Retailers Play the Top Card
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CNYB 08-04-08 A 1 8/1/2008 7:54 PM Page 1 BUSINESS LIVES TOP STORIES Summer spats can Restoring Pierre wreak havoc on is so costly, rooms relationships will cost $1,000 PAGE 23 PAGE 2 ® Humble pie: Wall St. losses are at $133 billion VOL. XXIV, NO. 31 WWW.CRAINSNEWYORK.COM AUGUST 4-10, 2008 PRICE: $3.00 PAGE 3 New law will curb city’s kangaroo Tony seafood firm files Ch. 11 violations court Labor action cripples Wild Edibles; Wild Edibles’owner,Richard Mar- SMALL BUSINESS, PAGE 5 DISPUTE HURTS tin. He also acknowledges that he others in industry under pressure as well SEAFOOD SELLER “made a mistake,” though he de- four stores, including a popular clines to discuss specific details BY LISA FICKENSCHER stand at Grand Central Market, ASSETS $2.2 million about the lawsuit. BUDGET CRISIS and a supplier to many of the city’s LIABILITIES $2.1 million As a result, he says, he had no INSIDER Sage advice one of new york’s best-known toniest restaurants—had been the choice but to file for Chapter 11 seafood purveyors has filed for object of a widening customer boy- REVENUES $16 million bankruptcy protection last month. for the embattled Source: Wild Edibles’ bankruptcy petition governor PAGE 9 bankruptcy, done in by a bitter la- cott organized by a labor group. A He also is asking the court to ap- bor dispute that is one of a growing year ago, the organizers, Brand- prove a loan for $250,000 to help EDITORIAL Is saying number of such confrontations af- workers International, filed a law- the company restructure after it the right things fecting local restaurants and food suit accusing the company of failing workers because of their efforts to emerges from bankruptcy. enough? PAGE 10 sellers. to pay employees overtime and of organize a union. Thomas Bianco,legal counsel to OP-ED So many ways Wild Edibles—the owner of harassing and even firing some “I couldn’t win this lawsuit,”says See TONY on Page 8 to cut—Alair Townsend PAGE 11 CBS aims for digital success with CNET Counts on Web operations to offset AT DEADLINE BOTTOMS UP: Stacey Pecor ad downturn at TV of Olive & SOME OF NEW YORK’S BEST- Bette’s says and radio units KNOWN RESTAURATEURS— nothing new is and The Donald—are happening in preparing bids to take over the pants. BY AMANDA FUNG space occupied by Tavern on the Green, the city’s top- with its eye on the future, CBS grossing restaurant.The New roger hagadone Corp. is betting on CNET to lead York City Department of its digital efforts.CBS closed on its Parks & Recreation, which $1.8 billion acquisition of the net- officially oversees the city- work of technology news and owned property, is readying a video-game sites last month, final- request for proposals that it Retailers play ly declaring its commitment to its expects to send out in the next digital operations. several months. Also expected Plagued by the downturn in ad- to bid are current leaseholder BARGAIN BIN: Aéropostale is selling its graphic vertising sales for its traditional ra- T-shirts at half-price to lure teen shoppers. Jennifer LeRoy; the Glazier the top card dio and television units, the broad- Group; Dean Poll, who runs caster says its gamble on the pricey the Central Park Boathouse; to simply freshen their wardrobes with new network will pay off by transform- and upscale caterer Great Cater to stylish, cost-conscious shirts and jackets. ing CBS Interactive into a $1 bil- Performances.The lease buyers as school season starts The retail landscape is bleak. Several chains, in- lion business by 2011. expires in December 2009. cluding Steve & Barry’s, Goody’s and Mervyns, have The significance of the deal was declared bankruptcy in recent weeks. Kmart, Talbots made clear in last week’s earnings THE UNION THAT REPRESENTS BY ADRIANNE PASQUARELLI and the teen accessories retailer Claire’s might also be report, when CBS said CNET HOME HEALTH AIDES WILL in trouble, according to industry insiders. would add at least 2 percentage hold a rally Thursday at the to get on top in the tough economy during this In preparation for a crucial season, New York spe- points to the company’s revenue WaMu Theater at Madison back-to-school season, New York’s apparel retailers cialty shops like Olive & Bette’s and Wink are putting and profit growth rates. It will be- See AT DEADLINE on Page 2 are depending on, well, tops. With skinny jeans and their best blouse, blazer or jacket forward. Many gin reporting results of CBS Inter- plaid skirts a holdover trend, consumers are expected See TOPS ON TOP on Page 8 active, which includes CNET, in September. “Interactive will become a 31 5 meaningful business for CBS,”says SPORTS REPORT Zander Lurie, CBS Interactive’s chief financial officer, who held the IN A LEAGUE OF THEIR OWN: same role at CNET. “Appetite for ELECTRONIC EDITION content on the Web is huge.” YANKEES, METS PAGE 13 The company wasn’t born to bet NEWSPAPER See CBS AIMS on Page 8 71486 01068 0 CNYB 08-04-08 A 2 8/1/2008 7:37 PM Page 1 AT DEADLINE Continued from Page 1 private equity firm or a deep- Square Garden as it intensifies pocketed local businessman its drive to secure higher wages would be interested. A source and benefits for 30,000 workers. close to New York Observer Local 1199 SEIU has owner Jared Kushner says he threatened to strike if contracts would be likely to make a bid. with 25 New York area home “Media properties have never care agencies are not agreed had a problem being sold,” says upon by the middle of Edward Atorino, managing September. Some 8,000 aides director of the Benchmark Co. never had contracts, and the rest The nation’s 15th-largest daily are working under expired deals. will be put up for sale if it can’t Negotiations have begun with a cut costs. few employers, but the union says the majority have not come BANKRUPTCIES ARE BOOMING, to the table.The union is AND NEW YORK LAW FIRM looking to raise the minimum Weil Gotshal & Manges is in pay for a unionized home health the lead, filing more big-money aide above $8 and maintain Chapter 11 cases than any other health benefits. U.S. firm this year, according to data released last week.The firm WHILE OTHER NONPROFITS handled eight bankruptcies ARE TAKING HITS, LOCAL amounting to $7.1 billion in the universities seem immune to the first seven months of the year, economic downturn. New York compared with just one big University has raised a record filing in the same period last $698 million with one month year. Weil Gotshal’s remaining in its fiscal year.The restructuring group gained PIERRE’S RARE FLAIR: amount is an eye-popping 70% international star status earlier The overhaul is “an ideal higher than the total for the in the decade. opportunity” for parent previous year, which was also a Tata Group , says GM record. Yeshiva University also MANHATTAN-BASED CLICKABLE Heiko Kuenstle. set a record, raising $104 million INC. RAISED $14.5 MILLION IN buck ennis in the fiscal year ended June 30. funding in a second round of financing.The startup, which SOME MEDIA EXPERTS BELIEVE helps small marketers track and THE NEWARK STAR-LEDGER manage search-advertising will be a difficult sell if it is put campaigns, will use the capital Luxury at a high price on the block by the Newhouse infusion to develop its tech- family. Its losses are expected to nology.The Founders Fund, a reach $30 million to $40 million San Francisco venture firm, led this year. “If this paper has been the investment. Earlier investor Pierre will charge $1,000 a night to recoup investment losing money as long as [parent Union Square Ventures, a company] Advance says it has, it Manhattan firm, contributed to wouldn’t be very attractive,” says the new round. Clickable has BY JOYCE HANSON newspaper analyst John raised $22.5 million in venture Morton. Others believe a capital this past year. the pierre hotel, the grande dame overlooking Central Park, is undergoing a massive face- lift. Unfortunately, the operation to restore the dowager’s beauty is costing a lot more money CORRECTION and taking much longer than expected. The phone number for The Waverly Inn & Garden is (212) 243-7900. The number was incorrect in the July 28 “Table Talk” review. When Taj Hotels Resorts and Palaces took control of the hotel in mid-2005, the company estimated that renovating The Pierre would require about $35 million and a year or two of work. Three years later, the project is still dragging on, and costs have ballooned to $100 million. THIS WEEK IN CRAIN’S In the lengthy time it has taken to work on The Pierre, other hotels have been sprouting up, boosting the number of rooms in the city and creating more competition. What’s more, the SMALL BUSINESS ----------------------- 5 luxury hotel’s room rate will average $1,000 a night.That will put it in the top tier of local hotels 25 See LUXURY on Page 7 THE INSIDER----------------------------------------9 ALAIR TOWNSEND -------------------11 WEEK IN REVIEW -----------------------12 REPORT: BUSINESS Christie’s bids on design OF SPORTS -----------------------------------13 Art Basel and Art Basel Miami with design pieces because they are NEIGHBORHOOD Auction house offers Beach,have added large sections de- much cheaper than contemporary furniture, other voted to the art form.