20120723-NEWS--0001-NAT-CCI-CN_-- 7/20/2012 6:34 PM Page 1 FATHERS & SONS Smith & Wollensky employs 13 sets of dads and lads P. 25 CRAIN’S® NEW YORK BUSINESS VOL. XXVIII, NO. 30 WWW.CRAINSNEWYORK.COM JULY 23-29, 2012 PRICE: $3.00 Wall Street MAKING DOUGH lawyers up THIS BLUEBERRY- for LIBOR GLAZED DOUGHNUT from Doughnut Plant is five inches in litigation diameter and sells for $3 Early estimates have LABOR COSTS are rate-rigging cases relatively low—about 30% of the retail producing $35 billion price, experts say. So, in this case, in bank settlements that’s around 90¢ BY AARON ELSTEIN For lawyers, accountants and the nu- LOCAL merous outfits that assist them, the BLUEBERRIES from the Union Square Wall Street scandals of recent years Greenmarket make have provided a gold mine of work.But this treat true the fiasco with LIBOR could prove to gourmet fare, but be the mother lode. most doughnut Analysts expect that global banks ingredients are basic—flour, water, will have to shell out $35 billion in sugar. Average cost damages to settle legal claims over of a doughnut’s their role in manipulating LIBOR, ingredients: 20%. also known as the London interbank Here, the estimated cost is about offered rate, a market benchmark used to calculate interest rates on an esti- mated $10 trillion worth of loans and 60¢ $350 trillion worth of derivatives. RENT, Those LIBOR settlements would ELECTRICITY, See BANKS on Page 23 PAPER, PACKAGING AND SUCH: 25%, or 75¢ A biz boom PRESUMED Doughnuts:the PROFIT: around 25%, or about no one can 75¢ new cupcakes Note: Crain’s estimates brag about NY clinics see 26%rise but our business is throughout the whole Extra-sweet profits BY ADRIANNE PASQUARELLI day,” said Mark Israel, owner of Doughnut in abortions performed Plant, which has a recently expanded head- for bakers, retailers, The latest food craze sweeping the city is quarters on the Lower East Side, as well as on out-of-state women hitting the sweet spot. While cupcakes and a 17-month-old outpost in Chelsea and, restaurateurs on macarons satisfy after-dinner cravings,bak- coming soon, a site in the Grand Central BY GALE SCOTT ers are discovering that the doughnut—a Terminal neighborhood. front lines of city’s treat good from morning till night—can But these doughnuts are more sophisti- The 14-year-old was two months provide the most profit. cated concoctions than the garden-variety pregnant and scared.Despite being in- latest gourmet trend “I know people think it’s just breakfast, See DOUGHNUT on Page 23 sured and having her parents’ permis- sion, the Florida teenager was unable buck ennis to find a doctor willing to perform an abortion. She heard about Choices, a for- profit women’s health center in TOP PROPERTY Jamaica,Queens,found contacts on its THE SALES P. 15 website, and headed north. “Her dad’s a trucker,” said Esther TOP OFFICE Pregue, the center’s head social work- er, who counseled the teenager. “And NEWSPAPER LISTS LEASES P. 16 See ABORTION on Page 22 20120723-NEWS--0002-NAT-CCI-CN_-- 7/20/2012 6:38 PM Page 1 STATS AND THE CITY HARD TIMES REDUX After topping out at 10% in the thick of the recession, then beginning a steady decline, the city’s seasonally adjusted jobless rate began to rise last summer. In June, it hit a three- FYICRAINSNEWYORK.COM year high—nearly 2 percentage points above the national average. 11% 10% 9% 8% 10% 7% 6% 5% 8/08 9/09 2/10 6/12 Daffy’s ducks out Source: NYS Department of Labor nother longstanding RUNNING NUMBERS local retailer has bitten the dust. Last buck ennis A Daffy’s 6.3M 156 22K 1.6% week, discount chain , based in Secaucus, N.J., announced that after more than half a RECORD SATURDAY REQUESTS for RISE in New York ATTENDANCE at NIGHT LIVE’S H1-B immigration metro area century in business, it had reached the end of its financial rope. the Met Museum total Emmy visas for NY tech consumer prices Rumors of trouble at Daffy’s had been rife in retail circles for months. Most recently, reports in fiscal year just nominations, a jobs; 42% of total in June, vs. a year ended record requests earlier surfaced that Daffy’s was facing heavy pressure from rivals including Century 21 and T.J. Maxx— Source: Metropolitan Source: Academy of Source: Brookings Source: Bureau of Museum of Art TV Arts & Sciences Institution Labor Statistics not to mention flash-sale websites like Gilt Groupe—and was struggling to pay its vendors. Chief Executive Marcia Wilson, daughter of late founder Irving Shulman, had been searching for a GOOD BOUNCE After two quarters of declines, venture capital funding financial partner for two years before time finally ran out. for startups in the state recovered a bit in the second quarter. All of the company’s 19 stores, including eight in Manhattan and one in Philadelphia, are $831M expected to close by October. Among those will be the chain’s big new flagship store in the old New York Times Building on West 44th Street. Daffy’s demise comes on the heels of New York discounter Syms Corp.’s downfall. After $539M $568M $500M taking on a heavy debt load via its purchase of struggling Filene’s Basement in 2009, and facing mounting competition and a sagging economy, Syms pulled the plug last fall. $336M —adrianne pasquarelli 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 BIKE-SHARE PROGRAM IS M.I.A. The will put another $1 billion on taxpay- Source: CB Insights launch of the city’s much-ballyhooed ers’tab.The funds’returns on their in- HOORAY! bike-share program has been put off vestments were expected to reach 8%. ADDICTED TO NUMBERS? GET A DAILY DOSE AT @STATSANDTHECITY WOODBURY until August, a month after its sched- Oops turns out they made less than COMMON IN uled debut. The so-far-invisible, a quarter of that: 1.7%. That disap- THE BRONX? A Citigroup-sponsored program aims pointment comes on the heels of two Manhattan developer is THIS WEEK IN CRAIN’S to put 10,000 rentable sets of wheels excellent years: The funds returned hoping to build on the streets within a year, but the 23% in 2011 and 14% in 2010,accord- an outlet mall in Transportation Department is cur- ing to Comptroller John Liu. … LI- the Bronx. It IN THE BOROUGHS-------------------------- 3 would be the rently not talking firm dates.The pro- BOR’S LABORS. Everyone agrees that first such Woodbury Common-type IN THE MARKETS----------------------------------4 gram appears to have “hit some snags,” the process of setting the London in- shopping center in the city. Keep your said Councilwoman Letitia James. terbank offered rate, or LIBOR, is credit cards handy. THE INSIDER -----------------------------------------------6 Friday, Mayor Bloomberg blamed deeply flawed, if not criminal. But it SMALL BUSINESS ------------------------------9 faulty software. … EMIGRANT SELLS looks increasingly as though it may be OY VEY! BRANCHES. OPINION --------------------------------------------------------10 Emigrant Savings Bank’s easier to fix it than totally trash it. owner,the Milstein family,is selling off With investigators around the world LINSANITY MEETS CO$TLY FROM AROUND THE CITY----12 END. The New York Knicks let all but two of the still trying to figure Jeremy Lin walk rather than REPORT: REAL ESTATE-------------13 bank’s 32 branches to out which banks match a $25 million offer Apple Bank for Sav- ‘More than a cheated and when, re- from Houston. The move REAL ESTATE DEALS-------------------18 wiped $36 million ings. The $10 billion- restaurant, it forms may take some off the value of FOR THE RECORD---------------------------19 asset Emigrant will time. … THE DAY THE Madison keep a location on has been a TALK STATION DIED. Square Garden CLASSIFIEDS -----------------------------------------20 Co.’s stock last East 42nd Street and meeting place No more chatter on week and sent BUSINESS PEOPLE NEW YORK, NEW YORK ----------25 one in the Hudson radio station FM some team Sales of vegan goods at Denise Valley,plus two online News 101.9. Under sponsors to the SOURCE LUNCH-------------------------------- for black Mari’s Organic Avenue are 26 operations. … EM- owner Randy exits. newscom nearing $20 million. P.7 OUT AND ABOUT ------------------------------27 PLOYERS CATCH A America.’ Michaels, the former WORKERS’ COMP —Rev. Al Sharpton, on rock station did a one- 62-page salvo insisting it had every- CORRECTIONS BREAK. New York Sylvia’s Restaurant, whose year spin as New thing under control,courtesy of a con- Con Ed offers both a defined-benefit pension plan and a 401(k). This information was companies will pay founder, Sylvia Woods, York’s only all-news tingency plan that has 5,000 managers misstated in Greg David’s July 9 column, “Con Ed dispute sheds light on labor reality.” less on their workers’ died last week FM station. Now it’s working 12-hour shifts. No way, the The Intrepid Sea, Air & Space Museum held nine “Operation Sleepover” events in 2009, compensation premi- done.“I felt it was time union fired back. … R.I.P., QUEEN OF the program’s first year, for 1,500 guests. It will host 20 sleepovers this year, bringing in um rates for the first time since 2008. to make a change,”Mr.Michaels said. SOUL FOOD. World-famous Harlem approximately 4,000 guests. This information was misstated in the July 9 “Museums dream big with sleepovers.” Rates to policyholders will actually Today, the name is New Rock 101.9, restaurateur Sylvia Woods died at age drop 1.2% in the upcoming year.