REGULAR) PUBLICATION 5/29/2009 8:52 PM Page 1
Total Page:16
File Type:pdf, Size:1020Kb
20090601--A--0001-MAIN-CCI-CNYB--CRAINS NEW YORK BUSINESS MAIN (REGULAR) PUBLICATION 5/29/2009 8:52 PM Page 1 INSIDE What TOP STORIES Bloomberg won’t say Hedge funds face Greg David serious trimming on the city’s rocky finances in brave new world ® Page 11 PAGE 2 The comeback of Eliot Spitzer. Are VOL. XXV, NO. 22 WWW.CRAINSNEWYORK.COM JUNE 1-7, 2009 PRICE: $3.00 you kidding? THE INSIDER, PAGE 12 Real estate Price cuts revive PLUS SIZES hopes for tourism minnows this summer prep attack PAGE 5 A FASHION SPECIAL REPORT on Big 3 VICTIM Goal: Grab leaders’ business when More designers, market rebounds -.6%DECREASE IN BY THERESA AGOVINO PETITE-SIZE SALES stores cut lines IN 2008 amid the devastating deal BY ADRIANNE PASQUARELLI drought in the commercial real es- CRAIN’S TOP SIX tate business, brokerages—espe- ENTREPRENEURS attention, plus-size shoppers, your cially small and midsize firms—are G Dry cleaner expands her fashion options are getting fewer by the day. remarkably busy. Sure, office leas- reach in 2 boroughs P. 13 Larger sizes are among the latest victims ing swooned to a 25-year low in G Furniture designer builds of the recession, with the retail industry the first quarter, and sales of Man- cutting them on all fronts. Well-known hattan buildings fared even an Amazon for crafts P. 14 -2%DECREASE IN G STANDARD-SIZE brands such as Ellen Tracy have eliminat- worse—plunging Banker creates market for ed or downsized production, and depart- 70% in the first hard-to-trade paper P. 14 SALES IN 2008 ment stores like Bloomingdale’s have re- four months of G Former journalist becomes duced space for the lines or dropped them this year, accord- toast of Brooklyn P. 14 70% altogether.In the spring season,Ann Tay- ing to Cushman DROP in sales G Chef rolls up successes in lor eliminated size 16 from its namesake & Wakefield Inc. of Manhattan the sandwich trade P. 16 and Loft divisions. It now sells sizes 16 Yet firms are buildings in first four months G Ex-city official traffics in and up only online. adding brokers, of 2009 getting results P. 17 “It’s almost as if certain retailers have expanding prod- said, ‘I’ll worry about losing these cus- uct lines and -8%DECREASE IN tomers later on,’ ” says Andrew Jassin, man- boosting training, intent not just BUSINESS LIVES PLUS-SIZE SALES aging director of retail consultancy Jassin- on surviving but on challenging FRANCHISE FEVER IN 2008 O’Rourke Group. the industry’s leaders when the But the average American woman weighs market finally snaps back. Laid-off 164 pounds and sports a size 14,according to So far this year, for example, New Yorkers the latest statistics from the Centers for Dis- FirstService Williams has already with the ease Control and Prevention. How can fash- hired nine employees in Manhat- means try ion and retail abandon so many customers? tan, including a head of research to take For one, plus-size collections are expen- and seven brokers. The moves control See RECESSION on Page 7 See SMALLER FIRMS on Page 8 of their own getty images destinies PAGE21 Defying odds, FreshDirect delivers gains INDEX Online grocer emerges from troubles IN THE MARKETS _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _4 NEIGHBORHOOD JOURNAL _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _9 with stronger sales, fewer complaints VIEWPOINT _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _10 umented workers, and the compa- CRAIN’S POLL _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _11 BY LISA FICKENSCHER ny was fending off a labor organiz- REAL ESTATE DEALS _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _18 ing campaign. CLASSIFIEDS _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _19 last year, FreshDirect was a Now, in the midst of a deep re- CORPORATE LADDER _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _23 company in crisis.The federal gov- cession, the Long Island City, EXECUTIVE MOVES _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _23 ernment was investigating wheth- Queens-based grocer can boast a er the online grocer hired undoc- financial turnaround. It has spent the past year honing its technolo- 22 gy and developing loyalty pro- 5 grams that have helped it become solidly profitable for the first time in its six-year history.The compa- THE TRUCK STARTS HERE: ELECTRONIC EDITION ny even plans to hand out year-end CEO Richard Braddock wants bonuses to salaried employees. to add to FreshDirect’s “We are running the business 35,000 frequent users. NEWSPAPER See FRESHDIRECT on Page 8 buck ennis 71486 01068 0 20090601--A--0002-MAIN-CCI-CNYB--CRAINS NEW YORK BUSINESS MAIN (REGULAR) PUBLICATION 5/29/2009 8:17 PM Page 1 IN BRIEF Hedge funds face THE RECESSION IS WEIGHING HEAVILY ON THREE NEW YORK CITY RETAILERS. CLOTHIER Oilily USA, restaurant Zoë in SoHo and furniture chain Door Store all filed for Chapter serious trimming 11 bankruptcy protection last week. All plan to restructure for survival. Oilily, which has already shuttered eight stores, including its Madison Avenue shop, aims to renegotiate its Managers try to survive by cutting remaining 25 leases across the country. Zoë’s owner is drumming up another round of fees and imposing lockup periods financing and pleading for leniency from his landlord. Door Store has yet to close any of its $253 billion in the six months end- five city showrooms, but parent company BY AARON ELSTEIN ed March 31, 2009, driving hedge Furniture-In-Parts Corp. listed liabilities of fund assets to $1.3 trillion—rough- more than $1 million. for years, dan loeb was the hedge ly half of last year’s peak. fund world’s hanging judge, firing off Shell-shocked survivors are BRUCE RAYNOR HAS RESIGNED AS PRESIDENT blistering letters to hapless chief execu- fighting to hold on to what they’ve OF NEW YORK CITY-BASED UNITE HERE, TWO tives that condemned them for their got. More than 30% of funds have weeks after he was suspended by the union’s shortcomings. taken the draconian step of barring general executive board as a result of an ongoing “Do what you do best,” he hissed in a the door and restricting investor BIG CRASH: civil war that has torn apart the organization of 2005 letter to a soon-to-be-gone CEO. withdrawals, according to Bern- Dan Loeb’s garment and hotel workers. Mr. Raynor will “Retreat to your waterfront mansion in the stein. Third Point assume a leadership position in Workers United, Hamptons. ... The matter of repairing the “The question is,how forgiving hedge fund a new union of 150,000 workers that split from mess you have created should be left to are investors going to be?” says recorded a 33% loss Unite Here and affiliated with the powerful professional management.” Marc Freed, a managing director last year. Service Employees International Union. How times change. After years of post- at Lyster Watson & Co., a firm ing average gains of that picks THE RELATED COMPANIES PLANS TO BUILD A 27%, Mr. Loeb’s Third hedge funds 60,000-SQUARE-FOOT SUPERMARKET IN THE Point hedge fund for wealthy shopping center it is constructing in the crashed to earth last clients. “My mullen IN OUT c Kingsbridge Armory in the Bronx, according to year with a shattering hunch would a recent filing by the developer. Morton Williams 33% loss. In response, be, not very.” Supermarkets is crying foul because it owns two many investors Some patrick m stores in the immediate vicinity that it expects to grabbed their money managers close if Related is allowed to build its store. and ran, driving assets are trying to make cash to put into these classic hedge fund under management to amends by cutting their plays because banks have hugely scaled WITH THE DEMISE OF MANHATTAN less than $2 billion notoriously high fees or back the money they are willing to lend— BROKERAGE COLDWELL BANKER HUNT from more than $5 bil- by relaxing lockup peri- hugely reducing hedge funds’ leverage and Kennedy reportedly looking more likely by the lion previously. Now ods that can last for profit margins in the process. Some once- day, rivals are seeking fresh new talent.