The Los Angeles Business Journal Digital Edition
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2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Content Previous Page Zoom In Zoom Out Next Page labusinessjournal.com LOS ANGELES BUSINESS JOURNALL TM DIGITAL EDITION THE COMMUNITY OF BUSINESS www.labusinessjournal.com/digital WELCOME TO THE LOS ANGELES BUSINESS JOURNAL DIGITAL EDITION To read your copy of the Digital Edition INSTRUCTION Please select a reading preference FOR PC/MAC How to read LABJ Digital Edition on iPad in iBooks: 1 TAP CENTER 2 TAP ‘OPEN WITH’ 3 TAP ‘iBOOKS’ Wait for gray bar with Wait for scroll down menu menu buttons to appear on and tap the iBooks icon. top of the PDF. Wait for PDF to load in iBOOKS. 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Content Previous Page Zoom In Zoom Out Next Page labusinessjournal.com LOS ANGELES BUSINESS JOURNAL Volume 33, Number 31 THE COMMUNITY OF BUSINESSTM August 1 - 7, 2011 • $3.00 Up Some Don’t See 99 Cents as Deal Agents Using Term Front INVESTMENT: But discounter ‘Certified’ Doesn’t may be Leonard Green’s next buy. $9.2 billion Total value of Leonard Green’s announced Add Up for CPAs By RICHARD CLOUGH Staff Reporter deals in past year. By ALFRED LEE Staff Reporter Petco. J. Crew. Whole Foods. Jo-Ann Fabric. Rite Aid. Container Store. financial world, Leonard Green’s high-profile deals Mike Paek has been doing taxes for customers in No, that’s not the itinerary for next weekend’s in the past few months have cemented its reputation Koreatown for more than 10 years. errands. It’s a list of some of the major national as one of the country’s leading acquirers of major But he’s not one of the 300 certified public accoun- How the Nazarian chains owned by Leonard Green & Partners LP retailers. It most recently snapped up East Coast tants who cater to L.A.’s Korean-American communi- brothers may add of West Los Angeles. retail chain BJ’s Wholesale Club Inc. While many ty, the largest in the country. Instead, he is what’s sizzle to Adam And if all goes according to plan, 99 Cents Only investment firms are waiting on the sidelines for the known as an enrolled agent – authorized to do tax Fleischman’s Stores Inc. will join them soon. market to fully recover, Leonard Green is earning preparation and bookkeeping but not other CPA-only Umami burgers. But Leonard Green, one of the most active local respect for persistence and boldness. services such as auditing. PAGE 3 private-equity firms today, is facing shareholder “They’re aggressive, they’re smart, they’re good For a long time, enrolled agents and CPAs managed opposition in its effort to add the Commerce-based at recognizing opportunities,” said Lloyd Greif, an uneasy co-existence, offering overlapping services in discount retailer to its roster of well-known brands. News & Though it’s not a well-known name outside the Please see INVESTMENT page 33 Please see ACCOUNTING page 33 Analysis Working On Jobs 3-D TV has Tom Engdahl’s com- New L.A. ‘czar’ pany focused on growth. all about business PAGE 6 By HOWARD FINE Staff Reporter ATT Karatz grew up in France and was People the only American kid at school. So he Mquickly learned what it meant to be the Why Adam odd person out. When he saw another kid in that Miller’s business position, he felt compassion and reached out. took off after he His father – former KB Home Chief Executive fired himself. Bruce Karatz – believes that’s how Matt Karatz PAGE 16 developed “an uncanny ability to bring together people of disparate interests for a common good.” Matt Karatz will need to draw on this skill now as Los Angeles Mayor Antonio Villaraigosa’s new jobs czar: Villaraigosa last month tapped him to replace Austin Beutner as deputy mayor of the office of economic and business policy. ‘Yes’ Man: Matt Karatz at City Hall meeting room. Please see GOVERNMENT page 31 RINGO H.W. CHIU/LABJ Plan for Tower Records Spot in a Spin MAIL TO: DEVELOPMENT: Neighbors can send it to the City Council for possible approval or back to the drawing board for more revision. fear new center will bring traffic. Chicago developer Sol Barket first planned a five- story building with a supergraphic and two video bill- By JACQUELYN RYAN Staff Reporter boards at 8801 W. Sunset Blvd., which is at Horn Avenue. But he has agreed to scale it down to three- A Chicago developer wants to build a three-story stories with video billboards but no supergraphic. retail, office and gym complex on one of L.A.’s Residents say: sorry, still not good enough. They most prominent corners, the former home of leg- want the developer to cut the project down another endary Tower Records on the Sunset Strip. story, find a tenant that isn’t a gym, eliminate the Other businesses nearby mostly welcome the video signs and add parking. development. But residents are fighting it. However, the Sunset Strip Business Associa- The long battle between the developer and project tion favors the project, called Centrum Sunset. Todd opponents is scheduled to return to West Hollywood’s RINGO H.W. CHIU/LABJ Planning Commission on Thursday. The commission Please see DEVELOPMENT page 32 Foes: Cleary, Eisenberg across from planned site. Loans up to $300 million, one business at a time. www.owb.com © 2011 OneWest Bank, FSB. All rights reserved. 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Content Previous Page Zoom In Zoom Out Next Page 2 LOS ANGELES BUSINESS JOURNAL AUGUST 1, 2011 LOS ANGELES BUSINESS JOURNAL ® AUGUST 1 - 7, 2011 VOLUME 33, NUMBER 31 FREEanywhere DELIVERY in Downtown LA! ” See Taylor. Swift.” RINGO H.W. CHIU/LABJ Page 15: From left, Farmscape’s Dan Allen and Jesse DuBois at backyard ‘farm.’ TECHNOLOGY – Unrest in Pakistan after (213)TICKETS ON THE COVER the killing of Osama bin Laden has shot down the stock of software maker NetSol. .10 GOVERNMENT – New L.A. jobs czar Matt (842-5387) Columns & features – Media Watch 11, Karatz will work to improve the city’s Banking & Finance 12, News of the Week 14 relationship with businesses. INVESTMENT – Shareholders of Leonard Green are discounting the firm’s move to PROFILE acquire the 99 Cents Only chain. INNOVATION – Farmscape looks to break DEVELOPMENT – Neighbors have rocked a out beyond backyard farms to reap developer’s plan to roll a new project into the institutional customers. .15 old Tower Records space on the Sunset Strip. ACCOUNTING – Koreatown CPAs feel PEOPLE AL BROOKS TICKETS enrolled agents who work on tax returns are taking too much credit when they use the term INTERVIEW – Cornerstone OnDemand • • THEATRE CONCERTS SPORTS “certified.” CEO Adam Miller says his bartending skills 900 Wilshire Boulevard, Los Angeles, California 90017 are still on tap. .16 www.albrooks.com UP FRONT THE LIST DINING – Umami hopes the Nazarian brothers can add some sizzle to the burger RANKING – The 25 largest general chain’s expansion plan. .3 contractors in Los Angeles County, ranked by ARCHITECTURE – A local office that 2010 county billings. .19 designed an Olympic resort for South Korea’s failed 2014 bid helped that country score the INVESTMENTS & FINANCE 2018 Winter Games. .3 ENTERTAINMENT – Angelenos will get an Columns & features – Econowatch 23, eyeful of Quebec thanks to an “Iris”-linked LABJ Stock Index 24 festival of events. .3 Columns & features – Page 3, REAL ESTATE Regional Report 4 Columns & features – Real Estate NEWS & ANALYSIS Column 26 LENDING – ZestCash looks to lure customers L.A. BIZ SEEN of payday lenders with a lower-cost online alternative. .5 CELEBRATIONS – Photos from L.A. business community events. .34 BIOTECH – CytRx’s plan for a capital shot in the arm through a stock offering has sent share prices tumbling. .5 COMMENTARY ENTERTAINMENT – Postproduction COMMENT – Charles Crumpley thinks company ADS looks to expand its depth of reforming the city of L.A.’s permit process field by adding 2-D-to-3-D conversion may take time, but there’s no reason to wait services. .6 on ditching its gross receipts tax. .36 NON-PROFIT – Billionaire Patrick Soon- TAXES – New attempts to modify Proposition Shiong has plugged in as CEO of a national 13 could result in businesses passing higher scientific and medical data network. .7 expenses on to customers, cautions John METALS – Increase in sales helped Reliance Kabateck. .37 Steel & Aluminum forge a strong second TRANSPORTATION – L.A.’s car culture quarter. .7 could be at a crossroads, according to BANKING – L.A.’s publicly traded banks Chauncey Swalwell. .37 checked in with a strong second TRANSIT – Susan Bursk says local officials quarter, pointing to a continued recovery. .8 have long dug Constellation Boulevard as a ENGINEERING – National Technical subway stop. .38 Systems has grown its reach and customer Columns & features – LABJ Forum 36, base with a Midwest pickup. .10 Letters 38 Los Angeles Business Journal (ISSN 0194-2603) is published weekly. © 2011, Los Angeles Business Journal. 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