Exoto Inc., a Moorpark-based manufacturer of collectible model cars, has filed the latest lawsuit in its long-running battle against Mattel Inc. over claims that Mattel interfered in a licensing agreement between Exoto and Ferrari.
The suit, which was filed in Los Angeles County Superior Court on Nov. 5, also claims Ferrari breached a contract.
El Segundo-based toymaker Mattel and Exoto have been waging a trademark battle over high-end replica cars for nearly eight years, said Al Mohajerian, Exoto’s attorney.
The battle began when Exoto filed the first suit in 2001, claiming Mattel copied a design. According to court documents, the companies reached a truce that allowed Exoto to sublicense Ferrari models, but
Mattel later canceled that agreement. Exoto then cut its own deal with Ferrari. Exoto alleges that Mattel interfered with that agreement, and the latest suit seeks damages of $10 million.
“Exoto has suffered out-of-pocket damages and loss of expected profits because this thing has been dragging for eight years,” Mohajerian said.
Mattel did not return a call for comment.
Bankruptcy Solution?
General Growth Properties Inc., a Chicago-based retail center owner and operator, announced last week that it may seek bankruptcy protection.
The company owns the Glendale Galleria, Northridge Fashion Center and Fallbrook Center in West Hills. It also manages Burbank Town Center and South Bay Pavilion in Carson. General Growth has almost $1 billion in debt that matures Dec. 1 and an additional $3 billion that matures in 2009.
In its latest quarterly report, General Growth said it is considering selling assets and joint-venture interests, and is taking a look at a corporate-level capital infusion and strategic mergers.
If the debt can’t be refinanced, its actions could go up to “seeking legal protection from our creditors,” the company said in its Securities and Exchange Commission filing. “Our potential inability to address our 2008 or 2009 debt maturities in a satisfactory fashion raises substantial doubts as to our ability to continue as a going concern.”
Richard Giss, a retail analyst with Deloitte & Touche LLP in Los Angeles, said that General Growth’s malls, like all retail outlets, are having a tough time with cash flow, which will make it harder for the company to regroup.
But General Growth does have at least one strong performer in the Los Angeles area.
“The Glendale Galleria is a very good mall that has a lot of value,” Giss said. “They’ll try really hard to keep that mall and if they can’t, they’ll sell it to somebody who’s going to be happy to own it.”
New Urth
Urth Caffe, the hip Los Angeles chain of organic coffee shops, has opened new company headquarters in downtown’s arts district.
The new caf & #233; is at the Barker Block lofts, developed and owned by Kor Realty Group LLC.
This location, which is the first to include a coffee-roasting facility, will serve as Urth’s test kitchen. Tours, classes, and coffee and food tastings will be offered on site.
“We want to use our customer base as guinea pigs,” said Shallom Berkman, who owns the cafes along with his wife, Jilla. “We’ll be giving out free samples all the time.”
The Berkmans, along with actors Will Ferrell and Leigh Taylor-Young, and “Entourage” producer Stephen Levinson, invested $6 million into the project, which has been in the works for the last 18 months.
Shallom Berkman said he wasn’t concerned with the real estate market, which has been driving the revitalization of downtown but is in a state of uncertainty due to declining property values.
“We opened without advertising and had a line out the door,” he said.
Openings and Closings
Hamburger Hamlet at Sepulveda and National boulevards has closed, the third since the beginning of the year. There are three locations left in the L.A. area. Paperfish, the first seafood and Westside restaurant from Patina Restaurant Group, closed late last month. The eatery opened in November 2007 to mixed reviews. Montage Beverly Hills, the second hotel from Montage Hotels & Resorts owner Alan Fuerstman, will open this week.
Staff reporter Maya Meinert can be reached at [email protected] or at (323) 549-5225, ext. 228.
