Fort Worth Star-Telegram from Fort Worth, Texas • 54

Wednesday June 1 1994 I Fort Wortil Star-Telegram Section Page 3 IBM Sales increase spurs Bombay stock By SCOTT NISHIMURA Fort Wonh Star-Telegram FORT WORTH Shares of the Bombay Co rose 85 percent yesterday after the company said its May sales increased substantially in comparable stores Bombay shares closed at I5875 up $125 on the New York Stock Exchange The rise in the shares was welcome news for Bombay whose shares were battered early last month when some analysts trimmed their earnings estimates for the Fort Worth-based home fur Furniture company's shares jump $1 25 nishings chain The company's shares which traded at about $30 at the beginning of the year hit a low of just under $12 in early May and have rebounded since then Bombay said yesterday that sales in comparable stores increased 23 percent for the four weeks that ended Sunday compared with the four weeks that ended May 23 1993 Comparable stores are stores that were open at least a year in the latest reporting period The comparable-store figures for this May included 54 stores that Bombay enlarged during the past 12 months Excluding those stores sales in comparable stores increased 12 percent for the four weeks that ended Sunday Bombay said Total sales for the four weeks increased 39 percent to $3008 million from $2165 million for the comparable period the previous year Total sales include all sales not just those from comparable stores 4 Fun "prudent business" spokesman Scott Brooks said He said that the average age of IBM workers increased slightly in recent years Since 1986 IBM has cut its global staff from more than 400000 to around 230000 a pullback that has come to symbolize the corporate cost-cutting trend In IBM's case the large mainframe computer industry it dominates has been undermined by technological advances in smaller computers that are less profitable to build and sell Under federal tax law only workers who have left since 1990 an estimated 70000 people can still dispute their taxes Often the payment for a departing IBM worker was a year's salary or more For employees in their 40s or 50s that could mean $50000 to $80000 Those who left near the end of the year had their payment taxed at a rate of 28 percent to 39 percent because it was added to salary already earned Although the organization and numbers of the former IBM workers give them an effective chance at challenging the IRS some express reluctance for fear of harming the company "All these people who retired of left on a bridge to retirement they're still very loyal" said Mel Deener a leader of the North Carolina group "They're willing to join if we can assure them this action is against the IRS and not IBM" Two weeks ago IBM announced its first plans for involuntary layoffs in the region On May 17 the company said it plans to lay off up to 130 software developers at its Solana complex irk Northeast Tarrant County by mid-July In March the IRS discovered that enough people were exempting their departure pay to justify issuing a public warning that they might be flouting the law The agency cited two 1993 federal court cases that found "waivers do not change the taxable nature of the severance pay" Those cases however did not address pay as a legal settlement and Tax Court case law appears to support the former IBM workers Stuart Seigel chief counsel of the IRS from 1977 to 1979 and now partner in the New York office of the Arnold Porter law firm is not involved in the IBM dispute but noted two legal hurdles The first Seigel said is proving that IBM paid employees to settle potential age-discrimination claims The second hurdle is proving that the payments fall within a category considered tax-exempt So-called alumni groups of former IBM workers in Colorado North Carolina and New York have been meeting with tax attorneys for several months Some in Boca Raton Fla and Atlanta have been working on the issue for more than a year An attorney advising an IBM alumni group in Texas is also pursuing such tax claims for former workers of USAA a large financial services firm Group leaders say there is a good chance that the work will be consolidated IBM would probably not be a party to the dispute But it could be put in the uncomfortable position of having to explain how people chose or were chosen to leave in recent cost-cuttintactions The company does not practice age discrimination and views the agreements with ex-employees as From Page 1 From Page 1 Gray Christmas a Chicago con- suiting firm that tracks staff cutbacks said that more than 615000 were announced in 1993 That num? ber included layoffs and early retires-1: For this year almost 229000 job had been announced through "April Included are such notably large reductions as I 5000 at "Corp up to 15000 at Delta Air 'Lines and almost 17000 at NYNEX Corp a regional phone company The IBM work force in North -Texas has shrunk steadily since the beginning of 1992 through voluntary severance packages and attrition The company which employed 2300 in Tarrant County in January J992 now has 1400 employees here In Dallas County IBM employment levels have slipped to 2000 from the 3200-employee level at the beginning of 1992 "There's no question that most everybody who leaves a company today gets a severance of some kind" said John Challenger execu five vice president of the Chicago firm "There's obviously a lot of dollars involved if the government were to allow people to receive these 'departure payments tax-exempt" -At the same time many compa- pies routinely require departing vorkers particularly managers to sign agreements waiving their right to sue General Motors Corp Exxon Corp and West have used them company representatives say verse which offers CD listening stations and virtual reality the Disney Store and the soon-to-open Warner Bros Studio Store which show cartoon clips and a giant Barnes Noble bookstore which will offer cappuccino and live music when it opens in July The original Enchanted Castle was created 10 years ago in Chicago and was acquired late last year by Discovery Zone The company is exploring locations in 20 other metropolitan areas around the country Gaulding said He declined to say how many Enchanted Castles the company plans to build With 45000 to 60000 square feet Enchanted Castle will seat up to 600 in dining areas Gaulding would not disclose how many patrons the entire facility will hold The building will be divided into different sections so the size noise and options won't be overwhelming Gaulding said Patrons will pay a $5 cover charge during weekends and evenings and will pay extra for the games and activities in which they participate Dean Dauley vice president of business development for the 'Arlington Chamber of Commerce expressed some concern about access to such a facility if it were builttin the already congested areas near-the mall or The Ballpark "I don't think you'll get any pull away from existing entertainment think it's just another place for pegple to go after they've been to Flags or the Texas Rangers" Dauley said retail intelligence systems at Management Horizons the retail consulting division of Price Waterhouse an accounting and con-suiting firm "There's very definitely a trend by retailers and restaurateurs and others to try to rejuvenate customer traffic" Hyde said "They are looking at entertainment in a broad sense as a way to get people excited and back out" Should Enchanted Castle land in south Arlington it would fit into the neighborhood of entertainment-oriented retailers: Incredible Uni )t EDS From Page 1 Station 1 From Page 1 ket" Businesses of all sizes have been building high-speed "local area networks" and "wide area networks' that link desktop compufeis throughout a corporation to Mae powerful "host" computers: These networks can often replace mainframe computers at a fraction of the cost They also help cut it layers of middle management by putting more information and computing power onto every desktop At the same time more and more corporate computer users are tapping into in-house computer data bases of company informationhor remote data bases of financial infptr- mation or specialized news report William Rabin a computer analyst at JP Morgan Securities argues that a union between EttS' and a long-distance carrier would help companies design networks that properly balance the capabiti ties of computers and canm unications networks: deal is chiefly driven by expedience there is still really a very reasonable story here" said Kenneth McGee a consultant on networking and "outsourcing" at the Gartner Group "What's been missing all along is a carrier that can sell turnkey solutions and take customers from end to end in solving a problem" Sprint and EDS need each other he said "EDS needs a networking guru to help them migrate to networked computer outsourcing Sprint needs entree to the largest corporations in America" Industrywide the volume of data communications over long-distance lines is growing more than 30 percent a year more than triple the growth of voice communications said Danielle Danese an analyst at Salomon Bros "Data is swamping voice communications and there's no conceptual limit to how big data can get" Danese said "The carriers are looking for ways to penetrate that mar pension fund obligations by selling all or part of EDS in a tax-free transaction and EDS would be able to buy its communication services wholesale rather than retail from Sprint which in turn would gain access to its partner's priceless corporate customers In some ways the Sprint-EDS partnership would be a defensive one struck in response to pending acquisition of McCaw Cellular Communications and MCI's partnership with British Telecommunications But one intent of an EDS-Sprint deal would be to capitalize on a broader strategic fact: Communications and computing have increasingly become two sides of the same coin "If we begin by accepting that this local programming McCaw Cellular Communications owns 52 percent of LIN Broadcasting and has the option to buy the remaining stock in LIN or sell what it owns by 1995 McCaw is involved in a buyout attempt by which wants to purchase McCaw for $126 billion That transaction which has been challenged on antitrust grounds has been stalled in court Last week Channel 5's Adams confirmed that CBS had approached the station about changing its network affiliation from NBC to CBS The current CBS affiliate KINWChannel 4 is expected to switch to the Fox Network at the end of March Adams said yesterday that he was unaware of any subsequent communication with CBS 1 Channel 39 which recently cel ebrated its 25th anniversary is owned by a corporation that is essentially controlled by evangelist and former presidential candidate Pat Robertson His show The 700 Club airs daily on the station How the agreement with Channel 5 will affect Channel 39's 50 or so employees is undetermined "I imagine they'll come in and see the lay of the land before any decisions are made" said Nelson Flanagan program director for Channel 39 "I don't anticipate anyone losing their job" Said Adams: "We have no preconceived or definite conclusions" about possible staff reductions LIN Broadcasting the parent company of LIN Television is involved in its own set of complex negotiations which could affect 5 local newscasts per day on Channel 39 which will provide viewers "an opportunity to have local news available in new time periods" said Doug Adams general manager of Channel 5 Other shows such as Bill Nye the Science Guy an educational program for children will be seen 'on both stations Meetings today tomorrow between the manage-pent of the two stations will determine how soon the changes will take but Adams said viewers can to see some changes in 39's programming within a 'week To Advertise Dial 332-3333 or call tollfree within Business to Business Texas 1-800-222-39784 Health MEIIEMMMEIIINOMIII N862 N853 Business Property N862 Business (Rent or Lease) Opportunity Business 11864 Franchises Opportunity From Page 1 Buqsines usines INVESTIGATE Before Investing Call Your Local Better Business Bureau I-301360 Location 1000-1250 so ft OfcWhse Arlington 633-1441 West FW Northest FW 377-4500 or 731-8215 Prime corner 6500 Camp Bowie 1800 or 1000 so ft $750 244-5763 244-4833 Airport Frwy 7100 Burns 35000sf wrettse Can divide nice offices Don 870-2122 Sales lot-excel loc on Loop 820 offices repair shop wash rack utility 451-5228 Ak-F Want to buy a hotel? 4 story 35000 sf 1 block from down- 8 yr old computer Co needs JAN ITOR IAL town Cleburne TX owner $500 plus your parttime labor will finance $545000 anteed accounts available $80000 Pays for this business Guar- down call 817-558-9699 now Complete training Call now for free info 3364546 Christian investor that knows Marketing Sales Respond: NCI PO Box 151616 Arling- N873 Oil tonTx 76015 (Leases Novelties) 1 Hour Photo Lab Studio 10 yrs In same location' Well- 3 Shallow Oil Leases 630 Ac- established Owner retiring 15 bpd $60K 915-762-2322 Will train Call 295-6211 Or al- ter 4 weekends 295-9232 N878 Mortgages Stocks 332-7585 can move straight to Medicare At companies with fewer than 500 employees the survey showed 70 percent of those retiring were over age 65 The survey also said that 73 percent of small employers required both early retirees and Medicare-eligible retirees to pay the full cost of any company-provided insurance benefits Behrend said that even with the retiree paying the full cost however it provided some advantage for the retiree because it often guaranteed the continuation of coverage regardless of pre-existing medical problems The Foster Higgins survey showed that the cost of providing health-care benefits to retirees rose an average of 79 percent last year The average cost per retiree was $2735 in 1993 compared with $2534 the year before when you get to the post-retirement area" she said The survey report says that "small employers are much less likely to offer retiree coverage only 8 percent offer coverage to retirees under age 65 and 9 percent offer it to Medicare-eligible retirees" generally people age 65 or older Benefit consultants have long maintained that the availability of health-care benefits is often a major factor in retirement decisions by employees The Foster Higgins survey underscores that "Whether or not an employer offers retiree coverage appears to have some effect on employees' retirement decisions since most employees are not eligible for Medicare until they reach age Two-thirds of those retiring were under age 65" the survey says Among small companies people tend to hang on longer so that they Bookkeepingrrax ServiceN881 Business Investments N859 Business Opportunity N862 Business Property (Sell) N050 Business Properly N852-N853 Business Wanted N865 Commercial Property N861 Computer Systems N876 Franchises N864 Fixtures Decorations N867 Investment Property N854 Money to Loan N879 Money Wanted N880 Mortgages Stocks N878 Offices (Rent) N856 Office Equipment N874 Professional Services N883 Vending Machines N888 percent in 1993 Labor Secretary Robert Reich said the census report shows a drop in coverage in every category of workers and employers Behrend said that this year Foster Higgins revised its survey methods to gauge better what's taking place among smaller companies "What we get is a much better picture of tmaller companies and just how limited post-retirement benefits are from smaller companies" she said The survey she said shows that the difference isn't great between rarge and small companies regarding health-care benefits for active employees "The difference really happens in the smaller companies 4 owner financed real lien notes 214-934-1150 800-934-1140 After 5pm 800-258-5600 COLONIAL BUYS NOTES Metro 214-9884111 1-800-969-1200 ton for anunity Approach 800-666-1498 CASHES NOTES 1-800-856-9400 Cashml re Cashes Notes FAST! 877-5743 Auto parts rebuilding business for sale gross SI 00K net We Ix $60K 2 men shop 400 cust estate list estib 4 yrs full training 80041 461-1259 or pm 817-783-7778 800-25 EARN SIOS20 PER HOUR COLI In your own Janitorial bus Start now FullPT free bro- chure Metro 214-756-6475 A177-011 Carpet cleaning business for nity Is sale in uranbury Establish- SU ed 10 yrs excellent reputation 1-817-573-9259 Ca! 6 bay mechanic woffice t3sglientele 400 Cherry 000 obo Bpr 2160 246- 31 246-1105 11879 We buy estate Absolute 1st SLAY SSOK YR up Share car lot available on business 535-3 IN WRITING property with gargagalready With snack vending machine I 2 route Limited routes avail Minimum Investment 59900 Crowley RdStripTR AFF IC up Only respond if you are Visibility reasonable new Mid Sch1000st 297-4351 serious can start immediate- iv have avail capital for in-Shop space suitable for light 'vestment no others need re- MfgAuto Repai wond 713-866-8884 Craig 831-0946 Please leave message 1-35 Felix large whse can 220 UNIT GARDEN divide Don 870-2122 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Dallas stinWGrandPrairle3 CBS From Page 1 N852 Business Property (Sell or Lease) Great location on Denton t1wy Ret whiesale dist 2K on lAc SlOK 2nd level KofcACS4500mo498-8005 Old established auto ac shoo for sale or lease 834-2539 CBS The contract expensive for the network was a bonanza of local advertising "You move to NFL football and this begins to touch the affiliates in the pocketbook" Logsdon said CBS hopes the loss won't distract affiliates from network successes including luring David Letterman from NBC a move that paid off handsomely for the network and its stations "The stations are going to make as much more from Letterman as they lose from football" Reidy says The biggest "if' is how soon CBS can announce replacements for the affiliates Fox will take over the next 18 months in Dallas Detroit Atlanta Cleveland Tampa Phoenix Milwaukee and Austin Fox is investing $500 million in New World Communications which owns or is buying the stations as part of the deal For CBS to be stable in those markets is probably more important to advertisers than to other CBS stations Advertising sales for the 1994-95 season are about to begin The sales could reach $4 billion this year for the four networks which last broke the $4 billion mark in the 1990- 1991 season Consolidation Easy Qualifying No Collateral No Co-Signer Fulitime Job Reaulred 1-800-607-2524 MARGINAL CREDIT Residential Mortgages A Purchase or Refinance We deal with foreclosure tax liens and bad credit Market Mortgage 1-214-960-0636 CASH ON TITLES 1 1 Day Service 4 Upto 12 Mos Lease Back 261-0551 Se Habla Espanbl Cash for Titles Cars trucks boats RV's Mid Cities 595-2888 Ft Worth 244-9757 N853 Business Property (Rent or Lease) five years" said analyst Jeff Logs: don managing director of Seidler "His departure brings what was a stable situation into a arena" he said Then there's the sensitive issue of the Sunday afternoon National Conference games that lost to Fox after Chairman Murdoch anted up a WO million more than N855 Offices (Rent) WANTED: Office space to lease in NE or Tarrant Co Up to 1500' $7 per so ft Interior cubicalspartitions offices wrestroom kitchen facilities preferred Not for retail or street traffic business Fax particulars to Mr Williams 214-620-1960 Arlington exec ste office space in scenic area near Heider Museum Owner occupied managed 861-8442 AIRPORT FREEWAY Executive Su UP 834-6276 HURST Offices at $140mo 268-3903267-9263 WESTSIDE OFC SPACE 700sql1 up S250mo Ellis Tinsley 737-5000 OFFICE SUITES 4817BrentwoodStair 654-9494 West Mt-Univ area 1-4 executive type rooms 731-1212 960 sf In Willow Park great visability from 1-20 596-4896 Full servofffice space Ad competitive rates 465-8450 OVERTON PARK EXECUTIVE SUITES 731-3327 Arl remodel 150-10000sf for lease Best rate See in K731 1SIS utriritxx smug VANTED: Office space to ease in NE or Tarrant Up to 1500' 57 per sa ff nterior cublcalspartitionsi iffices wrestroom kitchen acilities preferred Not for 'etail or street 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FrandlileS Back Tax Collections Audits Andrea Ward CPA 37-0705 N864 N1161 Business Opportunity Sub-Lease avail for 26720sf ofcwarehouse Mark IV Industrial Park in FVi E-Z access to Loop 820 IH-35W David Green 817-838-4774 12100 st plantwhse Ridglea area Rails for 40' OH crane St st start lease Dave Bloxorn 478-1137 USE CLASSIFIED FOR RESULTS DIAL 332-3333 NSW Vending Machines --1 Includes these software titles 11 flUw-vpuu 1 'I ''s lii 4 c4NAKo c- IA 1 Include 77-: it-- I ca XIA-1 To9 these 4 I CV' ILSill li rvim software titles m' tumq A)41) ig eri rmi aTmil 1 1 4103 Office Cleaning Clean Net USA Be the boss own your own off ice cleaning Co We provide Pto $10 ouu per mo In con- is training equipment Insurance Low Investment Metro 214-719-2509 t100000 PoTENTIAL Passive Ground loor Recently developed technology to compete with celluiar phones Limited licenses available Min $7000 for Details CALL 1-800-414-8004 10 compact cold drink machines wall or table too selection fast oavback 1-800-460-1817 4 bay Service Center Prime An location Giqn 261-6242 t1 4 'Financing and Corporate Leasing Available I Prices Availability subject to change without notice ti I Financing and Corporate Leasing Avaitablel Air Ausilahilitnt eithi-4 tn Am larithn nntit IAll systems: FtC Class Certified I 1 svstems: FCC Class Certifi ed I.