CONTRERAS-SWEET IN BID FOR WEINSTEIN CO.
A veteran of the Los Angeles banking sector and former head of the Small Business Administration under President Barack Obama has submitted a bid to purchase the embattled Weinstein Co. and bring new, majority-women leadership to its board of directors. Maria Contreras-Sweet indicated last week that the company would continue in business and its 157 employees would be retained under the proposal. Current co-chairman Bob Weinstein, Harvey Weinstein’s brother, would not stay at the company under the proposed new ownership. Contreras-Sweet was a co-founder and chairwoman of downtown-based Promerica Bank, which grew to more than $200 million in assets before its 2015 sale to Pacific Commerce Bank for about $30 million in cash and stock. No potential purchase price was disclosed in the letter, and no financial backers were identified. The Wall Street Journal reported that the majority of the backers are women, including Contreras-Sweet. Harvey Weinstein was fired from the company and resigned from the board in October following allegations of sexual harassment, leading to speculation that the company would be shut down.
– Diane Haithman
SEDGWICK TO LAY OFF DOWNTOWN LAWYERS
Sedgwick, an 84-year-old global law firm based in San Francisco, will close its doors by the end of the year, laying off nearly 50 attorneys and staff in Los Angeles, a firm official said. Word of the move comes after a year of defections and office closures. Sedgwick plans close all its worldwide offices at the end of December, according to a report by Law360 that was confirmed for the Business Journal by a Sedgwick employee in Los Angeles. The downtown Sedgwick office, founded in 1979, peaked at 200 attorneys and staff two years ago. The headcount dwindled to the 45 employees before the closure announcement, the employee said.
– Dana Bartholomew
NESTLE TO EXIT GLENDALE BY JULY
Nestle USA will wrap up the closure of its one-time Glendale headquarters on July 6, 2018, according to an updated filing with state regulators, The food giant previously disclosed plans to move its headquarters to Rosslyn, Virginia, affecting 1,200 employees at its offices at 800 N. Brand Blvd. The company informed the California Employment Development Department in August that it would cut its workforce there by 340 employees. The company said in the updated filing that it is conducting layoffs both in Glendale and an Oakland facility “necessitated by business reasons separate from the headquarters relocation.” It listed 273 jobs affected by the Glendale closure so far, and 55 voluntary departures from the Glendale offices. An additional 170 positions in either Glendale or Oakland could be cut for business reasons. The company said the first involuntary departure in Glendale occurred in April, and the last will occur next July, upon final closing of the headquarters.
– Joel Russell
