BUSINESS
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Stock listings, E2-3 Calendar, E4 News of Record, E4
THE BULLETIN • TUESDAY, JUNE 5, 2012
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Starbucks buys bakery chain Starbucks Corp. is looking to offer a more tempting menu, with a $100 million cash deal to buy a small bakery chain. The Seattle-based coffee shop chain says baked goods from La Boulange will start replacing its current lineup early next year, starting with French pastries such as croissants. Products will start appearing in Bay Area stores first, then roll out nationally. Starbucks also says it plans to make the San Francisco-area bakery into a national presence in the years ahead.
By Pallavi Gogoi
The Associated Press
NEW YORK — Former New Jersey Gov. Jon Corzine could face a lawsuit from the trustee trying to recover $1.6 billion in customer money from the collapse of the brokerage MF Global. James Giddens, the trustee overseeing the liquidation of the company, said in a bank-
ruptcy court filing Monday that he may sue Corzine for breach of fiduciary duty and negligence. Giddens said his investigation found that Corzine, who took over as MF Global CEO in March 2010, led the company to trade in unsafe securities and take on far greater risk than comparable companies did.
Through a spokesman, Corzine declined to comment. Corzine, a former U.S. senator and CEO of the investment bank Goldman Sachs, took the top job at MF Global after losing a bid for re-election as New Jersey governor in 2009. He hoped to remake MF Global from a modest brokerage firm into a Wall Street
powerhouse. But it filed for bankruptcy protection, crippled by disastrous bets on European debt, less than two years after Corzine became CEO. The bankruptcy was the eighth-largest in the United States and the largest on Wall Street since the 2008 collapse of Lehman Brothers. See Corzine / E3
EXECUTIVE FILE
Verizon offering worker buyouts Phone company Verizon Communications Inc. is offering buyouts to 1,700 workers, mainly call-center employees and technicians, as it continues to shrink its wireline business. The offer applies to less than 1 percent of Verizon’s overall workforce of 191,800 as of the end March, and about 2 percent of its wireline workforce.
Google makes social acquisition Google is buying Silicon Valley startup Meebo to help expand its social networking service. The acquisition announced Monday will mean more tools for Google Plus, an alternative to Facebook’s popular online hangout. Meebo started out as a system for connecting people on instant messaging, but has since built other communications features that are now used by about 100 million Web surfers in the U.S. Financial terms of the deal weren’t disclosed. — From wire reports
Economic growth
New deli plans to keep the pastrami piled high By Elon Glucklich The Bulletin
W
hen Sheridan Letzer closed his two restaurants in March, Bend’s restaurant scene lost an accomplished and popular provider of a lunchtime staple: the deli sandwich. But Bend residents didn’t have to wait long for a successor to Letzer’s Deli to take its place. Following a soft opening last week, Kryste Adams opened Pastrami Old World Deli on Monday, at the same Northwest Franklin Avenue location that served as Letzer’s second deli. Pastrami plans to offer much of the same fare, such as pastrami, roast beef and corned beef sandwiches, as well as
Annualized growth rate
1.9%
2.5 2.0 1.5 1.0 0.5 0 Q1 Q2 Q3Q4Q1 Q2 Q3Q4 Q1 2010 2011 ’12 Source: Commerce Dept. AP
The basics What: Pastrami Old World Deli Where: 431 N.W. Franklin Ave., Suite 150 Employees: 4 Phone: 541-678-5445 Website: http://pastramideli.com/
some new options, such as soups, salads and local beers. The restaurant business is a completely new venture for Adams, who moved to Bend with her family five years ago. “My original background is in health and fitness,” Adams said. “But I love good
food, and restaurants.” Adams and two business partners, all fans of Letzer’s Deli, found out from the Franklin Avenue building’s landlord earlier this year that it would be closing. They drew up a plan for a new deli, Pastrami, to move into the same location, a small addition to the Re/Max Key Properties building near Lava Road. Adams said they saw it as a chance to set up shop in a building that already had the tools in place for a deli, with a location locals knew and would seek out. “The opportunity for this to happen was out there,” she said, “so I thought, ‘Why not go for it?’” See Pastrami / E3
App makers see a need for private spaces New York Times News Service
JanuaryMarch
The Bulletin
Joe Kline / The Bulletin
Kryste Adams has opened Pastrami Old World Deli, a traditional Jewish-style delicatessen, in the former Letzer’s Deli location on Northwest Franklin Avenue between Northwest Bond Street and Northwest Lava Road.
By Jenna Wortham
The Commerce Department lowered its first-quarter GDP growth estimate from 2.2 percent to 1.9 percent.
By Jordan Novet
Baldy’s Barbeque is expanding again, closing its takeout counter inside a gas station and convenience store on Bend’s east side and opening a fullservice restaurant Dioguardi nearby. Last year, Baldy’s opened a Redmond location, after owner Brian Dioguardi sensed an unfilled niche in that city. The takeout counter, inside the Stop and Go Shell station on the southwest corner of Northeast 27th Street and U.S. Highway 20, opened in 2010. The original Baldy’s, on Southwest Century Drive, opened in 2005. Now Dioguardi plans to offer full service to customers in the 1,800square-foot former Yoko’s Restaurant in the Forum Shopping Center, across the highway from the gas station. Yoko’s, a Japanese restaurant, closed in July. A $10,000 remodeling project is under way. See Baldy’s / E4
Just weeks after taking a stake in Chesapeake Energy Corp., activist shareholder Carl Icahn has helped orchestrate a shake-up at the nation’s No. 2 natural gas producer. Chesapeake said Monday it plans to replace four of its existing board members in the next few weeks. The board has been under fire for recent corporate governance controversies and the company’s stock has plunged as natural gas prices hit 10-year lows. Chesapeake said the decision follows extensive talks with Icahn and the company’s biggest shareholder, Southeastern Asset Management.
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Baldy’s Trustee threatens suit against Corzine Barbeque to expand on Bend’s east side
Chesapeake caves to activist
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IN BRIEF
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Some friends were gushing recently about a new mobile application called Pair, intended for people in a relationship. Initially, I didn’t see the appeal of the app, which lets the two partners send messages and photos back and forth. First, the idea of adding another service to the daily routine of Twitter, Facebook and their ilk seemed exhausting. And wouldn’t it be just as easy to exchange emails, text messages or, better yet, just flirt face to face? Curious, I tried it — even though I’m single. I recruited a friend to help me test it. And, after a few hours, the app started to grow on me. Something was thrilling about the
TECH FOCUS secret little notes that Shaun, my temporary beau, and I sent to each other throughout the day. The secrecy was welcome. We weren’t cluttering up anyone else’s feeds on Twitter, and didn’t have to worry about random high school friends seeing and commenting on our exchanges on Facebook. In addition, there were gestures distinct to the app. It let us share information about our locations, and to exchange doodles, to-do lists and virtual nudges — all conveying that “I’m thinking about you.” The app highlights the best elements of social networking — the warm, fuzzy feeling of
being connected to people you care about when you’re physically nowhere near them. And it says it eliminates some of the worst — the worry about who can see the content you’re posting and how they may interpret it. Apparently, venture capitalists also see the point: The company that developed Pair raised $4.2 million in seed funding from a group of early investors last month. Pair is arriving as many of us are looking to use the Web and our phones much as we always have, but outside of the very public arenas of the social Web. It’s a natural evolution of social networking, especially as Facebook and Twitter have swelled. See Privacy / E3
Lloyd Miller New York Times News Service
In a natural evolution of social networking, more mobile apps are aiming for sharing within boundaries.
HEALTH CARE
Soaring deductibles are the new normal for Fortune 500 By Jay Hancock Kaiser Health News
Angela Wenger calls herself a self-reliant “German Midwesterner” who hates to complain. But the Wisconsin mom was dismayed when husband Dan’s employer switched to an insurance plan that increased the family’s medical expenses tenfold. Two years ago, the company put white-collar workers on a “highdeductible” plan similar to those typically bought by small businesses and individuals. The Wengers’ out-of-pocket medical costs, mainly for treating daughter Emma’s juvenile arthritis, soared from a few hundred dollars a year to $7,000, she says. The employer: General Electric, one of the largest companies in the world. High-deductible health plans, once deemed a last-resort, “catastrophic” alternative for those with few resources, have gone Fortune 500. “A number of employers have looked at this over the last couple of years, and they’ve said, ‘No, this isn’t the year; no, this isn’t the year,’” said Mark Olson, a senior actuary at benefits consultant Towers Watson. For many, he says, this is the year. See Deductibles / E4