Oakland Tribune from Oakland, California • 27

THE TRIBUNE, Oakland, California Friday, February 2i 1989 C4 IBUSINESS FAILURES Decline in business failures seen heavily in agriculture Incompetence fading as an Failures of businesses In the United States Since 1978 (lnfauunds) NotrFigimaflirlSSSIndudi Unixs. tnwno. fl tiHli griadmh torMfty and taNng butiniMM 573 52. 313 24.0 513 61.1 1,823 494 6,791 4304 2,090 4,455 11.488 2377 22,686 .490 513 -21. 2 I were down or flat in seven of the nine major -failures dropped 51.6 percent to 1,823 from 8,766, and failures in the mining sector, which includes oil and gas extraction, were down 21 3 percent to 494 from 627.

The dramatic decrease in agricultural failures in 1988 Is attributable to the surge in failures in early 1987, as fanners took advantage of the new Chapter 12 bankruptcy code," Duncan said. Chapter 12 Allows troubled family farmers to reorganise their debts while being protected from their creditors. The report also found that retail failures decreased 11 percent to 11,488 from 12,240, and services bankruptcies were down 4.7 percent to 22,686 from 23302. Manufacturing failures were down 13 percent to 4304, while wholesale trade failures Increased 2.7 percent to 4,455. Construction failures were es-.

sentlally unchanged at 6,791. cent of companies now require drug testing, according to a recent study conducted by management consultants Towers, Perrin, Foster and Ctasby. Costly safety violations and liability suits caused by substance abuse are causing companies to take serious rehabilitative and disciplinary actions against am- ployees. According to the survey, another barrier to the fast track is good old-fashioned laziness, or not working aa hard as yow boss thinks you should. Choosing the wrong career, not being able to handle work-related stress and being inade-" quately educated for the Job also are career killers.

The consensus was that personal problems dont do a career much good. Incidents of sexual harassment, professional Jealou- sy by supervisors and peers, -marital discord, being a target -in a discrimination suit or having wages garnisheed can derail careers. Agriculture, forestry fishing A-j .3,766 Mining 627 Construction xV 7 1735 Manufacturing 4,273 iTrahsportatioh jpubfc utiHes; 2336 Wholesale trade 4,338 Retail trade Finance, Insurance real estate 2,550 .546 Oim 'g TwtweewndAwe has faced stiff competition. v- Vto NEW YORK U.S. business -failures declined 6.6 percent in 1988, the biggest drop in a decade, Don Bradstreet Corp.

reported yesterday. The business-information company said 57,098 businesses went under last year, compared with 61,111 in 1987. The significant decline in failures underscores the continued strength of the economy, now in its seventh year of expansion," said Joseph W. Duncan, chief economist for Dun Brad-street. The nation's weakest regions are showing, improvements, while those areas that led the expansion are holding their own." The survey said failures were in six of the nations hind census regions, with only the Middle Atlantic states reporting' a significant increase.

The decline in failures was especially notable in states with agriculture and oil-based economies, according to the survey. Among oU businesses, failures Daisy. Ceathreed from Page C-l utives Brad Bradshaw and Stanley McGinnis, formerly the companys chief financial officer. According to Kandarlan, a group of creditors has petitioned the bankruptcy court to file involuntary bankruptcy against both executives, a move that would force them into personal bankrupcy. McGinnis reportedly is resisting that action, he added.

Bradshaw refused to comment McGinnis could not be readied yesterday. The company was founded as Little Daisy in 1953 by Gladys Daisy" Talkiogton, and enjoyed a considerable local following. But as competition from specialty stores, small independents, and large department stores intensified, Little Daisy was forced to shut down many of its locations, including its two Seat-tie stores. Bradshaw called the Invasion of specialty storm insidious." It seems San Francisco got more than its share of national womens chain. I mean, retail space has far outgrown the retail population.

And the national chains have come in with far more financial strength we simply couldnt compete. Its been survival of the fittest, be r1 In 1985, in an effort to broaden its appeal, the company changed its name to Daisy and adopted, an "everyday low price" But that strategy apparently foundered, and the company took bore drastic measures last March, closing, five Bay Area Ads. Caattaaed from Page C-l said he has found, There were a lot of safe hits and not a hit of home runs last year. Video Storyboards compiled its 11th annual ranking of television commercials based on responses from 24,000 people who were mostly at shopping malls and were asked to name the most outstanding television commercial they have seen in the past four weeks. The California Raisin Advisory Board scored gn instant success in Fall 1986 with its commercials that use clay models of raisins which appear to dance and sing to Heard It Through the Grapevine.

The ads helped boost raisin sales which had been lagging and created a market for licensed. products ranging from raisin skirts to a raisin board Robm Phlnney of the California Raisin Board said sales, of Thrifts. By Cindy gknydd -jlmr Drug and alcohol abuse are more likely to cost you your Job than incompetence. Thats the conclusion of more than 1,100 personnel administrators who were surveyed by Rlht Associates, a Philadelphia firm that specializes in outplacement counseling. The administrators, who are responsible for career development, were asked to rank 17 factors moat likely to stall a career.

Drug add alcohol abuse were cited moat frequently, followed by professional Incompetence and personality clashes at the office. The belief used to be that if you cant do the Job, you shouldnt have the Job, said Virginia M. Lord, senior vice president of Right Associates. Now the crackdown on drugs and alcohol is taking precedence.1 The results show the importance companies are placing on maintaining drug-free work places. Nationally, some 45 per Market posts By Chet Currier no NEW YORK -r- The stock market ekedaout a small gain, yesterday, steadying after Wednesday's sharp drop.

The Dow Jones average of 30 industrials, which showed a modest loss for i sion, finished with i 2389.46. The points Wednesday for its largest drop in three months. Advancing issues slightly outnumbered declines in nation-' wide trading of New York Stock Exchange-listed stocks, with 741 up, 694 down and 507unchanged. Volume on the floor of the Big Board came to 150.37 million shares, down from 16114 million in the previous session. Nationwide, consolidated volume in NYSE-listed issues, including trades in those stocks on regional exchanges and in the over-the-counter market, totaled 179.40 million shares.

Analysts said the markets were still struggling to recover from the Jolt of the report Wednesday the consumer index Jumped 0.6 percent Jamury. news sent bond prices and stepped up expectations that the Federal Reserve feel compelled to tighten further and faster than it previously planned. Greenspan, the' Feds described the report disturbing! all that, however, brokers said blue chips attracted some support yesterday from mostjof the ses-with 89.53 gain at i average fell 42.50 Bozic also announced an ag-gressive television, print and mail advertising campaign to sell the concept to the public. Sears, which reported $32.42 billion in revenue from its merchandise group in 1988, currently uses a policy of regular prices with sales on specific items. The latest strategy, while not new In the retailing industry, is seen as a move to help Sears modernize its image.

Bozic said the new policy would improve the companys efficiency and reduce the cost of inventory, distribution and pro for tax-exempt revenue bond programs. That approval should come by the end of April, he said. After that, the county needs 60 days to educate banks, mortgage companies, and real estate agents about the program. Most real estate agents contacted yesterday knew little about the program, but welcomed it as a boost to struggling fjinpfrgfftji Ip mm. problem.

of the specialty P1 chains, he said. "Jai Bradshaw said he continues to speak with several parties intrigued by his concept including J.C. Penney which reportedly is looking to start or buy a specialty apparel chain. But jm offers nave surfaced, and retail experts say the market for specialty apparel retailing is especially soft, making expansion difficult for many The lower might credit had Alan chairman, as With slight gain: buying by money managers who had beet) looking for a pullback in prices to move some of their large cash reserves into stocks. The New York markets had closed by the time Chase Manhattan Bank, in a not entirely unexpected move, raised its prime lending rate from II percent to 11.5 percent Precious metals stocks gained ground, benefiting from the new flareup of inflation worries.

Battle Mountain Gold gateed'l to 15.625; ASA Ltd. 1.125 to 40.876; Romestake Mining .625 to 14-625 and Placer Dome .75 to 115. Aristech Chemical Jumped 6.75 to 38.25 and led the active list on turnover of more than 23 million shares. The company said Wednesday that Jon Huntsman, chief executive of huntsman "Chemical, apparently wants to buy at lent $15 million of Aristech stock. West Polrit-Pepperell rose 1.25 to 57.25.

The company, which had been opposing a )52-a-share takeover bid by Farley Inc agreed to be acquired by Farley at a sweetened price of $58. Japanese Issues were strong after the Tokyo market set a new high. Honda Motor rose 175 to 158.875 and Matsushita gained 2.75 188.125. As measured by Wilshire As-, sodates. index of more ihan actively traded stock! the market increased $8.70 billion, or 0.30 percent, in value.

The NYSE's composite index of all Its listed common stocks gained 34 to 164.09. motion by up to $200 million a year. But he said Sears also will promote several sales each year. We will always have to clear goods, he said. There will be the traditional efforts in July and after Christmas.

(But). we. will have a lot more time to look for extra special products to sell to customers. As part of its restructuring. Sears said it would also offer about 1,000 name brand items, which it will sell alongside its own Kenmore and Craftsman.

Sears announced last October it would Introduce everyday low prices at its stores. home buyers in the pricey Bay Area market. This will open up a fairly good market, Ragg said, but added that the program will only work well if people know about it Tm not sure its going to pull people out of the woodwork, unless people know about it The communities involved are going to have to do a sales Job. Daisy 9 to 5 clothing store at the stores including Its original Montclair store and adopting the name Daisy 9 to 5" to emphasize a now focua on career dressing Bradshaw also announced at the time that he was seeking an Investor with 4 million to help him launch a chain of 106 Daisy stores nationwide. The stores, which he envisioned hitting $71 million in sales within five years, were to be located in burgeoning urban products licensed to use the raisin characters amounted to $500 million last year, Just short of the Industrys $600 million in sales of the real thing.

In 1988, the board aired a commercial featuring an animated Ray Charles singing with the raisins. New ads are planned for this falL Phlnney said the raisin ads main popular because the characters are depicted as entertainers rather than pitchmen. "We have been very conscious of not making them salesmen, he said. Vadehra said the California raisin industry also got credit from some consumers for ads others did using the raisin characters. He said some consumers thought ads for Post Raisin Brin cereal and Hardees fast-food restua rants, which each have been licensed to use the characters in their ads, were commercials for California raisins.

Ranked fourth behind the Cal Oakland City Center. The retailer centers, catering to busy career women who could make a quick purchase on their lunch breaks or after work. To capture this affluent workforce, the stores were to be open Monday through Friday, from 10 am. to 6 pjn. Bradshaw said yesterday that he had found a niche in the Daisy 9 to 5 concept, and that the company was doing a brisk business when it made its bankruptcy fik.

big Conceptually, I solved the. ifornia raisins," Pepsi and McDonalds campaigns was Bqd Light beer. Vadehra said consumers cited ads featuring the Bud Light spokesdog Spuds Mac-Kenzie three times as often as the ads that show amazing things that can happen when you simply order a light" beer. In fifth place were ads forlsu-zu cars and light trucks featuring the fictional lying pitchman Joe buzu, another campaign introduced in 1986 and steadily gaining popularity. Miller Lite beer ads ranked sixth, followed by Cop-CoIa soft drinks, Stroks beer ads featuring Alex the dog, Wendys fast food restaurants and Levis Jeans.

Ads by the Partnership for a Drug-Free America, the industrys volunteer anti-drug campaign, placed 11th. Falling out of the top 10 campaigns woe ads for Bartles Jaymes wine coolers and DuPont Stainmaster carpets. Sears. Ceatlaeed from Page C-l Sears stories in NorthernCaiifor-nia, including stores at Oakland, Concord and Hayward, said Bob Rogers, the chains general me-chandise manager for the region. Though the stores will be closed to shoppers during the closure, all Sears employees will be reporting to work as usual on Tuesday.

As you can imagine, it will be a major chore to remark all the merchandise, so were going to be needing everyones help, Rogers said. Housing. Coatiaoed Brent Page C-l For potential home buyers, there are several restrictions: a Home buyers are limited to buying their home within participating cities in Alameda County. The program is open only to first-time home buyers, that is, buyers who have not owned a home within the past three years. a The purchase price is limited to 90 percent of the median home price in the county.

At present, this translates into $165,000 to $170,000 for existing homes, and $180,000 to $190,000 for new homes. The precise limit has not yet been determined, Shepherd said. Family income is also restricted. For households of one or two people, the combined income cannot exceed $50,000. For three or more people, the combined income is limited to $55,000.

The program is not expected to begin until the summer. Shepherd said. The county must first get approval from the state for a piece of the $1.4 billion federal allocation it receives each year Coatlaaed from Page C-l officials skid the situation so far has not required any Fed lending. But they were worried early this week that institutions in Texas could need immediate cash. Government regulators also worried about, other Southwestern states, like Arizona, but they said that so far no problems had materialized.

and loans that are paying higher rates to keep deposits to lower rates somewhat The announcement by the Fed came as Greenspan was testifying before the Senate Banking Committee on the Bush plan to bail out the savings Industry. Greenspan strongly supports the plan, which would cost $1573 billion over 10 yean. In a separate hearing before the House Banking Committee, Treasury Secretary Nicholas F. Brady indicated that the cost of the Bush plan over 30 years would be $230 billion, of which $72 billion would represent interest payments on borrowings from 1999 through 2018. When asked whether the plan's assumptions of lower interest rates and higher deposit growth were realistic, he said: We are generally In support of the orders of magnitude that they show.

Greenspan also said he was not troubled by the Bush proposal to require savings institution to double their capital levels over the next two veers. Greenspans comments came as opposition to the Bush bailout grew amon members of Congress fighting to preserve a separate industry. cash and is unlikely to sustain anv real loss, because the Bush plan already calls for the Industry and taxpayers to pay the cost of bailing out the insolvent savings and loans. Members of Congress stressed yesterday that despite the withdrawals, all funds of insured depositors were sound. 'The Treasury is also poised to lend funds to insolvent savings and loans, because by statute the FSLIC has a $750 million line of credit with the Treasury.

But one official said none of those funds had been drawn. The move wu hailed by savings Industry observer! who argue that it will enable sick savings I A.