Guitar Center has agreed to purchase the assets of The Woodwind & The Brasswind, a music retailer in South Bend, Ind. that is currently in bankruptcy. The agreement includes the company’s inventory of band, orchestra and combo instruments as well as trade names, accounts receivable and other intangible assets. The transaction is subject to several conditions including bankruptcy court approval and the results of a bankruptcy auction scheduled for January.
Disney Extends Distribution Deal with Comcast
ABC Television hits “Lost” and “Desperate Housewives” will be made available via Comcast Corp.’s video-on-demand service in select markets under a new agreement reached between Comcast and the Walt Disney Co. It is the first time ABC programming has been made available via video-on-demand by a cable company. The service begins in the fall of 2007 and includes two other ABC shows to be determined. The shows will be made available through Comcast’s On Demand service the day after their broadcast television viewings. The long-term agreement between Disney and Comcast also includes continued cable distribution of programming from the Disney Channel, Toon Disney, SOAPnet, and five ESPN channels. Walt Disney Company President and Chief Executive Officer Robert A. Iger called the agreement one of the broadest in the history of the company. “Disney’s great brands and great content combined with Comcast’s leading distribution platforms provide an incredibly compelling consumer experience in sports, family, news and entertainment,” Iger said. The agreement also included Comcast purchasing Disney’s 39.5 percent ownership stake in E! Networks for $1.23 billion.
Living Wage Ordinance Passed
The Los Angeles City Council officially passed a motion Wednesday to require a dozen hotels near Los Angeles International Airport to pay workers a living wage, igniting fear in the business community that the ordinance sets a dangerous precedence that could spread to other industries. The council voted 10-3 to approve the measure, which requires hotels to pay housekeepers, servers and some kitchen staff $9.39 an hour with benefits or $10.64 an hour to those without benefits. Before today’s vote, the living wage ordinance passed in 1997 was applied only businesses under contract with the city. The City Council’s action Wednesday expands that interpretation to include hotel workers along Century City Boulevard because, the council said, those hotels benefit chiefly from Los Angeles International Airport a city-operated entity. Those voting in opposition were City Council members Dennis Zine and Greig Smith of the Valley and Bernard Parks. The City Council also approved two less-contentious measures addressing wages. One calls for hotels to pass tips generated from conferences to servers and another requires hotels to keep workers for at least three months if it is sold to a new owner. The changes have been widely criticized in the business community. The Los Angeles Chamber of Commerce, Hotel Association of Southern California and several other business groups are working to place a referendum on the March ballot.
Bob Hope Airport Braces for Peak Travel Season
Bob Hope Airport in Burbank is adding more drop-off zones and traffic cops today through Sunday to stymie the logjam of traffic expected during the busiest travel period of the year. “Our biggest problem is use of the curb area,” said airport spokesman Victor Gill, adding that the airport expects up to 20,000 passengers through its terminals on peak travel days. “We have such constrained space out there.” To address the expected increase in pick-ups and drops offs, the airport will allow vehicles to stop in the two lanes closest to the curb, Gill said. A full-time traffic officer will also direct vehicles in and out of the terminal area. Airport officials are also reiterating that passengers follow Transportation Security Administration restrictions on liquids in carry-on bags. Passengers are limited to a single one-ounce quart plastic bag with three-ounce liquid containers. For more information about what can be carried aboard plans, visit the Transportation Security Administration.
Commission OK’s Mayo Hospital Expansion
The Santa Clarita Planning Commission has approved the master plan for Henry Mayo Newhall Memorial Hospital. The proposal, approved 3-2, creates a 25-year blue print for the facility and its campus. The plan has been met with community opposition largely because of its scale and possible effects on traffic and noise. It now awaits City Council approval.
Cheesecake Officials to Repay Option Proceeds
Officials at The Cheesecake Factory will give back a reported $1 million in pay they received as a result of improperly dated stock option grants. The company said that it “incorrectly applied the measurement date” in granting stock options to executive officers in fiscal years 1997 through 2001, to non-executive officers and other employees between fiscal years 1997 and 2004 and to outside directors in the fiscal years 2000 and 2001. Cheesecake also said it would restate its financials to record expenses totaling about $5.5 million as a result of the improperly applied options. The executives will repay the difference between the stock option proceeds received and the proceeds that would have been received had the options been granted using different dates. According to a report in the Los Angeles Times, David Overton, CEO of Cheesecake, along with its former CFO Gerald Dietchle, are among the executives involved in the stock option grants.
Wednesday in the Valley
The Mid Valley Chamber of Commerce holds its annual chamber of commerce and service club Thanksgiving lunch. 11:30 a.m. Courtyard by Marriott 15433 Ventura Blvd., Sherman Oaks (818) 989-0300 midvalleychamber.com
MGA Entertainment Sued by Mattel
Mattel Inc. has filed a lawsuit against Van Nuys toymaker MGA Entertainment Inc. alleging the company stole its concept for the popular Bratz doll line. The complaint, filed Monday in U.S. District Court in Riverside, expands a lawsuit filed in 2004 in which El Segundo-based Mattel alleged one of its former doll designers sold the concept of Bratz to MGA. The new suit contends MGA hired away key Mattel personnel and used intellectual property theft to fuel the growth of the company. The popular Bratz line first hit store shelves in 2001. Calls to MGA were not immediately returned.
Palmdale Airport Service Proposals Sought
The Los Angeles Board of Airport Commissioners is trying a second time to get commercial air service at Palmdale Airport. The commission on Nov. 20 issued a release of a request for proposal to start air service from the 60-acre airport starting in 2007. The request invites all U.S. commercial airlines providing scheduled service to submit a proposal outlining possible service. Proposals will address aircraft type, number of daily departures, destination hub, connecting market opportunities, and marketing and promotion strategies. The deadline to submit proposals is Jan. 5. This is the second time in recent years that the airport commission has attempted to bring air service to Palmdale. Scenic Airways provided flights from the airport to North Las Vegas from late 2004 through March 2006 Airport officials provided free rent to Scenic and spent $75,000 marketing the service. This time around, a $900,000 federal grant in addition to contributions from Los Angeles World Airports, the city of Palmdale and Los Angeles County has been pooled together to fund a $2.05 million revenue guarantee agreement to mitigate the business risk an airline faces in entering a new, unproven market. Palmdale, LAWA and other partners are also providing $2.56 million in in-kind contributions, including terminal rent abatements, advertising, marketing, promotional support and staff time. The development of Palmdale will facilitate access for travelers and cargo transport and help alleviate air and vehicular traffic congestion ant Los Angeles International Airport, said airport commission Vice President Valeria Velasco in a statement. “I am confident Palmdale Regional Airport will be the gem in the northern region of Los Angeles County,” Velasco said.
Newhall Clinic Opens
A new health center has opened to serve the uninsured of the Santa Clarita Valley. Samuel Dixon Health Center remodeled its facility in Newhall to include updated clinic features and new amenities. It is located on the campus of Newhall Elementary School at 24607 Walnut St. The clinic is intended as temporary as officials fundraise and search for a suitable location for a permanent facility.