Category Archives: Business News

Southwest Third Midwest Airline to Launch New Uniform Look

Photo by MamaGeek at English Wikipedia
Photo by MamaGeek at English Wikipedia

Come next spring Southwest Airlines stewardesses will be dolled up in new, Cintas-designed uniforms nothing like their skimpy, eye-catching look of the 1970s. The new uniforms were co-designed with employees of Southwest as well.

Cintas is also creating a uniform facelift for Chicago-based United Airlines, due for exposure next year. Coming in September travelers on American will also be greeted with freshly designed uniforms.

The new uniforms for all three airlines seem to be part of an overall improvement in customer service in the wake of record profits resulting from historic low fuel prices. They are also revamping, along with their uniforms, their images and brands.

Now that Southwest Air is turning 45 it appears they are trying for a more “mature” image. There company has certainly expanded, with 90 destinations, including some international markets.

The new look for the female flight attendants on Southwest features bold blue and warm red: the colors seen on the new Southwest uniform that was launched in the fall of 2014. On top of the uniforms will be Bold red fitted jackets, and an homage to the crazy short shorts and miniskirts of the 70s with a well-placed zipper running up the dress from the hem. The men FAs will get a new look, too, consisting of dark blue pants and jackets over lighter blue shirts. Their neckties will be a bold and brave red.

Chicago Losing Lucas Museum

George Lucas. Photo courtesy of Wikipedia.
George Lucas. Photo courtesy of Wikipedia.

George Lucas announced he was taking his Lucas Museum of Narrative Art project out of the Windy City due to objections to the project made by a city watchdog group.

Filmmaker Lucas, of Star Wars fame, could take his project back to California. The museum was first proposed for construction in San Francisco, but that city refused to give Lucas a site which overlooked the San Francisco Bay so Lucas brought the project to Chicago where he received support from Mayor Rahm Emanuel.

Friends of the Parks, a green area protection organization, filed a lawsuit to prevent the museum’s construction on valuable lakefront property next to Soldier Field. Mayor Rahm is a vehement supporter of the museum despite coming under criticism for the past several months for that support. Opponents of the museum say Emanuel has been spending too much effort on getting the Lucas Museum built when the city has much more important problems which should be dealt with. The Mayor answered his critics by saying the city is missing a great opportunity:

“This missed opportunity has not only cost us what will be a world-class cultural institution, it has cost thousands of jobs for Chicago workers, millions of dollars in economic investment and countless educational opportunities for Chicago’s youth.”

Lucas also expressed frustration with the city:

“No one benefits from continuing their seemingly unending litigation to protect a parking lot. The actions initiated by Friends of Parks and their recent attempts to extract concessions from the city have effectively overridden approvals received from numerous democratically-elected bodies of government.”

Old Meets New at Chicago’s Merchandise Mart

Merchandise Mart. Photo courtesy of Phillip Capper.
Merchandise Mart. Photo courtesy of Phillip Capper.

What was once the world’s largest building in terms of square footage, Chicago’s Merchandise Mart, has made some upgrades designed to get “the tenants to stay in the building longer over the course of the day, and working harder,” said David Greenbaum president of the New York-based Vornado Realty Trust.

Vornado bought the property in 1998, and since then has spent $40 million on renovations to appeal to the tastes of the “millennial” crowd.

“Our building, the Mart, has become the epicenter of what is this extraordinary resurgence of River North in Chicago,” said Greenbaum.

The changes were made to the ground level common spaces of the 86-year-old building which sees over 25,000 people passing through each day. The centerpiece of what’s new is a 50-foot-wide marble staircase which connects the first floor with the second. The 38 steps are designed for hanging out, with enough seating for 200 people between the floors. There is free Wi-Fi and a projection screen also in the open space.

At the top of the staircase visitors will be greeted with a spectacular view of the Chicago River and skyline. Also upstairs there is a new lounge with meeting spaces and a brand new food hall dishing out artisanal wares from local vendors. A food marketplace is in the planning stages, and a 5,000-square-foot green area outdoors will be a relaxing picnic space near the river.

Right now the building is 98 percent occupied. There are 550 tenants, including some big names such as Motorola Mobility, 1871, Yelp, eBay, PayPal and Allstate.

The Merchandise Mart opened in 1930, developed by Marshall Field and Co. With 24 floors and 4.2 million square feet of interior space, the building was the largest until the construction of the Pentagon ten years later. In 1945 Joseph P. Kennedy bought the building for $26 million.  The Kennedy Family sold the property to Vornado Realty in 1998 for between $250 and $300 million.

Illinois Residents Can Expect Big Raise in Health Insurance Costs

Photo courtesy of taxcredits.net
Photo courtesy of taxcredits.net

If Illinois residents can judge from Texas and Oklahoma, they can expect health insurance fees to rise by about 50 percent in the coming months. Chicago-based Health Care Service Corp owns Blue Cross in all three states, and they have requested a 53.7 percent increase in Texas and a 49.2 percent increase in Oklahoma, across its Affordable Care Act plans. It is not a sure thing that these price hikes will be approved, and if the exact numbers are not approved, what kind of rate hikes to expect instead.

Blue Cross is the most popular insurer in Illinois, as it is in Texas and Oklahoma. Mark Spencer, spokesman for HCSC said Illinois’ proposed hikes have not been made public yet. He said it is premature to speculate about the local price hikes since pricing is based on local conditions.

The Illinois Department of Insurance agreed that the rate plans proposed by Blue Cross and other insurers are still under review. It is up to the federal government to publish the new ACA rates, and are planning to do so for Illinois on August 1st, said the spokeswoman for the department, Anjali Julka.

Spencer would not comment on what the company would do if the requested rate hike was not granted. Last year Blue Cross pulled out of the health exchange in New Mexico when the state’s insurance regulators turned down HCSC’s proposal to raise their rates by 51 percent.

Governor Rauner Nixes Mayor Emanuel’s Pension Funding Bill

Rahm Emanuel, former White House Chief of Staff (2009-2010), Mayor of Chicago since 2011
Rahm Emanuel, former White House Chief of Staff (2009-2010), Mayor of Chicago since 2011

Chicago Mayor Rahm Emanuel received an answer of “no” to his request to pass a bill which would have helped fund pensions for the city’s police and firemen.

Illinois Governor Bruce Rauner said that Emanuel’s plan did not include cost-cutting savings. He said the bill would force the city taxpayers to pay more in the long run.

“Borrowing billions against taxpayers is not the solution,” Rauner said.

But for now the veto will remove $220 million from the city’s budget. The mayor might have to raise property taxes on Chicago residents to make up the deficit. Some critics of the governor say he squashed the plan as much for political reasons and economic. They say that Republican Rauner would like to have some power of Democrats in upcoming fights over budgeting, taxes and the pro-business, anti-union changes the governor is after.

The bill the governor vetoed would have covered the cost of contributions to the Policemen’s and Firemen’s Annuity and Benefit Fund.

“The cost to Chicago’s taxpayers of kicking this can down the road is truly staggering,” Rauner said in the statement. “Chicago is borrowing against its taxpayers to the tune of $18.6 billion. This practice has to stop. If we continue, we’ve learned nothing from our past mistakes.”

Emanuel replied: “With a stroke of his pen, Bruce Rauner just told every Chicago taxpayer to take a hike. Bruce Rauner ran for office promising to shake up Springfield, but all he’s doing is shaking down Chicago residents, forcing an unnecessary $300 million property tax increase on them and using them as pawns in his failed political agenda.”

McDonald’s Testing Fresh Beef in Dallas Restaurants

Mcdonalds_logoOak Brook, Illinois headquartered McDonald’s announced that it is testing the feasibility of putting fresh beef on its menu in 14 outlets in Dallas, Texas. It is still too early for them to say whether they can take the idea of replacing their frozen hamburger patties across the nation.

The test is so far only being done with quarter pound burger patties.

“Like all of our tests, this one too is designed to see what works and what doesn’t within our restaurants,” said Lisa McComb, a McDonald’s spokeswoman.

The test is taken place during a period in which McDonald is attempting to reverse a recent business slump it has been experiencing. The company wants to try and improve business by improving some of its most basic items on its menu.

McDonald’s is the country’s largest hamburger fast-food restaurant chain, with 14,000 locations.

Gannett Pursuing Bid to Purchase Tribune in $815 Million Deal

According to a Securities and Exchange Commission filing, the leadership of Gannett met with executives of Tribune Publishing to discuss an unsolicited bid to buy the Chicago based Tribune. Apparently no deal was reached.

The meeting was arranged at the suggestion of Tribune Publishing Chairman Michael Ferro. Together with Tribune CEO Justin Dearborn, Ferro met with Gannett Chairman John Jeffry Louis and CEO Robert Dickey. It was the first meeting between the execs since the purchase offer of $815 million was made public in April.

Dickey and Louis re-stated Gannett’s offer, while Ferro said that the Tribune is still pursuing a new business strategy. The SEC filing stated that “no meaningful progress was made to discuss the terms of the Offer or a process for going forward.”

Gannett, which is headquartered in McLean, Virginia is the publisher of over 100 newspapers, including USA Today. The company offered to buy the Chicago-based Tribune Publishing for $12.25 per share in an all cash transaction that would include the purchase of $390 million worth of debt. The Tribune’s board voted down the proposal in a unanimous vote on May 4.

“Gannett is committed to engaging in substantive discussions with Tribune regarding its $12.25 all-cash, premium offer,” the company said on Friday. “We look forward to Tribune’s board acting as responsible financial stewards in the best interests of its shareholders.”

IKEA Expanding to New Midwest Location

IKEA store: Photo by Rainchill
IKEA store: Photo by Rainchill

IKEA US president Lars Petersson announced that their 206,000 Milwaukee customers will soon be able to shop at their own IKEA store.

The store will comprise almost 300,000 square feet, built on 29 acres at the intersection of Interstate 94 and Drexel Avenue. Consumers can expect to shop in the mega store by the summer of 2018.

“We are excited at the possibility of growing our Midwestern U.S. presence with a Milwaukee-area store,” Petersson said. “A location in the retail corridor would provide our already 206,000 Milwaukee-area customers their own store.”

The huge store will offer customers 10,000 exclusively designed items, 50 room settings and three model home interior designs. There will also be a restaurant and children’s play area within the store. The new location will join other Midwest stores in Bolingbrook and Schaumburg in Illinois and in others in the Minneapolis-St Paul region in Minnesota.

Radio Shack to Pay Rebates to Its Customers

A Radio Shack store in the Plaza Caracol shopping center on Boulevard Francisco Medina Ascensio in the city of Puerto Vallarta, Jalisco, Mexico. Photo by Coolcaesar.
A Radio Shack store in the Plaza Caracol shopping center on Boulevard Francisco Medina Ascensio in the city of Puerto Vallarta, Jalisco, Mexico. Photo by Coolcaesar.

Michael Frerichs, Illinois treasurer, has succeeded to get Radio Shack, a consumerelectronics company that filed for bankruptcy last year, to pay $140,000 in rebates that were never cashed. The money is owed to over 5,000 Illinois residents. The Radio Shack bankruptcy should not affect their ability to pay, as the government already has the money in hand.

Since rebate checks not claimed within five years are considered unclaimed property according to Illinois state law, Frerichs pursued Radio Shack to pay off their customers. One of the roles of the treasurer in Illinois is returning unclaimed property.

The rebates were used to help convince consumers to make purchases between 2002 and 2008. Radio Shack agreed to the terms of the settlement when Frerichs auditors saw that the company and its rebate fulfillment provider, Global Fulfillment Services, did not report the unclaimed rebate checks.

However, it is still not known how much of the $140,000 will actually be returned to Illinois consumers. That number will depend on how well the state can locate those entitled to rebates, and then getting the rebate money to them.

Sears Holdings Closing At Least 50 Stores

Kmart Harrison, OH. Photo by  Mike Kalasnik
Kmart Harrison, OH. Photo by
Mike Kalasnik

On the heels of the announcement of 100 layoffs at the end of February, Sears is continuing its march to improved profitability with the closure of about 50 stores around the country.

Sears, whose headquarters is in Hoffman Estates, Illinois, announced that it is planning to speed-up shutting down of at least 50 “unprofitable stores.” Included in the action will be many K-Mart stores as well, which is owned by Sears Holdings.

“The decision to close stores is a difficult but necessary step as we take aggressive actions to strengthen our company, fund our transformation and restore Sears Holdings to profitability,” said Edward S. Lampert, Chairman and Chief Executive Officer of Sears Holdings. “We’re focusing on our best members, our best categories and our best stores as we work to accelerate our transformation.”

The original plan was to spread out the closures over several months, but because of poor sales during the holiday season, the parent company decided the process of closing stores should be sped up.

According to Sears’ earnigns report, released in February, total revenue for the fourth quarter of 2015 was $7.3 billion, down from $8.1 billion in 2014.

“Sears Holdings will continue to transform as the role of the store evolves to fit the way that members want to shop,” Mr. Lampert said. “Through our continued investments in Integrated Retail, our stores are a critical component of our strategy as we provide our members with industry-leading innovations such as Meet with an Expert, In-Vehicle Pickup and Return and Exchange in Five.”

Liquidation sales at closing K-Mart locations will begin on May 12, while those at Sears will start on April 29. The following Illinois K-Marts are on the chopping block:

  •  7050 S Pulaski                            Chicago
  • 721 N Vermillion Street          Danville
  • 1150 W Carl Sandburg Dr      Galesburg
  • 17355 Torrence Ave                 Lansing
  • 2909 Court St                              Pekin
  • 3840 46th Ave                             Rock Island