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Debating living wage: It sounded like a done deal yesterday, but the compromise on extending the city's living wage ordinance to LAX-area hotels remains, as LA Chamber hotshot David Fleming put it, "a work in progress." As part of the agreement, the City Council is supposed to prep new legislation more palatable to business groups, but there's been nothing even drafted so far. The lengthy LAT story suggests that labor makes out nicely, with the revised law still extending the living wage to the same dozen hotels. But under the new plan, any further expansion of the living wage would require some sort of study on the potential economic impacts. That sounds like a big stumbling block to me.
Grand Avenue vote: The Community Redevelopment Agency considers the Frank Gehry-designed makeover, another step in the lengthy approval process. After the CRA comes the City Council, which must sign off on $40 million in parking and hotel tax breaks that the developer says are required to make the project pencil out. The $2 billion revitalization effort, which has been pushed by philanthropist Eli Broad, is being financed mostly by private money. So far, according to the lengthy LAT story, $4.2 million in public seed money has been spent on the plan.
Record-setting: Exxon Mobil reported this morning that it earned $39.5 billion in 2006, the largest annual profit ever for an American company. Fourth-quarter earnings, however, were down - as they've been at the other major oil companies. NYT
Barneys in stock?: The NY Post reports that Jones Apparel Group is talking about a potential break-up of the company, which would include an IPO for Barneys. Investment bankers at Goldman Sachs and Citigroup are looking at various options. Barneys, with locations in NY as well as Bev Hills, could be worth as much as $1.2 billion, which would be quite a boost over the $400 million that Jones paid for the chain in 2004.
Fashion sense: This might not go over well in jean-and-T-shirt happy Socal, but next fall's fashions will focus on defined shapes and tailored cuts. Among the big looks, according to the WSJ, is an egg-like "cocoon" that's fitted at the top and balloons out before tapering back in at the knee (sounds perfect for the beach). The style, which apparently is hard for some women to wear, goes all the way back to the 1910s. From the WSJ:
Other styles to look for during the week include high-waisted skirts; full, structured sleeves; and pants and coats with wide collars in the style of Jacqueline Kennedy's wardrobe. Some of the tailored looks are a touch sporty -- Michael Kors is offering a piece that resembles a polished parka. Colors promise to be rich and deep, such as navy blue, forest green and magenta. By showing collections that focus on couture-like shapes and fine tailoring, designers are elevating their offerings at a time when they're under more pressure to design apparel that sets them apart from inexpensive fast-fashion retailers such as H&M and Zara that have become increasingly adept at creating inexpensive versions of high-fashion pieces. Highly structured shapes, for example, may be harder for mass retailers to replicate successfully.
Raking in the dough: Wetzel's Pretzels, the Pasadena-based bakery chain, has been sold for an undisclosed price to Levine Leichtman Capital Partners, an L.A.-based private equity firm. Sellers are an investor group that includes film producer John Davis, entertainment lawyer Jake Bloom and Northwest Airlines Chairman Gary Wilson. The group bought Wetzel's in 1997 and their investment has increased elevenfold since 1997. No purchase price was released. LAT
Mark Lacter created the LA Biz Observed blog in 2006. He posted
until the day before his death on Nov. 13, 2013.