20100823-NEWS--0001-NAT-CCI-CN_-- 8/20/2010 7:51 PM Page 1 INSIDE CRAIN’S ENDORSES A TOP STORIES CANDIDATE FOR Fate of city’s ATTORNEY recovering economy GENERAL IN DEM PRIMARY hinges on nation ® PAGE 2 SEE PAGE 10 VOL. XXVI, NO. 34 WWW.CRAINSNEWYORK.COM AUGUST 23-29, 2010 PRICE: $3.00 Get discount duds and a spa vacation PAGE 2 INSIDE THE BLT BREAKUP An insurgent’s quixotic bid for a Partners open up about messy split; loose ends dangle seat in Congress PAGE 3 BY LISA FICKENSCHER Two major sponsors jimmy haber and Laurent rescue City Center’s Tourondel had a marriage made in heaven.Mr.Haber brought money Fall for Dance and business savvy to the table, PAGE 3 while Mr.Tourondel,an acclaimed French chef, landed their BLT Shareholders gross restaurant empire on an elite culi- nary map garnering rave reviews out on gross-ups, and ardent fans. and some listen But on March 1 they split, breaking up their family of 17 IN THE MARKETS, PAGE 4 restaurants across the country,nine of which are in luxury hotels. The intensely driven men, one with a flair for finance and the other a cre- ative force, couldn’t agree on how to expand the company and what Mr. Tourondel’s role would be as new restaurant concepts were added to the portfolio of mostly pricey steakhouses. One thorny is- sue was adding a family-style Ital- ian eatery to the group, which last year generated revenues of approx- imately $70 million. NOT SMILING NOW: BUSINESS LIVES As in most divorces, the details Jimmy Haber (left) composite image:crain photography, diana delucia istock See INSIDE on Page 20 and Laurent Tourondel GOTHAM GIGS A real Spider-Man scales the heights P. 21 G ANNE FISHER on how to fight City Hall—and News’ presses print red ink Housing’s win P. 21 G MOVERS & SHAKERS lose money for the third year in a In July, longtime Editor-in- rebound Derek Johnson has big Mercurial Mort row. Chief Martin Dunn announced plans for Yéle Haiti P. 22 fires again after “The presses were a long shot,” that he was leaving to care for his G GAEL GREENE goes for says Ken Doctor, a newspaper an- wife, who is ill. In that case, Mr. stalling the fried chicken P. 23 new machines fail alyst with research firm Outsell. Zuckerman replaced a high-pro- to turn the tide “Now the odds of them pay- file British editor with a ing off are even longer.” tabloid veteran, Boston Changes in federal Mr. Zuckerman’s reac- Herald Editor-in-Chief INDEX BY MATTHEW FLAMM tion to the shortfall has been -11% Kevin Convey,who starts rules could worsen DECLINE in swift and harsh. News Chief circulation of at the News this week. summer’s slump THE INSIDER _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _8 nearly one year after Daily News Executive Marc Kramer, weekday paper Industry insiders esti- SMALL BUSINESS _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _9 owner Mort Zuckerman’s three who had pushed for the in the six months mate that the turnover at ended 3/31 BY AMANDA FUNG OPINION _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _11 new color presses came online, the presses as a solution to the the top will save Mr. REAL ESTATE DEALS _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _12 verdict is in on the publisher’s $200 paper’s troubles,got the ax by Zuckerman more than $1 million bet: Better luck next time. voice mail two Fridays ago,accord- million a year in salaries. But the signs are emerging that this FOR THE RECORD _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _17 Despite his presses’ ability to ing to a person familiar with the changes also mark a turning point year’s surge in residential real estate CLASSIFIEDS _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _18 churn out magazine-quality color matter. He was gone a week later. as the real estate magnate-turned- sales in the city may be running out HOT JOBS _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _21 on every page,they’ve failed to halt He was replaced with Bill Holiber, media mogul scrambles for new of steam. EXECUTIVE MOVES _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _21 the News’ two-year slide in adver- CEO of Zuckerman-owned U.S. tools to staunch losses caused by a The market posted stellar gains THE WEEK AHEAD _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _23 tising.As a result,insiders say,New News & World Report, who will weak economy and the continued in the first half of the year, but pre- York’s picture paper is on track to now run both publications. See NEWS on Page 20 liminary data for the summer months are pointing in a different 34 direction. Contract signings in 5 Manhattan in the months of June A CANCER ARMS RACE and July were down 12% and 25%, The war on cancer is taking a heavy toll on respectively, compared with year- hospital budgets. Plus, judges edge out juries earlier figures, StreetEasy.com re- ELECTRONIC EDITION ports. So far this month, signings on malpractice cases HEALTH CARE REPORT, P. 13 are down 49% versus last year. NEWSPAPER See CITY’S HOUSING on Page 20 71486 01068 0 20100823-NEWS--0002,0003-NAT-CCI-CN_-- 8/20/2010 7:53 PM Page 1 To keep shoppers interested, many sites IN BRIEF are turning to services or experiences,which Get a spa vacation cut down on inventory costs.Gilt just began FORDHAM UNIVERSITY GAINED A GREEN LIGHT its Gilt City division, offering discounts at FOR THE LONG-PLANNED EXPANSION OF ITS places like Townhouse Spa and the Brook- Lincoln Center campus on Manhattan’s West lyn Museum.The New York division is still Side after the New York Supreme Court with that silk dress being tested but will officially launch next dismissed a lawsuit that sought to block it.The month, and a Chicago site should be avail- suit—brought by the board of managers of the able this week. Gilt, which expects 2010 Alfred Condominium, located in the center of revenue of between $400 million and $500 the campus—claimed that the city did not have Flash-sale sites add discount travel, food million, is aiming for as many as 10 service the right to allow the school to develop new sales a week for New Yorkers. buildings within its campus.The city approved ry.For U.S.companies,where outlet centers “We realized there was a huge demand Fordham’s expansion plans in June 2009. Elliott BY ADRIANNE PASQUARELLI and off-price liquidators compete physical- for high-end inclusive offerings,” says Nate Meisel of Brill & Meisel, who represented the ly with these virtual sale machines,the flash Richardson, president of Gilt City, who Alfred, said his client intends to appeal the what goes with a discounted silk dress sites partner directly with manufacturers. could not provide membership numbers. decision.The plans include adding six new from Marc Jacobs, or a fur shrug from J. Similarly, Ideeli, with revenue of $150 buildings to its Lincoln Center campus. Phase Mendel? Judging from the latest craze million and 150 employees, introduced one involves building a new law school. to hit the online shopping world, Ideel Access this summer. For now, it’s a half-price trip to a tony the service is national, but a lo- THE NEW YORK METS EMERGED AS ONE OF THE South Beach resort. calized New York segment BIGGEST CREDITORS OF A SPONGE-MAKING Flash-sale sites, which goes live in September. The company that has collapsed into bankruptcy and made shopping for off- more consumers who sign whose management has been charged with price luxury apparel from up for a deal with Ideel Ac- fraud.The team is owed $2.6 million by a computer terminal as cess, the lower the price.