Big 5 Files for IPO
El Segundo-based Big 5 Sporting Goods Corp. will try to raise up to $115 million in an initial public offering. In a filing with the Securities and Exchange Commission, Big 5, which owns more than 200 sporting goods and apparel stores, reported its net income more than doubled to $5.9 million in the six months ended July 1, from $2.7 million in the year-earlier period. Sales rose 10 percent in the period to $294.6 million.
The company has retained Credit Suisse First Boston Corp. to underwrite the stock sale.
Big Cuts at Korn/Ferry
Citing first quarter losses and a slowing demand for senior executives, Korn/Ferry International announced it will slash 500 jobs, about 20 percent of its workforce.
Paul C. Reilly, chairman of Los Angeles-based Korn/Ferry, the world’s largest executive recruitment firm, who joined the firm June 30, said he and 11 other senior executives would take 10 percent pay cuts.
FirstFed Buys Two Banks
Santa Monica-based FirstFed Financial Corp. will acquire two California-based banks from City Holding Co. of West Virginia for $23 million, officials said.
FirstFed, the holding company for First Federal Bank of California, is buying Frontier States Bank and Del Amo Savings to gain branches in the Los Angeles area.
MTV Building Sold
A real estate firm controlled by German insurance companies has agreed to purchase the former Tenet Healthcare building in Santa Monica for about $105 million.
TMW Real Estate Group will pay more than $350 a square foot for the five-story, 300,000 square foot complex at 2700 Colorado Ave. The building’s biggest tenant is MTV and it also houses Artisan Entertainment and the J. Paul Getty Trust.
More Job Cuts at Boeing
Blaming slow sales of its 717 jet, Boeing Co. announced plans to lay off an additional 600 workers at its Long Beach plant.
Meanwhile, Boeing said it would expand its satellite production facility in El Segundo by about 30 percent to accommodate workers from another plant.
Earlier this year, Boeing announced plans to slash 600 jobs in Long Beach to cut costs. Together, the cuts represent nearly a quarter of the plant’s workforce.
IHOP Executive Resigns
One week after it hired Salomon Smith Barney to consider its options on loans made to franchisees, IHOP Corp. Executive Vice President and Chief Operating Officer Dennis Leifheit resigned from the company.
There are 965 restaurants in the Glendale-based chain, of which 774 are operated by franchisees. It has been under pressure by top shareholder Southern Asset Management Inc. to sell off or refinance $287 million in loans.
IHOP officials said Chief Executive Richard Herzer will assume Leifheit’s responsibilities until a successor is named.
Merger Deal for Direct Marketer
Van Nuys-based GenesisIntermedia Inc. will merge its car rental unit with MAII Holdings Inc., a company recently delisted by Nasdaq.
Genesis, a direct marketing company, said it would sell Car Rental Direct.com Inc. to Plano, Texas-based MAII for $11.6 million a 19 percent discount to asset value and use all but $400,000 to buy 2.8 million shares of MAII for $4 each.
