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DETROIT BUSINESS MAIN 07-03-06 a 1 CDB.Qxd DETROIT BUSINESS MAIN 07-03-06 A 1 CDB 6/30/2006 5:59 PM Page 1 ® http://www.crainsdetroit.com Vol. 22, No. 27 JULY 3 – 9, 2006 $1.50 a copy; $59 a year ©Entire contents copyright 2006 by Crain Communications Inc. All rights reserved THIS JUST IN EaglePicher HQ will likely Burnett Cadillac be in metro Detroit EaglePicher Holdings Inc.’s headquarters will likely be somewhere in metro Detroit after the company emerges from Chapter 11 bankruptcy, loss highlights EaglePicher COO David Treadwell said. Treadwell, who is expected to become EaglePicher’s pres- ident and CEO when the com- pany emerges from bankrupt- cy, said Friday that need to diversify EaglePicher also is consider- ing one location in another state. new business opportunities.” The Treadwell oversaw ASC’s Other local ad company didn’t elaborate. sale to Questor Partners Fund II NEWSCOM The Cadillac announcement and re- in May 2002 after the death of cent staff cuts at DaimlerChrysler ASC founder Heinz Prechter. agencies have agency BBDO Detroit in Troy make it In 2004 he took over a cash- Lenders lose when clear many big Detroit agencies need strapped Oxford Automotive and to do some soul-searching, said former managed that company’s made transition asset sale. big agency executive Gary Topolews- Current CEO Stuart scammers move in ki. For example, BBDO’s Detroit and Gleichenhaus was hired to BY BILL SHEA New York City offices are working to- oversee the bankruptcy and AND JENNETTE SMITH gether on the DaimlerChrysler ac- won’t be staying, Treadwell CRAIN’S DETROIT BUSINESS count, said Roy The meteoric rise in housing prices has Elvove, director of said. EaglePicher filed for The crossroads faced by Leo Burnett U.S. Bankruptcy corporate commu- bankruptcy in Detroit is one previously negotiated by Court in Cincinnati in April nications for BBDO slowed. As it has, losses reported by other local ad agencies, and the choice 2005. North America. But it provides is the same: Diversify and Last week, the company’s more of that work is reorganization plan was ap- lenders from mortgage fraud in Michigan nourish creativity or risk closure. shifting to New proved by creditors and con- Leo Burnett Detroit last week lost York. firmed by U.S. Bankruptcy have gone through the roof. And it’s the $225 million Cadillac account, In February, Judge Vincent Aug. The com- which it had held since 1936, to BBDO Detroit laid pany expects it will emerge Boston-based Modernista. (For details, Topolewski off about 200 of the from bankruptcy by July 31 costing Michigan banks big money — see Page 30.) 1,800 employees at after procedural matters are General Motors Corp. is Leo Burnett its Troy office. The agency also said completed. more so far this fiscal year than in the Detroit’s lone client; it is one of a some open positions will not be filled The company was based in dwindling number of large Detroit and some creative posts would be trans- Phoenix when it filed for three previous years combined. area ad offices that haven’t diversified ferred to New York. Then the Detroit of- bankruptcy but has since beyond the auto industry. fice made another 20 cuts in April. moved its technology division Jim Moore, president of Leo Burnett Topolewski has worked in top posi- to Pittsburg, Kan., and its ex- See special report, Page 19. Detroit, said in a statement that the tions at Leo Burnett Detroit predeces- ecutives, including Tread- company is looking at “a number of well, have been working out other automotive and nonautomotive See Agencies, Page 30 of offices at the company’s Inkster plant. EaglePicher has two auto- motive divisions in Inkster: the Wolverine division, which makes vibration damping and sealing materi- Court chips out Golden Tee game payouts als; and the Hillsdale division, which makes dampers, filtra- tion products, knuckles, driv- BY ANDREW DIETDERICH law applies to only one feature of tures will remain, including one available for the rest of the coun- eline products and pump com- CRAIN’S DETROIT BUSINESS the game that pays out money for that allows real players to pay an try next month.” ponents. getting a hole-in-one, called Hole- extra dollar to compete against 49 But Jason Hanselman, an attor- This year, Treadwell said, Playing golf arcade game Gold- N-Win. others in an 18-hole tournament ney not connected to the case with EaglePicher is expecting sales en Tee for money has been put on Gary Colabuono, marketing di- that pays money to the top-20 fin- law firm Dykema Gossett P.L.L.C., will exceed $580 million, down par with slot machines by the rector for Arlington Heights, Ill.- ishers. warns that establishments offer- from more than $600 million Michigan Court of Appeals, effective- based Incredible Technologies, “Our interpretation is that the ing Golden Tee play for money the previous year. The compa- ly jeopardizing the liquor licenses said a countrywide rollout of Hole- court ruling applies to the Hole-N- could be endangering their liquor ny employs 800 in Michigan. of establishments that offer game N-Win planned for August won’t Win option,” Colabuono said. “We licenses and considered casinos. — Brent Snavely play for money. happen in states that ban it, in- intend to follow the law. … Hole-N- Hanselman represents several Detroit casinos and gaming-device See This Just In, Page 2 But Incredible Technologies Inc., cluding Michigan. Win is not going to be enabled in maker of the game, insists that the But Colabuono said regular fea- the state of Michigan when it’s See Golden Tee, Page 29 EXECUTIVE LIFE NEWSPAPER Execs with a need for speed, Page 11 DETROIT BUSINESS MAIN 07-03-06 A 2 CDB 6/30/2006 6:13 PM Page 1 Page 2 CRAIN’S DETROIT BUSINESS July 3, 2006 gust, succeeds Glenda Price, who re- tentative budget agreement that on the budget in late July. THIS JUST IN tired after eight years as president. includes funding increases for — Amy Lane — Sherri Begin schools, colleges and universities. ■ From Page 1 The agreement for fiscal 2007, Injection molder slated to close Plans shared for Northville site which begins Oct. 1, includes an Council votes against selling overall 3 percent increase in oper- Engineered Plastic Products Inc. Real Estate Interests Group and ations funding for colleges and was scheduled to close its doors Rackham to developer Schostak Bros. & Co. Inc. shared con- universities, and a $210 per-pupil Friday, after a June 26 sale of its ceptual site plans for the mixed-use increase for K-12 schools. equipment. The city of Detroit will offer to project at the former Northville Psy- The University of Michigan and The Ypsilanti-based injection sell its Rackham Golf Course in chiatric Hospital site last week. Michigan State University would re- molder entered Chapter 11 protec- Huntington Woods, Deputy Mayor The 415-acre Highwood project ceive a 3 percent increase, while tion with the U.S. Bankruptcy Court Anthony Adams said Friday, after Shea calls for a village center area with Wayne State University would re- in Detroit in March. the Detroit City Council voted 6-3 retail, medical office, a senior ceive a 2.5 percent increase. Oak- EPP had annual sales of $63 mil- against accepting a $6.25 million apartment complex, and midrise land University would receive a 3.4 lion and 548 employees turning CRAIN’S ADDS REPORTER bid from a development group apartments, condominiums and percent increase, and Eastern out interior trim at plants in Ypsi- called Premium Golf L.L.C., wanting Bill Shea, former city/military lofts. The developers also said in a Michigan University would receive a lanti, Owosso and Lima, Ohio. The editor of the Port Huron Times to build homes on the 120-acre site. project overview that 35 percent of 2.7 percent increase. Herald, has joined Crain’s The city of Huntington Woods company launched an expansion the site would remain open space The budget will also allocate $20 Detroit Business as a reporter also offered to buy the property to at Lima in 2005, but that expense, for parks and public use. million to help schools that have along with rising resin costs and covering media, advertising keep it as a golf course. and marketing, and — Jennette Smith had declining enrollment, $20 mil- — Robert Ankeny lower prices for parts, ate away at Washtenaw and Livingston lion for a new middle school math the firm’s bottom line. counties. Mercy business dean steps down and science initiative, and $20 mil- The work the company had been Shea, 32, worked at the Port 2 colleges get new presidents lion to address funding equity be- doing is being transferred to other Bahman Mirshab stepped down as Huron newspaper for about tween school districts. suppliers. Lawrence Technological University dean of the University of Detroit Mer- six years and formerly worked Lawmakers are expected to vote — Crain News Service as sports editor for the and Marygrove College begin the cy College of Business on Friday to Lancaster (Ohio) Eagle- month with new presidents as part pursue other undisclosed opportu- Gazette and as a reporter for of scheduled transitions. nities. He had served as dean of CORRECTIONS the Beavercreek News- Lewis Walker, 61, takes over as the business school since the fall Current. president and CEO of Lawrence of 2002. Calls placed to the univer- ■ The chart accompanying the story about individual insurance Shea was a member of Tech. He had been serving as inter- sity on Friday afternoon were not plans on Page 1 of the June 26 issue cited an incorrect coinsurance Military Reporters & Editors; im president and CEO of the pri- returned.
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