Party City, the nation's largest party goods chain, plans to acquire iParty. Here's a look at the two retailers:
iParty
HQ: Dedham, Mass.
Founded: 1998
Stores: 54 in New England and Florida
Annual revenue: $80.9 million*
Party City
HQ: Rockaway, N.J.
Founded: 1986
Stores: 750 in U.S., Canada and Puerto Rico
Annual revenue: $1.9 billion*
*From 2011 financial reports, latest available
iParty's over as Dedham chain sells to N.J. rival
Dedham's iParty finally has something to celebrate.
Larger competitor Party City has a deal to buy the struggling party goods chain, which in November announced it had hired a financial adviser to explore strategic alternatives. The cash deal, valued at about $10.9 million for common stockholders, represents a 200 percent premium over iParty's Feb. 28 closing share price.
Party City is getting iParty "very cheap," said retail consultant Michael Tesler, of Norwell's Retail Concepts, but it's good news for iParty's landlords and vendors.
"IParty may have been struggling paying its bills and may be in arrears in some of these situations," Tesler said. "In a bankruptcy case, the landlords would get killed. It would be worse for vendors."
In regulatory documents, iParty said the total transaction has an expected "enterprise value" — a measure of what the market believes a company's ongoing operations are worth — of about $35 million, excluding deal expenses.
Rockaway, N.J.-based Party City is the nation's largest party supply retailer with 750 stores, while iParty has 54 stores in New England and Florida.
"Party City is a leading player in our industry, and we could not be more pleased with this outcome of the strategic review we initiated last year and the return it affords to all of our stockholders" said iParty chief Sal Perisano.
In October, iParty took a devastating blow from Hurricane Sandy — the second straight year that a major storm disrupted its crucial Halloween seasonal sales period.
Party City CEO Gerald Rittenberg said the acquisition will accelerate the chain's growth in New England, where it has just five Connecticut stores. "We look forward to working together to expand our combined geographic footprint and brand presence on a national scale," he said.
The deal, expected to close in the second quarter, allows iParty to solicit superior proposals through March 31.
Boston private equity firm Thomas H. Lee Partners bought a majority stake in Party City last June.
Call it the ultimate family dream house. This 20,000-square-foot home high atop Bald Hill in Andover has everything kids could want — a regulation-size indoor basketball court outfitted with a batting cage and a major-league pitching machine, an indoor pool with water slides, a home theater with stage, a room full of arcade machines — even a 10-pin bowling alley.
The current owners raised four children in the home, which despite its square footage does not feel like an egoistic McMansion. The rooms are well-scaled and the basketball court is subtly hidden behind a front colonnade and arched glass windows, with a separate entrance for holding neighborhood practices.
Built in 2003, the home has a tasteful olive cedar and fieldstone exterior and sits on four acres of land with a putting green and grass backyard the size of a football field and sporting panoramic views. It was on the market for $6.5 million but has just been reduced to $5.5 million, far less than the owner has invested.
Custom-milled cherrywood and mahogany door moldings and built-ins fill the home, along with engineered birch floors that have radiant heating in some rooms. There's a light-filled home office, a billiards room, formal dining room, large master bedroom suite and four other bedrooms with connecting Jack-and-Jill baths.
The cherrywood and Absolut black granite kitchen features a breakfast bar that seats nine, a two-sided gas fireplace, professional grade Wolfe appliances and an adjoining sunroom for informal dining.
The large sunken living room is divided by a coffered ceiling and soffits into several areas, with a large fieldstone wood-burning fireplace and a built-in media center. This room opens out onto a large deck with great views that has a built-in hot tub and professional putting green.
There's even a nanny/in-law suite on the first floor with a full bath.
But the home's highlights are the basketball court with a professional scoreboard and the indoor pool, bowling alley and locker rooms and a home gym below, which account for nearly 9,000 square feet of the home. There's a soaring cedar solarium at one end of the gym with water slides down to the pool.
The second-floor master bedroom suite has a seating area with glass doors out to a deck. There are two walk-in closets and a two-sided gas fireplace that overlooks a raised whirlpool tub in a marble-lined en-suite bathroom with a double granite-topped vanity and walk-in shower.
The other bedrooms are scattered throughout the second and smaller third floors, and there are two sets of laundry areas.
The basement has a finished game room with a bar, a home theater with rows of plush seats, and a second nanny/in-law suite. The arcade games are negotiable to buy.
Bloomberg Radio wants to become the pulse of the Hub's business and finance community with a new 24/7 station that launches 12:01 a.m. Friday on WXKS 1200 AM.
"There's been a retrenchment in business coverage and we hope to come in there and fill that void," Al Mayers, head of Bloomberg Radio and a Melrose native, told the Herald. "Boston's a great center for the things that our customers are very interested in."
Bloomberg has 26 journalists in Boston who will be contributing regularly to show content, Mayers said. The station format will be guest-driven and will feature interviews anchored by eight hosts, he added.
The station will provide a signal for those with HD radio on 94.5FM-HD2. Bloomberg Radio has also formed a content partnership with Bentley University, which will provide the station access to faculty and staff for content and commentary.
WXKS, which is owned by Clear Channel Communications, has gone through several AM formats, including progressive talk and comedy, said Donna Halper, a veteran radio consultant and Lesley University professor.
"There's a real limitation to what you can do on AM in Boston right now because so many formats are already taken," she said. "AM, for right or for wrong, is listened to by older people and business attracts an older audience, so it might actually be a good move."
Mary Menna, market president for Clear Channel Media and Entertainment Boston, said the change in operation won't affect any employees. The station's current programming, "Matty's Comedy 1200," will now be offered to listeners on 107.9 WXKS HD2 in Boston, she added.
"We believe (Bloomberg Radio) will resonate very well with the audience in Boston," Menna said.
Home sales start strong
Statewide home sales hit a five-year high in January, a hopeful sign for the upcoming spring real estate market, according to the Warren Group.
Single-family sales rose by more than 10 percent to 2,680, while the median price increased 6.8 percent to $277,750. That's the highest median price in three years, fueled by the lack of inventory.
"Given low mortgage rates and steady prices, there are positive signs that 2013 will be a second year of recovery," said Timothy M. Warren Jr., CEO of the Boston-based real estate tracker.
Mass. economy 'poised' for growth
Massachusetts' economy is "poised for expansion" despite a big threat from the federal budget battle, according to a new report.
The MassBenchmarks report reiterated that the state's defense, technology and health sectors could suffer massive job losses from large across-the-board cuts if the so-called sequester goes into effect on Friday.
Central Sq. biotech project gets OK
The Cambridge City Council approved zoning changes for Forest City Enterprises' plan for a 250,000-square-foot life sciences building in Central Square for drug developer Millennium. The Cleveland real estate developer's previous plan for 300 Massachusetts Ave. stalled after residents objected, but it agreed to create affordable housing in the area.
TODAY
State Treasurer Steven Grossman speaks at a Greater Boston Chamber of Commerce forum at the Boston Harbor Hotel.
Groupon, JC Penney, Target and TJX Cos. report quarterly financial results.
TOMORROW
Bank of America exec Meredith Verdone speaks at a Greater Boston Chamber of Commerce women's network breakfast at the Fairmount Copley Plaza Hotel.
Verastem CEO Christoph Westphal and co-founder Robert Weinberg speak at an MIT technology breakfast event.
State Sen. Karen E. Spilka (D-Ashland), at left, has joined the corporate and business law department of Day Pitney LLP in the firm's Boston office.
Mike Frisby, longtime political reporter for the Boston Globe and former White House correspondent for the Wall Street Journal, has joined forces with Regan Communications Group. Frisby, president of Frisby & Associates, a Washington, D.C.-based public relations firm, will also serve as president of Regan's Washington office.
BERLIN — Airbus parent company EADS NV posted a 47 percent drop in fourth-quarter net profit Wednesday after taking costly charges at its helicopter and defense electronics divisions.
The aerospace giant earned €325 million ($425 million) in the October-December period, down from the previous year's €612 million.
But full-year earnings were up 19 percent at €1.23 billion from €1.03 billion in 2011.
"There's still some way to go to meet our profitability targets," said chief executive Tom Enders.
Revenues rose 17 percent during the fourth quarter to €19.22 billion, with the core Airbus division posting a 36 percent increase.
But EADS took a €198 million hit during the quarter at its defense electronics contractor Cassidian, in part reflecting restructuring costs.
Renegotiating contracts with government customers resulted in a €100 million charge at helicopter maker Eurocopter.
The company's core business, aircraft maker Airbus, posted a 36 percent increase in revenue during the final three months, rising to €393 million from €289 million in 2011. Of that, orders for civilian aircraft brought in €309 million while military planes garnered €85 million during the quarter.
Spaceflight division Astrium reported revenues of €121 million, an increase of 19 percent from €102 million in the same period the previous year.
EADS said it expects to sell more commercial aircraft — about 700 — in 2013. Revenues will grow modestly, it said, but results will be affected by problems with its A350 XWB model.
The A350, intended to challenge Boeing's 787 "Dreamliner," was delayed because of a problem with the plane's wings.
"The A350 XWB program remains challenging," EADS said in a statement. "Any schedule change could lead to increasingly higher impact on provisions."
The company said it is inviting shareholders to an extraordinary meeting March 27 to approve its new governance structure. EADS last year announced sweeping governance changes that will see influence by state shareholders France and Germany shrink.
Beacon Hill apts. sold
The Copley Group has purchased a pair of Beacon Hill apartment buildings for $6.8 million.
The real estate firm, headed by Norman Levenson, bought 24 Joy St., above, and 88 West Cedar St., totaling 16 units with retail, from Connecticut investor Salvatore Campofranco, according to real estate records.
The "Beacon Hill Portfolio," as one broker branded the properties, has changed hands three times in less than three years as investors make moves in Boston's hot multifamily market.
Campofranco picked them up a year ago in a package deal from Parsons Commercial Group of Framingham. Parsons bought them in separate 2011 deals, with the Joy Street building sold by Fan Pier developer Joseph Fallon and 88 West Cedar by the Acorn Trust Inc. of Boston.
L LoJack Corp. of Canton has hired Emad Isaac as chief technology officer. Prior to joining the company, Isaac served as senior vice president and chief technology officer at Rand McNally.
Music legend John Lennon is giving new meaning to the term "visionary" thanks to UK-based Adlens.
The variable-focus eyewear company, which launched its U.S. headquarters at Boston's Lewis Wharf in September, has its sights set on increasing its brand awareness nationwide with a new glasses line modeled after the former Beatle's distinctive "granny" frames.
"We're just starting, but Lennon has given (Adlens) tremendous acceleration," CEO Chairman Michael Ferrara told the Herald. "Once you can get it on someone's face, it's a wow."
At least 50,000 pairs of John Lennon Collection glasses have been sold worldwide since their December debut, Ferrara said. The company's fluid injection technology allows consumers to set their own prescriptions in seconds simply by twisting dials on the sides of the lenses.
Licensed by Lennon's widow, Yoko Ono, Adlens' round-frame glasses start at $79 a pair and come in optical, sunglasses and "Imagine" collections.
The 8-year-old company's Boston office handles sales, branding and shipping and will employ 10 workers by the end of the year, Ferrara said, adding Adlens chose the Hub as its U.S. base to better immerse itself in area technology and fashion.
"Most eyewear is made either in Italy or in Asia ... but Boston had the design element," he said. "Boston, through the jewelry business, had a tremendous infrastructure of designers and they grew into eyewear."
Adlens has 65 full-time employees, and locations in Oxford, Tokyo, Hong Kong and Malaysia. The company also offers two other round-frame eyewear products online and at select stores — Emergensee and Hemisphere glasses, which sell for $39 and $59, respectively.
A company nonprofit, Vision for a Nation, also has partnered with the Rwandan Ministry of Health to distribute glasses to more than a million people in the African country, which lacks a sufficient number of optometrists, Ferrara said.
The growing success of the Lennon collection will pave the way for Adlens' next U.S. "game changer," officials said. The company is expected to unveil a $500 to $700 progressive lens replacement by year's end that uses fluid compression technology to open up a broader view field for wearers.
"There are so many limitations in progressives. You can't read in bed, you can't watch TV in bed, your computers are a nightmare," said Sue Creek, head of training for Adlens. "This is going to be the alternative."
Even though Ferrara projected Adlens to be a $500 million company over the next five years, he still encouraged consumers to visit an optometrist once a year for an eye exam.
"I would certainly support, and we do publicly, the fact that we want to work within the optometry community," he said. "But there are circumstances where you need a pair of glasses right away and this is amazingly close to 20-20."
More than a third of affluent investors are using social media platforms specifically for their own finance and investing activities, a new report finds.
While most investors continue to rely on several resources for investment information, nearly 70 percent of 4,000 surveyed investors nationwide have reallocated investments, or began or altered relationships with investment providers based on content on sites such as Facebook, LinkedIn, Twitter, YouTube and company blogs.
Investors have the most positive impressions of Hub financial giant Fidelity Investments via the firm's social media channels, according to the report by Cogent Research of Cambridge.
"Fidelity is one of the very active brands online engaging consumers, talking to them on Facebook, giving them quizzes and stories. It does seem to be working and creating an effect," said Remy Domler Morrison, a Cogent project director.
Lori Johnson, Fidelity's vice president of online strategy, said the firm focuses on "education and informative conversation."
"Whether it's discussing thought leadership pieces on investing or developing apps on Facebook that allow users to envision their future, plan for big and small life events and track progress toward personal goals, the foremost purpose is to equip investors with content, tools and discussion that can help empower their financial lives," she said.
Morrison added that social media is motivating investors to engage more with their advisers and investment firm representatives, which can lead to more asset-gathering opportunities for providers.
A 2011 survey by Massachusetts' securities division found that nearly half of registered investment advisers use social media to interact with clients.
That prompted the state to issue guidelines covering such online broker-client interactions, which amount to advertising, so they conform to existing consumer protection regulations.
The past six GMC vehicles I've owned were low-mileage, used vehicles. The first major problem is always brake rotors and pads. I fight tooth and nail with the dealership to have something done.
I noticed that your reply to the lady buying a used, low-mileage vehicle included: "The vehicle may need routine tire and brake replacement." Tire replacement is a given and a no-brainer. What is your meaning as to routine brake replacement and especially the rotors? Brake pads I understand, and I treat them as I would tires.
I would like someone to tell me what to do to make this situation less costly. Just like clockwork, I can expect in the next year or so to have to pay out $800 to $900 to have all four rotors replaced on my vehicle, which has less than 38,000 miles. How can I avoid this?
I've always considered brake rotors — like brake pads — as "consumable" components. Granted, back in the day rotors seemed to last longer, but today's motor vehicles no longer use asbestos and feature more aggressive metallic and ceramic friction materials that operate at higher temperatures and generate measurable wear on brake rotors. The benefit is better stopping power and fade resistance. The price is more wear on the rotors.
I'm also not a big fan of turning brake rotors. Today's rotors are already close to their minimum thickness when new. By thinning the rotors, their ability to dissipate heat is reduced. causing more rapid wear and distortion. It is possible to "true" a slightly warped rotor, but once significantly worn, warped or out-of-round, it's time for replacement. You certainly can shop brake work among dealers and independents, and aftermarket brake rotors are often significantly less expensive.
I think it's time for you to accept the fact that replacing brake rotors once or twice during the life of a modern motor vehicle is relatively normal and routine.
I have a 2005 Mercury Mariner with 135,000 miles on it. I've been told by a dealer that it needs brakes. The steering wheel does shake at high speeds when applying the brakes, but my vehicle info center says the brakes are OK. I've also been told major parts in the front end also need replacing for $700 to $800.
The shake when applying the brakes is typically caused by a problem with the front brake rotors. They are either worn, warped or out of round. When you apply the brake pedal, the uneven surface of the rotor kicks the brake pads back, causing the master cylinder to pulse the brake pedal. The dealer or shop should be able to show you the wear, run-out or out-of-round with a dial indicator. Specifications for warping or run-out is 0.0005 inches and thickness variation is 0.0002 inches.
The vehicle information center will tell you only when the brake pads are worn, not when the rotors are warped. So, your vehicle does need brakes. At this mileage, I would replace both front rotors and brake pads as well as check the rear brakes.
I have a 1991 Mercury Colony Park station wagon with slightly more than 100,000 miles. It's a beautiful car with an unusual quirk. The car starts and runs perfectly, but when it is warmed up and I shift into park, the car immediately dies. It will start right back up with a turn of the key, idle and run just fine. Any thoughts would be most appreciated.
Contamination in the idle air bypass valve might be causing this stalling. I'd start by cleaning the throttle body and idle air bypass valve with an aerosol carburetor spray as outlined by Ford in technical service bulletin 91257 from December 1991. Also, make sure ignition base timing is correct and that the oxygen sensor is responding quickly enough to ensure correct fuel-air mixtures.
Paul Brand, author of "How to Repair Your Car," is an automotive troubleshooter, driving instructor and former race-car driver. Readers may write to him at Star Tribune, 425 Portland Ave. S., Minneapolis, MN 55488 or via email at paulbrand@startribune.com. Leave a daytime phone number.
About to ditch something that's worth more than $100 because you don't have the time or know-how to sell it? Hold on, because a budding Cohasset entrepreneur will sell it for you — and give a portion of the proceeds to a good cause.
Mike Filbey is the 21-year-old founder and CEO of Cbay, which lists clients' goods on Craigslist and Cbayonline. Sixty percent of the proceeds go to the client, 20 percent to Cbay and 20 percent to Wellspring, a Hull charity.
"The big value we offer is we save people time," said Filbey, a University of Wisconsin-Madison junior who started his sales career at the tender age of 10 by listing his discarded Beanie Babies and Pokemon cards on Amazon.com. "We do all the work for them."
Filbey's Bay State volunteer, Tim Smith, photographs each item, and then Cbay researches its market value, lists it online and coordinates a time for the client and buyer to meet. If there is no sale, there is no charge.
It's a formula that appears to be working, with more than $32,000 in sales logged since 2011, when Filbey founded Cbay. The "C" stands for cash, charity and college.
And although the name is only a letter away from online auction giant eBay, he says legally it's not a concern because its domain name, Cbayonline, is clearly different.
About 18 months ago, Katie Daly of Hingham turned to the company because she had a gazebo she wanted to sell but had qualms about selling it online.
"You don't know who to trust in this world," said Daly, 42, "but Michael came over to our house, and my husband and I were blown away. He's just a lovely kid."
After the gazebo fetched about $900, she turned to Cbay to sell other items and began referring friends to the company.
Brendan Brady of Plymouth was combing Craigslist for a swingset for his daughter a few weeks ago when he found one posted by Cbay for $600.
"Anybody can sell on Craigslist," said Brady, 32, "but I think (Cbay) gives exposure to a higher-quality item because some of the money is going to a good cause."
So far, Wellspring has received more than $7,200 from Cbay sales, money it has used for its food pantry and GED and fuel assistance programs, said Lisa Cronin, its part-time operations manager.
"We have limited resources as far as fundraising goes," Cronin said. "So to have a donation like that come in is fantastic."
Security experts warn that the recent cyberattacks on Apple and the New York Times are only the highest-profile examples of an escalating problem that threatens American businesses and undermines national security.
"A new frontier for people who are not our friends is attacking our infrastructure and disrupting our day-to-day lives and our economy," said Jay Kesan, a University of Illinois professor of law and computer engineering. "It's not traditional warfare, but it should be a matter of very high priority."
Last week, the Obama administration announced a new effort to fight the growing theft of American trade secrets after Apple's and Facebook's revelations that they had been hacked, and new evidence linking years of cyberattacks against more than 140 U.S. companies to the Chinese military. The administration's plan includes a new diplomatic push and better coordination at home to help companies protect themselves. The next meeting of NATO defense ministers will include a major focus on cybersecurity.
While the theft of online banking information and payroll credentials is among the most common types of attacks, some of the greatest threats, Kesan said, are to industrial control systems such as those of airlines, railways and utilities.
"Once you get ahold of them, you can cause a lot of havoc," he said. "The threat is real. The only way to address this is to have the public and private sectors work together."
The most costly cybercrimes are those caused by denial of service, malicious insiders and Web-based attacks, according to the Ponemon Institute, a Michigan cybersecurity think tank.
A 2012 study of 56 companies by the institute found that the average annualized cost of cybercrime was $8.9 million, a 6 percent increase from the previous year, and the companies experienced a total of 102 successful attacks per week, up 42 percent from 2011.
Some attacks involve the way companies have implemented their systems. Ian Abreu, a consultant at Core Security in Boston, gave the example of an online retailer that puts its sales database on the same server as its business analytics database.
"This created a big problem when we found a certain type of attack aimed at the e-commerce platform allowed us to access company financial records and information as well," Abreu said.
Other attacks involve "spear phishing," carefully targeted strikes on specific employees to gain access to sensitive internal communications and trade secrets, said Richard Wang, manager of SophosLabs U.S. in Burlington.
To guard against such attacks, many companies now require employees to log into their computers using not only a password, which must be changed periodically, but also some other form of identification, such as a fingerprint, said Srini Devadas, a professor of electrical engineering and computer science at MIT.
"It's all about armor and ammunition," he said. "You have to double-lock everything."
Devadas also recommends that companies update their operating systems and software frequently, and train employees in basic self-defense, such as knowing not to click on links without knowing where they lead.
Still, there is no fool-proof way for businesses and their employees to protect themselves, said Sven Dietrich, assistant professor of computer science at Stevens Institute of Technology in Hoboken, N.J.
"There are lots of things you can do, but in the end, software is written by humans and will always have vulnerabilities," Dietrich said. "You just have to be careful. It's dangerous out there. It's not a cozy neighborhood."
