Chicago Tribune from Chicago, Illinois • 34

Section 3 Chicago Tribune, Tuesday, April 10, 1990 Gfftl'fJf Sears to close Ltd. store on North Side Lazarus ftS 0n marketin9 Nation Baffes Ades Saatchi is seeking to sell C-M-E unit By Wilma Randle Sears, Roebuck Co. will close its test Sears Ltd. store on Chicago's Near North Side because it hasn't been able to attract as many young, upper-income shoppers as it expected. The opened last March at North Avenue and Wells Street, was part of the retailer's restructuring plan aimed at increasing traffic and profits.

Sears called the concept an "intercept store." The idea was that the store, with specially tailored merchandise for the community, would snare customers who might be headed for other stores or who don't normally shop at Sears. These "intercept' stores would offer a scaled down or limited version of select Sears goods and departments. "We're not calling it a failure. The store was a test," said a company spokeswoman, who would not discuss details of the store's financial performance. The North Avenue store took up about 47,000 square feet of a building that formerly housed a Dominick's grocery store.

The store was a fraction of the size of a typical suburban Sears. A few weeks after the North Avenue store opened, Sears opened another, larger Ltd. test store in the Ford City Shopping Center on the Southwest Side. That location, which was about 70,000 square feet, has been so successful it is being expanded. Sears plans to add a freestanding Homelife furniture store to the location.

The North Avenue location isn't the only thing about the test that hasn't worked for Sears. Neither has the name. "We've dropped the Ltd name because we found it was just too confusing," the spokeswoman said. "In the markets where we have these stores we're listing the departments we carry so it's more specific to the customer." Sears also opened a store last month in the Village Square Shopping Plaza in northwest suburban Lake Zurich. It is one of 55 department stores being opened this year, including 29 in new markets.

Spielvogel Bates and Saatchi Saatchi Advertising. But there has been no mention of the future of C-M-E. British-based Saatchi has been trying to unload the remaining units of its consultancy businesses, an ill-advised diversification move. Saatchi also has agreed to a management-employee buyout of its McCaffrey McCall ad agency in New York, a deal expected to be completed shortly. CampbeU-Mithun-Esty, which resulted from a 1988 combination of Saatchi-owned Campbell-Milhun and William Esry may be next, but for the right price and right fit, with a conflict-free agency merger-partner.

Meanwhile, Southeastern Asset Management, the Memphis-based investment management concern, said Monday it had raised its stake in Saatchi to 14.5 from 13.2 percent. Southeastern, which last September disclosed it had acquired 9.4 percent of Saatchi's stock, still says it has no takeover aspirations. Its increased holding is obviously a vote of confidence in Saatchi. Sara Lee eyes 2 to 3 shops Sara Lee Corp. has narrowed its search to consolidate an estimated $35 million to $40 million billing for its meat and frozen products to two or three Manhattan agencies, sources say.

Lintas and Bozell are two of those shops. Presumably, ChiatDayMojo in New York, which works on Deerfield-based Sara Lee Bakery, will lose that business. This column disclosed March 23 that Sara Lee Corp. was in the early stages of a consolidation. The consolidation plan at this time doesn't include the Chicago-based firm's non-food business, primarily its Hanes Hosiery.

On the move: Ben Mollere appointed director of sales at the Whitehall and Tremont Hotels Jim Nation named VP of sales for corporate accounts at Sealy Inc. Peter Baffes appointed director of engineered and export sales, a new post, at Heat Exchangers Inc. in Skokie Jeff Ades named an account supervisor at Bender, Browning, Dolby Sanderson. Strictly Personal: Birthday greetings to Nat Wexler, Lynn Hamilton and Stanlee Kucaba. While H.J.

Heinz's plan to recycle its squeezable plastic ketchup bottles is a year away, the firm is planning a consumer education pro- gram to promote it beginning in a month or two. These plastic containers account for close to 60 percent of Heinz's ketchup business. By some coincidence, Heinz has nearly 60 percent of the $550 million ketchup market. Heinz says the new plastic bottle costs more to make than its plastic bottles now on store shelves. However, the company says the added cost won't be passed on to consumers.

Pittsburgh-based Ketchum Communications 1 which includes KetchumMandabach Simms in Chicago among its properties, may well hit $1 billion in capitalized billing in 1990, up from last year's $916 million. To maximize its direction and tap its managerial Ketchum has created a four-person management-staff office consisting of William E. Genge, 66, chairman and chief executive officer, Gerald J. Voros, 59, president and chief operating officer, Ed Graf, 51, vice chairman and chief financial officer, and Paul Alvarez, 48, who will be focusing on client relationships as a newly ed vice chairman. Janis Struebing, recently Chicago advertising manager for Murdoch Magazines' Seventeen magazine, joined Scholastic Inc.

as Midwest advertising manager with responsibility for advertising sales and development of sponsored educa tional materials for its classroom magazines. Appointments: Puerto Vallarta Tourism, the Mexican resort, to Grey Advertising in New York for what is said to be a $6 million advertising account Austin Koo Group, a group of five Chicago area restaurants, including its recently opened Tang Dynasty and Szechwan. House, to Bess Winakor Communications Ltd. for public relations counsel. Troubled communications giant Saatchi Saatchi has quietly put its Campbell-Mithun-Esry operation on the block, but so far there haven't been any takers.

Representatives of British-based Saatchi andor its Campbell-Mithun-Esty unit have approached at least one major agency about taking C-M-E off the parent's hands, sources say. However, no deal materialized. "Saatchi has been poking around for the last several months seeking a buyer," says a source. At this stage, the prospective buyer list doesn't include C-M-E's management team, which has been kept in the dark by Saatchi, currently undergoing restructuring and belt-tightening in a turnaround bid. William D.

Dunlap, the Minneapolis-based chairman and chief executive of C-M-E, said he wasn't aware of any recent discussions Saatchi has had with other agencies on a buyout. Saatchi and C-M-E last year were approached by other agencies following management problems and client defections in the agency's New York office. Saatchi turned down those overtures, but now, considering its financial plight, the parent appears willing to put together a deal for C-M-E, which had 1989 billings of $860 million. The agency also has major offices in Chicago and Southfield, Mich. As part of its restructuring, seeking to ease a heavy debt load, Saatchi has said it wants to focus on its bigger agency networks, Backer Fl3 rl T7 9 4 fcfcj BS1 1 Six-month CD 1 groups like NORBIC," said Economic Development Commissioner Joseph James.

To help manufacturers find cheap land for expansion, the city is considering using the Commercial District Development Commission's eminent domain powers, a role it previously played only in commercial developments. The Daley administration also is reevaluating its opposition to Planned Manufacturing Districts. "We hope to have a position within several weeks," James said. The city's long-standing plans to develop new industrial parks and market its existing ones have hit a variety of snags. William Alter of the Alter Group said he has run into environment and graveyard problems at the Irving Park and Montrose site, but he hopes to submit zoning changes for a 16-acre park to the City Council within several months.

An Economic Development Commission plan to create a 260-acre industrial park on the South Side on Illinois International Port District land has bogged down as the two sides negotiate over how much of it gets used by commercial developers. Industry Continued from page 1 group. They also attacked the Daley administration's policy of allowing residential and commercial developers to encroach on industrial land. They called for more protected manufacturing districts like that along the Clybourn corridor for industrial areas threatened by the changing economy. "We need a long-term commitment that certain zones in the city are going to remain industrial and won change with the next election," said William Kellogg, president of General Packing Products, 1700 S.

Canal St. Kellogg has fought a decade-long battle to stop the commercial and residential conversion of the abandoned Schoenhofen Brewing Co. building in the Pilsen neighborhood. The city is considering a revamp of its industrial retention policies to counter the criticisms raised Monday. "Better coordination is needed, between the department and the businesses and between the department and neighborhood AP Laserphoto Carol Graves (left), Greyhound depot agent in Burns, tells Margaret Wilson the strike is still on and the buses aren't running.

Wilson, who says she rides the bus about six times a year, is afraid service may end to remote spots like Burns after the strike. NEW HAMPSHIRE NEW JERSEY NEW MEXICO NEW YORK NORTH CAROLINA NORTH DAKOTA OHIO OKLAHOMA OREGON PENNSYLVANIA RHODE ISLAND SOUTH CAROLINA SOUTH DAKOTA TENNESSEE TEXAS UTAH VERMONT VIRGINIA WASHINGTON WEST VIRGINIA WISCONSIN WYOMING ALABAMA ALASKA ARIZONA ARKANSAS CALIFORNIA COLORADO CONNECTICUT DELAWARE FLORIDA GEORGIA HAWAII IDAHO ILLINOIS INDIANA IOWA KANSAS KENTUCKY LOUISIANA MAINE MARYLAND MASSACHUSETTS MICHIGAN MINNESOTA MISSISSIPPI MISSOURI MONTANA NEBRASKA NEVADA We're a nationally ranked multi-billion dollar savings institution, among the top 25 in Asset Size With every depositor insured to $100,000 by the FDIC, we have satisfied customers in all 50 states. Call today, and join the thousands across the country who've come to Columbia. You'll find yourself in a fine state of affairs. 'Sheshunoff Company assets as of 63089.

Backed by the full faith and credit of the U.S. Government. Rates subject tochange. Substantial penalty firm, leaving present management with a minority stake. "Greyhound isn't for sale," retorted a company spokesman.

"It isn't a publicly held company, so I don't know how there could be a buyout." The strike has become even more bitter than a 1983 walkout that poisoned labor relatons under a previous owner, leading to the company's highly leveraged 1987 sale to a group of Texas investors. The drivers have made pay concessions in the last two contracts, but money is not at the heart of the dispute, the union says. Officials said the main sticking point has been a company plan to alter arbitration procedures. The union says the changes would invite union-busting by making it hard to overturn disciplinary decisions. In addition, the union accused the company of reneging on a promise to take previous conces-sons into account when it returned to profitability.

Greyhound Continued from page 1 Nichols denied any conspiracy to attack buses and said threats and random acts of violence against buses are relatively common even in normal times. A striking driver charged in a bus shooting in Connecticut has pleaded not guilty, he said. "We have no way of stopping the random acts of these people out on the roadway," said Nichols. The bargaining process shouldn't be held hostage by crazies on the road." Nichols said Amalgamated Transit Union President James La Sala would address a press conference in Washington Tuesday, his first public appearance since the strike began. A Chicago union source, who declined to be named, said the announcement would concern a plan by the union and a former bus industry executive to take over the 1990 Columbia Savings, Beverly Hills, California 1-lIl-I-B 111 m-' I leans.

The six Tribune TV stations will get the full complement of increasingly customized CNN services, such as the new "Newsource." That consists of a growing number of CNN personnel who cover stories and tailor that coverage to needs of affiliated stations. The agreement will mean that four of the Tribune stations, including WGN, will go from half-hour to one-hour locally produced prime-time newscasts. WGN now has a half-hour of locally produced news at 9 p.m., followed by a Tribune-produced newscast of national and international news, "USA Tonight." By late June, WGN will handle the hour by itself, adding some personnel but turning to Turner for national and international portions, according to WGN news director Paul Davis. TV linkup Continued from page 1 works. But the relationship between Turner and James Dowdle, Tribune Broadcasting president and chief executive officer, who are old friends, was said to have been the key to fashioning the accord.

The firms will collaborate in producing news, documentaries, specials and original productions, such as mini-series. Quarterly news specials will delve into crime, drugs and the environment, the latter being an important concern of Ted Turner's. In the news area, the agreement strengthens or creates bonds between Turner and Tribune stations in Chicago, New York, Los Angeles, Atlanta, Denver and New Or JovaCellular A Subsidiary of Nationwide Cellular Service, Inc. Two for the road USX Motorola AC1 00 in car High interest, tow minimum, no fees ANNUAL ANNUAL Leslie Atlas Mrouni Executive YIELD RATE $199 tA Corry said the company has received 25 to 30 bids for the properties, which have been divided into six geographical packages. He said, though, that USX will probably hold onto some of the reserves rather than sell for too little.

"We'll probably wind up not selling six packages, but not selling zero, he said. Other sales may follow. Corry said Texas Oil's gas-gathering pipeline system may be put on the block. He also said USX would consider more joint steel ventures with foreign firms. USX has partnerships with Japan's Kobe Steel Ltd.

and Pohang Iron Steel Co. of South Korea. MONEY MARKET 7QQV OfV DEPOSIT ACC0UNT Plus installation and taxes. Restrictions apply. Continued from page 1 think there has been a bottoming out" in the industrial sector.

The pickup at U.S. Steel would seem to work in the company's favor as it battles Icahn, its biggest stockholder, over his proposal to turn the steel business into a new corporation and spin it off to shareholders. Icahn, who owns 1 3.3 percent of USX and once tried to acquire the firm, argues that the company's stock is greatly undervalued because it is in two disparate businesses. In his proxy statement, he said a USX split in two would be worth $48 a share. USX closed Monday at $35.25 a share, down 62 cents, on the New York Stock Exchange.

Management also might be helped by the sale of its Texas Oil properties. Corry said letters of intent could be signed before the May 7 annual meeting, when shareholders will vote on Icahn's proposal. Analysts have said the oil and gas reserves could fetch $2 billion. But that may be high. MMDA i offers you our consistently high Money Mirket Deposit Account rate PU i checks a month.

40 imprinted checks rppp ATM card and access riU-Xi Bank by mail Personalized service Minimum deposit: 12,500 FD1C insurance Daily compounding Rates effective through April 17 Federal regulations limit checkwriting to 3 checks a month. For rates on other accounts, call weekdays between 8 a m. and 4 p.m. CUT 1-800-338-1888 Whether you want a phone for your car, or one you can carry anywhere, you'll find the best deals in town at Nova Cellular. Choose from a wide range of high quality phones all backed by the finest service from trained professionals.

You'll also get: 3 -year warranty hands free choice of area code quality long distance service provided by Nova Cellular offers Ameritech Mobile Service the midwest's preferred cellular service. For quality and savings there's only one choice. Nova Cellular. The Quality Connection. New England Federal, Wellesley Office Park, 55 William Wellesley, MA 02181 Please open my MMDA 3 account with the enclosed check for Imprint my 40 free checks with: name only name and address.

Send me an ATM Cash Card Application. Please send more information. Name(s) Motorola AC71S portable $599 AMAZING HOME STUDY PROGRAM Xetrlr Revised for the '90s will leach you everything you need to know to Income a successful stock market investor ami then we'll give you unlimited exierience trading the slocks and options market without risking a dime! Fttr mwr mfiumttfum cnlt notr 1-800-777-0608 TIIR COIIW: OK INVESTORS. INC. 1010 LAKE STRKKT.

Sl'ITE 109 OAK PARK. II. MMOI financial Ptannm: Acknmi lnlprtl br IIK'tV Imeritech 9 IHOMttM IB COMMUNICATIONS Address Citv Plus taxes. Restrictions apply. Suie S.S.

No. Daytime Phone Signatures) EQUIPMENT FINANCING No Financials required under $35,000. We finance any equipment-Any Manufacturer. New or Used Fixed Rate 000,000 Long Term 100 FInanclng-No Down Payment (800) 342-2093 Oak Brook: Chicago: Ariingtan Heights': Lake Zurich: Worth: 2000 York 364 W.Erie 1925 S. Arlington His.

Rd. 503 S. Rand M55W. tilth (708)5714200 (312)787-2727 (708)952-8030 (708)540-1444 (708)448-0020 Substantial penalty for early withdrawal. Rates subject to change at any time.

New England Federal ResjK)tisite Bankers an All location! open (Um-6pm F. 'These Horn open til 700 jn Won. A pm. Sat. 1 1.