Daily News from New York, New York on January 4, 1990 · 55
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Daily News from New York, New York · 55

New York, New York
Issue Date:
Thursday, January 4, 1990
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"I think that's one of the things he (Donald Trump) liked . . . that we didn't want any money out of him." Edward A. Zito, Positive Concepts Ltd. 55 DOW JONES Down 0.42 Thursday, January 4, 1990 By ROXANNE DONOVAN 1011 K) Fl JUQXBWUDD S- ULKSSM Read his lips The Bush administration is considering proposing taxes on paper, glass, plastic and metals made from raw materials in the hopes of encouraging greater use of recycled materials by U.S. industry. Hair today, gone ... A mustachioed ship's officer stuck to his guns and was fired yeterday by the Disney Co. from his bridge station on the Queen Mary tourist attraction in Long Beach, Calif., for refusing to shave off the facial hair he's sported for more than 40 years. It's in the mail A spokesman for L.J. Hooker's Bonwit Teller chain said that a financial prospectus will be sent to around 80 potential bidders later this week, with an asking price for the chain set between a reported $75 million to $100 million. The company is expected to lose more than $20 million on estimated revenues of $165 million this year, which analysts said, could make it difficult to get that price. Light recall The government is recalling more than 1 million decorative light sets it said may present a shock or electrocution hazard to people as they return them to storage until next Christmas. The Consumer Product Safety Commission said the miniature "string-to-string" Christmas lights; were manufactured by Taiwan-based Toyo Industrial. Contact Toyo at 800-545-8330. Higher and higher Mitsukoshi Ltd. increased its stake in Tiffany & Co., the New York jeweler, from 6.9 to 14 or 2.13 million common shares, buying 80,000 shares from Elsa Peretti for $4.1 million in a private transaction in Switzerland, according to a SEC filing. On Dec. 27, Mitsukoshi bought 1 million shares from the company for $61.9 million. Tiffany stock closed up $3.25 yesterday to $50.50. Flying in formation TWA and Midway Airlines Inc. said yesterday that they will match the fare cuts Texas Air Corp.'s Eastern Airlines announced Tuesday on flights to Florida. Plugged in General Motors Corp. has built a streamlined electric-powered car that can go faster and nearly twice as far as other electric cars, 60 miles per hour for 100 miles, according to industry reports. It'sgein', eh? Merrill Lynch, which has been try ing to cut costs in a bid to boost flagging profits, is selling its entire Canadian retail securities business to competitor Wood Gundy Inc. for undisclosed terms. Merrill, the No. 1 U.S. securities firm, said the deal includes the transfer of its Canadian offices and work force, and access to its U.S. research facilities. Merrill's stock closed down 12.5 cents yesterday at $27. By R1CKI RJLMAN Daily News Business Writer Japan's Tokyu Department Store, a leading bidder for trend-setting Bloomingdale's, yesterday said it was dropping out of the contest Earlier, it had expressed interest in helping chairman Marvin Traub finance a $1.3 billion management-led buyout of the 17-store retailer. Tokyu's decision came late in December after a se-ries of meetings with Bloomingdale's executives, a company official said yesterday. The Hankyu Department Store, based in Osaka, also said it turned down an offer from Traub to finance $250 million of the money needed for the buyout. -Traub had no comment on Tokyu's announcement Retailing experts, however, said they weren't surprised at the Japanese retailer's decisions. Howard Davidowitz, a retailing consultant who just returned from Japan, said: "The Japanese newspapers in the last week have been very negative about Bloomingdale's, because of its parent company Campeau Corp.'s financial troubles. Since there's a 50-50-chance Campeau might file for bankruptcy protection, it's made them reticent about pursuing Bloomingdale's. If Campeau does file, a sale of Bloomie's would have to be approved by the courts and creditors. The longer Campeau's problems remain unre solved, the less Bloomingdale's is worth." "Tokyu had offered Campeau around $800 million in cash for Bloomingdale's," retailing consultant Kurt Barnard said yesterday. "But Campeau turned it down, because he wants $1.2 billion for the chain. I don't think he'll get much more than $800 million though. Bloomingdale's is long on fame, but not quite as long on value. And out of New York, it's just another department store." One problem with the company recently raised by potential bidder Donald Trump is that the lease on the flagship store at 59th St and Lexington Ave., expires in 2006. "Any lease is renewable," Traub said yesterday. r h- i m t IS I ! I If 1-1 I ' t ii ii ii L - r ' rl w v - ii ii ii u ii ii !i i: itra!rirEr a kt & a s c e k n bi n b a & o s B b 6 e s r s s e si q n "6o si & & a sb si Ef ci rr n c bur im ssst mm. ss? Lm Im i -mm ttm mm - mm mm t rt tma wm ARCHITECrS model shows proposed addrtions to B. Altman building on Fifth Ave. STEPHEN BARKEN By ROXANNE DONOVAN Daily News Business Water The doors closed on the flagship B. Altman department store for good Saturday, but the Fifth Ave. building's owners said they are going ahead with plans to add a six-story tower onto the landmark building. The plans are being reviewed by the city Planning Commission, and the owners, partners in KMO Realty, said they hope the plans will be ready for final approval -by liie Board . of Estimate in March just before that eTvfrtftniM body is disbanded. The development plan was first unveiled in 1987 and was approved by the Landmarks Preservation Commission a year later. "We are not committing to exact plans for the space until the approval process is finished, but it is likely there will be a retail presence involved," said Peter Malkin, a KMO Realty partner. "The middle and tower floors would be office space." The 76-year-old B. Alt-man building, at 34th Si', currently has a five-story eight-story structure. Malkin and his partners, Earle Kazis and Mort Ol-shan, would expand the five-story tower and add 100,000 square feet of space on six floors above the Madison Ave. side of the block-long structure. The plan also would expand floors 10, 11 and 12 into a glass and steel pavilion. "I think that by the time the approval process is finished, we will have commitments sufficient to go forward with the space," said TVfalkin, who- added that a number of tenants have in- By BRUCE CHADWICK Daily News Staff Writer Atlantic City's casinos, robust for so long, have virtually stagnated, year-end revenue figures released yesterday show. Not only did business plunge by 7.5 in December, but yearly gross revenue figures show an annual growth of just 2.6, the lowest increase since gambling was legalized in the Jersey Shore resort in 1978 (from '78 to '88, increases were about 10). The 11 casinos took in gross revenue of $2.8 billion, up from $2.73 billion last year, say figures released by industry newsletter Atlantic City Action. The Casino Control Commission releases its figures next week; they usually are close to the newsletter's. The yearly gross revenue leaders were Trump Plaza ($305.6 million) and Caesars ($303.1 million). Casinos generally retain 16 of gross revenues, from which operating costs and net earnings are derived. Revenue dropped at Resorts (67), the Clar-idge (4) and Bally's Grand (5). During the year, the Atlantis closed its doors and was sold to Donald Trump as a non-casino hotel. Resorts went into bankruptcy protection last week to restructure its debt Industry sources say reasons for the small increase over 1988 were the failure of the casino market to expand, a slow national economy and rising costs. "The market will probably expand in 1990, with people drawn by the opening of the Taj Mahal (Trump's new casino), but the Taj will get all of the expansion," said newsletter editor Al Glasgow. "Some hotels are going to be in real trouble next year." "If we continue to see it (Atlantic City) as a place where people go just to gamble, then we're not going to do better," said Tom Carver, a representative of the casinos. "If we can showcase it as a place where people come on weekend or weekly vacations, and also gamble, then we're going to improve." In Las Vegas, business continues to increase 10 to 11 a year.

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