Chicago is My Home

29
May

Two Major Food Distributors in Illinois Merge Operations, Plan New Center

Author: Adam Fendelman, Category: Business

CHICAGO – Central Grocers, Inc. in Franklin Park, Ill. and Certified Grocers, Inc. in Hodgkins, Ill. – both major Chicago food distributors – announced on Wednesday they will merge operations and relocate to a new Joliet, Ill. facility.

The combined company, which will operate under the name Central Grocers, will serve 225 members that operate 450 stores in Illinois, Indiana, Iowa and Wisconsin. The merger must be approved by shareholders of both companies.

Central Grocers CEO Jim Denges will head the newly merged distributor. Denges said in a Wednesday statement that the company hopes to strengthen relationships with its vendors and grow its membership.

“With rising fuel costs, our goal is to develop a highly efficient distribution center that has the capacity to serve the independent retailers in the greater Chicagoland market effectively,” Denges said on Wednesday.

A new, 920,000-square-foot warehouse in Joliet will serve as the distribution headquarters for Central Grocers starting in the first quarter of 2009. In 2007, Certified sold its 1-million-square-foot distribution center after years of declining members diminished the company’s operations.

By Megan O’Neil

29
May

John Deere Water Technologies in Illinois Buys T-Systems International

Author: Adam Fendelman, Category: Business

MOLINE, Ill. – Farming and agriculture equipment manufacturer Deere & Co. in Moline, Ill. announced on Thursday it has completed the acquisition of T-Systems International to expand the company’s John Deere Water Technologies manufacturing operations to three countries.

San Diego-based T-Systems specializes in products for agricultural, nursery, landscape, mining and greenhouse applications.

“T-Systems International is a highly regarded global company with premier products, experienced talent, strong distribution and established operations in key agricultural irrigation markets,” said John Deere Water Technologies President Michael McGrady in a Thursday statement.

Established in 2006, John Deere Water Technologies is a leader in high-performance precision irrigation products. The company produces plastic micro and drip parts for agricultural, gardening and landscaping use.

By Megan O’Neil

29
May

High-End Retailers Line Up For Commercial Space at Block 37 in Chicago

Author: Adam Fendelman, Category: Real Estate

CHICAGO – While still under construction, owners of the Block 37 project on State Street in Chicago have already lined up an impressive list of high-end retail companies to fill the new commercial space.

Crain’s Chicago Business and the Chicago Sun-Times reported this week that German sportswear company Puma is the latest big-brand retailer to sign a lease with Block 37 owners Joseph Freed & Associates.

Puma, which will occupy 8,500 square feet on two levers, joins an eight-screen Muvico movie theater and a David Barton Gym. Freed, which is targeting upscale merchants, is also rumored to be in talks with Bebe Stores, Zara, Apple, J.Crew and Coach.

Freed announced last week it had signed a lease with high-end grocer Fox & Obel for 25,000 square feet of space in the former Carson Pirie Scott store at 1 S. State St. in Chicago, which is another one of the developer’s State Street locations.

By Megan O’Neil

28
May

American Airlines Makes First Cuts: Ends Routes to Buenos Aires, Honolulu

Author: Adam Fendelman, Category: Travel

CHICAGO – American Airlines in Tuesday and Wednesday statements said it will eliminate several routes (including Chicago to Buenos Aires and Chicago to Honolulu) as part of a 12 percent operational reduction the carrier announced on May 21, 2008.

American says flights between Chicago and Buenos Aires will stop on Sept. 3, 2008. The carrier says flights between Chicago and Honolulu will be reduced starting on Sept. 3, 2008 and will stop entirely on Jan. 5, 2009.

Other cuts include the carrier’s flight between New York’s John F. Kennedy International Airport (JFK) and London’s Stansted Airport (effective July 2, 2008) and its Boston to San Diego flight (effective Sept. 3, 2008). American says it will also restructure operations between the U.S. and various Caribbean islands including (Puerto Rico).

American parent company AMR says the airline is under intense financial pressure due to high fuel prices and a weak U.S. economy. AMR says it will make additional reductions in the coming weeks.

By Megan O’Neil

28
May

National Association of Realtors Reaches Settlement in Internet Listing Dispute

Author: Adam Fendelman, Category: Real Estate

CHICAGO – The National Association of Realtors (NAR) in Chicago said on Tuesday it reached a settlement with the U.S. Department of Justice. The agreement brings a close to three years of litigation surrounding the organization’s policy of restricting the listing of homes for sale on the Internet.

The 1.3 million-member organization previously permitted members to block the listing of homes for sale on the sites of Internet-based brokers. Another rule prohibited Web sites from selling referrals to other brokers.

The U.S. Department of Justice filed a complaint against NAR in 2005 arguing the policies curbed competition and inflated commission rates. Under the terms of the settlement, NAR can’t prohibit or restrict the posting of homes for sale on the Internet.

However, sellers themselves can restrict the details and the level of exposure their homes get on the Web. NAR President Richard F. Gaylord on Tuesday declared the settlement a “win-win” for the organization. He emphasized that NAR will not be held accountable for any wrongdoing nor will it have to pay any monetary fines in connection with the case.

By Megan O’Neil

27
May

Supreme Court Rejects New Appeal From Former Illinois Gov. George Ryan

Author: Adam Fendelman, Category: Business

CHICAGO – The U.S. Supreme Court on Tuesday rejected George Ryan’s latest appeal, the Associated Press reported, which makes it all but certain the former Illinois governor will serve his 6.5-year sentence for federal racketeering and fraud.

The last hope for the 74-year-old disgraced politician is intervention by U.S. President George Bush. He could commune the sentence before he exits the White House in Jan. 2009.

Ryan was convicted in April 2006 of illegally maneuvering state contracts into the hands of friends and business partners in exchange for luxurious gifts.

He was also charged and found guilty of tax fraud and the illegal use of tax dollars. He began serving his sentence on Nov. 7, 2007 and is currently being held in Terre Haute, Ind.

By Megan O’Neil

27
May

AAA Report: High Fuel Prices, Airline Tickets Affect Holiday Weekend Travel

Author: Adam Fendelman, Category: Travel

CHICAGO – With skyrocketing gas prices and increasingly expensive airline tickets, travelers found there were few cheap transportation options over the holiday weekend.

Drivers in Chicago and the surrounding suburbs paid well in excess of $4 a gallon for gasoline, according to the American Automobile Association (AAA) fuel tracker. The national average at the pump hovered at $3.93.

While the U.S. Department of Energy has not yet released data detailing fuel demand over Memorial Day weekend, experts anticipate it will show that road travel was down during the traditionally busy three-day stretch.

Air travelers also faced heightened costs as UAL Corp.’s United Airlines hiked prices by as much as $60 on Thursday to combat record fuel prices. American Airlines and Delta Air Lines quickly followed suit by announcing their own fare increases on Friday.

By Megan O’Neil

27
May

Falling Chicago Home Prices Mirror Larger National Trend, New Index Says

Author: Adam Fendelman, Category: Real Estate

CHICAGO – Cooling home prices in the Chicago area mirror the nationally weak housing market, according to the Standard & Poor’s/Case-Shiller home prices indices released on Tuesday.

Chicago home prices were down 10 percent in March 2008 as compared with March 2007. The national index showed that prices fell by 14.1 as percent compared to the first quarter of 2007, which is the sharpest drop since Standard & Poor’s began using indices in 1988 to monitor change in prices.

David Blitzer – chairman of the index committee at Standard & Poor’s – gave a bleak assessment of the outcomes of the indices.

“There are very few silver linings that one can see in the data,” Blitzer said in a Tuesday statement. “Most of the nation appears to remain on a downward path with 19 of the 20 metro areas reporting annual declines. Six of those are now at negative rates exceeding 20 percent.”

By Megan O’Neil

20
May

Esmark Says Acquisition Does Not Violate Contract For United Steelworkers

Author: Adam Fendelman, Category: Business

CHICAGO – Esmark in a Tuesday statement defended its negotiations with India’s Essar Steel Holdings by saying the proposed buyout does not violate its contract with the United Steelworkers union.

According to an Associated Press report, the union sent a letter to Esmark on Friday demanding the steelmaker abandon its negotiations. The United Steelworkers said the acquisition violates their contract’s “right to bid” clause. This allows workers veto power over any deal that changes control of the company.

Also on Tuesday, the Russian metals and mining company OAO Severstal offered to pay $668.8 million for Esmark, which is slightly less than Essar’s $670 million offer on April 30, 2008.

Esmark is run by Chicago Heights brothers James Bouchard and Craig Bouchard. Previously headquartered in Chicago, the steelmaker and distributor (and its recently purchased subsidiary Wheeling-Pitt) are now operated out of Wheeling, W.Va.

By Megan O’Neil

20
May

Downtown Aurora, Ill. Casino Fined $800,000 For Soliciting Problem Gamblers

Author: Adam Fendelman, Category: Gambling

AURORA, Ill. – The Illinois Gaming Board fined Hollywood Casino $800,000 and suspended three managers on Monday for soliciting problem gamblers with promotional materials.

The downtown Aurora, Ill. casino sent out mailings marketing its slot machines and cards tables to nearly 15,900 prospective customers. However, the casino did not cross check the mailing list with the gaming board’s self-exclusion program.

After receiving multiple complaints, the Illinois Gaming Board investigated and discovered 146 recipients had voluntarily asked to be cut off from state casinos.

The action was the harshest punishment the Illinois Gaming Board has levied against a casino for such an offense to date. Those suspended included general manager Patt Medchill, marketing services manager Christopher Rellinger and vice president of marketing Alan Rosenzweig.

By Megan O’Neil