Crains New York - June 24, 2013 - (Page 3)

IN THE BOROUGHS BROOKLYN Loehmann’s defies the odds Despite going bust twice, discount clothier avoids fate of Filene’s, Daffy’s Bay Ridge driven to dissent NO DUMMY: CEO Steven Newman is giving Loehmann’s stores a $12 million makeover. BY ADRIANNE PASQUARELLI Locals spar over city’s plan to make Fourth Avenue safer Filene’s Basement was the first to fall.The off-price retailer became an early victim of the Great Recession. Next came Syms Corp., which bit off more than it could chew when it tried to revive Filene’s. Last year saw the demise of Daffy’s, a family-run chain that just couldn’t cut it against new competitors, including digital discounters. Yet, against these odds, Loehmann’s, a 92-year-old discount chain that has filed for bankruptcy twice in a dozen years, is still standing. To capitalize on its new position as one of the few bargain retailers left in town, the local institution is trying to change its perception in the marketplace from quick-anddirty to boutique-style discount chain. Steven Newman, who was appointed chief executive of the Bronx-based firm two years ago following its Chapter 11 filing, is offering Loehmann’s customers a more intimate experience, with fashionable apparel and better service, still at prices of as much as 65% off. He’s upgrading the stores’ decor, adding accents like framed paintings and plush chairs, along with colorful neon tables piled high with fashionable apparel like patterned shorts. To attract younger shoppers, Mr. Newman has rearranged products by putting trendier young designers up front. To keep the BY ADRIANNE PASQUARELLI buck ennis See LOEHMANN’S on Page 28 BY AARON ELSTEIN Few companies in New York—or anywhere else, for that matter—are growing as fast as Sterling Infosystems Inc. Its revenue has rocketed to nearly $250 million from just $7.5 million in 2001, for a compounded annual growth rate of 34%—1 percentage point more than Apple’s over the same period. Despite that, and the pivotal role the company plays in the lives of millions of job seekers and employees alike, few people have ever heard of Sterling. Headquartered in the financial district, Sterling is one of the largest players in the criminal-background-check business. Its employees sift reams of court records, on behalf of clients ranging from WalMart to Walt Disney, to suss out Data gathering has become the norm since the 9/11 attacks which job applicants or employees have a record of violent crime, drug dealing or other felonious behavior. A study last year by the Society for Human Resource Management showed that 87% of employers to- day conduct criminal-background checks, up hugely in the past 20 years. Seizing that opportunity, Sterling has morphed into a global giant—with more than 2,200 employees who conduct 16 million searches annually for thousands of clients—and it’s still growing. Founder and Chief Executive Billy Greenblatt predicts Sterling will top $1 billion in revenue in five to seven years by doing more of what it does and by expanding to serve nonprofits as well. “We keep the workplace safe,” he said from his 24th-floor corner office in the financial district with its sweeping views of New York Harbor.“Businesses can’t function without the services we provide.” All this would be great if not for one discordant fact: Sometimes Sterling costs people their jobs by getting it wrong, by turning up See FOURTH AVENUE on Page 27 STATS AND THE CITY by Emily Laermer REMAPPING NYC: In the wake of Sandy, the city released expanded floodplain maps, adding 600,000 residents to evacuation zones. 37% PORTION OF NEW YORKERS now living in flood-prone areas $18.8B INSURED SANDY 26 PUBLIC-HOUSING PROJECTS added to the map, for a total of 175. Four hospitals were also added 114K 114 BUILDINGS LOSSES covered by private insurers, on top of the $12B+ covered by FEMA $19.5B Bloomberg’s COST of Mayor Michael EXPECTED TO STAND in the 100-year floodplain by the 2050s, up 68.4% from today proposed plan—sans Seaport City—to protect NYC from storms Sources: The City of New York and PlaNYC istockphoto Background-check industry under scrutiny as profits soar Hiring a criminal? Employers want to know. But bad info leads to lawsuits The heavily trafficked four-lane stretch of Fourth Avenue cutting through the heart of Brooklyn’s Bay Ridge has been a parlous neighborhood blight for years. Cars, trucks and buses race along next to crowded sidewalks, as subway riders emerge from underground and, oblivious to traffic, dash to make bus transfers. Since 2006, five pedestrians have died there—two this year alone. Finally, the city is doing something about it, but the solution has drawn a mixed response. That split was clearly in evidence in early June, when more than 150 residents gathered at Bay Ridge’s Saint Anselm School auditorium to discuss the new plan from the city’s Department of Transportation. Sitting in the back half of the room, some supporters brought their children, brandishing colorful hand-painted signs with messages like “No more deaths.” Meanwhile, up front, a large group of opponents vocally criticized the project. At issue is the DOT’s idea to ADDICTED TO NUMBERS? GET A DAILY DOSE AT @STATSANDTHECITY See BACKGROUND on Page 28 June 24, 2013 | Crain’s New York Business | 3

Table of Contents for the Digital Edition of Crains New York - June 24, 2013

Crains New York - June 24, 2013
IN THE BOROUGHS
IN THE MARKETS
THE INSIDER
SMALL BUSINESS
BUSINESS PEOPLE
OPINION
ALAIR TOWNSEND
GREG DAVID
REAL ESTATE DEALS
REPORT: 50 MOST POWERFUL WOMEN IN NEW YORK
CLASSIFIEDS
DIGITAL NY
NEW YORK, NEW YORK
SOURCE LUNCH
OUT AND ABOUT
SNAPS

Crains New York - June 24, 2013