Detroit Free Press from Detroit, Michigan • Page 147

2E DETROIT FREE PRESS FRIDAY, OCTOBER 2. 1S92 Michigan Memo Business People Jacohson downtown to leave Ami Arbor Court suit was filed by 118 former employees of the company's now-closed Elyria Fisher Guide plant The $10-million suit said GM misled workers about the status of two income security programs and about their own employment prospects in an effort to encourage them to take early buyouts ranging from $30,000 to $60,000. A GM spokesman declined comment. ON THE LIST: Chrysler Corp. Vice-chairman Robert Eaton is among 10 nominees for Design News mag- Dennis Curran has been promoted to national director at Arthur Andersen, Detroit.

He has held the title of senior manager since 1989 and retains his re- Curran sponsibilities as director of international trade and customs services. Curran joined Arthur Andersen as manager of international trade and customs services in 1985. Prior to that he was customs and drawback manager for American Motors Corp. Barbara Barrett has been named president of IronMark, Detroit, the marketing and public relations division of Pangborn Design a graphic design and corporate communications firm. Also at IronMark, Diana Zuppke has been appointed vice president, director of client services, and Karen Bednark has been promoted to marketing associate.

Ben Barreras has been promoted to branch manager in charge of General Business Systems division in East Lansing. He will move to Michigan from Irvine, where he worked as an sales manager, applications. Barreras has been with for 18 years, working in various sales r' SEU1NG OUT: Home Designs Furniture will begin liquidation sales at its remaining five stores by Oct. 27, after a U.S. Bankruptcy Court judge approved a deal to sell its inventory to two liquidating companies.

The liquidators will pay cash for the inventory estimated to be worth about $5 million and will pay 50 percent of profits from the liquidation sale, said attorney Paul Steinberg. The sales will be at Home Designs stores in Dearborn Heights, Warren, Southgate, Ponti-ac and Owosso over about six months. Customers who have deposits will be able to redeem their merchandise or use the deposits toward other goods. Alternatively, customers can file a claim with the bankruptcy court and receive refunds once the case is settled. About 1,700 customers have deposits totaling $100,000, Steinberg said.

Shareholder Suit: About 3,000 former shareholders of Wolverine Technologies Inc. will share in a settlement of a class action suit stemming from a 1988 takeover battle. A French conglomerate, Compagnie de Saint-Gobain, acquired the Dearborn-based manufacturer of vinyl siding for $84 million, or $23 per share, beating an earlier offer from another company. The class-action suit claimed neither offer was adequate. Under terms of the settlement, shareholders who sold their stock at $18.50 per share will receive $3.05 per share in damages; those who sold at the $23 price will receive 85 cents per share.

EX WORKERS SUE CM: More than 100 former General Motors Corp. workers have sued the automaker in Cleveland, saying Detroit-based GM misrepresented job security prospects to induce workers to accept buyouts. The U.S. District Borders, Waldenbooks link called a best-seller By Maryasne George Fm Ktpss Ann Arbor Bureau Downtown Ann Arbor was dealt a serious blow Thursday when Jacob-son's, the area's anchor retailer since 1924, announced it will move to Briar-wood Mall next summer. Mark Rosenfeld, Jacobson's president, said the company will move into the 100.000-square-foot Lord Taylor store at Briarwood, near 1-94 and State Street.

Rosenfeld said the company closed the deal Thursday morning with May Department Stores Co. in St. Louis, owner of Lord Taylor. Jacobson's will take possession of the store in January, he said. Reuben Bergman, coordinator of Ann Arbor's Downtown Development Authority, which has spent about $18.5 million on parking structures and street improvements in the downtown area since 1982, said the announcement was a "very sad day for Ann Arbor.

"Downtown is very fragile and under pressure from malls," Bergman said. "I don't like it, I don't want to see them leave." Jacobson's move had been rumored since spring of 1990 when Rosenfeld first said the company was considering leaving downtown because of concerns about parking and security near its store at Maynard and Liberty streets. Rosenfeld said he was first approached by May officials to buy the Boblo Island park lays off BY MICHELE CHANDLER Free Press Business Writer The Boblo Island amusement park, up for sale since February and coming off a tough season, is close to being sold and has laid off more than a dozen of its year-round workers to cut costs. David Brown, Boblo's general manager said formal purchase offers may be submitted as early as next week. "I expect things to happen real quick," Brown said.

"We are very close with several parties. I feel they are very promising." One reason for the interest may be that the amusement park's asking price has been sliced from the original $9 million. Brown declined to say how much IBC is asking now; others involved with the sale peg the new price at anywhere from $3 million to $7 million. Four Americans and one Canadian are in purchase talks with Boblo's bankrupt parent company, International Broadcasting Corp. of Minneapolis.

IBC, an entertainment conglomerate that owns the Ice Capades, filed for Chapter 11 bankruptcy last year. Because of that, even if a deal is struck next week it would have to be approved by the bankruptcy court in Minnesota. Under bankruptcy rules, the judge could order Boblo to be auctioned to the highest bidder. Buyers have been elusive for Boblo, which completed its 95th season on Sept. 13.

Earlier this year, three indi I Im CI Briarwood Lord Taylor store in 1989. But senous talks didn't begin until June. Rosenfeld wouldn't say what the company paid for the store. Trying to keep Jacobson's downtown, city officials have scrambled to clean up vagrants and poured $2.5 million into the 786-space parking structure on Maynard Street next to the Jacobson's building. But in the end, Rosenfeld said market research showing that their customers had shifted to Briarwood and an attractive offer on the Lord Taylor building influenced the decision to move.

"Parking in Ann Arbor caused us to look at other alternatives," Rosenfeld said. "But the city has been very responsive. This market really has shifted and if we wanted to be part of that regional market we had to go to Briarwood." He said sales have been falling off downtown in the last few years. Rosenfeld said he would work with city officials to find a new use for the building. Jacobson's owns half of the foot building and leases the rest.

Roger Hewitt, treasurer of the State Street Area Association and co-owner of the Red Hawk Bar Grill, said Jacobson's exodus will cause some other retailers with similar clientele to leave. sale near; workers viduals submitted offers to purchase the 240-acre island with three roller coasters and 29 other rides. But those proposals were rejected. One deal collapsed because IBC wanted cash for Boblo, while the buyer wanted mortgage financing, said Tom O'Brien, the Canadian real estate broker who has handled Boblo's sale effort. While awaiting the latest round of purchase talks, the park continued to cut costs, laying off 15 year-round maintenance and sales workers.

The park normally has about three dozen such employees. Brown said the layoffs were needed to "tighten up the purse strings a little bit." The sale talks and layoffs come in the wake of a poor season. Some potential purchasers were curious to see how Boblo's summer 1992 attendance panned out, since this season was the first without the two historic steamships that ferried more than half of Boblo's 515,000 visitors from downtown Detroit last year. Without the big boats, Boblo's attendance was expected to sink to 400,000. Attendance was "substantially lower" than that, Brown said, due to soggy, cold weather.

He declined to release attendance or financial results until next week but said: "It was the worst summer. When it wasn't raining, it was cold, gray and overcast and rain was in the forecast." 0TC Barrett Zuppke Bednark Barreras and service assignments. Also Appointed: Michael Kelly, Eileen O'Neill, Ken Payne and Sue Schmelzer to senior directors, association services, at the Michigan Credit Union League, South-field, the primary trade association representing credit unions in Michigan. Gerald Curtin to assistant district sales manager, Detroit sales office, LTV Steel. Delmar Templeton to district sales manager, Universal Standard Medical Laboratories Southfield.

Compiled by Harriet Monticello years has largely been accomplished through acquisitions, including OfficeMax, Sports Authority, Builders Square and PACE. Tom Tashjian, an analyst with First Manhattan, speculated that Borders' management would stay on under the deal and Kmart would pay for the acquisition out of the chain's profits. "I've heard that Borders' management is pretty sharp," he said. Waldenbooks and Borders could help each other in the battle against industry leader Barnes Noble, which is aggressively opening superstores, said John Glazer of Little Professor Book Centers an Ann Arbor-based chain of franchised bookstores. "Watching Barnes Noble's hardball move for market share, you get the feeling that Borders is the target," Glazer said, citing Barnes Noble superstores in proximity to Borders stores in Philadelphia, Chicago and Columbus, Ohio.

Barnes Noble has 1,400 stores, of which 70 are superstores, and the expansion will continue. Earlier this week, the company said it was abandoning a proposed initial public offering, instead raising $100 million through a private equity sale. Borders, founded 21 years ago in Ann Arbor, in August filed for a public stock offering to raise about $50 million. ii cm ii im imtn ffc i BCCI regulation lax, Senate report says kk. aanes tngineer of the Year award.

1 Eaton. who jumped to Chrysler from General Motors Corp. this year, rose through GM's engineering ranks to head the profit- Eaton able GM Europe, the magazine noted. The winner, to be chosen by the magazine's readers, is to be honored at Chicago-based Design News' annual awards dinner March 9. ON THE BLOCK: Galligan's Tavern, at East Jefferson and Beaubien in Detroit, is getting lots of callers casually interested in buying the bar, but no firm offers.

Owner Owen Galligan last week decided to close the 12-year-old bar because of declining sales, after he was unable to come up with additional financing. He said sales last weekend were less than half of sales on an average Friday night during the bar's heyday in 1986. EARNINGS: Howell Industries Southfield, year ended July 31. Net income, $2,032,387 $1,538,062 Revenue, $39,434,334 vs. $36,466,937.

Herman Miller Zeeiand, quarter ender Aug. 29. Net income, $2,409,000 (10 cents) vs. net loss, $5,757,000 (22 cents). Revenue, $199,596,000 vs.

$184,634,000. It said BCCl's crimes included billions of dollars in fraud by the bank and its customers, money laundering, bribery, support of terrorism, arms trafficking, prostitution, income tax evasion "and a panoply of financial crimes limited only by the imagination of its officers and customers." "BCCI constituted international crimes of a level that boggles the mind," subcommittee Chairman John Kerry, said at a news conference. pare them for the state barber license exam. The students practice on a pool of several hundred Lansing-area customers who get haircuts at the bargain price of $4 a head. One of them, Rick White, 44, a Lansing salesman who has been getting haircuts at the school and its predecessor for 10 years, says he's never gotten a bad one.

"Other barbershops cost twice as much and you're in and out of the chair in 10 or 12 minutes," he says. "At the school, you're in the chair for 40 or 50 minutes. I enjoy sitting in the chair. It's relaxing." Frank Hinderleider, an Alma barber and secretary-treasurer of the State Barbers Association, says Michigan barbers typically charge $6 to $10 for a haircut and make $15,000 to $30,000 a year in a job whose main attribute is that it's steady work. "Anybody tells me they can't find a job, I tell 'em to go to barber school," he says.

"I don't make much money but I'm my own boss and don't have to worry about being fired." Reuters WASHINGTON Lax regulation by U.S. agencies, the Bank of England and others let the Bank of Credit and Commerce International get away with money laundering, fraud and other crimes for years, a Senate report said Thursday. The 800-page report by the Senate terrorism, narcotics and international operations subcommittee said BCCI used bribery and corruption in many of the 73 countries where it operated. Bookstores from Page IE ing to raise cash to grow," said retail analyst Walter Loeb. "They would make a phenomenal combination." It's unclear how much Waldenbooks is willing to pay, but in its recent filing with the Securities and Exchange Commission, Borders valued itself at up to $190 million.

Employees and customers were more circumspect. "I can't say I'm thrilled to become part of Waldenbooks," said one employee, who asked not to be identified. Ann Marie Taylor, an Ann Arbor resident and frequent shopper at Borders, agreed. "I shop there because it doesn't feel like a chain," Taylor said. Waldenbooks, with 1,300 stores and sales of $1.06 billion last year, dwarfs Borders in size.

Borders' sales more than tripled over the past three years, reaching $101.2 million for the year ended March 29. But Loeb said Borders might not change drastically under Waldenbooks. "Kmart has made many acquisitions and they let each have its own individual management and structure," he said. He predicted that Waldenbooks would convert its own three Basset superstores to Borders. Kmart's growth over the last six MUTUAL FUNDS in 6t in- 01 I0SI 93 1311- 1411- Mull CKT'lti CjMfiGm CaG'i IIIS 1411- PkiId Pko IIJI Shorter hairstyles increase demand, work for barhers Jhatbi.

1014 4 .01 14 OS ion 4 ii 1037 4 01 BARBERS from Page IE metologists, who are also haircutting specialists and could conceivably take up any slack left by the barbers. But Lyle Johnson, a regulation officer in the Commerce Department's Bureau of Occupational and Professional Regulation, says cosmetologists typically need added training to clip short hair. "If you have hair 10 inches long and you make a mistake by half an inch, you'd never see it," he says. "But with short hair, if you make a 16th-of-an-inch mistake, it's going to show. Everybody learns everything today at the barber and cosmetology schools but the question is: How much do they get of it?" The Barber-Styling College of Lansing, which opened only three months ago, has 11 students, about nine fewer than it needs to break even, Lupu says.

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