20110411-NEWS--0001-NAT-CCI-CN_-- 4/8/2011 8:04 PM Page 1 INSIDE GREG DAVID: TOP STORIES WHY TECH SHOULD BE Co-ops vs. condos: NY’S NO. 1 Michael Gross JOBS PRIORITY offers an appraisal ® PAGE 11 PAGE 2 VOL. XXVII, NO. 15 WWW.CRAINSNEWYORK.COM APRIL 11-17, 2011 PRICE: $3.00 Bloomy battles Beer here. And there. Brewgartens third-term are everywhere PAGE 2 blues Despite his past foreclosures, Larry As one big problem Gluck finds lenders after another piles up, PAGE 3 mayor acts decisively Gehry groupies to salvage his legacy crash newest tower for peek at luxe life BY ERIK ENGQUIST NEW YORK, NEW YORK, P. 6 Mayor Michael Bloomberg can’t win for losing. His shocking replace- ment of Cathleen Black as schools BUSINESS LIVES chancellor was widely read as a sign that the mayor is willing to set aside his renowned loyalty to staff to salvage his legacy. But some condemned Mr. Bloomberg for his quick-trigger ap- pointment of Deputy Mayor Dennis Walcott to replace her—an example, they said,of the conceit that has soured many New Yorkers on the mayor. All agree that Mr. Bloomberg’s mayoralty has been battered, which raises the question of whether he can right the ship. His approval rating, GOTHAM GIGS See THIRD TIME on Page 24 Piano tuner to the stars getty images takes 5 requests P. 2 ● ANNE FISHER says the time may be right to sell your business P. 25 Stroller ● MOVERS & SHAKERS The Returnof Martha Bruce Ellig sounds off on executive pay P. 26 envy hits ● GAEL GREENE applauds David Burke Show P. 27 SEC’s 5-year ban ends this summer. It’s a good thing, because her company’s wilting the street INDEX ture, MSLO has come close to violating its loan Hundreds on waiting BY AARON ELSTEIN covenants twice in recent months. THE INSIDER _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _8 Ms. Stewart’s magazines remain highly regarded lists for tricked-out, NEIGHBORHOOD JOURNAL _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _9 This summer, Martha Stewart can return to rule and her cable TV show avidly watched, and her civ- $1,700 tot-mobile VIEWPOINT _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _10 her company after a five-year ban expires—and not il transgressions and criminal conviction were for- REAL ESTATE DEALS _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _12 a moment too soon. given long ago. But MSLO’s share price is down Since regulators barred the domestic-arts guru 75%, to about $3.65, since the Securities and Ex- BY ADRIANNE PASQUARELLI SMALL BUSINESS _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _13 CLASSIFIEDS from serving as CEO or director as part of the set- change Commission sent her to the penalty box in _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _22 tlement of her 2003 insider-trading case, Martha 2006; the value of her stake, worth $1 billion at its When Bugaboo unveiled its new HOT JOBS _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _25 Stewart Living Omnimedia has taken a terrible peak, has sunk to $100 million. stroller, the Donkey, at a recent red- EXECUTIVE MOVES _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _25 pounding. The company has made money only one “It’s a declining business,” said Steven Kiel, pres- carpet event, Leigh Doyle had her THE WEEK AHEAD _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _27 year since then and has piled up losses of nearly $200 ident of investment firm Arquitos Capital Manage- heart set on buying one. Unfazed by million. Further marring the once-immaculate pic- See MARTHA’S RETURN on Page 24 the starting price of $1,199,the expec- tant mother was especially eager be- cause she could use the device’s extra REPORT: TOP EMPLOYERS storage basket for her ailing 13-year- old Bichon Frise. A NEW LIST NYC’s 40 largest private and “It’s a trusted brand, and I like the public employers and their 850,000 local jobs way they look,” said Ms. Doyle, an ad sales executive who ended up on the P. 15 waiting list for the coveted object. “I NEWSPAPER PLUS How to survive CEO churn See STROLLER on Page 24 20110411-NEWS--0002,0003-NAT-CCI-CN_-- 4/8/2011 7:59 PM Page 1 COMMENTARY Walgreens tries A Condos e-commerce Rx Drugstore.com gives pharmaceuticals. vs. co-ops: “The purchase of Drugstore.com retailer 3 million by Walgreens is brilliant,” said Can- dace Corlett, president of shopping online shoppers and behavior consultancy WSL Strategic crass warfare an edge over rivals Retail. “More shoppers are buying DRUGSTORE.COM: A $429 million gamble commodities online, and that covers s the co-owner of three successive most of what Walgreens sells.” BY ADRIANNE PASQUARELLI cal next step,Mr.Zimmerman said.In Manhattan co-op apartments, I was Too little, too late? addition, Walgreens plans to keep heartened by last week’s Page Six items Walgreen Co. has a prescription Even so, some analysts wondered if Drugstore.com’s headquarters in on model-turned-TV star Tyra Banks for the malaise affecting the drugstore the purchase was too little,too late.The Bellevue, Wash., which will provide and Yankees captain Derek Jeter and industry—and it’s online. The Deer- chain, which has 303 namesake and the company with a West Coast pres- field, Ill.-based drugstore giant re- Duane Reade locations in New York ence, near the heart of the tech world. Atheir separate tussles with their condo neighbors over cently announced that it will acquire City, could have invested in e-com- While it expands its online strate- out-of-control construction. Maybe, I thought, this Drugstore.com Inc. for about $429 merce earlier,for less money,critics said. gy, Walgreens is hardly forsaking will be a wake-up call to whoever decided that con- million to help in its battle for greater In addition, Drugstore.com, despite its bricks and mortar. The company al- dos are worth 25% more than co-ops. market share. breadth of products and cus- ready cemented its New York pres- “This acquisition really tomers, is an unlikely tar- ence last year by purchasing Big Ap- Then came the deluge of zle) that characterize Man- solidifies our growth goals,” 303 get—the company has suf- ple player Duane Reade. Walgreens first-quarter apartment sales hattan’s best buildings, most said Robert Zimmerman, NUMBER of fered an annual net loss since now has 303 local namesake and Du- reports from our local realty of which are pre-World senior vice president and Walgreens and its 1998 inception, most re- ane Reade stores here—making it the powerhouses. Figures for in- War II vintage co-ops around chief strategy officer at Wal- Duane Reade cently reporting a shortfall of biggest player in the market.To boost ventory and median sales Central Park. Co-op buy- greens,adding,“What better $3.55 million in 2010. its business further, the company is prices are still depressed, but ers need “a different level URL than Drugstore.com is locations in NYC “We question the logic of adding new merchandise, from beer the reports contained a glim- of commitment,” said John there?” going out and buying an un- to more fresh food like salads, sand- mer of good news: There’s Burger of Brown Harris The deal allows Wal- successful company,” said wiches and edamame. been a sharp increase in co-op Stevens. greens to scoop up Drugstore.com’s Steven Halper, an analyst at Stifel closings. You can buy fashion. 3 million online shoppers, putting the Nicolaus.News of the deal did not faze Adding alcohol Prudential Douglas Elli- Style is something you earn. company a step ahead of rivals such as investors—Walgreens’ share price re- Of Walgreens’ 7,700 locations, man reports that None of this CVS Caremark and Rite Aid, and in a mained flat, hovering near $40.