The Indianapolis News from Indianapolis, Indiana • 44

THE NEWS FRIDAY, DECEMBER 11, 1987 p-4 Drug store chain can up its rank Brooks deal to add 360 stores to Hook-SupeRx growing empire man and chief executive of the new Hook-SupeRx. The Brooks announcement is the second takeover in two months for Hook-SupeRx. The company earlier announced plans to buy 19 Eckerd Drug stores in Virginia ana west Virginia for $6.6 million. The Indianapolis News Hook-SupeRx Inc. could become the nation's fifth-largest drug store chain if it goes ahead with a proposed buyout of the Brooks Drugs Co.

Cincinnati-based Hook-SupeRx operates 342 Hook's Drug Stores and 345 SupeRx Drug Stores in Indiana, Ohio. Illinois, Kentucky and Tennessee. The company has more than 10,000 employees. Brooks, based In Pawtucket. R.

operates drug stores in the Northeast. Hook-SupeRx has agreed tentatively to buy 360 Brooks stores. The combined store count between the two chains would be 1.020 stores in 24 states. vania-based drugstore giant. In fighting off Rite Aid.

Hook's agreed to a friendly takeover by Kroger the Cincinnati grocery store company. Kroger then owned the SupeRx drugstore chain, as well. It was then that Hook's moved to Cincinnati from Indianapolis. Last summer, Kroger became involved in a takeover war with arch-rival Safeway Stores Inc. In the process, Kroger decided to sell off its drug store division, including SupeRx and recently acquired Hook's.

The two chains were sold to a leveraged buyout group organized by Philip Beekman, former president of Joseph E. Seagram Sons. Beekman is now chair "This is a preliminary agreement." said Chris Beseler. Hook-SupeRx spokesman. "Negotiations are still ongoing." The agreement must be approved by Brooks stockholders.

Brooks, which had sales of $395.7 million in 1986. is owned by Compact Video Inc. of Bur-bank. Calif. Hook-SupeRx is the privately owned company that resulted last year from a lengthy struggle for control of some of the nation's largest drug store chains.

The Hook's chain was founded in 1900 and had its headquarters in Indianapolis for decades. In 1985, it became the target of a hostile takeover bid by Rite Aid the Pennsyl Brooks was founded as Adams Drugs in 1932, and was acquired by Pantry Pride, a Flor-Ida supermarket chain in 1984. In 1985, it was taken over by tne Kevion oroup wnen Revlon merged with Pantry Pride and the chain's name was changed to Brooks Drugs. Last year, Revlon sold Brooks Drugs to Compact Video for $95 million. i Management checks out of Lincoln Little change wwtsjfc.

'mumimjnfm'mmM immediately at IUPUI hotel By KEVIN A. DRAWBAUGH The Indianapolis News A Texas company under con- -tract to manage the Lincoln Hotel in Indianapolis Is checking out of the hotel business. Lincoln Hotels of Dallas, is being liquidated by its parent. Lincoln Property also of Dallas. That apparently means little for the barely five-month-old Lincoln Hotel on the campus of Indiana University-Purdue University at Indianapolis.

"The operation will continue with the people who are now in place over there," said Robert R. Baxter. IUPUI administrator In charge of real estate. IUPUI owns the land the hotel sits on at West Michigan and Agnes streets. The hotel Itself was developed by Cornerstone Cos.

Inc. It is controlled under a 60-year lease-hold agreement by a group of nine local investors called University Development Corp. The group Is headed by Robert N. Whitacre. "It really means nothing." Whitacre said of the liquidation of Lincoln Hotels.

"The owners don't change. The management" doesn't change. The name doesn't change." At least, that's true for now. Baxter said. "Nothing is going to change for a while.

Whether we go to another national chain or with an Individual remains to be seen," he said. It is disappointing to see the hotel's first operator depart after only five months, Baxter said. The News File Photo The Lincoln Hotel, behind University Conference Center, opened Ave months ago. "You don't like to see changes that quickly But I suppose It's better now than If they'd been here for a year or so and established even closer ties," he said. Lincoln Hotels' liquidation is likely not directly related to the performance of the Indianapolis Lincoln.

Business at the IUPUI hotel has been good, said Cindy Wheeler, hotel marketing director. Lincoln Hotels was a division of Lincoln Property, the second-largest diversified property developer In the United States. The hotel division of Lincoln was launched Just nine years ago. At its apex, the company managed nine luxury-class hotels across the country. But competition in the lodging industry is tough today and Lincoln was reportedly disappointed with the division's earnings.

The decision to liquidate the hotel unit was voluntary, industry analysts said. The Lincoln Hotel at IUPUI was built over several months In 1986 and early 1987. The $30 million project was completed and opened in July In time for the Pan Am Games. It is the ninth-largest of Indianapolis' 24 major hotels. The Lincoln has 278 guest rooms, a full-service restaurant, several fast-food operations and some shops.

It is connected via a glass breezeway to the $12 million University Conference Center, which was developed separately. The conference center will not be affected by the Lincoln liquidation. The hotel is the first major commercial development to occur on the sprawling IUPUI campus, which hugs the northwestern edge of downtown. Gift shopping boosts sales The Associated Press WASHINGTON Retail sales. In the first full month after the stock crash, rose 0.2 percent In November as the Christmas shopping season picked up steam, the government said today.

The Commerce Department said retail establishments sold $125.9 billion worth of goods In November, up $210 million from October. The modestly strong November report was balanced by a sharp downward revision from earlier estimates for the two previous months. October sales were refigured at a 0.9 percent decline, intead of a 0.2 percent drop. The September estimate went from minus 1.1 percent to negative 1.7 percent. November sales were 3.4 percent higher than a year earlier.

The figures are adjusted for seasonal variations, but not for inflation. Excluding automobiles, which declined 0.5 percent last month compared with a sharp 3.5 percent drop in October, sales rose 0.4 percent. Sales excluding autos had edged down 0.1 percent in October. The November performance was better than some analysts had expected, but most agreed that any rattling of consumer confidence from the Oct. 19 stock plunge would take a number of months before showing up in sales figures.

Since consumer spending accounts for two-thirds of overall economic activity, any signs that It is being dampened by the stock market is being closely watched. In another key government report issued today, wholesale prices held steady in November with higher food prices offsetting a slight decrease in energy costs. Economists called the new report further evidence that inflation remains subdued, although consumer prices have been rising faster than wholesale prices. With only one month to go in 1987, inflation at the wholesale level was running at an annual rate of 2.7 percent. The Labor Department's Producer Price Index had fallen 0.2 percent in October.

Yogurt chain comes to city The Indianapolis News Apple A Day Yogurt, the nation's newest chain of frozen yogurt stores, will open the first of Its 50 franchises In. Indianapolis early next year near the Greenwood Park Mall. "We plan to be truly nationwide in one year." said Robert Dinl, president of the new company. Among the principals in the venture are Don Thomas, a co-founder of the Burger Chef hamburger chain, and Phil Frey, owner and operator of several nationwide fast-food restaurants. Dlni said the stores will feature frozen yogurt, along with a variety of apple specialty products.

Several more franchises are planned for the Indianapolis area, according to Dlni. kartes sold to first owner United Pre International Scripps-Howard has sold Kartes Video Communications of Indianapolis back to its original owner, James Kartes. The newspaper and broadcasting group acquired the videotape maker two years ago. Kartes. who remained with the company after he sold it.

was the successful bidder when Scripps-Howard decided to sell the firm. Jack Schuh. president of Kartes Video, said Scripps-Howard had poor financial results with the firm. The company had a work force of 100 when it changed hands In 1985. Kartes, who is now chairman of the company, said the current work force of 130 will be pared by 56.

including 26 full-time employees and 30 part-time workers. Pressure for bailout builds The Associated Press WASHINGTON Pressure for a congressional bailout of the Farm Credit System Is intensifying after financial blows forced a stock freeze at a Federal Land Bank In Mississippi. "It's a matter of substantial urgency." Sen. Thad Cochran. said Thursday as House and Senate negotiators met to resolve differences between their differing bailout plans.

Senate Agriculture Committee Chairman Patrick J. Leahy, said he still hopes to send such a measure to President Reagan's desk this year. Prospects for doing so remained uncertain. There are 12 federal land banks within the Farm Credit System. The bank in Jackson, has been among the most severely troubled of them, and it announced Thursday it was nearing a state of zero net worth and had frozen borrower stock.

Officials at the system and the Farm Credit Administration, the system's federal regulator, said It was the first federal land bank stock freeze In memory. It means borrowers who must buy shares when they get their loans may not redeem them for cash for the time being. It also means the bank must suspend its regular loan business for now, system officials said. But Chairman J.A. McDanlel said in a letter to borrowers the bank would explore interim credit possibilities until a federal rescue package is available.

Meanwhile, existing loans will continue to be serviced and shareholders who retire their loans will receive certificates that may be redeemed for cash when money Is available, the bank said. Santa hat does in Spuds United Press International COLUMBUS. Ohio Spuds MacKenzle. the dog In Santa Claus garb displayed on 12-packs of Bud Light, has been ordered off Ohio beer shelves. The Ohio Liquor Control Commission voted 2-1 Thursday to ban the Spuds-Santa cartoons on grounds they violate a state liquor rule against associating Santa Claus with alcoholic beverages.

The commission sustained an earlier ruling by William Flaherty, director of the Ohio Department of Liquor Control. The commission assessed no penalty but ordered Anheuser-Busch, to remove from all Ohio outlets by 5 p.m. Dec 18 any Bud Light packs bearing the likeness of the white bull terrier Spuds in a Santa hat. Anheuser-Busch said it will cooperate fully with state officials even though It did not believe at any time that Its packaging was In violation of Ohio laws that prohibit Santa Claus from advertising liquor. i Local brokerage offices calm in face of merger I AVI By KEITH NAUGHTON The Indianapolis News Despite dire predictions of thousands of layoffs, local E.

F. Hutton officials say they are not worried about the ax falling In Indianapolis. Shearson Lehman Brothers and E. F. Hutton said last week they are merging in a deal valued at more than $1 billion.

The merger will create the largest securities trading firm In the United States, eclipsing Merrill Lynch. Reports surfaced today that the merger will cause between 5.000 and 6.000 layoffs at the two brokerage houses. Local managers of E. F. Hutton believe those layoffs will happen primarily In New York.

"There's a lot of duplication of efforts In trading and research said Robert Holland, vice president and branch manager of Hutton's downtown Indianapolis office. "Most of that is in New York." Shearson's local vice president, Joseph Masotti, said he did not know If there will be any layoffs at the Shearson Lehman Brothers office at One Merchants Plaza. "No decisions have been made," Masotti said, explaining such decisions would come out of Shearson's New York headquarters. Spokesmen at Shearson's New York offices could not be reached for comment. Another point of uncertainty for the local Shearson office is whether It will move to a new location.

Prior to the merger. Shearson had been scheduled to move three blocks up Illinois Street to new office space at the Capital Center. The problem with that; new location Is It Is right across the street from E. F. Hutton's office at the American United Life tower.

"One office being right across the street from the other, that's my concern." Hutton's Holland said. However. Holland said he has been assured by top Hutton executives that the cozy Hutton and Shearson office locations will not be a problem. Holland's stall currently numbers 42 people, down from about 50 earlier this fall. He says staff reduction had nothing to do with the Oct.

19 stock market crash. Although business has dropped off since the crash. Holland said he doesn't expect his staff to get any smaller. Holland painted the same optimistic picture for Hutton's offices In Greenwood and Carfncl. "This marriage Is a wonderful thing." Holland said of the merger.

Mark Durham, Hutton's branch manager in Greenwood, said he is interviewing new job prospects. He said he Intends to expand his 17-person staff of brokers and secretaries. The Associated Press Record-low dollar TOKYO Japanese traders experienced a chaotic session today as the U.S. dollar dropped under 130 yen for the first time. It closed at 128.75 yen, down a hefty 3.4 yen from Thursday's closing despite heavy intervention by the Bank of Japan.

Some1 traders predicted the dollar could fall as low as 125 yen unless the U.S. government1' acts quickly to prevent further decline.