Crain's Chicago Business articles from February 2009

Crain's Chicago Business archives from February 2009

Hospitals slip Madigan's net; Panel's watered-down charity care decision another setback for AG.(hospitals on acquisitions and capital spending)
February 2, 2009... Byline: MIKE COLIAS Illinois hospitals have blocked another effort by Attorney General Lisa Madigan to force them to pay more toward care for the needy. Last month, a blue-ribbon panel created by the state Legislature to overhaul...

Wrigley paring executive ranks; HQ staff cut 10% as top brass exits in wake of sale to Mars.(News)
February 2, 2009... Byline: DAVID STERRETT Wm. Wrigley Jr. Co. is jettisoning 10% of its Chicago-based corporate headquarters staff, its first major job cuts since Mars Inc. acquired the gum maker for $22 billion last fall. Plans to eliminate about 100...

More warehouses empty; With businesses in less need of storage space, vacancy at 15-year high.(real estate vacancies )
February 2, 2009... Byline: EDDIE BAEB Industrial real estate vacancies in the Chicago area hit a 15-year high at the end of 2008 as the recession stifled demand for storage, leaving many recently built warehouses empty. The vacancy rate for warehouse and...

Decades of trust end in suit over $6 million.(Brief article)
February 2, 2009... Byline: Shia Kapos While the dark works of Eugene O'Neill play out in Chicago theaters, a real family drama of alleged greed and betrayal is playing out in Lake County. Family members of Sig Feiger, founder of Morton Grove-based...

Ring cycle; COSTS OF STAGING OLYMPICS RISE WHILE POTENTIAL BENEFITS TO CITY DECLINE.(International Olympic Committee plan for budget)
February 2, 2009... Byline: Greg Hinz A professional Olympics basher of sorts was due in town over the weekend. Chris Shaw, a civic activist from Vancouver who fought that city's decision to host the 2010 Winter Games, says none of the promises made...

Stimulus has local biz salivating; Boeing, Moto, others eye slice of federal pie.(News)
February 2, 2009... Byline: PAUL MERRION Some of Chicago's biggest companies are jumping into the corporate lobbying frenzy for a piece of President Barack Obama's stimulus package. With more than $800 billion on the table for infrastructure spending and...

Banks boost lending fees; Mortgage application charges double; more consumers rejected.(News)
February 2, 2009... Byline: STEVE DANIELS With demand for mortgage refinancing soaring and rejections more common, big banks now dominating the home-loan business are hiking application fees. Chicago's three largest banks-J. P. Morgan Chase & Co., Bank...

RYAN'S HOPE; Olympics pitch faces economic turmoil, local unrest; can he dazzle and reassure?(insurance broker Patrick Ryan manages finance with International Olympic Committee for Olympics)
February 2, 2009... Byline: JOHN PLETZ Patrick Ryan is facing the biggest sales pitch of his life. The 71-year-old insurance broker who heads Chicago's Olympics bid team must convince the International Olympic Committee that the city can pull off a...

Sellers starting to blink on price; Multiples begin to shrink as recession deepens.(price fluctuations in business deals)
February 2, 2009... Byline: H. LEE MURPHY Sellers seem finally to be swallowing hard and accepting lower prices for their businesses after months of a deal-making deep freeze. A year ago, acquisitions were typically priced at seven to eight times earnings...

Former top prosecutor back at defense table.
February 2, 2009... Byline: Paul Merrion Job: Partner, Chicago-based law firm Meckler Bulger Tilson Marick & Pearson LLP, since December. Vitals: 65 years old; bachelor's degree in history, Loyola University of Chicago, 1966; juris doctor degree,...

On the Move.(Glen Walters joins as vice president)(Jill Seijo joins Community Bank Wheaton)(Michael D. Holmes joins in St. James hospital and health centres )
February 2, 2009... CONSUMER SERVICES COCA-COLA ENTERPRISES INC., Atlanta: Glen Walters, 40, to vice-president and general manager for the Central business unit, in Chicago, from president at Labatt USA in St. Louis. FINANCIAL SERVICES COMMUNITY BANK...

Tax hikes no cure for state's fiscal ailments.(budget deficit)
February 2, 2009... With Rod Blagojevich out of the way, Illinois leaders must turn immediately to solving the state's fiscal crisis. Illinois faces a $4-billion deficit, and new Gov. Patrick Quinn will have just 30 days to submit a budget plan to close the...

Despite the dip, still a few signs of life in market.(Brief article)
February 2, 2009... Byline: H. LEE MURPHY Merger volume has been in free fall-down 53% in the fourth quarter-but deals are still getting done. Food and beverage, aerospace and defense, health care and business services are pockets of relative strength....

Loop foreclosure looms; First office loan default since 1999 looks likely.
February 2, 2009... Byline: THOMAS A. CORFMAN A once high-flying New York real estate investment firm must pay off a $48.5-million loan on 500 W. Monroe St. next week or face the first foreclosure on a downtown skyscraper in a decade. If Broadway Partners...

Westell's new chief walking into a maelstrom; Investors riled by ailing stock, ballooning losses.(Westell Technologies Inc chief executive officers Richard Gilbert manages investor relations)
February 2, 2009... Byline: H. LEE MURPHY Westell Technologies Inc.'s next CEO inherits both a company reeling from a deep telecommunications slump and increasingly angry shareholders. On Feb. 23, Silicon Valley veteran Richard Gilbert is slated to take...

LITTELFUSE SHORT-CIRCUITS; As shares sag amid auto industry free fall, local electronics supplier seeks jolt from acquisitions.(management of Gordon Hunter Chief executive officer of Littelfuse Inc)
February 2, 2009... Byline: H. LEE MURPHY Littelfuse Inc. CEO Gordon Hunter is trying to escape an auto industry slide that's helped drive his company's share value down nearly 50% in the past year. Des Plaines-based Littelfuse is under pressure from...

Power play for new guv; Quinn's utility regulator choice may jolt ComEd.(American governor Pat Quinn seek tax reform)
February 9, 2009... Byline: STEVE DANIELS With a new Illinois governor, Commonwealth Edison Co., Peoples Gas and other big utilities stand to lose more juice. Gov. Pat Quinn, a longtime utility foe, has taken office at a time when ComEd and Peoples Gas...

People.(Alfred Benesch and Co. joins to president John Carrato)(CB Richard Ellis Inc joins Christopher Reynolds joins as executive vice-president)
February 9, 2009... ARCHITECTURE/ENGINEERING ALFRED BENESCH & CO., Chicago: John Carrato, 52, to president and CEO, from senior vice-president. Also, Kevin Fitzpatrick, 46, to Chicago division manager, from Chicago division construction group manager, and Dan...

Grab your wallet; GUV SAYS STATE CAN'T CUT ITS WAY OUT OF FISCAL CRISIS; PUTS TAX HIKE ON THE TABLE.(American governor Pat Quinn speaks about fiscal issues)
February 9, 2009... Byline: Greg Hinz "Nobody likes paying taxes. However, that's the price of living in a democracy.'' That candid admission seems to be the bottom line from Pat Quinn, Illinois' new governor, who was gracious enough to grant me a...

Local companies boost lobbying; Kraft, Boeing increase Washington spending.(News)
February 9, 2009... Byline: PAUL MERRION Two of the state's biggest companies cranked up the volume on opposite sides of the food-vs.-fuel debate in Washington, D.C., last year. Lobbying expenditures at Decatur-based Archer Daniels Midland Co. were up...

In survivor game, go with cash kitties; A conversation with money manager thomas Zimmerman.(Spark Capital Management)(Interview)
February 9, 2009... Byline: Steve Daniels Thomas Zimmerman, 51, assistant portfolio manager, Spark Capital Management, Chicago Experience: 28 years Assets under management: $7.5 million CRAIN'S: Your fund produced a 3.7% gain last year, partly...

STAGE FRIGHT; Storefront theaters struggle as donations, box-office sales fall.(American Theatre Co)
February 9, 2009... Byline: MONEE FIELDS-WHITE At American Theatre Co., the top officers at the North Side playhouse tear down stage sets. A Red Orchid Theatre in Old Town is saving money by staging a one-woman show. And the critically acclaimed Chicago...

Taking the long view at Egon Zehnder.(People)
February 9, 2009... Byline: Monee Fields-White Job: Chicago office leader, executive search firm Egon Zehnder International A.G., since January. Vitals: 45 years old; bachelor's of science in chemical engineering, University of Wisconsin-Madison, 1986;...

Wealthy hospitals owe their health to 'safety nets'.(health care reform)
February 9, 2009... Hospital lobbyists high-fiving over their latest victory in Springfield had better hold their elation in check. Yes, they smacked down another attempt by Illinois Attorney General Lisa Madigan to force wealthy hospitals to pay more toward...

Daley's CHA dream deferred; Real estate slide stalls push for economically diverse communities.(Chicago Housing Authority)
February 9, 2009... Byline: THOMAS A. CORFMAN The worst housing market since the Great Depression threatens Mayor Richard M. Daley's vision of converting the city's once-notorious public housing into a glittering model of mixed-income communities. After...

Public-safety unit eases Motorola's pain; Police radio business faces recession squeeze.(News)
February 9, 2009... Byline: JOHN PLETZ Motorola Inc. co-CEO Gregory Brown is counting more than ever on public-safety equipment, the company's oldest and most profitable unit, for a rescue. Profit from selling two-way radios and other equipment to police...

CANNING: LET'S GET SMALL; Private-equity firm drops hunt for big-debt deals; can it still bring big returns?
February 9, 2009... Byline: ANN SAPHIR John Canning is lowering his sights-but not his expectations. Closed out of debt markets and facing a dearth of multibillion-dollar deals, the chairman of Madison Dearborn Partners LLC is abandoning the high-flying...

Striving singles rethink wish lists in a recession.(social impact of recession trend)(Brief article)
February 9, 2009... Byline: Shia Kapos Men's status as the breadwinner is under attack, forcing single executives to reconsider how they approach romance. With more women putting "a job'' at the top of their list of requirements for a partner, men are...

McD's coffee blitz; Ad campaign to start in May; will pricey drinks play in a recession?(News)
February 9, 2009... Byline: DAVID STERRETT McDonald's Corp.'s drive into fancy coffee drinks will kick in to high gear in May with the launch of a nationwide advertising blitz, according to internal documents obtained by Crain's. The campaign will mark a...

U of C loses top heart doc to Atlanta; Defection deletes advantage over NW.(surgeon Sudhir Srivastava leaves University of Chicago Medical Center )
February 9, 2009... Byline: MIKE COLIAS A pioneering heart surgeon is leaving the University of Chicago Medical Center just 18 months after his arrival, a blow to the hospital's bid to dominate the fiercely competitive local market for cardiac care. ...

A more union-friendly world; Even if 'card-check' bill doesn't become law, small-biz owners need to adjust to a new reality.(Focus: Small Business)(Correction notice)
February 9, 2009... Byline: CHRISTINA LE BEAU ***** Correction: Bryan Cave LLP partner Jules Crystal believes the Employee Free Choice Act could shorten the time between a union petition and election by a week or so. A Feb. 9 Focus story misstated the...

Civility gap; POLITICIANS WILL EMBRACE BIPARTISANSHIP WHEN IT'S IN THEIR POLITICAL INTEREST.
February 16, 2009... Byline: Greg Hinz It's tempting to summon the drummers and buglers for the funeral. Bipartisanship, the great hope of the Barack Obama presidency, is dead and buried, killed in an avalanche of stimulus-bill politics, the eulogy would...

SHIFTING GEARS AT THE PLANT; Factory future lies in flexibility, diversification.
February 16, 2009... Byline: JOHN PLETZ It didn't take Louis Ertel long to figure out why Overton Gear Corp. was losing money. Scanning the company's order books after interviewing for the CEO job, he saw that the 53-year-old gear manufacturer had fallen...

CME takes fight to Washington; Chicago exchange trying to head off additional oversight.(News)
February 16, 2009... Byline: ANN SAPHIR AND PAUL MERRION CME Group Inc. execs are working feverishly to shape what's expected to be the biggest overhaul of financial services regulation in decades. CEO Craig Donohue, Executive Chairman Terrence Duffy and...

On the Move.(Jon Boyd joins as chairman)(Victor P. Carapella joins as executive vice-president)(David Meek joins as counsellor in Foley & Lardner LLP)
February 16, 2009... ARCHITECTURE/ENGINEERING KLEIN & HOFFMAN INC., Chicago: Jon Boyd, 56, to chairman and CEO, from executive vice-president. EDUCATION KAPLAN INC., New York: Jeffrey J. Conlon, 43, to president of Kaplan Higher Education, in Chicago,...

ADM SPRINGS A LEAK; Ethanol, once 20% of company's profit, will depress bottom line in '09.(Markets)(Financial report)
February 16, 2009... Byline: DAVID STERRETT Archer Daniels Midland Co.'s stock rebound is running out of gas. Following an 89% surge from October through December, ADM's shares have dropped 1% to $28.56 on a bleak outlook for corn-based ethanol. After...

PRESCRIPTION: SELL PRACTICE; Recession, falling revenue have local physicians considering sales of their practices to big hospital systems, giving up autonomy for financial security.(News)
February 16, 2009... The ailing economy hasn't slowed Visalakshi Vallury's bustling family practice on the Southwest Side of Chicago, where she still treats up to 35 patients a day. But there's been a key difference lately: More customers are stiffing her. ...

Boutiques boxed in; 'Catch-22' as vendors refuse to sell on credit.
February 16, 2009... Byline: MONEE FIELDS-WHITE Already battered by slumping sales, Chicago boutiques are under pressure from another source: their suppliers. From Oak Street to Armitage Avenue to Bucktown, storefront retailers say designers and...

City, state must get act together for stimulus cash.(Viewpoint essay)
February 16, 2009... Like job-seekers lined up at a hiring fair, suits pressed and shoes shined, states and cities are ready to make a good impression on the federal bureaucrats handing out billions in economic stimulus money. Illinois and Chicago, however, are...

Integrating Condell into Advocate family.(People)
February 16, 2009... Byline: Mike Colias Job: President of Advocate Condell Medical Center in Libertyville (recently acquired by Advocate Health Care), since Jan. 26. Vitals: 54 years old; bachelor's of science, Fordham University, 1976; medical degree,...

Credit crunch hits office park; Glenview venture's bind shows times are tough for suburban projects, too.(News)
February 16, 2009... Byline: EDDIE BAEB One of the biggest suburban developments in years is struggling to get financing, even with a major pharmaceutical company in line to anchor the planned $200-million office and retail complex. Japanese drugmaker...

Banks closer to the brink; As loans go bad, reserves stay low; are more failures ahead?(News)
February 16, 2009... Byline: STEVE DANIELS Local banks' cushion to absorb losses is shrinking fast, pushing a growing number to the point where they must raise additional capital or face the prospect of failure. At the end of 2008, 16 local banks had bad...

BUYING HEALTH STOCKS IN A SICK ECONOMY; A CONVERSATION WITH MONEY MANAGER MARK SOEHN.(Financial Solutions Advisory Group Inc.)(Interview)(Brief article)
February 16, 2009... Byline: Monee Fields-White Mark Soehn, 38, principal and managing director, Financial Solutions Advisory Group Inc., Chicago Experience: 13 years Assets under management: $140 million CRAIN'S: What's your outlook? MR....

Outsourcing is in; Specialists angle for biz as big firms cut headcount.
February 16, 2009... Byline: DANIEL ROME LEVINE Lawyers are increasingly turning to outsiders for help-because their firms are either trimming in-house staff as billings shrink, or because they're flooded with work generated by the economic downturn. ...

Correction.(Corrections)(Correction notice)
February 16, 2009... Bryan Cave LLP partner Jules Crystal believes the Employee Free Choice Act could shorten the time between a union petition and election by a week or so. A Feb. 9 Focus story misstated the time frame.

Thain's past tussles: wrestling in Illinois.(Chief executive officer John Thain)(Brief article)
February 16, 2009... Byline: Shia Kapos John Thain, the ousted CEO of Bank of America's Merrill Lynch unit, has been on the mat before. The executive, who resigned after revelations that he wasn't forthcoming about financial losses or his office-...

Race to finish Oscar film lists.(Brief article)
February 16, 2009... Byline: Crystal Yednak It's marathon time for Chicagoans, fueled by popcorn and giant sodas while trying to see all the Oscar-nominated movies before Sunday's ceremony. Ellen Sandor, chairman of the Siskel Film Center board, and her...

Even with Blago's ouster, state GOP faces uphill battle.
February 16, 2009... Byline: Paul Green Paul Green is a political commentator and director of the Institute for Politics at Roosevelt University in Chicago. Now that the traveling circus of Illinois' disgraced and deposed former governor, Rod Blagojevich,...

Lateral moves on rise as rainmakers jump; Trend watch.(Correction notice)
February 16, 2009... Byline: Steven R. Strahler ***** Correction: Law firm Much Shelist Denenberg Ament & Rubenstein P.C. was misidentified in a Feb. 16 story. William Quinlan, a former Illinois Appellate Court judge who joined the firm in October, was...

Fine dining loses ground in the suburbs.(Brief article)
February 23, 2009... Byline: H. Lee Murphy Suburban fine-dining restaurants have been early casualties of the recession, leaving business-minded diners with fewer choices. Recent closings include Isabella's Estiatorio in Geneva, Haussmann Brasserie in...

What You Said...(Brief article)
February 23, 2009... Crain's asked readers on ChicagoBusiness.com to share their favorite restaurants. Here are some of their comments. 312 Chicago. Lunches at 312 are relaxed-not too rushed, not too drawn out. The food is always fresh, and the menu always...

When a cause cools, backers get creative.(Brief article)
February 23, 2009... Byline: Shia Kapos Charity work is difficult enough these days, but it's really an uphill battle when the urgency of the cause seems to have abated. That's what supporters of AIDS/HIV-related causes say about what was once the...

LIENING ON McLEAN; once a star developer, daniel mclean is now besieged by angry lenders and investors; will his reputation recover?(News)
February 23, 2009... Byline: THOMAS A. CORFMAN Facing down a 2006 fraud lawsuit by business partner Thomas Tully, condominium builder Daniel McLean belittled the case. "This is peanuts. This is nothing,'' Mr. McLean said, according to a deposition...

On the Move.(Kaplan Higher Education School of Nursing)(BMO Financial Group)(Rush University Medical Center)
February 23, 2009... EDUCATION KAPLAN HIGHER EDUCATION, Fort Lauderdale, Fla.: John Danaher, 50, to president of Kaplan Higher Education School of Nursing, in Chicago, from executive vice-president at HowStuffWorks Inc. ROSALIND FRANKLIN UNIVERSITY OF...

Jewel spruces up to fight Wal-Mart; Chicago's biggest grocery chain spends millions to remodel.(News)
February 23, 2009... Byline: DAVID STERRETT Jewel-Osco's owner is spending tens of millions of dollars to spiff up stores and defend its turf from Wal-Mart Stores Inc. Supervalu Inc. will spend as much as $125 million in the next year to remodel 25 local...

CORRECTION.(News)(Correction notice)
February 23, 2009... Law firm Much Shelist Denenberg Ament & Rubenstein P.C. was misidentified in a Feb. 16 story. William Quinlan, a former Illinois Appellate Court judge who joined the firm in October, was misidentified as a former general counsel to ex-Gov. Rod...

A fresh start; NEW STATE SENATE PRESIDENT CULLERTON BRINGS WELCOME CHANGE OF TONE TO SPRINGFIELD.
February 23, 2009... Byline: Greg Hinz After a week in which Roland Burris seemed determined to follow Rod Blagojevich down the road to ruin, I'm reluctant to say anything good about any Illinois pol. Dummies 'R' Us ought to be their mantra. But, much as...

Electric rates set to fall; Market prices indicate auction next month could cut costs 9.
February 23, 2009... Byline: STEVE DANIELS Commonwealth Edison Co. customers could see some rare good news this summer: a big drop in their electric rates. With power prices at their lowest since 2002, the Illinois Power Agency, established in the state's...

This Investor not betting on stimulus plan yet; A CONVERSATION WITH MONEY MANAGER ERIC McKISSACK.(Channing Capital Management LLC)(Interview)(Brief article)
February 23, 2009... Byline: John Pletz Eric McKissack, 55, CEO and chief investment officer, Channing Capital Management LLC, Chicago Experience: 28 years Assets under management: $488 million CRAIN'S: Does the stimulus bill provide any investing...

Stingier severance adds to workers' woes; Parting pay tumbles as firms shed more jobs.
February 23, 2009... Byline: JOHN PLETZ With layoffs on the rise, companies are looking to cut the cost of firing workers. Some, like Tribune Co., are reducing their formulas for calculating severance pay, offering one week of compensation for each year of...

'Zombie banks' threaten nation's economic health.
February 23, 2009... As Stuart Smalley said, "Denial ain't just a river in Egypt.'' In fact, denial is written all over the balance sheets of several local banks. Despite rising delinquencies in their loan portfolios, they haven't boosted reserves to cover the...

Pushing KemperSports to expand its turf.(People)
February 23, 2009... Byline: David Sterrett Job: Senior vice-president, KemperSports, Northbrook-based sports marketing and golf course management firm, since Jan. 14. Vitals: 49 years old; bachelor's degree in marketing, University of Notre Dame, South...

THAT EMPTY FEELING; Jones Lang's stock plunged on worries about the office real estate market; can Roger Staubach throw a Hail Mary and save the Chicago firm?
February 23, 2009... Byline: Eddie Baeb Jones Lang LaSalle Inc. is looking to legendary quarterback Roger Staubach, credited with coining the term "Hail Mary pass,'' to help revive the company's battered stock price. Chicago-based Jones Lang bought Mr....

Stimulus cash softens blow; But federal spending won't pull Illinois out of economic slump.(Government spending policy)
February 23, 2009... Byline: PAUL MERRION AND MONEE FIELDS-WHITE Money from the $789-billion federal stimulus package approved last week will ease, but not erase, the impact of the recession on Illinois' $609-billion economy and nearly 6 million workers. A...

Next stop: no gas; Finding place to fill up will be even harder if Shell sells N. Side sites.
February 23, 2009... Byline: H. LEE MURPHY Drivers will have an even harder time finding a North Side gas station if Houston-based Shell Oil Co. succeeds in selling five prime locations. Shell has signed contracts to sell stations in River North, Old...