Ilitch for Moosejaw Co-Founder, a Whirlwind of Big Deals by Annalise Frank Any Time Soon
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FEBRUARY 20 - 26, 2017 Cottage Inn A mini-boom bakes up a in home growth plan construction? Pizza chain looks to expand in Midwest — and Fewer homes are on the to China, Page 4 market, spurring demand for new building, Page 3 Entrepreneurship Mike Ilitch For Moosejaw co-founder, a whirlwind of big deals By Annalise Frank any time soon. But if he could see him- [email protected] self doing something else much further For most entrepreneurs, the sale of down the line, it would be advising and a business they started is an achieve- possibly investing in startups with his ment of a lifetime. For Robert Wolfe, brother Jerey. ey recently helped it’s just another week. their cousin Anthony Mendelson start Wal-Mart Stores Inc.’s purchase last California-based Mighty Audio. week of Madison Heights-based out- “It isn’t something I’ve investigated door apparel and gear retailer Moose- at all” as an option for the future, jaw for $51 mil- Wolfe said. But “we have some experi- lion even ence in startups. … We’ve made all the surprised its mistakes before.” co-founder. Moosejaw will continue to operate When the its online sales at Moosejaw.com and company’s rst 10 existing storefronts, Wal-Mart store opened, “I said in a statement. Moosejaw’s loca- was 21 years old tions include downtown Detroit, Bir- and I had no idea mingham and Ann Arbor. what I was do- e company vows to maintain its Robert Wolfe: ing,” said Wolfe, independent identity as part of the re- OLYMPIA ENTERTAINMENT Co-founded who still owned a tail world’s biggest goliath, but Wal- Mike Ilitch’s x-up of the Fox Theatre was one of the most consequential restoration projects in Detroit history, and in 1990, he MooseJaw and minority share in Mart adds nancial and marketing accepted the National Preservation Award from the National Trust for Historic Preservation. CrowdRise. the company at muscle that could help it expand. the time of the “We’ll still be selling the same sale. “I would have never, ever antici- brands, same marketing voice, but pated that this would have hap- have a much bigger budget, I suppose Ilitch: A complex legacy pened.” you’d say,” said Eoin Comer- It was the second sale of one of ford, Moosejaw’s CEO. Fox restoration a jewel, preservation community, which lauds him Wolfe’s startups this year, after the Comerford and his team will over- for his restoration of the Fox but laments January sale of the crowdfunding site see outdoor retail across all of Wal- but tensions over what it views as unnecessary levelings of CrowdRise to GoFundMe. Wolfe is Mart U.S. e-commerce properties as demolitions simmered old buildings. still CEO of CrowdRise. part of a change in how those sales are e Fox was one of most consequen- Wolfe said he hasn’t “even taken 10 structured, Wal-Mart spokesman By Kirk Pinho tial restoration projects in the city’s his- seconds o” since the sale of either Ravi Jariwala told Crain’s. [email protected] tory. It was a $12 million grenade that company. Moosejaw’s expertise, rich visual In 1990, Mike Ilitch accepted the Nation- Ilitch, who died Feb. 10, threw at the no- He said he has no intention of leav- marketing material and wealth of al Preservation Award from the National tion that Detroit wasn’t a good place to ing CrowdRise, a company he adores, SEE MOOSEJAW, PAGE 18 Trust for Historic Preservation for the reno- do business or invest. vation of the Fox eatre. Fifteen years later, But the national award and other Mike preservationists stood in front of a bulldoz- plaudits that project won weren’t on Ilitch er to try to stop his demolition of the Il- Nancy Finegood’s mind 12 years ago itch-owned Madison-Lenox Hotel. when she did something she had e controversial 2005 demolition in the never done before and hasn’t done run-up to Super Bowl XL illustrates just since. how complex — and sometimes testy — Il- e executive director of the itch’s relationship was with the historic SEE ILITCH, PAGE 21 Who owns the Tigers? Family plan a matter of trust By Bill Shea pher Ilitch, the son of Mike and [email protected] Marian who has run the team’s day- It’s a simple question with a to-day business operations since somewhat complex answer: Who 2004, became the de facto owner TYLER CLIFFORD/CRAIN’S DETROIT BUSINESS owns the Detroit Tigers? and chief executive of the Tigers Madison Heights-based Moosejaw was sold to Wal-Mart Stores Inc. last week. Mike Ilitch, who bought the team upon his father’s death. He ulti- for $85 million in 1992, died Feb. 10 mately will decide the nancial di- © Entire contents copyright 2017 at age 87. Because his widow, Mari- rection of the franchise, and the by Crain Communications Inc. All rights reserved an Ilitch, owns MotorCity Casino ownership change comes after the crainsdetroit.com Vol. 33 No 8 $2 a copy. $59 a year. Hotel, she is prohibited from inher- team’s senior management had al- Runs Marian Ilitch: iting the Tigers under Major League Chris Ilitch: ready signaled that the era of Mike the team’s Owns MotorCity Baseball’s rule that forbids team Ilitch’s free spending on players is operations. Casino. owners from having any stake in over. gambling operations. e actual owner of the team is at complicates the ownership League has no such prohibitions. the trust, however, and such trusts question for the Tigers in ways it As part of estate and succession oer a way around MLB’s gambling NEWSPAPER doesn’t for the Ilitch-owned Detroit planning, the Tigers at some point rules. Red Wings; the National Hockey were put into a trust, and Christo- SEE TIGERS, PAGE 22 2 CRAIN’S DETROIT BUSINESS // FEBRUARY 20, 2017 INSIDE MICHIGAN BRIEFS BANKRUPTCIES 19 CALENDAR 14 MC Sports les Chapter 11, Sleeping Bear Dunes Visitors Bureau the Michigan Republican Party and a CLASSIFIED ADS 17 plans liquidation sales violates his First Amendment rights. prominent Ann Arbor real estate de- State law allows tourism agencies to veloper, was unanimously elected as DEALS & DETAILS 15 Grand Rapids-based MC Sports levy a tax if lodging owners vote. A chairman again after Ronna Romney KEITH CRAIN 8 led for Chapter 11 bankruptcy last similar lawsuit was dropped last year McDaniel stepped down to become MARY KRAMER 9 week and said it planned liquidation after a Cheboygan County resort head of the national party. Weiser was sales at all 68 of its stores in seven owner sold his property. elected to the University of Michigan OPINION 8 states, including three in Southeast J Although automakers expect a drop board of regents last year and was am- PEOPLE 16 Michigan. e privately held sport- MC SPORTS in auto sales this year after a spike in bassador to the Slovak Republic under The MC Sports store at Lakeside Mall in RON FOURNIER 8 ing goods company cited poor holi- 2016, Comerica Bank projects Michi- President George W. Bush. Sterling Heights is among three day sales, increased competition, gan’s economy will grow 2.6 percent in J LG Chem Michigan Inc. an- RUMBLINGS 23 locations in Southeast Michigan. the growth of e-commerce and the 2017 on the heels of automaker in- nounced an expansion project that WEEK ON THE WEB 23 “blurring of distribution channels” 7-4, would fulll a nearly decade-old vestments. e Dallas-based bank, in could yield upward of 150 new jobs at as being among its challenges. promise to reduce the 4.25 percent its latest Michigan Economic Out- its headquarters in Holland, MiBiz COMPANY INDEX: MC Sports’ plan to wind down tax to 3.9 percent after it was raised to look, said new technology develop- reported. e manufacturer of lithi- SEE PAGE 22 and sell o its merchandise won the help balance the budget in 2007. Op- ments such as autonomous vehicles um ion battery cells said it will begin interim approval of a U.S. Bankrupt- ponents said the reduction would will spur new economic activity. construction of the 100,000-square- turing positions, with 20 technical cy Court judge on ursday. It was cost the state’s $10.5 billion general J e Michigan Public Service foot expansion in March and expects positions. e company is expanding not immediately clear what would fund $680 million in revenue next Commission said all power provid- the project to conclude in August. its workforce, currently at around happen to MC Sports’ approximately budget year and $1.1 billion the fol- ers met or exceeded a requirement e company did not share how 330, because of a contract signed 1,300 employees. lowing year at a time the budget will to supply 10 percent of their electric- much it invested in the project. with Chrysler in November. Fullling Among its stores are locations at tighten due to other tax cuts and pol- ity from renewable sources in 2015, J High-end luxury carpet manufac- the contract will require the compa- Lakeside Mall in Sterling Heights, icy changes. AP reported. e standard will in- turer Scott Group Custom Carpets ny to expand to an additional build- Briarwood Mall in Ann Arbor and J e owner of two inns in northern crease to 12.5 percent in 2019 and to LLC acquired Grand Rapids cross- ing and purchase more equipment. Town Square Shopping Center in Michigan is challenging a room tax 15 percent in 2021.