Crains New York - December 10, 2012 - (Page 1)

CRAIN’S NEW YORK BUSINESS ® VOL. XXVIII, NO. 50 SECRET SPEAKEASY Don’t worry, bubeleh. The Hester’s kosher PAGE 9 DECEMBER 10-16, 2012 PRICE: $3.00 WWW.CRAINSNEWYORK.COM FICKLE FASHION: Ralph Lauren remains a force in the luxury world, but his hip grip is slipping along with sales. Bankrupt hospital’s executive excess Heading into Chap. 11, Interfaith rehired same consultants accused of ‘mismanagement’ in 2011 by state panel BY BARBARA BENSON Days before Interfaith Medical Center filed for bankruptcy last week, its board of trustees renewed a $3 million contract to outsource the hospital’s management to a for-profit company. The long-term arrangement is unique in New York’s health care industry and has raised eyebrows for one reason in particular: The for-hire executives are the same ones who led the hospital into the financial ditch. Since 1991, Interfaith has been managed by Kurron Shares of America, run by Corbett Price, a former top See INTERFAITH on Page 7 Dressing Down Ralph Lauren’s company is showing its age as younger shoppers flock to competition BY ADRIANNE PASQUARELLI newscom THE INSIDER Powerful pair take Albany Senate deal turns Klein and Savino into major players BY CHRIS BRAGG For two years, it was an open secret in Albany political circles that state Sens. Jeff Klein of the Bronx and Diane Savino of Staten Island were dating. No one cared much until early 2010, when the New York Post’s Page Six outed the couple and suggested the relationship was affecting Ms. Savino’s political judgment. That story ran shortly after Mr. Klein, Ms. Savino and two other disaffected Democrats broke from their Democratic Senate colleagues and formed the four-member Independent See POWER COUPLE on Page 6 After eight years of trying to attract younger consumers with its youthoriented Rugby label, Ralph Lauren Corp. recently announced it will shutter the 14-store chain by February. The death of the budding brand, known for edgier prep, represents a rare misstep for the fashion stalwart, which has enjoyed decades of growth in the luxury arena. “Rugby’s goal was to chase the J.Crew prepster customer who isn’t drawn to a logo,” said Matt Hogan, a brand consultant. “It was an attempt to get people based on style and overall look, with layered pieces for a younger consumer.” Rugby’s failure points to larger problems at the 45-year-old, $5.7 billion public company. Not only is it falling behind rivals like Michael Kors and Tory Burch in terms of attracting younger shoppers, it’s also a laggard in the increasingly important accessories See RALPH LAUREN on Page 23 REPORT PHILANTHROPY NEWSPAPER Firms give more to fewer causes P. 13 Most generous New Yorkers P. 16 The List: NY area’s largest nonprofits P. 16 http://WWW.CRAINSNEWYORK.COM

Table of Contents for the Digital Edition of Crains New York - December 10, 2012

THE INSIDER
IN THE BOROUGHS
IN THE MARKETS
SMALL BUSINESS
BUSINESS PEOPLE
OPINION
GREG DAVID
REAL ESTATE DEALS
REPORT: PHILANTHROPY
THE LIST
CLASSIFIEDS
FOR THE RECORD
NEW YORK, NEW YORK
SOURCE LUNCH
OUT AND ABOUT
SNAPS

Crains New York - December 10, 2012