The Cincinnati Enquirer from Cincinnati, Ohio • Page 57

THE CINCINNATI ENQUIRER El Manufacturing Cincom Systems is aiming at a small-company crowd with its resource planning software for manufacturers. Industry notesC8 Page Worth noting: Cooling refy market The average rate on 30-year, fixed-rate mortgages jumped this week to 7.19 percent, taking the edge off a boomlet in mortgage refinancing, mortgage bankers say. Business Editor: Mark Ivancic, 768-8477; Fax: 768-8330 Friday March 6, 1998 nTur TR1STATE Credit-repair firms target of probe iUMMARY Restrictions under the law Must give consumers a three-day "cooling-off" period or right to cancel any agreement they sign with the organization. Make void any contract between a consumer and a credit-repair organization that doesn't comply with the law. Cannot make deceptive claims about credit repair services.

Source: Federal Trade Commission The complaint against Mr. Reiber and his company seeks an injunction and fines against the business, as well as restitution for clients since the Credit Repair Organization Act (CROA) took effect in April 1997. The CROA sharply restricts the activities of credit repair firms. Some other companies in the crackdown are accused of advising consumers to use false Social Security numbers, which would be a felony. Howard Shapiro, an FTC spokesman, said the cases filed in the crackdown were an effort to stop the suspected fraud while the government investigates the companies.

ney's office is seeking an injunction to force Credit Report Counselors and its owner, Mark Reiber, to quit making such claims and to return to its customers money that it charged to "repair" their credit The civil action is part of "Operation Eraser," a joint effort between the FTC and several states. The crackdown targeted 31 businesses that promise consumers, among other things, that they can repair their credit for a fee. The FTC contends that no one can remove accurate negative information from a credit report Mr. Reiber, reached at his Cincinnati office Thursday, said the FTC's claims are unfounded and that the agency is bend- don't wield such power. "We do agree with the attorneys general and the FTC and with others that those operators unfairly take advantage of consumers when they can least afford it," he said.

Credit Report Counselors is one of 31 BY PERRY BROTHERS The Cincinnati Enquirer The Federal Trade Commission and 13 states are seeking injunctions against more than 30 credit-repair companies including one in Cincinnati that it claims are cheating consumers out of hundreds, even thousands, of dollars. The FTC says the companies improperly tell consumers that for a fee they can remove negative information from clients' credit reports. In Cincinnati, the U.S. Attor MA ui Cintas to acquire Chicago company tfAStOl afZBBt: Hiswr, antaaaaaiaaliiiiii BYGUYBOULTON The Cincinnati Enquirer Cintas Corp. has struck an agreement to buy Uniforms To You in a move that will expand Cintas' presence in the market for high-end uniforms.

The acquisition will be the largest in Cintas' history. Uniforms To You, a privately held company based in Chicago, makes and sells uniforms primarily for the food and hospitality industries. The company, which employs about 800 people, had sales of about $150 million in 1997. The purchase price will be disclosed within the next several months. Karen Carnahan, Cintas' treasurer, said the acquisition will occur through an exchange of shares.

The acquisition will add to Cintas' earnings for its fiscal year ending May 31, Ms. Carnahan said, but lower its fourth-quarter earnings by about 3 cents a share. Cintas stock closed at a 52-week high Thursday, rising 87.5 cents a share to $46.50. The stock is up 82 percent from its 52-week low. The acquisition fulfills one of the company's strategic objectives by expanding its services into other segments of the industry, Richard Farmer, Cintas' chairman, said in a release.

Uniforms To You's cus- Nj "'US' jllll II II II III III I III II I III I HI I II I IU III IJIIII Hi I I II ADM will pay $36M on price-fixing claims Archer Daniels Midland Co. has paid $36 million to settle a federal lawsuit from four companies, including Procter Gamble that accused ADM of fixing citric acid prices. The lawsuit was filed in June in San Francisco by the four companies that had opted out of a previously settled federal class-action lawsuit Kraft Foods, Quaker Oats Co. and Schreiber Foods Inc. accused the Decatur, agribusiness giant of overcharging for citric acid from 1991 to 1995.

The four companies bought a total of $350 million worth of citric acid, and all opted out of a $94 million settlement of price-fixing claims for that ingredient Citric acid is used to extend the shelf life of soft drinks and canned fruits and vegetables. It is also used in detergents. Xerox to pay $415M for Intelligent Electronics Xerox Corp. said Thursday that it will buy Intelligent Electronics Inc. and its XLConnect Solutions for $415 million in a move to increase the services it can sell with its growing digital-copier business.

XLConnect was once part of Future Now a Cincinnati computer reseller acquired by Exton, Intelligent Electronics in 1995. Xerox will pay $7.60 a share for Intelligent Electronics and $20 a share for the XLConnect shares that Intelligent doesn't own. Intelligent owns 80 percent of XLConnect a computer network services provider that employs 1,500 workers. Xerox dominates a digital-copier market that is expanding as businesses switch from traditional optical machines, which can't store images. With XLConnect's technicians, Xerox can lock up more recurring revenue from customers in its services business whose sales rose 58 percent last year analysts said.

Train service returns to Ashland, Ky. For the first time in 23 years, passenger trains will be stopping again in Ashland, Ky. starting Wednesday when Amtrak comes to town. The city and Amtrak have been working for months to move the passenger stop from Catlettsburg to the former Chesapeake Ohio freight depot now Ashland's Transportation Center. Amtrak will join Greyhound and the city1 bus system at the center.

The only other stop Amtrak makes in northeastern Kentucky is at South Shore, where an open-fronted shelter without heat or restrooms is located. Kroger VP Ronald Rice announces retirement The Kroger Co. said Thursday that Ronald Rice, president of its Kroger Manufacturing and senior vice president will retire in June after 41 years with the company and be succeeded by Geoffrey Covert, vice president grocery products. Mr. Covert 46, will serve as group vice president and president of manufacturing.

He joined the Cincinnati-based grocery chain in 1996 after serving 22 years at Procter Gamble Co. Andrew Lewis, director of marketing and salesgrocery products, will succeed Mr. Covert Chart Industries will buy IMI subsidiary Mayfield Heights, Ohio-based Chart Industries Inc. has agreed to buy the Industrial Heat Exchanger subsidiary of IMI He for $34.6 million. IML a British building products and engineering company, owns the Industrial Heat Exchanger through its IMI Marston lid.

subsidiary. The UK company will significantly expand Chart's global reach for its cryogenic heat-exchanger products," Arthur Holmes, Chart's chief executive, said in prepared remarks. Under the Credit Repair Organization Act, credit repair organizations: Cannot take money from consumers before services are fully performed. Must give consumers a written disclosure explaining their legal rights about their credit history before any con ing to pressure from the multi-billion-dollar credit bureau industry to quash legitimate credit repair businesses. "They're way off base here," Mr.

Reiber said Thursday. "Contrary to what they say, we license Bureau. Sandor signed a contract to buy the dogged mall from Star Sept 26, knowing that it would require refurbishing, which meant checking for environmental and structural concerns. Star acquired the mall for $2.2 million at a sheriffs auction in October 1996, as a trustee for its bondholders. Star had foreclosed on the property's former owner then the Edward J.

DeBartolo which has been purchased by the Simon Property Group of Indianapolis. In November 1996, the bank organized an advisory panel to consider uses for the center. The panel's proposal involved poo, detergent and toothpaste. It has lost about $28 million since it started in 1995, in part because of sluggish demand locally for relatively high-end products. Procter spokeswoman Linda Ulrey said the necessary investments involved with entering a new country also contributed to the loss.

Local partner Phuong Dong held by state-owned Vietnam Chemical a unit of the Ministry of Industry was initially unwilling to put in more money. It also was afraid that if put in the money, it would be buying out its Vietnamese partner. "Our primary interest was to find a solution to help us contin Swifton Commons suffered a setback when Indianapolis-based Sandor Development withdrew as a potential buyer. The shopping center has fewer than 1 0 of 65 retail spaces leased. Sandor says no deal on Swifton tract is signed.

Must give consumers a written contract with all of the terms and conditions of payment, a detailed description of the services to be provided, including any guarantees of performance, and an estimate of how long it will take to perform the contract. have proof that negative items can be removed from their credit (report)." Norm Magnuson, spokesman for the D.C.-based trade group Associated Credit Bureaus, said the bureaus Enquirer file photoTony Jones maintaining the property as a retail center. It would include a grocery store, a drugstore, an anchor such as a discount department store, specialty retailers and a restaurant But even in October, Mr. Stein said Sandor wasn't sure what it would do with the space or whether it would even rebuild it as a retail center. Melvin Crim, who is closing his Swifton Commons store Indigo Blue and who is a former member of the Swifton Commons Tenant Association, said store owners were not notified of the break-off.

"They haven't provided any information about negotiations," he said. ue operating in Vietnam," Ms. Ulrey said. The dispute became the subject of intense debate in Vietnam with some Vietnamese accusing of deliberately losing money so it could force out its local partner. But foreigners sympathetic to point out that Vietnam Chemical also competes with because it produces its own lines of soaps, and one of its subsidiaries has a joint venture with competitor, Anglo-Dutch consumer products group Unilever.

Such potential conflicts are common in government-owned companies comprising most of the country's manufacturing base. YESTERDAY'S CLOSE 8444.33 BY LISA BLANK FASIG The Cincinnati Enquirer Swifton Commons' latest shot at revival as a fully functional shopping mall has been dashed after an Indianapolis company pulled out of a proposed deal to buy the retail center. Jay Stein, one of the family members that owns Sandor Development said late Wednesday that the developer would not buy Swifton. Steve Dale, a spokesman with Star Bank, the center's owner, confirmed Thursday that the deal fell through earlier this year. He declined to say why.

"In the best interest of the bond holders, other avenues Mercantile pulls out as E-B branches out include several large hotel and restaurant chains, auto rental companies, major airlines and cruise lines. The compa IiS-aJ R. Farmer ny has lactones in Chicago and Georgia. It also makes uniforms in Alabama, Mexico and Costa Rica through joint ventures. Uniforms To You sells uniforms, rather than renting them.

By contrast, Cintas generates about 67 percent of it revenue from uniform rentals and about 10 percent from uniform sales. The acquisition will lead to a "quantum leap" in Cintas' direct-sales business, said Walter Morris, an analyst with Robert W. Baird Co. in Milwaukee. The acquisition also will expand Cintas' presence in the high-end of the market and in the food and hospitality industries.

They have always wanted to move into these businesses," said Christopher Schweitzer, an analyst also with Baird Co. "It's a huge market" Cintas' strength is in the market for blue-collar workers. "Overall, it's a great opportunity," Mr. Schweitzer said. company executive said.

Meanwhile, Elder-Beerman is expanding into Pennsylvania for the first time with a store in Erie, currently a Lazarus site, chief executive Frederick Mer-shad said Thursday in a conference call. Ironically, Mercantile is withdrawing from Dayton because it could only find space for one store; Elder-Beerman is entering Erie with the intention of operating only one, a strategy it uses in many markets. Mr. Burnette said a lack of available real estate prompted Mercantile's decision to pull out The companies did not disclose the purchase price of the two-level Dayton Mall building. "When we entered the Dayton market we had all intentions of opening more stores," he said.

"Without an interested buyer, we would have continued to operate the store." He said Mercantile wanted a second store at nearby Fairfield Commons, a mall that he thinks (Please see STORES, PageC9) 4:00 JJ $462 1 $45.041 I ZZ ''-'-'''''iiftiiiU 9:30 1:00 are being pursued (with) other interested parties," Mr. Dale said. "It is back on the market and the property is for sale." The risks in taking on Swifton Commons were apparent from the start Other area real estate developers have rejected taking on a turnaround of the roughly 40-year-old mall because of its size and because they didn't think the market would support another shopping center. Fewer than 10 of the center's 65 retail spaces are being leased. Among them are Deveroes men's wear, Essence Hair Products, National Record Mart, Foster's Game Time, Foot Locker, Accent Hair Salon and the Ohio will enable us to continue operating in Vietnam," said Alan R.

Hed, general manager in Vietnam. had said it might have to declare the Vietnam unit bankrupt and pull out if it didn't get clearance to invest an additional $60 million in the venture to make it profitable. That would boost total investment to almost $100 million. The dispute was seen by some foreign investors as a test case of the Vietnamese government's resolve in attracting businessmen. has been in talks for months about its plans to inject more money into the joint venture, which makes soap, sham negotiates 93 of Vietnamese venture McAlpin's leaves Dayton; Beerman moving into Erie, Pa.

BY LISA BLANK FASIG The Cincinnati Enquirer An example of the ebb and flow in the competitive retail industry unfolded Thursday, as Mercantile Stores Co. Inc. announced its withdrawal from one market, while rival Elder-Beerman Stores Corp. revealed its plan to enter a new one. Randy Burnette, senior vice president of Fairfield-based Mercantile, said the retailer will close its Dayton Mall McAlpin's store in middle to late April.

The decision signals a retreat from a market that Mercantile entered, with the one store, in October 1996. Dayton, Ohio-based Elder-Beerman bought the mall site and will move its smaller South-towne Plaza store into the space this summer. At 212,000 square feet, the mall store will be the retailer's largest and make for "significant" sales growth, a The Associated Press and The Cincinnati Enquirer Following months of negotiations, Procter Gamble said Thursday that it has reached an agreement with its Vietnamese joint-venture partner that will keep its operations in the Southeast Asian nation. The deal allows to raise its stake in the 3-year-old tion to 93 percent from 70 percent an increase that the Cincinnati-based consumer-products maker had sought but its partner resisted. "We are pleased both partners have found a solution that is consistent with Procter Gamble's global strategies and MAJOR INDEXES MARKET HIGHLIGHTS DOW JONES INDUSTRIAL AVERAGE TRISTATE MARKET SPOTLIGHT Intel shortfall triggers market slide 8540 15-mlnute Dow 1i.hui.).i.i...ii.i.,m.u..ii..iIJ -j i Amer.

Greetings completes buyback Shares of American Greetings I Hit I Urn I Cloti Omw 500 1047.33 1030.87 1035.04 -12 29 KHt 709-18 703 61 704 34 -4 84 Nasdaq 172866 1708 48 1711.92 Composite NTSE 544.46 538.50 540 31 Composite 33-YEAR T-B0ND YIELD Bloomberg News NEW YORK Stocks suffered their worst drop in eight weeks over worries that corporate profits will shrink, after Intel Corp. Thursday said its first-quarter earnings will fall short of expectations. "The bad part about it is how early in the month this is," said Spiros Segalas, founder of Jenni-son Associates. "We're going to get more of this." The Dow Jones Industrial Average fell 94.91 to 8444.33, while the Standard Poor's 500 Index fell 12.29 to 1035.04. The Nasdaq Composite Index, laden with com puter-related shares, tumbled 47.78 to 1711.92, its biggest slump since Jan.

9. Intel fell to More than 92 million Intel shares changed hands, the third-highest volume in history for any Nasdaq stock above $1 a share. Stocks still remain near record highs: The Nasdaq Composite has risen 9 percent this year, even with Thursday's beating. The Dow is up 6.8 percent, and the 500 is up 6.7 percent "We anticipated part of this," Mr. Segalas said.

"We knew that Asia's going to be worse this quarter than last quarter." 1 13-week high YESIKPEAY'S CLOSE lost lSYt cents Thursday to close at $45.93. The drop came a day after the stock hit a 52-week high of $46.5614. Also, the Cleveland-based card maker announced it had completed a 4.5 million share buyback of Class A shares. The repurchase represents about 6 percent of American Greetings' Class A shares. The No.

2 card maker competes with Amberley Village-based Gibson Greetings. American Greeting shares are benefiting from increased exposure on the New York Stock Exchange. The stock left Nasdaq Feb.llfortheYSE. 85oo 8480 v1TVTTTT 8560 7 VrtTrTK 8440 IT 8420 8400 ml ill riri irtirin I i I X-LX Jl 9:30 AM 1030 NOON 1:30 PM 300 4:00 trend 700: I 1 1111 lllllll 1 1 Jlj NOV. DEC.

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