the company last year from the in its own backyard. For compa- original ownership group—in- nies with the wherewithal to sur- cluding founder Noel Labat- vive the competition and provide Comess—has faith in the palates the level of service New Yorkers of New Yorkers. The new owners demand, the city itself can be the plan an expansion that will increase the key to growth. Many gourmet food size of the bakery by 50%—and, they

buck ennis makers have used the city as a launching pad: hope, will double sales.

12 | Crain’s New York Business | May 11, 2009 Responsibility. What’s your policy? your What’s Responsibility. WE SUGGESTED THEY HIT A BUMP IN THE ROAD. TO HELP A CONSTRUCTION FIRM RUN SMOOTHLY, TO HELP A CONSTRUCTION FIRM RUN SMOOTHLY, COMMERCIAL AUTO GENERAL LIABILITY AUTO COMMERCIAL COMP UMBRELLA WORKERS PROPERTY When a construction company had a problem with gravel falling off their trucks and hitting other and hitting other When a construction company had a problem with gravel falling off their trucks trucks were leaving vehicles, our Commercial Auto experts investigated the situation. Seeing that the load, making their locations with loose loads, we recommended inducing vibration to help settle the roads safer for everyone. The bottom line is, our loss control programs work. Plus, should an claim your resolve and informed you accident occur, we investigate quickly and thoroughly, keep in a timely manner. That’s our policy. For more information visit libertymutualgroup.com/commauto.

REPORT SMALL BUSINESS

Lesson 3. Be Networked

LinkedIn users, take note: Garment district legend is a master of the art of connections ountless young designers produces small batches of their come to New York hoping to clothing,but acts as a guide to the in- Cturn their sketches into actu- tricate and insular world of garment INTERWOVEN: al clothing. A few lucky ones land manufacturing. Where among the Ramdat Harihar’s under the wing of Ramdat Harihar, neighborhood’s faded storefronts R&C Apparel has the owner of R&C Apparel in Man- and the bolts of cloth leaning crazily survived for decades hattan’s garment district. by developing against dirty windows can one find good partners. For the designers in whom he the best deals on silk or wool? Which

buck ennis sees promise, Mr. Harihar not only shops make the best trims? Which the best patterns? “If you take Ramdat Harihar out of the picture, I’m really screwed,” says Darren Trentacosta, a new designer who has won attention for his plus-size clothing. “He has helped me and other designers. He says, ‘Yes, come on in, and I will produce your small orders.’” Mr. Harihar is hardly acting al- truistically. The designers he helps sometimes become stars, or at least successful business owners,and order from him again and again. Indeed, his ability to develop good partners has allowed him to survive for 32 years in what is probably New York’s toughest manufacturing sector. Networking may seem B-school 101, yet it’s crucial to surviving a recession. Experts say the only reason New York still has a garment industry is because it hangs together seam- lessly. Designers join with pattern makers, fit models, cutters and trim makers, project by project.The fluid- ity of the relationships makes for efficient operations, which in turn keeps prices down just enough to compete. An hour a day on phone mr. harihar is a master at this kind of maneuvering. He spends an hour every day on the phone, working all his contacts to drum up part- YOUR BUSINESS IS YOUR LIFE’S WORK. nerships for the company, where, he says, revenue is down 15% since the recession.The calls might have more urgency these days, he concedes, but OUR BUSINESS IS TO HELP KEEP IT he makes them even in good times. Right now, R&C is relying on big contracts with dog-clothing makers: FINANCIALLY PROTECTED. His small factory, where 25 people work,is turning out 40,000 to 50,000 canine coats, including Burberrys. His reputation as a connector also can pay off when he reaches out to es- tablished players, such as Anna Sui, whom he met in the 1980s when she was a few years out of Parsons School At Guardian, we understand your small business needs. Your Guardian of Design. He’ll offer Ms. Sui sam- representative works right alongside you to help you make the right ples of the complex trims he makes in his shop even before she has shown financial decisions. Our wide range of financial and employee benefit him her designs for the year. solutions helps you attract and keep key talent, protect your income, “I’ve known Ramdat Harihar and ensure a secure retirement for you and your employees. Our forever, from the absolute beginning ﬁ nancial stability cultivated over 149 years, prudent risk management, of my career,”says Ms.Sui by e-mail, and reputation for doing the right thing mean we’ll be there for you calling him an inspiration for his now and in the future. To get the right solutions for your business work sustaining the garment indus- needs, visit us at www.GuardianLife.com. try. “He’s always been the go-to guy for all domestic fabric embellish- ment techniques; pleating, smock- ing, tucking, fringing, embroidery.” Mr.Harihar values his close rela- L I F E I N S U R A N C E D I S A B I L I T Y I N C O M E I N S U R A N C E L O N G T E R M C A R E I N S U R A N C E I N V E S T M E N T S R E T I R E M E N T E M P L O Y E E B E N E F I T S tionships so much,he keeps R&C in ©2009. Disability income products and Long Term Care Insurance underwritten and issued by Berkshire Life Insurance Company of America, Pittsﬁ eld, MA, a wholly owned stock subsidiary of The Guardian Life Insurance Company of America the garment district despite the (Guardian), New York, NY. Products not available in all states. Product provisions and features may vary from state to state. Investments are offered through Park Avenue Securities LLC (PAS), 7 Hanover Square, New York, NY 10004. PAS is an indirect wholly owned subsidiary of The Guardian Life Insurance Company of America, New York, NY. area’s relatively high rents. “I could PAS is a member FINRA, SIPC. have gotten a space very cheap in Financial information concerning The Guardian Life Insurance Company of America as of 12/31/07 on a statutory basis: Admitted Assets = $28.3 Billion; Liabilities = $24.6 Billion (including $20.8 Billion of Reserves); and Surplus = $3.7 Billion. Brooklyn,” he says. “But it doesn’t make sense for me.”

14Guardian-Sponsorship_CRAINS_JrP.indd| Crain’s New York Business | May 1 11, 2009 3/3/09 1:11 PM CNYB 05-11-09 A 15 5/7/2009 5:42 PM Page 1

REPORT Our Past Experience Ensures Your Future Success

GEAR HEAD: Briggs Forelli of Precision Gear cross-trains workers so they can To Do List: handle different tasks. 1. Get reliable, affordable Business Class Phone 2. Add High-Speed Internet and/or Cable TV 3. Enjoy the convenience of Time Warner Cable Business Class roger hagadone Lesson 4. Be Lean www.twcbc.com/NYC 1.877.227.8711

17485-17754-BScraines_jnl tial inefficiencies, then speak with Parts maker knows customers about what products or there’s no such thing services they are willing to pay for. At 130-employee Precision, Mr. as ‘too efficient’ Forelli’s embrace of lean means cross-training workers so they can ack in 1996 and ’97,the slow- tackle different tasks, depending on ing defense market sent aero- demand. The additional training Bspace parts maker Precision can cost a lot in the form of time Gear Inc. into a rough patch.That’s spent, though he has never tallied when Briggs Forelli, the company’s the total investment. “If I knew ex- president, decided to hire a consult- actly [how much],” he jokes, “I’d ant to help him make his operation probably want to kill myself.” more efficient. “We decided if we were going to Time for another “floor audit” lose money, we might as well lose no matter. The enormous com- Quick, pick a banker big,” says Mr. Forelli, with a touch of puter-controlled machines on his gallows humor. 50,000-square-foot manufacturing He hired an efficiency consultant, floor work at peak efficiency on the poured money into training and con- first shift, and he wants to improve solidated his company in a factory in the efficiency of the second shift. College Point, Queens. He spent Lathes have been re- Saving our hours staring at charts that arranged in pods, so Growing your looked like spaghetti, two operators can run business. business. with lines drawn from three pieces of equip- one piece of equip- Cut waste, ment. Mr. Forelli ment to another, try- brought back his retired ing to determine the yes, but also quality-control manag- best way to arrange er recently for a two- the machines. produce day-a-week gig con- The emphasis on ducting “floor audits.” efficiency paid only what Mr. Forelli even oc- off: Over the past casionally turns down 10 years, Precision customers work—in part because has grown from he doesn’t want the about $10 million in truly value company to rely too revenue to an expected much on one customer, $38 million this year. but also because he Mr. Forelli now is a wants to avoid taking zealous convert to on projects that would Switch to the bank that puts your business first. Switch to Sterling. what’s called the lean philosophy, strain his resources. That’s actually For 80 years, Sterling National Bank has attracted business clients by following one which started in the manufacturing enhanced Precision’s reputation simple rule: when your business succeeds, so do we. We have the products you need. And sector in the 1990s and is spreading among the half-dozen military through the service world. Lean is agencies and transportation com- the service you deserve. If switching banks has been on your mind, call Sterling today. based on two simple goals: creating panies that are customers. the least amount of waste possible and “It gets you the nod down the producing only the goods and servic- road,”he insists,because it shows that es that customers truly value. John the company is devoted to quality.“If Krupar, a partner at Oliver Wyman a transmission goes in a car, you pull Consulting, says a business owner over to the side of the road. If a part 212.757.1100 www.sterlingnationalbank.com should start by walking around his or goes in a helicopter or a jet, it’s going EST.1929. Member FDIC. her operation with an eye for poten- to fall out of the sky.”

May 11, 2009 | Crain’s New York Business | 15 CNYB 05-11-09 A 16 5/7/2009 5:43 PM Page 1

REPORT SMALL BUSINESS

BEYOND JAM: Bill Levine sees the evolution of Sarabeth’s Kitchen from jam shop Lesson 5. Be Nimble to gourmet-food brand as “just putting one foot in front of the other.” How do you cook up more profits? Sell new products, services to existing clients

tuck at the top of Bill Point,Bronx,figures it’s time for the Levine’s to-do list for the past longtime food manufacturer to ex- Sfew months has been figuring pand—again. out how to deliver tomato soup to The soup is just the latest step in his customers. The intricacies of the company’s 28-year evolution frozen-food packaging and delivery from a jam-and-jelly shop to one of are no cakewalk, but Mr. Levine, the city’s top gourmet-food brands. who along with his wife, Sarabeth, Sarabeth’s started with jams, later

buck ennis owns Sarabeth’s Kitchen in Hunts began delivering its food through restaurants in addition to grocery stores,expanded to baked goods,and now is adding the soup to its product mix, its first foray into prepackaged meals. Chef ’s clothing is next. Mr. Levine thinks of this pro- gression as “just putting one foot in front of the other.” Small business experts like Ira Davidson say that Why is money leaving my ﬁrm it’s an example of a company’s ability to expand into different market niches—crucial to succeeding in this or any other economic environ- faster than it’s coming in? ment. “Small businesses aren’t going to be able to compete on price, or access to real estate or professionals,or anything else,” says Mr. Davidson, director of the Pace University Small Business Development Cen- ter.“What they have is the ability to exploit a market niche fast.” He recommends small businesses either find new customers for their existing products or—more along the lines of what Sarabeth’s has done—sell new products and services to existing customers. “Must be fearless” the key to Sarabeth’s brand was discovering long before others that New Yorkers, for all their city slick- ness, crave food that brings to mind the taste and atmosphere of country kitchens. At their first storefront, opened soon after the company was It’s time to ask. founded in 1981, the Levines made jam in front of customers, using Sarabeth Levine’s family recipe. Cash ﬂow goes in two directions. An important turning point How do you optimize both? Begin came when the company ventured by talking to an HSBC Business into restaurants. Making that leap, Banking relationship manager, to what is essentially a different dis- your key to HSBC’s 140 years of tribution model,is unusual,observes Mr. Davidson. “That guy must be business banking knowledge. fearless,” he says of Mr. Levine. Open a business checking Sarabeth’s, which has about 75 employees, runs two of its own account with HSBC by June 13, restaurants and licenses four more. 2009 and enjoy no maintenance Eight licensed eateries are slated to fee for 12 months.1 open in Lord & Taylor stores by the end of 2010—the first debuted at To get started, visit a branch, call the Fifth Avenue department store 1 866 375-6661, or go to in November. us.hsbc.com/ask. The manufacturing operation Michael A. supplies food to the restaurants, family law attorney which should mean further sales New York, NY expansions as more restaurants open. Total revenue for the brand was $22 million last year, up 10% over 2007. The restaurants also gave the Levines the idea for selling the soup. Many customers have asked for the 1 Offer applies only to new-to-bank customers who establish an ExtraVantage® Checking for Business or BusinessSmartSM for Professionals account by recipe over the years. “Tomato soup June 13, 2009, and is subject to approval. Other restrictions may apply. In the United States, deposit products offered by HSBC Bank USA, N.A. is almost iconic in our restaurants,” Member FDIC, Equal Credit Opportunity Lender. Mr. Levine says. “Twenty-eight ©2009 HSBC Bank USA, N.A. years we’ve been serving that toma- to soup.”

16 | Crain’s New York Business | May 11, 2009 CNYB 05-11-09 A 17 5/8/2009 7:43 PM Page 1

Tenants lobbying for rent cuts

Continued from Page 3 want to cut their own income, they cy. Long-term tenants and those increasingly short supply. Leasing also don’t want to lose a tenant if they whose leases have only a few more activity totaled only 3 million square can help it. The trick is figuring out years to run have the most leverage. feet in the first quarter, the lowest where to place their bets, so they level in 25 years,according to Cush- don’t extend credit to companies that Personal guarantees man & Wakefield Inc. Overall leas- will only go belly-up anyway. one way to solve the problem is to ing activity tumbled 39% from the Sources say hedge funds are like- offer them a chance to renew their MANHATTAN’S LORE AND 505 BUILDINGS: Developers place their bets on luring investors. first quarter of 2008. leases earlier at the now lower mar- The asking rent for office space ket rates, notes Mr. Malkin. He’s has dropped 11% since hitting a Landlords don’t done that in two cases and is weigh- high of $72.97 a square foot in the want to cut their ing a temporary rent reduction in a Condos by the gross third quarter of 2008. But brokers third. Mr. Malkin also points out say actual rents are down about 30%. that he fully expects the tenant to Meanwhile, the vacancy rate rose to income, but they pay interest on what amounts to a Continued from Page 1 appraisal firm Miller Samuel Inc. 9.6% in the first quarter, from 6.1% loan. “The developer has other jobs to In Brooklyn, there were 1,678 a year earlier. also don’t want Mr. Levy says he has granted move on to,” says Stephen Klieger- units on the market last month, up temporary reductions ranging from man, executive director of develop- 4% from November, when Miller Hedge funds a bad bet to lose a tenant 10% to 15% to about 25 tenants. ment marketing at Halstead Proper- Samuel began tracking the borough’s the retail picture looks worse. While he doesn’t ask for interest or ty, who reports that a South Ameri- inventory. In Williamsburg alone, The Real Estate Board of New York a viewing of the tenant’s books, he can real estate investor is close to buy- another 2,000 units are expected to said overall retail asking rents have does demand a personal guarantee ing the first such package. “Bulk sale come to market in the next two years, dropped 11% since last fall. Brokers from a company’s chief executive is a way to move units in a timely according to David Schorr, director say actual rents are likely down by ly to get turned down by landlords that the money will be repaid. fashion,versus selling them one-off.” of finance and development at bro- closer to 50%. because so many are likely to fail “I think that is a good way to With thousands of unsold condo kerage Aptsandlofts.com. That backdrop creates a dilemma amid the explosion in redemptions smoke out the people who are really units weighing heavily on the market With the supply of units soaring for landlords fielding calls for rent and because they have so little in the sincere about needing [a break],” and the backlog mounting every and available financing shrinking, reductions. While landlords don’t way of assets to seize in a bankrupt- Mr. Levy says. month,more and more developers are the time it takes to sell apartments is following Gaetano’s lead. In recent lengthening. In Manhattan, the av- weeks, desperate landlords have put erage in the first quarter was 178 packages of anywhere from four units days—39% longer than the average Inside the panic at Reserve fund to entire buildings on the market at over the past decade. more than a dozen Manhattan and “Units can’t stay vacant forever,” Brooklyn projects. Discounts range says Ofer Cohen,managing director Continued from Page 1 time in history a money-market last year. Reserve shifted from court- from 10% to 20% of already depressed of TerraCRG, a commercial realty their fund continued. fund broke the buck—and it un- ing individuals to attracting big cor- listing prices—and those discounts group that is currently working on a As the younger Mr. Bent, Re- leashed such panic in the stodgy porate accounts like Time Warner. are expected to widen. dozen bulk-sale projects in Brook- serve’s president, sifted through his world of cash investments that the Its biggest client last year, with $5.4 lyn. “At some point, something e-mails, he reviewed a statement federal government had to inter- billion in the Primary Fund, was A Florida phenom needs to be done.” drafted by his marketing staff to vene by week’s end to guarantee China Investment Corp. no bulk sales have actually closed At The 505 in Hell’s Kitchen, a calm investors. The final line pro- money-fund holdings. At 1:19 p.m. on Sept. 15, Mr. here yet, but trends in other states package of four one-bedroom units claimed that Reserve was “confident Court documents, including Bent e-mailed senior staffers,saying signal that the day will come soon.In is being offered for $2.8 million. in the underlying credit strength and copies of e-mails and board min- the firm would financially support Florida, where the market began to That is 10% under the cost of the quality” of its holdings, which in- utes, show that Mr. Bent saw trou- the Primary Fund “to whatever de- come unglued nearly four years ago, apartments if purchased individual- cluded hundreds of millions in debt ble brewing even before Lehman gree is required” so it wouldn’t break bulk sales are now commonplace. So ly, according to Mr. Kliegerman. from Lehman and other free-falling filed for bankruptcy. Late Sunday the buck. He added that Reserve far this year, there have been five big Investors, though, are still wait- institutions, including Washington night, Sept. 14, he ordered senior was awaiting SEC approval, al- deals there. In one, the Related ing for New York to catch up to oth- Mutual and Merrill Lynch. staffers to work on a customer though the SEC contends it never Group sold 101 units in its New er markets like Florida,where prices “Drop the last line,” he directed, memo “that assumes Lehman liqui- heard from Reserve on the matter Harbour House development in Bal are down as much as 60% from the “and then go with it.” dates” and warned that Reserve and alleges the Bents had no inten- Harbor for $27 million—each was peak. The hang-up is that even Unfortunately, this editing job could see up to $1.5 billion of client tion of producing the hundreds of about half the price that some units those developers that are willing to represented one of the few times Mr. redemptions the next day. millions of dollars necessary to sup- were fetching there two years ago. bite the bullet, cut prices and move Bent or his father, the chairman of It turned out much worse than port the ailing fund. In New York, many observers on must get permission from their Reserve, were honest with share- that.“5.2 billion already?” a stunned note that landlords will have to come lenders first. With more tied up in holders in the three terrible days Reserve executive wrote in an No cash lifeline, no acquirer down further on their prices if they most projects than what the devel- their firm spiraled downward, ac- e-mail on Monday at 8:37 a.m. the next day,Sept.16,Mr.Bent in expect to make a bulk sale.Pressure is opers put in, the banks are especial- cording to regulators. Meanwhile,Mr.Bent and his father, New York and his father in Italy mounting for them to do just that.In ly keen to minimize their losses. The Securities and Exchange who was in Italy on vacation, were fruitlessly searched for a cash lifeline Manhattan, the inventory of unsold “It takes a long time to adjust and Commission last week charged the working behind the scenes.Some 45 or an acquirer. Later that afternoon, condos hit 5,469 last month, up 21% reduce prices,” says Mr. Cohen. Bents and Reserve with fraud, alleg- minutes earlier, unbeknownst to Reserve announced that the buck from year-earlier levels, according to ing that they failed to provide key in- their board, the SEC alleges, they had in fact been broken. Works in progress formation to customers,board mem- had contacted the Federal Reserve It was a stunning fall for a firm many of those arduous negotia- bers and credit-rating agencies after Bank of New York for assistance. that had long touted its funds as the A PLAN FOR tions between the two sides are un- Lehman collapsed. Reserve and the The Fed declined. ultimate in safety.The trouble seems der way. Until agreements are actu- Bents said they would support the By midmorning, redemptions to be rooted in 2007, when the sen- UNSOLD UNITS ally struck, however, buyers are $1-per-share asset value of their fund were accelerating—they reached ior Mr. Bent, who oversaw invest- likely to remain on the sidelines. when in fact there was no such inten- $40 billion over two days—and Re- ment decisions, began buying short- TALK ABOUT TURNING lemons into “Unless these packages are dis- tion, the SEC contends. The agency serve couldn’t meet the demand be- term debt from brokerage houses like lemonade, City Council Speaker counted dramatically, there’s no way also charges that Reserve misled di- cause its bank, State Street, stopped Lehman and Merrill Lynch. Those Christine Quinn thinks she may they can be sold,” says Andrew Ger- rectors and credit raters by signifi- wiring funds shortly after 10 a.m. moves boosted yields and attracted have a way to cut through the glut ringer, managing director in charge cantly understating how many in- This was the moment. With his more customers for a while. of unsold condos. She is pushing of marketing new developments for vestors were yanking money after the father far away,Mr.Bent had to show In a statement last week, Reserve to have the city snap up vacant Prudential Douglas Elliman. He Lehman bankruptcy hit. he had matters in hand.Was he up to said it “intends to defend itself vig- units from developers at bargain- and others note that for bulk buyers, it? Known in the industry as Bruce orously” and the elder Mr. Bent said basement, bulk prices and turn the aim is to purchase at a price that By 8:37 a.m., $5.2 billion yanked Two, his long hair and a beard hint- he is “confident that we acted in the them into affordable housing will allow them to rent out their units the day after Mr. Bent approved ed at his youthful past as a drum- best interest of our shareholders.” for the middle class. and generate a return of at least 5%. his marketing staff ’s statement, dis- playing philosophy major. “He was The Reserve Primary Fund is being The scheme could give a big, So far, Mr. Kliegerman has re- aster struck: Reserve, whose pio- very quiet, very mellow, very intro- liquidated.Massachusetts regulators yet relatively inexpensive boost to ceived 25 inquiries since marketing neering money-market fund in spective,” says Peter Crane of mon- have also filed fraud charges, and Mayor Michael Bloomberg’s plan bundles at six developments in 1970 spawned a $3.8 trillion indus- ey-market tracker Crane Data. nearly 30 shareholders have sued. to create and preserve 165,000 Manhattan and Queens late last try, “broke the buck.” In other But the 42-year-old had greatly Perhaps in anticipation of the affordable-housing units by month, but only one serious offer— words, the net asset value of its flag- expanded his father’s business. As- costly legal battle ahead—not to 2013. However, many wonder at The Lore. Mr. Cohen has fared ship $62 billion Primary Fund fell sets under management grew from mention a seriously diminished in- whether the city’s budget woes somewhat better. He has two con- below the sacrosanct $1 a share be- about $4 billion in the mid-1990s, come—the younger Mr. Bent has will impact the funds available for tracts out, both for unfinished cause the fund held $785 million in when he was handed day-to-day put his 10-room penthouse apart- such an undertaking. buildings—a six-unit building in Lehman debt that was suddenly control of operations, to $18 billion ment in the West Village up for sale. Clinton Hill and a 100-unit build- worthless. It was only the second in 2002, and swelled to $125 billion Asking price: $14.5 million. ing in Williamsburg.

May 11, 2009 | Crain’s New York Business | 17 nb19p18-19cls.qxp 5/8/09 4:08 PM Page 18

FINANCIAL SERVICES PUBLIC & LEGAL NOTICES

Notice of Qualification of Blackstone Notice of Qualification of NEW Notice of Qualification of HIGHSTAR NIMA ASSET MANAGEMENT LLC, a Family Real Estate Special Situations THRIFT A GLOBAL OPPORTUNI- GP III HOLDINGS LLC. Authority filed domestic Limited Liability Company Partnership L.P.Authority filed with NY TIES INVESTMENTS III L.P. with Secy. of State of NY (SSNY) on (LLC) filed with the Sec of State of Dept. of State on 4/23/09. Office loca- Authority filed with Secy. of State of 04/21/09. Office location: NY County. NY on 11/21/08. NY Office location: tion: NY County. LP formed in DE on NY (SSNY) on 04/09/09. Office loca- LLC formed in Delaware (DE) on New York County. SSNY is designat- 3/30/09. NY Sec. of State designated tion: NY County. LP formed in 04/20/09. Principal office of LLC: 277 ed as agent upon whom process as agent of LP upon whom process Delaware (DE) on 03/11/09. Principal Park Ave., 45th Fl., NY, NY 10172. against the LLC may be served. against it may be served and shall office of LP: 520 Madison Ave., 35th SSNY designated as agent of LLC SSNY shall mail a copy of any mail process to the principal business Fl., NY, NY 10022. SSNY designated upon whom process against it may process against the LLC served upon addr. of the LP: c/o The Blackstone as agent of LP upon whom process be served. SSNY shall mail process him/her to John Coleman, Esq., 444 Group L.P., 345 Park Ave., NY, NY against it may be served. SSNY shall to c/o Corporation Service Co., 80 Madison Ave., Ste. 805, NY, NY 10154. Regd. agt. upon whom process mail process to c/o Corporation State St., Albany, NY 12207-2543. 10022 General purposes. may be served: CT Corporation Service Co. (CSC), 80 State St., DE address of LLC: 2711 Centerville REAL ESTATE System, 111 8th Ave., NY, NY 10011. Albany, NY 12207-2543. Name and Rd., Ste. 400, Wilmington, DE 19808. Notice of Formation of Roundsquare DE addr. of LP: c/o The Corporation address of each general partner are Arts. of Org. filed with DE Secy. of Equities, LLC. Arts of Org. filed with Trust Co., 1209 Orange St., available from SSNY. DE address of State, Div. of Corps., John G. Sec. of State of NY (SSNY) on BROOKLYN Wilmington, DE 19801. Name/addr. of LP: c/o CSC, 2711 Centerville Rd., Townsend Bldg., 401 Federal St., 3/5/09. Office location: NY County, genl. ptr. available from NY Sec. of Ste. 400, Wilmington, DE 19808. Arts. Ste. 4, Dover, DE 19901. Purpose: SSNY designated as agent of LLC COMMERCIAL LEASE State. Cert. of LP filed with DE Sec. of Org. filed with Secy. of State of the Any lawful activity. upon whom process against it may of State, 401 Federal St., Dover, DE State of DE, Div. of Corps., John G. be served. SSNY shall mail process 7th Ave. & 64th St.-BrooklynBrooklyn 19901. Purpose: any lawful activity. Townsend Bldg., Federal and Duke of NOTICE OF FORMATION of to: c/o Cassandra Carpio, 5 Marine York St., Dover, DE 19901. Purpose: Chameleon Branded Entertainment, View Plaza, Suite 318, Hoboken, N.J. Notice of Qualification of D. E. Shaw Any lawful activity. LLC. Arts. Of Org. filed with Secy. Of 07030. Purpose: any lawful activity. New Listing Real Estate Portfolios 10, L.L.C. State of N.Y. (SSNY) on 1/5/09. Authority filed with NY Dept. of State Notice of Qualification of JBS USA, Office Location: New York County. Notice of Formation of A.C. Metric on 2/26/09. Office location: NY County. LLC. Authority filed with NY Dept. of SSNY Designated as agent of LLC LLC. Articles of Org filed with Secy. of LLC formed in DE on 8/13/07. NY State on 4/14/09. Office location: NY upon whom Process against it may State of NY (SSNY) on 3/18/09. Off. Sec. of State designated as agent of County. Princ. bus. addr.: 1770 be served. SSNY shall mail process Loc.: New York County. SSNY desig- LLC upon whom process against it 17,500 SF Office Avail Sept. 09 Promontory Cir., Greeley, CO 80634. to principal business location: 114 W nated as agent of LLC upon whom may be served and shall mail process Subway & Bus on the block LLC formed in DE on 5/29/02. NY 17th St., 3rd Fl., NY, NY 10011. process against it may be served. to: D. E. Shaw & Co., L.P., 120 W. • Move-in Condition • 24/7 Access Sec. of State designated as agent of Purpose: Any lawful activity. SSNY shall mail process to: The LLC 45th St., 39th Fl., NY, NY 10036, • Ample Parking at fee LLC upon whom process against it 301 W 108th St 11E NY, NY 10025. Call Andy Kohen - (718) 258-2782 Attn: John Liftin, General Counsel, may be served and shall mail Notice of Formation of 8515 Bay Purpose: any lawful activity. Email : [email protected] regd. agt. upon whom process may process to: c/o CT Corporation Parkway JS LLC. Arts. of Org. filed be served. DE addr. of LLC: 1209 Also New Construction Avail Spring 2010 System, 111 8th Ave., NY, NY 10011, with Secy. of State of NY (SSNY) on Notice of Formation of Bassin Capital 50,000 SF Offices 4th & 5th Fl Orange St., Wilmington, DE 19801. regd. agt. upon whom process may 3/26/09. Office location: NY County. Arts. of Org. filed with DE Sec. of Advisors, LLC. Articles of Organization be served. DE addr. of LLC: The SSNY designated as agent of LLC filed with Secy. of State of NY (SSNY) State, 401 Federal St., Dover, DE Corporation Trust Co., 1209 Orange upon whom process against it may OFFICE SPACE 19901. Purpose: any lawful activity. on 02/11/09. Office location: NY St., Wilmington, DE 19801. Arts. of be served. SSNY shall mail process County. SSNY designated as agent Org. filed with DE Sec. of State, 401 to: c/o Wharton Realty, 500 Fifth of LLC upon whom process against it Prime Penthouse Office at 405 Park Avail. Now! Notice of Formation of DIGITAL Federal St., Dover, DE 19901. Avenue, 54th Fl., NY, NY 10110. Lg private office in prof office suite. 24 Hr may be served. SSNY shall mail PLIGHT STUDIOS LLC, a domestic Purpose: any lawful activity. Purpose: any lawful activity. process to the LLC, 145 West 67th Access with frnt desk attendant. Space has 3 lg LLC. Arts. of Org. filed with the SSNY windows and fully furn. Util, kitch, reception Street, Suite 46J, New York, NY 10023. on 01/14/09. Office location: NY County. Notice of Formation of BCMS COR- Notice of Formation of Independent Purpose: any lawful act or activity. incl, & Extra lg conf rm avail when not in use. SSNY has been designated as agent Phone, internet, fax, or copier services NOT incl. PORATE N.A. LLC, a domestic LLC. Content Company, LLC. Arts. of Org. upon whom process against the LLC $1,200/mo. All negotiable. Arts. of Org. filed with the SSNY on filed with NY Dept. of State on Notice of Formation of Rockrose may be served. SSNY shall mail a Contact: [email protected] 03/09/09. Office location: NY County. 12/13/07. Office location: NY County. General Properties L.L.C. Arts. of copy of process to: James McCarthy, SSNY has been designated as agent Sec. of State designated as agent of Org. filed with Secy. of State of NY 425 E. 63rd St Apt. E4B, NY, NY upon whom process against the LLC LLC upon whom process against it (SSNY) on 4/7/09. Office location: NY Tribeca Film Center 10065. Purpose: Any Lawful Purpose. may be served and shall mail Executive office space may be served. SSNY shall mail a County. Principal business location: copy of process to: The LLC, 30 process to the principal business 290 Park Avenue South, 14th Fl., NY, available in Tribeca Film Center Notice of Formation of HSK Capital, Broad St. 29th Fl, NY, NY 10004. addr.: 130 Watts St., #3S, NY, NY NY 10010. SSNY designated as 24-hour security, conference LLC. Articles of Organization filed Purpose: Any Lawful Purpose. 10013. Purpose: any lawful activity. agent of LLC upon whom process rooms, screening rooms, with Secy. of State of NY (SSNY) on against it may be served. SSNY shall Long & Short term rentals. 04/29/09. Office location: NY County. Notice of Formation of BIGAPPLE- Notice of Formation of ZZ PICTURES, mail process to: 290 Park Avenue 212-941-2000 SSNY designated as agent of LLC FILMS, LLC. Arts. of Org. filed with LLC. Arts. of Org. filed with Secy. of South, 14th Fl., NY, NY 10010, Attn: upon whom process against it may Secy. of State of NY (SSNY) on State of NY (SSNY) on 04/17/09. CEO. Purpose: any lawful activity. be served. SSNY shall mail process 02/12/09. Office location: NY County. Office location: NY County. Principal to the LLC, 300 East 79th Street, Apt. Principal office of LLC: 120 E. 19th office of LLC: c/o Skuli Malmquist, Notice of Formation of WEINSTEIN PUBLIC & LEGAL 26E, New York, NY 10021. Purpose: St., Apt. 4F, NY, NY 10003. SSNY 435 W. 19th St., 4th Fl., NY, NY 10011. SMITH LLP. Cert. of Reg. filed with any lawful act or activity. designated as agent of LLC upon SSNY designated as agent of LLC Secy. of State of NY (SSNY) on NOTICES whom process against it may be upon whom process against it may be 4/8/09. Office location: NY County. NOTICE OF FORMATION OF served. SSNY shall mail process to served. SSNY shall mail process to SSNY designated as agent of LLP the LLC at the address of its principal Notice of Formation of Rising Creek Cremona In America LLC. Article of the LLC at the address of its principal upon whom process against it may office. Purpose: Any lawful activity. Partners, LLC. Arts. of Org. filed with Organization filed with the Secretary office. Purpose: Any lawful activity. be served. SSNY shall mail process Secy. of State of NY (SSNY) on of State of NY (SSNY) on MARCH to the Partnership, 50 W. 29th St., 20, 2009 Office location NEW YORK NOTICE OF FORMATION of Warbet Apt. #11W, NY, NY 10001. Purpose: 2/6/09. Office location NY County. NOTICE OF FORMATION of Gear SSNY designated as agent of LLC County. SSNY has been designated Enterprises LLC. Arts. Of Org. filed Practice the profession of law. as agent upon whom process against Patrol LLC. Arts. Of Org. filed with the with Secy. Of State of N.Y. (SSNY) on upon whom process against it may Secy. Of State of N.Y. (SSNY) on be served. SSNY shall mail copy of it may be served. The Post Office 10/6/08. Office location: New York Notice of Formation of Insurancezone address to which the SSNY shall mail 1/22/09. Office location: New York County. SSNY designated as agent of Agency LLC. Arts. of Org. filed with process to The LLC c/o US County. SSNYdesignated as agent of Corporation Agents Inc., 7014 13th a copy of any process against the LLC upon whom process against it Secy. of State of NY (SSNY) on LLC served upon him/her is C/O the LLC upon whom process against it may be served. SSNY shall mail 3/26/09. Office location: NY Co. Ave, Ste 202, Brooklyn NY 11228. may be served. SSNY shall mail Purpose: Any lawful activity. LLC 236 WEST 15TH STREET process to: principal business location: SSNY designated as agent of LLC (#65). New York, NY 10011. Purpose process to: principal business loca- P.O Box 419, NY, NY 10002 Purpose: upon whom process against it may tion: 214 East 51st St. #2B, NY, NY Notice of Qualification of SGGP of LLC: to engage in any lawful act or Any lawful activity. be served. SSNY shall mail process activity. Street address of Principal 10022 Purpose: Any lawful activity. to: Mark Defazio, c/o The LLC, 99 MANAGEMENT, LLC. Authority filed 12066338 W.O. with Secy. of State of NY (SSNY) on Business location is: 236 WEST 15TH Notice of Qualification of FIR TREE Park Ave., NY, NY 10016. Purpose: 03/23/09. Office location: NY County. STREET (#65).New York, NY 10011. VALUE ABS HOLDINGS, LLC. any lawful activities. LLC formed in Delaware (DE) on Notice of Qualification of MPS/IH, LLC. Authority filed with Secy. of State of 06/27/08. Principal office of LLC: c/o Notice of Formation of Morgan Real Authority filed with Secy. of State of NY (SSNY) on 04/22/09. Office loca- Name of Foreign LLC: MKCP Stripes Group LLC, 70 E. 55th St., Estate LLC. Arts. of Org. filed with the NY (SSNY) on 4/7/09. Office location: tion: NY County. LLC formed in EMPLOYEES IV GP LLC. App. for 11th Fl., NY, NY 10022. SSNY desig- Sect’y of State of NY (SSNY) on NY County. LLC formed in Delaware Delaware (DE) on 02/20/09. Principal Auth. filed NY Dept. of State: 3/19/09. nated as agent of LLC upon whom 03/30/2009. Office location, County of (DE) on 3/10/09. Principal office of office of LLC: 505 Fifth Ave., 23rd Fl., Jurisd. and date of org.: DE 1/27/09. process against it may be served. New York. The street address is: 25 LLC: Multipackaging Solutions, Inc., NY, NY 10017. SSNY designated as County off. loc.: New York County. SSNY shall mail process to the LLC Central Park West 16F, New York, NY 150 E. 52nd St., NY, NY 10036. agent of LLC upon whom process Sec. of State designated as agent of at the address of its principal office. 10023. SSNY has been designated SSNY designated as agent of LLC against it may be served. SSNY shall foreign LLC upon whom process DE address of LLC: c/o The as agent of the LLC upon whom upon whom process against it may mail process to Jeffrey D. against it may be served. The Sec. of Corporation Trust Co., 1209 Orange process against it may be served. be served. SSNY shall mail process Tannenbaum, 505 Fifth Ave., 23rd Fl., State shall mail copy of process to: St., Wilmington, DE 19801. Arts. of SSNY shall mail process served to: to the LLC, 5800 W. Grand River, NY, NY 10017, registered agent upon The LLC, 623 5th Avenue, 18th Floor, Org. filed with State of DE, Div. of c/o James Morgan, 25 Central Park Lansing, MI 48906. DE address of whom and at which process may be New York, NY 10022. Addr. of foreign Corps., 401 Federal St., Dover, DE West 16F, New York, NY 10023. LLC: c/o Corporation Service Co., served. DE address of LLC: c/o LLC in DE is: 615 South DuPont 19901. Purpose: Any lawful activity. Purpose: any lawful act. 2711 Centerville Rd., Ste. 400, Corporation Service Co., 2711 Hwy., Dover, DE 19901. Auth. officer Wilmington, DE 19808. Arts. of Org. Centerville Rd., Ste. 400, Wilmington, in DE where Cert. of Form. filed: Sec. filed with Secy. of State of DE, Div. of DE 19808. Arts. of Org. filed with of State of the State of DE, c/o DE Corps., John G. Townsend Bldg., 401 Secy. of State of the State of DE, 401 Div. of Corporations, 401 Federal VISIT OUR WEBSITE CRAINSNEWYORK.COM Federal St., Ste. 4, Dover, DE 19901. Federal St., Dover, DE 19901. Street, Dover, DE 19901. Purpose: Purpose: Any lawful activity. Purpose: Any lawful activity. any lawful activity.

18 | Crain’s New York Business | May 11, 2009 nb19p18-19cls.qxp 5/8/09 4:09 PM Page 19

PUBLIC & LEGAL NOTICES

Notice of Qualification of Hasbro Notice of Qualification of Nehst Notice of Qualification of Equity Notice of Qualification of Zaffran, LLC. Notice of Formation of GREEN APPLE Managerial Services LLC. Authority Creations LLC. Authority filed with Residential Services II, LLC. Authority Fictitious name in NY State: Zaffran VENTURES LLC. Arts. of Org. filed with filed with NY Dept. of State on 3/4/09. Secy. of State of NY (SSNY) on filed with NY Dept. of State on Consulting, LLC. Authority filed with Secy. of State of NY (SSNY) on Office location: NY County. LLC 3/20/09. Office location: NY County. 3/24/09. Office location: NY County. Secy. of State of NY (SSNY) on 2/2/09. 03/17/09. Office location: NY County. formed in RI on 12/10/08. NY Sec. of LLC formed in Delaware (DE) on LLC formed in IL on 12/19/08. NY Office location: NY County. LLC SSNY designated as agent of LLC State designated as agent of LLC 7/25/06. SSNY designated as agent Sec. of State designated as agent of formed in Delaware (DE) on 12/26/02. upon whom process against it may be upon whom process against it may be of LLC upon whom process against it LLC upon whom process against it SSNY designated as agent of LLC served. SSNY shall mail process to c/o served and shall mail process to: c/o may be served. SSNY shall mail may be served and shall mail upon whom process against it may be Jerome Caulfield, Carter Ledyard & CT Corporation System, 111 8th Ave., process to: The LLC, 240 Madison Ave., process to: c/o CT Corporation served. SSNY shall mail process to: Milburn LLP, 2 Wall St., NY, NY 10005. NY, NY 10011, regd. agt. upon whom 12th Fl., NY, NY 10016. DE address System, 111 8th Ave., NY, NY 10011, c/o Falcon & Singer P.C., 14 Harwood Purpose: Any lawful activity. process may be served. RI and prin- of LLC: c/o National Registered regd. agt. upon whom process may Court, Ste. 220, Scarsdale, NY 10583. cipal business addr.: 1027 Newport Agents, Inc., 160 Greentree Drive, be served. Principal office addr.: 2 N. DE address of LLC: 874 Walker Road, Notice of Formation of Fox Evaluation, Ave., Pawtucket, RI 02862. Arts. of Ste. 101, Dover, DE 19904. Arts. of Riverside Plaza, Ste. 400, Chicago, Ste. C, Dover, DE 19904. Arts. of Org. LLC. Articles of Organization filed Org. filed with RI Sec. of State, 148 Org. filed with DE Secy. of State, IL 60606. Arts. of Org. filed with IL filed with DE Secy. of State, Townsend with Secy. of State of NY (SSNY) on W. River St., Providence, RI 02904. Townsend Bldg., Dover, DE 19901. Sec. of State, 501 S. 2nd St., Rm. Bldg., Dover, DE 19901. Purpose: any 12/15/08. Office location: NY County. Purpose: any lawful activity. Purpose: any lawful activity. 351, Springfield, IL 62756. Purpose: lawful activity. SSNY designated as agent of LLC any lawful activity. upon whom process against it may Notice of Formation of Shoshana Gol Notice of formation of limited liability EDONICCO LLC, a domestic Limited be served. SSNY shall mail process Jeweler, LLC. Arts. of Org. filed with company (LLC). Name: Flowers & Notice of Formation of SH-MANIA Liability Company (LLC) filed with the to the LLC, 1380 First Avenue, #6G, NY Dept. of State on 10/3/08. Office Things, LLC. Arts. of Org. filed with ELEVEN LLC. Arts. of Org. filed with Sec of State of NY on 5/19/08. NY New York, NY 10023. Purpose: any loc.: NY County. Princ. bus. addr.: 212 the Dept. of State of NY on March 24, Secy. of State of NY (SSNY) on Office location: New York County. lawful act or activity. E. 47th St., Unit 34F, NY, NY 10017. 2009. Office loc.: New York County. 03/19/09. Office location: NY County. SSNY is designated as agent upon Sec. of State designated agent of Secretary of State of New York Principal office of LLC: c/o Shoe whom process against the LLC may Notice of Formation of Limited Liability LLC upon whom process against it (SSNY) is designated as agent of the Mania, 853 Broadway, NY, NY 10003. be served. SSNY shall mail a copy of Company. Name: Pasha Events, LLC. may be served and shall mail LLC upon whom process against it SSNY designated as agent of LLC any process against the LLC served Articles of Org filed with Sec’y of State process to: Steven Ebert, Esq., Ebert may be served. The address SSNY upon whom process against it may be upon him/her to Richard K. Eng, of NY (SSNY) 5/7/09. Office location: & Assocs., LLC, 350 5th Ave., Ste. shall mail copy of process to Nicholas served. SSNY shall mail process to Esq., 100 Lafayette St., Ste. 403, NY, NY County. SSNY designated as 4011, NY, NY 10118, regd. agt. upon Sekas, Esq., 530 Sylvan Ave., the LLC at the address of its principal NY 10013 General purposes. agent for LLC upon whom process whom process may be served. Englewood Cliffs, NJ 07632. office. Purpose: Any lawful activity. may be served. SSNY shall mail copy Purpose: any lawful activity. Management of the LLC shall be by CAPITOL PUBLISHING, LLC of process to the LLC, 29 Broadway, one or more members. Purpose: To Name: MY SOHO LLC ART. Of Org. Notice of formation of Capitol Ste 2222, New York, NY 10006. Notice of formation of GetHired, LLC engage in any lawful act or activity. Filed Sec. of State of NY 12/05/08. Publishing, LLC. Articles of Org. Purpose: Any lawful purpose. Arts. of Org. filed with Secy. of State Off. Loc.: New York Co. SSNY desig- filed with Secy. of State of NY of N.Y. (SSNY) on 2/11/09. Office Notice of Formation of BK BELTS, LLC. nated as agent upon whom process (SSNY) on 01-16-09. Office location: Notice of Formation of One Twenty location: NY County. SSNY designat- Arts. of Org. filed with Secy. of State against it may be served. SSNY to NY County. SSNY designated as Consulting, LLC, Art. of Org. filed ed as agent of LLC upon whom of NY (SSNY) on 03/24/09. Office mail copy of process to THE LLC, C/O agent of LLC whom process against Sec’y of State (SSNY) 3/19/09. Office process against it may be served. location: Bronx County. Principal Carlo Giovannetti, Esq., 520 Eighth it may be served. SSNY shall mail location: NY County. SSNY designat- SSNY shall mail process to: principal office of LLC: 3950 Blackstone Ave., Avenue, 18th Flr., NY, NY 10018. process to LLC, 79 Madison Ave., ed as agent of LLC upon whom business location: Purpose: Any law- #4N, Riverdale, NY 10471. SSNY Purpose: Any lawful act or activity. 16th Floor, NY, NY 10016. Purpose: process against it may be served. ful activity. 505 E. 79th Street, #10A, designated as agent of LLC upon any lawful activity. SSNY shall mail copy of process to NY, NY 10075 whom process against it may be JNBY U.S.A. LLC, Articles of Org. Attn: Robert Lieberberg, 120 E. End served. SSNY shall mail process to filed N.Y. Sec. of State (SSNY) 17th Notice of Formation of QUANTBOT Ave., Apt. 4B, NY, NY 10028. NOTICE OF FORMATION OF LIMIT- Seth Kaplan at the principal office of day of February 2009. Office in New TECHNOLOGIES, LLC. Arts. of Org. Purpose: any lawful activities. ED LIABILITY COMPANY. NAME: the LLC. Purpose: Any lawful activity. York Co. at 1 Maiden Lane, 5th Floor, filed with Secy. of State of NY OLIMA VENTURES LLC. Articles of New York, New York 10038. SSNY (SSNY) on 03/26/09. Office location: Name: WILLOW ROCK ASSOCIATES, Organization were filed with the NOTICE OF FORMATION of Park Desig. Agt. Upon whom process may NY County. SSNY designated as LLC Art. Of Org. Filed Sec. of State Secretary of State of New York Bridge Advisors LLC. Arts. of Org. be served. SSNY shall mail copy of agent of LLC upon whom process of NY 01/06/09. Off. Loc.: New York (SSNY) on 03/25/09. Office location: filed with the Secy of State of NY process to 1 Maiden Lane, 5th Floor, against it may be served. SSNY shall Co. SSNY designated as agent upon New York County. SSNY has been (SSNY) on 02/20/09. LLC renamed New York, New York 10038. Reg. Agt. mail process to the LLC, 237 W. 35th whom process against it may be designated as agent of the LLC upon Park Bridge Financial LLC. Office Upon whom process may be served: St., 4th Fl., NY, NY 10001. Purpose: served. SSNY to mail copy of whom process against it may be location: NY County. SSNY designat- Spiegel & Utrera, P.A., P.C. 1 Maiden Any lawful activity. process to THE LLC, 50 Broad, ST., served. SSNY shall mail a copy of ed as agent of LLC upon whom Lane, NYC 10038 1-800-576-1100 RM. 808, New York, NY 10004. process to the LLC, c/o Drabkin & process against it may be served. Purpose: Any lawful purpose. Notice of Qualification of 152 Purpose: Any lawful act or activity. Margulies, Esqs., 291 Broadway, 18th SSNY shall mail process to principal FRANKLIN STREET, LLC. Authority Floor, New York, New York 10007. business location: C/O the LLC 30 Notice of Qualification of AmSpec filed with Secy. of State of NY Notice of Qualification of 140Labs, Purpose: For any lawful purpose. Rockefeller Plaza, 41st FL, NY, NY Services, L.L.C. Authority filed with (SSNY) on 02/28/07. Office location: LLC. Authority filed with Secy. of 10112. Purpose of LLC: To engage in Secy. of State of NY (SSNY) on NY County. LLC formed in Delaware State of NY (SSNY) on 3/13/09. NOTICE OF FORMATION OF LIMIT- any lawful act or activity. 03/23/09. Office location: Bronx (DE) on 12/20/06. Principal office of Office location: NY County. LLC ED LIABILITY COMPANY. NAME: County. LLC formed in New Jersey LLC: 152 Franklin St., NY, NY 10013. formed in Delaware (DE) on 3/12/09. MerrinThink, LLC. Articles of Notice of Formation of E.T. # 6104 - (NJ) on 06/18/97. Principal office and SSNY designated as agent of LLC SSNY designated as agent of LLC Organization were filed with the 6816 LLC. Arts. of Org. filed with NY NJ address of LLC: 360 E. Elizabeth upon whom process against it may upon whom process against it may Secretary of State of New York Dept. of State on 3/13/09. Office loca- Ave., Linden, NJ 07036. SSNY desig- be served. SSNY shall mail process be served. SSNY shall mail process (SSNY) on 04/02/09. Office location: tion: NY County. Sec. of State designated as agent of LLC upon whom to c/o Troutman Sanders LLP, Attn: to princ. bus. loc.: The LLC, 15 Broad New York County. SSNY has been nated as agent of LLC upon whom process against it may be served. Andrew Wilson, Esq., 405 Lexington St., Ste. 2624, NY, NY 10005. DE designated as agent of the LLC upon process against it may be served and SSNY shall mail process to the LLC Ave., NY, NY 10174. DE address of address of LLC: United Corporate whom process against it may be shall mail process to: c/o Joseph at the address of its principal office. LLC: 2711 Centerville Rd., Services, Inc., 874 Walker Road, Ste. served. SSNY shall mail a copy of Moshkovsky, CPA, 747 3rd Ave., 4th Arts. of Org. filed with State of NJ, Wilmington, DE 19808. Arts. of Org. C, Dover, DE 19904. Arts. of Org. process to the LLC, 148 Reade Fl., NY, NY 10017, regd. agt. upon Dept. of Treasury, Div. of Revenue, filed with Secy. of State, DE, 407 filed with DE Secy. of State, 401 Street, New York, New York 10013. whom process may be served. P.O. Box 308, Trenton, NJ 08646. Federal St., Dover, DE 19901. Federal St., Dover, DE 19901. Purpose: For any lawful purpose. Purpose: any lawful activity. Purpose: Any lawful activity. Purpose: Any lawful activity. Purpose: any lawful activity.

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May 11, 2009 | Crain’s New York Business | 19 CNYB 05-11-09 A 20 5/8/2009 7:56 PM Page 1

overabundance of Web ad inventory, ing a network of niche sites that have vantage against others who are just which has been pushing down rates. attracted a growing audience. starting up.” Turning around AOL But AOL has also had trouble get- Over the past two years, AOL ting the most from the Web advertis- Music’s number of unique visitors Stiff odds Continued from Page 1 Revenues fell 23% to $867 mil- ing unit it has built from a rash of re- has grown by around 50% to 21 mil- aol just has to get advertisers to for AOL, which observers say has lion, owing to a 27% decline in rev- cent acquisitions to compete with lion, according to comScore pay more for appearing on those sites, suffered from having too many cor- enue from the old dial-up subscrip- ValueClick and others. Media Metrix. something other Web publishers are porate masters. tion service and a 20% drop in Even a talented executive like MediaGlow has also been struggling with right now as well. But as Team Google strives to advertising sales. Operating income Mr. Armstrong will be hard- rapidly adding sites, like Poli- “Though there are some glim- turn around the company, it has its plunged 47% to $150 million. pressed to make substantial im- tics Daily, bringing its total mers of hope, AOL’s core business- work cut out. provements, many observers number to more than 70. es face some stiff odds,if or once [the “AOL has had reasonable success Advertising recession say. “We think the fault lies in The company has been company is] spun off,” says Derek with some Web 2.0 businesses, but the recession has hurt all compa- the assets and not the helped by the massive audi- Leedy, vice president of client serv- the time for them to turn into a pow- nies that rely on advertising.But over management,” wrote ence from its home page,a ices at ad agency Mediasmith Inc. erhouse is long past,”says Roger Kay, the past two years, as AOL has shift- Alliance Bernstein senior legacy of AOL’s days as Mr.Leedy adds that the only sure president of research firm Endpoint ed to an ad-supported business mod- analyst Michael Nathan- the biggest thing on the Web. winner in the battle to turn around Technologies Associates. “They’re el from one that relied on subscrip- son in a recent research note. “We had the benefit of being able AOL is likely to be Mr. Armstrong. not at the center of anything.” tion fees,its ad sales have consistently AOL has had better luck with its to leverage millions of users,” says “If he succeeds, he’s a genius,” he AOL’s first-quarter results cer- underperformed the market. content division, recently renamed MediaGlow President Bill Wilson. says. “If he fails, no one can blame tainly didn’t brighten the outlook. The difficulty lies partly in the MediaGlow, which has been build- “That puts us at a competitive ad- him.” Bankruptcy, no judgments Fitness chain ‘crunched’ Coverage in England. by recession

And more than 200 other countries. BY ADRIANNE PASQUARELLI

The world is calling. Answer it. With Verizon Wireless, you can call and text in more than 200 countries. the fitness industry is feeling Plus, with data coverage in more countries than any other carrier, you can email and browse the world the burn.Fitness chain Crunch filed wide web—around the whole wide world. So before you travel the globe, for business or pleasure, for Chapter 11 bankruptcy protection last week. The company cited switch to Verizon Wireless, America’s Largest Wireless Network. assets between $100 million and $500 million, and liabilities of the same amount. Crunch, which was founded in New York two decades ago, owes money to more than 50,000 credi- tors. The majority of the 30 largest unsecured claims belong to landlords such as B. Brothers Broadway Realty on Pine Street in New York, and 25 Broadway Office Properties. Crunch owes them $323,582 and $226,036, respectively. Crunch says it will close only one Now buy the BlackBerry® Storm™ and of its 25 currently operating locations—the 25 Broadway spot, in get the 8830 World Edition FREE! Manhattan, owned by 25 Broadway Office Properties. Two weeks ago, BlackBerry® the company’s site at West 43rd Storm™ Street and 11th Avenue, at the Riverbank West building,closed un- Verizon Wireless 3G Exclusive BlackBerry 8830 expectedly, according to members. Touch-screen productivityy World Edition Crunch currently has about 10 loca- around the globe. Travel the world with web, tions in Manhattan and Brooklyn. email, and more. $199 99 Lenders to the rescue? FREE crunch hopes to be acquired by its senior secured lenders, New York- based Angelo Gordon & Co. and California-based New Evolution Each phone requires new 2-yr. activation on voice planan with email feature, or emailemail plan.plal Fitness Co. The sale, during which other companies can also bid for Crunch, will close within 60 days. Call 1.800.VZW.4BIZ Click verizonwireless.com/goglobal Visit your local Verizon Wireless store “This process of reorganization, along with the ongoing involvement VERIZON WIRELESS COMMUNICATIONS STORES See store for Return/Exchange Policy. of NEFC, will allow Crunch to BRONX NEW! 2150 White Plains Rd. 718-829-3179 NASSAU Massapequa 5070 Sunrise Hwy. 516-797-3880 BUSINESS CUSTOMERS emerge as a strong player focused on NEW! 416 Westchester Ave. 718-292-4111 Westbury 49 Old Country Rd. 516-937-2960 HABLAMOS what we have become famous for:be- MANHATTAN 342 Madison Ave. @ 43rd St. 212-856-6100 SUFFOLK East Northport 4000 Jericho Tpke. 631-499-1820 1-800-899-4249 ESPAÑOL Union Square 859 Broadway 212-206-7587 Smith Haven 1 Smith Haven Mall 631-382-3720 ing the place where entertainment 57 W. 57th St. btwn. 5th & 6th Ave. 212-980-4860 WESTCHESTER Hartsdale 355 N. Central Ave. 914-286-4120 meets fitness,” said Crunch Chief 134 W. 34th St. btwn. 6th & 7th Ave. 917-351-8000 Executive Tim Miller,in a statement. 100 Wall St. & Water 212-510-6160 Despite the health and fitness NEW! 4251 Broadway @ 181 St. 212-781-6034 boom over the last few years, gyms Visit verizonwireless.com have not been immune to the cur- to find a club near you. rent economic climate as some Americans choose to forego expen- Activation fee/line: $35. IMPORTANT CONSUMER INFORMATION: Subject to your Major Account Agreement or Customer Agreement, Calling Plan, rebate form & credit approval. Up to $175 early termination fee/line & other charges. Device capabilities: Add’l charges apply. Offers and coverage, varying by sive club memberships. Bally Total service, not available everywhere. Network details and coverage maps at verizonwireless.com. While supplies last. Rebate debit card takes up to 6 weeks & expires in 12 months. Limited-time offer. © 2009 Verizon Wireless. 78147 Fitness sought bankruptcy protection late last year.

20 | Crain’s New York Business | May 11, 2009 CNYB 05-11-09 A 21 5/7/2009 7:54 PM Page 1

BUSINESS CORPORATE LADDER Time Inc. veteran marches to Parade PAGE 22 roger hagadone

GOTHAM GIGS If you have up to $50 to spend ... The big cheese Go for the surf and turf COUPLES TAYLOR COCALIS, Head out to the new Lobster Pound in Red 25, sees finely Hook, Brooklyn. Husband and wife Ralph Gorham and made foods, like dairy and Susan Povich, daughter of Maury Povich, drive to Maine meat products, as works of art. each weekend to pick up a fresh bounty of crustaceans, Varying climates and animal ready for you to handpick as your future meal. At about diets affect each product. As $10 a pound,the lobster is cheaper than in any restaurant. director of education at “It’s a little bit of an adventure,” says Adam Rich, co- Murray’s Cheese, Ms. Cocalis founder of e-mail lifestyle guide Thrillist, which recom- educates the public on the mends Lobster Pound. Bring on the butter and call preparation of fine foods. (646) 326-7650 to reserve. FAMILIES Spend a Saturday at the Queens County ITALIAN DELIGHTS After Farm Museum in Floral Park. The 312-year-old muse- graduating from Cornell in um—the city’s only 2005, Ms. Cocalis headed to historic working Italy for a master’s degree at farm—offers free the University of Gastronomic farmhouse tours, Sciences. After returning to and kids can feed the United States, she joined sheep and goats and the staff at Murray’s Cheese. take a $2 hayride. MASTER CHEF Ms. Cocalis If you visit during plans classes covering a wide the last weekend range of topics—from bread in July, stick around and ice cream making to for the annual Na- HISTORIC: Queens County Farm Museum. tive American dance fermentation and, of course, competition; the cheese making.Though food event costs $9 for adults, $4 for kids. For details, go to sales have dropped, classes are QueensFarm.org. still selling out. “I love getting CO-WORKERS Take an office field trip to Staten Is- people excited about preparing land! On a summer Friday, grab the boccie set and take better foods,” she says. the free ferry and a $2 ride on the S51 bus to South Beach TRAVELING SHOW Ms. Cocalis ADVENTURERS: for some lazy afternoon fun with co-workers.Kayaks,ca- Husband and wife noes and other boats in the area are also free to borrow. also plans trips around the Ralph Gorham and region to teach beer brewing, Visit the Ben & Jerry’s ice cream shop for dessert. Go to Susan Povich drive SINewYork.org for more information. pickling and maple-sugaring. to Maine to stock up She is also organizing a trip to for Red Hook’s the Swiss Alps to teach the Lobster Pound. If you have $50 to $100… culture and history of cheese making. buck ennis —maia blume Here’s EXPERT OPINIONS the ticket COUPLES Skimp on HELP YOUR KIDS Summer fun dinner and splurge on LAND INTERNSHIPS two passes to a hot new show on Broadway,using tourism agency NYC & Company’s new Real on any budget Deal summer special. If you buy one full-price ticket, you’ll get the sec- ON B’WAY: The Philanthropist stars check for postings through Matthew Broderick and Jennifer Mudge. a college’s career center or go City eats, drinks, activities ond for half price. Give directly to company Web sites. Matthew Broderick’s Family members are also a for adults, kids, co-workers dark comedy The Philanthropist a whirl,or catch the New useful network. Parents can York City Ballet, or have a laugh during amateur stand- up night on Wednesdays at the Apollo Theater. Find help students by role-playing BY ADRIANNE PASQUARELLI more options at NYCgo.com. before interviews. Students FAMILIES Play hooky from work and take the kids on should show that they have an hether one is dining on caviar or the New York City Ducks Tour,through Gray Line tours. independent work ethic and Originating in Times Square, the education excursion can take initiative. Keep Cheez Whiz these days, the Big Apple serves up plenty of spring and summer goes from bus to boat and even simulates Henry Hud- résumés to one page, and be son’s epic journey. sure to tailor them to potential fun. From a romantic evening out to “It’s the closet thing to a Disney experience outside of employers. Don’t edit your educational events for the children, or Disney,”says Gray Line President Tom Lewis.Even bet- student’s cover letter too even the occasional corporate outing, ter, midweek prices for the 75-minute trip were just re- much, so it stays in his or her the following sampling of warm- duced and are now $19 for adults and $9 for children.For own words. a schedule, go to Grayline.com. —salvatore petronella weather activities provides inspiration CO-WORKERS Lift everyone’s spirits by throwing a Division director for couples or friends, families and quick office party. Order cupcakes and a few bottles of The Creative Group office mates on any budget. Continued on Page 23 istockphoto

W | | May 11, 2009 Crain’s New York Business 21 CNYB 05-11-09 A 22 5/7/2009 7:55 PM Page 1

BUSINESS LIVES CORPORATE LADDER Jack Haire Marching to Parade Time Inc. veteran As chief executive of Parade Communications,a unit of Advance PERSONNEL FILE will run own show Publications Inc., Mr. Haire would get to run his own company. And COMPANY Parade Communica- in troubled sector; working for the Newhouse family- tions sees long-term gains owned Advance, he would not be TITLE Chief executive subject to the kind of quarterly pressures he felt at Time Inc., a unit of AGE 56 BY MATTHEW FLAMM publicly traded Time Warner. RÉSUMÉ Managing partner, Haire Media Ventures

ack haire has been busy Chance to build and grow buck ennis since he exited Time Inc. in a “i’d always admired [the New- PERSONALITY TYPE Optimistic management shake-up at the house family’s] long-term focus,” tunities with a great big brand like the advertising community, Time end of 2005 that effectively Mr. Haire says. “In this kind of en- Parade could be a killer app.” Inc.’s loss will certainly be Advance cleaned out the old guard and vironment, it’s really a benefit, be- according to the company. Mr. Haire downplays any com- Publications’ gain. Jleft Chief Executive Ann cause there’s an opportunity to build Parade has in some ways benefited petitive feelings toward Time Inc., “His connection to senior client Moore with her own team. and buy and grow.” from the pressures on newspapers,of- where he worked during some of the people is exceptional,” says Andrew Mr.Haire,who had held a Appointed last month, Mr. fering stressed publishers a low-cost company’s most prosperous years. McLean, chief client officer of succession of top jobs under Ms. Haire will take the reins of Parade way to provide a Sunday magazine. During his five-year stint as pub- Group M, who is a frequent golf Moore’s predecessor, Don Logan, July 1. He replaces Walter Ander- Since 2007,the publication has added lisher of Timemagazine,and his sub- partner of Mr. Haire’s. started a media consulting firm. son, who is retiring. 100 papers to its national network. sequent three years as president of Former colleagues are also glad Haire Media Ventures advised a Like other magazines,Parade has Mr. Haire is bullish on the prop- the Fortune/Money Group,both the to see the executive back in action. range of companies, including suffered in the economic downturn. erty, even if it does live in the trou- newsweekly and the flagship busi- “Part of the reinvigorating of Pa- CNET Networks, which was sold Advertising pages fell 30% and ad bled newspaper sector. He’s also ea- ness title enjoyed marked increases rade will have to include recognizing to CBS Corp. for $1.8 billion. revenue plunged 23% to $123 mil- ger to apply what he’s learned in revenue and influence. “Coinci- what’s happening to the newspaper But when the offer came to take lion in the first quarter, according to working with digital media. dence?” asks John Huey, editor in business,” says Norman Pearlstine, over Parade,the middle-of-the-road Publishers Information Bureau. “As we come out of this economy, chief of Time Inc. “I think not.” onetime editor in chief of Time Inc. Sunday supplement carried in 475 Circulation has held up some- marketers [will be] looking for ways But while Mr. Haire says he who is now chief content officer at U.S. newspapers, including the New what better.It stands now at 33 mil- to stimulate sales,” he says. “A com- doesn’t believe in “competitive sell- Bloomberg LP.“He’ll have interest- York Post, Mr. Haire jumped. lion copies, down 3% since 2006, bination of some interactive oppor- ing,” with his extensive contacts in ing thoughts about that.”

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22 | Crain’s New York Business | May 11, 2009 CNYB 05-11-09 A 23 5/7/2009 8:01 PM Page 1

BUSINESS LIVES

Continued from Page 21 Prosecco. With a variety of cupcakes—from Customs rules change daily. Not red velvet to sour cream spice to plain vanil- la—priced just below $2, Buttercup Bake Shop will deliver anywhere in Manhattan keeping up can cost you dearly. and Long Island City, Queens, for $5. “Cupcakes can please a lot more people, whereas with one specific cake, someone could have allergies,” says Jennifer Appel, Buttercup’s owner. Mean- while, bottles of spar- kling Italian wine go for SPLASH: Fun family day. as little as $5.99 at Astor Wines & Spirits, which provides next-day delivery for a nominal fee. Check out ButtercupBakeshop.com and AstorWines.com to order. Let us help you minimize your import costs. If you have $100 to $500 …

Stoves and microphones Contact Bill Borchard 212-790-9290 / [email protected] COUPLES Why not step up your summer entertaining skills by en- rolling in a cooking course? The Institute of Culinary Education on West 53rd Street offers a five-hour evening class on summer-themed dining. Learn to make dilled salmon mousse on cucumber slices, Lime Rickeys and spicy crab remoulade, among other inventive dishes. With tuition priced at $240 per couple,there will be plenty left over for the dinner party to show off your newfound skills. Reserve at IceCulinary.com. FAMILIES Treat the gang to a dinner and dessert at the Upper East Side’s Attorneys at Law popular Serendipity 3, known for its kid-friendly ambience and lavish ice 1133 Avenue of the Americas • New York, NY 10036-6799 cream sundaes. A full meal for a family of four should cost around $200. www.cll.com Walk west to Central Park for a gon- dola ride to lull the kiddies to sleep.The ride is $30 per half-hour and is available until 9 p.m. Visit Serendipity3.com and TheCentralParkBoathouse.com for more

information. flickr CO-WORKERS If you’ve ever want- FROZEN AND HOT: Serendipity 3 is ed to hear the boss belt out a prize- known for its lavish sundaes. winning rendition of “She Works Hard for the Money,” here is your chance. Korea Town’s Duet 35 or Duet 48 karaoke establishments offer private rooms for $8 an hour per person— perfect for an after-work office gathering. And if employees need a push to get the lyrical juices flowing, alcoholic drinks run $4 to $8. Book at KaraokeDuet.com. If you have $500 to $1,000… Sky’s the limit. Business direction you Travel first-class can actually use. COUPLES Spring for two first-class tickets—with private food-and-beverage service—on the Aces weekend train to At- lantic City.Passes for the nearly three-hour trip run from $64 to $124 each way, with free shuttle service to the re- sorts. Factor in a $329 deluxe room at Harrah’s, and there’s still $175 left over for dinner and, of course, the slots. “Atlantic City has this great potential to be a fun, over-the-top date night,” explains Thrillist’s Mr. Rich. Go to AcesTrain.com and Harrahs.com for booking information. FAMILIES Pile the whole family into one of Liberty Helicopter’s air- borne sightseeing tours, which run about $230 per person. Flying from the Hudson River and over the financial district, Ellis Island and the Statue of Liberty, the tour showcases some of the city’s most famous landmarks. While the ride lasts only about 20 minutes, the short excursion promises to have your children saying “Remember when…” for the next decade. Reserve at LibertyHelicopter.com. CO-WORKERS If the weather is balmy, hit a scenic roof bar. While it does not have a summer special,downtown’s The Delancey offers a Monday evening private roof rental for a drink minimum of $1,000. Visit TheDelancey.com for directions. On a rainy weeknight, take the office gang to Leisure Time Bowl,the upscale alley cleverly hidden on the second floor of the gritty Port Authority bus ter- LLP minal.The venue recently began offering a cor- Marcum & Kliegman porate special from Monday through Wednes- Certified Public Accountants & Consultants day—bowlers get one hour of bowling and a An M&K Group Company famous Leisure Time beer tower for $19.95. A group of 50 would come in just short of the $1,000 www.MKLLP.com mark. The price includes shoe rental and tax. “Clients can have some fun but not hurt their pock- New York, NY Melville, NY Roseland, NJ Tinton Falls, NJ Greenwich, CT Grand Cayman, BWI 631.414.4000 203.861.9700 800.921.0777 et,” says Leisure Time’s general manager, Ayman Kamel. 212.981.3000 973.618.0800 732.922.9900 Book at LeisureTimeBowl.com. david neff 23 | Crain’s New York Business | May 11, 2009 May 11, 2009 | Crain’s New York Business | 23 CN012910 4/24/09 1:39 PM Page 1

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