Rosenthal: Big Ten getting too big for its own good?








There's a lesson the empire builders at Big Ten Conference headquarters in Park Ridge would do well to heed if they can be convinced to stop peering out to the distant horizon:


Growth through acquisition is fraught with peril.


"In the business world you acquire new companies and you have to deal with different corporate cultures, different priorities and so forth," Robert Arnott, chairman of Research Affiliates LLC, an investment firm, said in an interview. "Merging them is often very messy and often fails. Here you're merging two teams into an existing conference and it creates risks. … Even college football teams have different cultures, different ways of thinking about how to win and different standards."






There undoubtedly was a logic behind each acquisition as the old Sears sought to expand and diversify its corporate profile. By the time the Chicago-area company's portfolio grew to include Allstate insurance, Coldwell Banker real estate and Dean Witter Reynolds stock brokerage, it was clear the increase in size was in no way matched by an increase in strength.


Rather than an all-powerful Colossus astride many sectors at once, it was reduced to an unfocused blob, bereft of identity, covering plenty of ground but hardly standing tall. Years after shedding its far-flung holdings, Sears has yet to regain its muscle, mojo or market share.


"It's hard to find a better example of a company that lost its mission and focus in the quest for growth," Arnott said.


"(Growth) may be partly a defensive move. It may be ego driven. In the corporate arena, you certainly see that in spades," he said. "When growth is through acquisition, you have to figure out what the real motivation is. Is it synergy, the most overused word in the finance community, or is it ego?"


Adding the University of Maryland and New Jersey's Rutgers University in 2014 will push the Big Ten to 14 schools and far beyond the Midwestern territory for which it's known. But doing so may not achieve what its backers envision.


Rather than spread the conference's brand, it may merely dilute it. The fit may be corrosive, not cohesive.


There is a school of thought that this is but the latest evidence that the Big Ten is not about athletics, academics or even the Midwest. Instead, it is just a television network, the schools content providers and student-athletes talent.


As it is, the overall TV payout is said to give each of the 12 current Big Ten schools about $21 million per year. They point to the Big Ten's lucrative deals with ESPN and its own eponymous cable network, a partnership with News Corp. They note that public schools Rutgers and Maryland are near enough to New York, Baltimore and Washington, D.C., to drive a better bargain with cable carriers.


To Big Ten Commissioner Jim Delany, a New Jersey native, the addition is more the result of a paradigm shift that has redrawn the college sports map over the past decade. Some conferences splinter. Others seize new turf. The result: Idaho's Boise State football team is poised to join the Big East Conference next year.


"Institutions that get together for academics or athletics have got to be cognizant that they are competing for students, they are competing for student athletes, they are competing for research dollars," Delany told reporters.


"When you see a Southern conference in the Midwest or you see a Southern conference in the Plains states or whether you see other conferences in the Midwest or Northeast, it impacts your recruitment. ... It impacts everything you do," he said. "At a certain point you get to a tipping point. The paradigm has shifted, and you decide on a strategy to basically position yourself for the next decade or half-century."


Big has always meant more than 10 in the Big Ten, an intercollegiate entity formed by seven Midwestern universities that now boasts 12 with the bookends of Penn State and Nebraska added in 1990 and last year, respectively. Last week's announcement of adding schools 13 and 14 was just a reminder that the conference has only had 10 member schools for 70 of its 116 years and won't again for the foreseeable future.


Rutgers President Robert Barchi said his school looked "forward as much to the collaboration and interaction we're going to have as institutions as we do to what I know will be really outstanding competition on our field of play."


But make no mistake, the Big Ten was born out of sports, specifically football. A seven-school 1896 meeting at Chicago's Palmer House had Northwestern among those still stinging from a scathing Harper's Weekly critique of college sports abuses, the Tribune reported at the time.


A prohibition on allowing scholarship and fellowship students to compete was shot down. But "a move towards the coordination of Faculty committees" in terms of standards and enforcement passed and the precursor to the Big Ten was born.


Along the way, the conference has added member schools and come to recognize that the Big Ten's image has much to say about how those institutions are perceived. Scandals already are no stranger to the Big Ten. But whether you play in a stadium or on Wall Street, the bigger one gets, the bigger target one becomes.


"Whoever's biggest draws scrutiny," said Arnott, co-author of a research paper, "The Winners Curse: Too Big to Succeed." "That means politicians, regulators, the general public generally don't root for the biggest. They look to take them down a notch, so it's harder to succeed as the largest. It's also harder to move the dial and move from success to success as you get really big."


Everyone talks about becoming too big to fail, but there's also too big to scale, companies that are unable to capitalize on the efficiencies of their increased size ostensibly because they are so big that they cannot be managed adequately.


"People talk about economies of scale. There are also vast diseconomies of scale, mostly in bureaucracies," Arnott said. "The more people you have involved, the more people you have who feel they have to have their views reflected in whatever's done. So you wind up with innovation by committee."


That's deadly. That's why companies break up, citing the need to get smaller so they can grow.


"If you break up companies into operating entities that are more nimble," Arnott said, "the opportunities to grow are no longer hamstrung by centralized bureaucracies that have to pursue synergies that don't exist."


Size matters in all fields of play. Sometimes smaller is better.


philrosenthal@tribune.com


Twitter @phil_rosenthal






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1 killed, 1 seriously injured in crash on West Side













Scene of crash


A man was killed and another was seriously injured in a two-vehicle crash early this morning in the city's Humboldt Park neighborhood.
(Abel Uribe / November 24, 2012)





















































A man was killed and another was seriously injured in a two-vehicle crash early this morning in the city's Humboldt Park neighborhood on the West Side.


The crash happened about 5:35 a.m. on the 3500 block of West Division Street, said Chicago Police Department News Affairs Officer Laura Kubiak.


According to preliminary reports, the two men were on their way to pick up a third man from work when they were struck by another vehicle, police said.





The driver, 24, was killed and the other man, 21, suffered multiple injuries to his body. He was taken to Mount Sinai Hospital, Kubiak said.


The driver of the other vehicle, who was suspected of driving under the influence, was taken into police custody. Charges were pending.


dawilliams@tribune.com


Twitter: @neacynewslady






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Sony at greater risk than Panasonic in electronics downturn: Fitch

TOKYO (Reuters) - Panasonic Corp has a better chance than rival Sony Corp of surviving Japan's consumer electronics slump because of its unglamorous but stable appliance business of washing machines and fridges, credit rating agency Fitch said Friday.


Fitch cut Panasonic's rating by two notches to BB and Sony three notches to BB minus on Thursday, the first time one of the three major ratings agencies have put the creditworthiness of either company into junk-bond territory.


Rival agencies Moody's and S&P rate both of Japan's consumer electronic giants at the same level, just above junk status. Moody's last cut its rating on Panasonic on Tuesday.


Panasonic "has the advantage of a relatively stable consumer appliance business that is still generating positive margins", Matt Jamieson, Fitch's head of Asia-Pacific, said in a conference call on Friday to explain its ratings downgrades.


But at Sony, he added, "most of their electronic business are loss making, they appear to be overstretched."


Japan's TV industry has been bested by cheaper, more innovative models from Samsung Electronics and other foreign rivals, while tablets and smartphones built by Apple Inc have become the dominant consumer electronics devices.


Investors are focusing on the fate of Sony and Panasonic after another struggling Japanese consumer electronics firm, Sharp Corp, maker of the Aquos TV, secured a $4.6 billion bail-out by banks including Mizuho Financial Group and Mitsubishi UFJ Financial Group.


Sony and Panasonic have chosen divergent survival paths.


Panasonic, maker of the Viera TV, is looking to expand its businesses in appliances, solar panels, lithium batteries and automotive components. Appliances amount to around only 6 percent of the company's sales, but they generate margins of more than 6 percent and make up a big chunk of operating profit.


Sony, creator of the Walkman, is doubling down on consumer gadgets in a bid to regain ground from Samsung and Apple in mobile devices while bolstering digital cameras and gaming.


The latest downgrades will curtail the ability of both Japanese companies to raise money in credit markets to help fund restructurings of their business portfolios.


For now, however, that impact is limited, given the support Panasonic and Sony are receiving from their banks.


In October, Panasonic, which expects to lose $10 billion in the year to March 31, secured $7.6 billion of loan commitments from banks including Sumitomo Mitsui Financial Group and Mitsubishi UFJ, a financing backstop it says will help it avoid having to seek capital in credit markets.


Sony, which has forecast a full-year profit of $1.63 billion helped by the sale of a chemicals business to a Japanese state bank, announced plans to raise $1.9 billion through a convertible bond before the latest rating downgrade.


Thomson Reuters' Starmine structural model, which evaluates market views of credit risk, debt levels and changes in asset values gives Panasonic and Sony an implied rating of BB minus. Sharp's implied rating is three notches lower at B minus.


Standard & Poor's rates Panasonic and Sony at BBB, the second lowest of the investment grade, while Moody's Investors Service has them on Baa3, the lowest of its high-grade category. Moody's has a negative outlook for both firms while S&P sees a stable outlook for Panasonic and a negative one for Sony.


Stock markets in Japan were closed on Friday for a national holiday.


(Reporting by Tim Kelly; Editing by Mark Bendeich)


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Brash boxer 'Macho' Camacho dies in Puerto Rico

SAN JUAN, Puerto Rico (AP) — Hector "Macho" Camacho was a brash fighter with a mean jab and an aggressive style, launching himself furiously against some of the biggest names in boxing. And his bad-boy persona was not entirely an act, with a history of legal scrapes that began in his teens and continued throughout his life.

The man who once starred at the pinnacle of boxing, winning several world titles, died Saturday back in the Puerto Rican town of Bayamon where he was born, ambushed in a parking lot in a car where packets of cocaine were found.

Camacho, 50, left behind a reputation for flamboyance — leading fans in cheers of "It's Macho time!" before fights — and for fearsome skills as one of the top fighters of his generation.

"He excited boxing fans around the world with his inimitable style," promoter Don King told The Associated Press.

Camacho fought professionally for three decades, from his humble debut against David Brown at New York's Felt Forum in 1980 to an equally forgettable swansong against Saul Duran in Kissimmee, Florida, in 2010.

In between, he fought some of the biggest stars spanning two eras, including Sugar Ray Leonard, Felix Trinidad, Oscar De La Hoya and Roberto Duran.

"Hector was a fighter who brought a lot of excitement to boxing," said Ed Brophy, executive director of International the Boxing Hall of Fame. "He was a good champion. Roberto Duran is kind of in a class of his own, but Hector surely was an exciting fighter that gave his all to the sport."

Camacho's family moved to New York when he was young and he grew up in Spanish Harlem, which at the time was rife with crime. Camacho landed in jail as a teenager before turning to boxing, which for many kids in his neighborhood provided an outlet for their aggression.

"This is something I've done all my life, you know?" Camacho told The Associated Press after a workout in 2010. "A couple years back, when I was doing it, I was still enjoying it. The competition, to see myself perform. I know I'm at the age that some people can't do this no more."

Former featherweight champion Juan Laporte, a friend since childhood, described Camacho as "like a little brother who was always getting into trouble," but otherwise combined a friendly nature with a powerful jab.

"He's a good human being, a good hearted person," Laporte said as he waited with other friends and members of the boxer's family outside the hospital in San Juan after the shooting. "A lot of people think of him as a cocky person but that was his motto ... Inside he was just a kid looking for something."

Laporte lamented that Camacho never found a mentor to guide him outside the boxing ring.

"The people around him didn't have the guts or strength to lead him in the right direction," Laporte said. "There was no one strong enough to put a hand on his shoulder and tell him how to do it."

George Lozada, a longtime friend from New York who flew to Puerto Rico on Saturday, recalled that just hours after he was released from prison after serving a murder sentence, he received a call from Camacho, who was waiting outside his apartment in a black Porsche.

"He said, 'Come down, I'm taking you shopping,'" Lozada said, wiping away tears.

"Because of him, man, I got what I got today," he said, pointing to pictures on his smartphone of his 6-year-old daughter. "Because of Hector, I stopped the drug scene ... He's helped so many people."

Drug, alcohol and other problems trailed Camacho himself after the prime of his boxing career. He was sentenced in 2007 to seven years in prison for the burglary of a computer store in Mississippi. While arresting him on the burglary charge in January 2005, police also found the drug ecstasy.

A judge eventually suspended all but one year of the sentence and gave Camacho probation. He wound up serving two weeks in jail, though, after violating that probation.

Camacho's former wife, Amy, obtained a restraining order against him in 1998, alleging he threatened her and one of their children. The couple, who had two children at the time, later divorced.

He divided his time between Puerto Rico and Florida in recent years, appearing on Spanish-language television as well as on a reality show called "Es Macho Time!" on YouTube.

Inside the boxing ring, Camacho flourished. He won three Golden Gloves titles as an amateur, and after turning pro, he quickly became a contender with an all-action style reminiscent of other Puerto Rican fighters.

Long promoted by Don King, Camacho won his first world title by beating Rafael Limon in a super-featherweight bout in Puerto Rico on Aug. 7, 1983. He moved up in weight two years later to capture a lightweight title by defeating Jose Luis Ramirez, and successfully defended the belt against fellow countryman Edwin Rosario.

The Rosario fight, in which the victorious Camacho still took a savage beating, persuaded him to scale back his ultra-aggressive style in favor of a more cerebral, defensive approach.

The change in style was a big reason that Camacho, at the time 38-0, lost a close split decision to Greg Haugen at Caesar's Palace in Las Vegas in 1991.

Camacho won the rematch to set up his signature fight against Mexico's Julio Cesar Chavez, this time at the Thomas & Mack Center in Las Vegas. Camacho was roundly criticized for his lack of action, and the Mexican champion won a lopsided unanimous decision to retain the lightweight title.

"Even though people say I beat him easily, it wasn't that way," Chavez told Mexico's ESPN-Radio Formula this week. "He was a very fast fighter, he faced everything and it was very hard for me."

"He revolutionized boxing, Chavez said. "It's a shame he got mixed up in so many problems."

After that loss, Camacho became the name opponent for other rising contenders, rather than the headliner fighting for his own glory.

He lost a unanimous decision to another young Puerto Rican fighter, Trinidad, and was soundly defeated by De La Hoya. In 1997, Camacho ended Leonard's final comeback with a fifth-round knockout. It was Camacho's last big victory even though he boxed for another decade.

The fighter's last title bout came in 1997 against welterweight champion Oscar De La Hoya, who won by unanimous decision. Camacho's last fight was his defeat by Saul Duran in May 2010. He had a career record of 79-6-3.

Doctors pronounced Camacho dead on Saturday after he was removed from life support at his family's direction. He never regained consciousness after at least at least one gunman crept up to the car in a darkened parking lot and opened fire.

No arrests and have been made, and authorities have not revealed many details beyond the facts that police found cocaine in the car and that the boxer and his friend, who was killed at the scene, had no idea the attack was coming. "Apparently, this was a surprise," said Alex Diaz, a police spokesman.

Survivors include his mother; three sisters, Raquel, Estrella and Ester; a brother, Felix; and four sons, Hector Jr., Taylor, Christian and Justin.

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AP PHOTOS: Simple surgery heals blind Indonesians

PADANG SIDEMPUAN, Indonesia (AP) — They came from the remotest parts of Indonesia, taking crowded overnight ferries and riding for hours in cars or buses — all in the hope that a simple, and free, surgical procedure would restore their eyesight.

Many patients were elderly and needed help to reach two hospitals in Sumatra where mass eye camps were held earlier this month by Nepalese surgeon Dr. Sanduk Ruit. During eight days, more than 1,400 cataracts were removed.

The patients camped out, sleeping side-by-side on military cots, eating donated food while fire trucks supplied water for showers and toilets. Many who had given up hope of seeing again left smiling after their bandages were removed.

"I've been blind for three years, and it's really bad," said Arlita Tobing, 65, whose sight was restored after the surgery. "I worked on someone's farm, but I couldn't work anymore."

Indonesia has one of the highest rates of blindness in the world, making it a target country for Ruit who travels throughout the developing world holding free mass eye camps while training doctors to perform the simple, stitch-free procedure he pioneered. He often visits hard-to-reach remote areas where health care is scarce and patients are poor. He believes that by teaching doctors how to perform his method of cataract removal, the rate of blindness can be reduced worldwide.

Cataracts are the leading cause of blindness globally, affecting about 20 million people who mostly live in poor countries, according to the World Health Organization.

"We get only one life, and that life is very short. I am blessed by God to have this opportunity," said Ruit, who runs the Tilganga Eye Center in Katmandu, Nepal. "The most important of that is training, taking the idea to other people."

During the recent camps, Ruit trained six doctors from Indonesia, Thailand and Singapore.

Here, in images, are scenes from the mobile eye camps:

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'Dallas' star Larry Hagman dies in Texas

J.R. Ewing was a business cheat, faithless husband and bottomless well of corruption. Yet with his sparkling grin, Larry Hagman masterfully created the charmingly loathsome oil baron — and coaxed forth a Texas-size gusher of ratings — on television's long-running and hugely successful nighttime soap, "Dallas."

Although he first gained fame as nice guy Major Tony Nelson on the fluffy 1965-70 NBC comedy "I Dream of Jeannie," Hagman earned his greatest stardom with J.R. The CBS serial drama about the Ewing family and those in their orbit aired from April 1978 to May 1991, and broke viewing records with its "Who shot J.R.?" 1980 cliffhanger that left unclear if Hagman's character was dead.

The actor, who returned as J.R. in a new edition of "Dallas" this year, had a long history of health problems and died Friday due to complications from his battle with cancer, his family said.

"Larry was back in his beloved hometown of Dallas, re-enacting the iconic role he loved the most. Larry's family and closest friends had joined him in Dallas for the Thanksgiving holiday," the family said in a statement that was provided to The Associated Press by Warner Bros., producer of the show.

The 81-year-old actor was surrounded by friends and family before he passed peacefully, "just as he'd wished for," the statement said.

Linda Gray, his on-screen wife and later ex-wife in the original series and the sequel, was among those with Hagman in his final moments in a Dallas hospital, said her publicist, Jeffrey Lane.

"He brought joy to everyone he knew. He was creative, generous, funny, loving and talented, and I will miss him enormously. He was an original and lived life to the fullest," the actress said.

Years before "Dallas," Hagman had gained TV fame on "I Dream of Jeannie," in which he played an astronaut whose life is disrupted when he finds a comely genie, portrayed by Barbara Eden, and takes her home to live with him.

Eden recalled late Friday shooting the series' pilot "in the frigid cold" on a Malibu beach.

"From that day, for five more years, Larry was the center of so many fun, wild and sometimes crazy times. And in retrospect, memorable moments that will remain in my heart forever," Eden said.

Hagman also starred in two short-lived sitcoms, "The Good Life" (NBC, 1971-72) and "Here We Go Again" (ABC, 1973). His film work included well-regarded performances in "The Group," ''Harry and Tonto" and "Primary Colors."

But it was Hagman's masterful portrayal of J.R. that brought him the most fame. And the "Who shot J.R.?" story twist fueled international speculation and millions of dollars in betting-parlor wagers. It also helped give the series a place in ratings history.

When the answer was revealed in a November 1980 episode, an average 41 million U.S. viewers tuned in to make "Dallas" one of the most-watched entertainment shows of all time, trailing only the "MASH" finale in 1983 with 50 million viewers.

It was J.R.'s sister-in-law, Kristin (Mary Crosby) who plugged him — he had made her pregnant, then threatened to frame her as a prostitute unless she left town — but others had equal motivation.

Hagman played Ewing as a bottomless well of corruption with a charming grin: a business cheat and a faithless husband who tried to get his alcoholic wife, Sue Ellen (Gray), institutionalized.

"I know what I want on J.R.'s tombstone," Hagman said in 1988. "It should say: 'Here lies upright citizen J.R. Ewing. This is the only deal he ever lost.'"

On Friday night, Victoria Principal, who co-starred in the original series, recalled Hagman as "bigger than life, on-screen and off. He is unforgettable, and irreplaceable, to millions of fans around the world, and in the hearts of each of us, who was lucky enough to know and love him."

Ten episodes of the new edition of "Dallas" aired this past summer and proved a hit for TNT. Filming was in progress on the sixth episode of season two, which is set to begin airing Jan. 28, the network said.

There was no immediate comment from Warner or TNT on how the series would deal with Hagman's loss.

In 2006, he did a guest shot on FX's drama series "Nip/Tuck," playing a macho business mogul. He also got new exposure in recent years with the DVD releases of "I Dream of Jeannie" and "Dallas."

Dallas Mayor Mike Rawlings said Saturday morning in a statement that Hagman's role as J.R. helped the city gain "worldwide recognition."

"Larry is a North Texas jewel that was larger than life and he will be missed by many in Dallas and around the world," Rawlings said.

The Fort Worth, Texas, native was the son of singer-actress Mary Martin, who starred in such classics as "South Pacific" and "Peter Pan." Martin was still in her teens when he was born in 1931 during her marriage to attorney Ben Hagman.

As a youngster, Hagman gained a reputation for mischief-making as he was bumped from one private school to another. He made a stab at New York theater in the early 1950s, then served in the Air Force from 1952-56 in England.

While there, he met and married young Swedish designer Maj Axelsson. The couple had two children, Preston and Heidi, and were longtime residents of the Malibu beach colony that is home to many celebrities.

Hagman returned to acting and found work in the theater and in such TV series as "The U.S. Steel Hour," ''The Defenders" and "Sea Hunt." His first continuing role was as lawyer Ed Gibson on the daytime serial "The Edge of Night" (1961-63).

He called his 2001 memoir "Hello Darlin': Tall (and Absolutely True) Tales about My Life."

"I didn't put anything in that I thought was going to hurt someone or compromise them in any way," he told The Associated Press at the time.

Hagman was diagnosed in 1992 with cirrhosis of the liver and acknowledged that he had drank heavily for years. In 1995, a malignant tumor was discovered on his liver and he underwent a transplant.

After his transplant, he became an advocate for organ donation and volunteered at a hospital to help frightened patients.

"I counsel, encourage, meet them when they come in for their operations, and after," he said in 1996. "I try to offer some solace, like 'Don't be afraid, it will be a little uncomfortable for a brief time, but you'll be OK.' "

He also was an anti-smoking activist who took part in "Great American Smoke-Out" campaigns.

Funeral plans had not been announced as of Saturday morning.

"I can honestly say that we've lost not just a great actor, not just a television icon, but an element of pure Americana," Eden said in her statement Friday night. "Goodbye, Larry. There was no one like you before and there will never be anyone like you again."

___

Associated Press writers Erin Gartner in Chicago and Shaya Mohajer in Los Angeles, and AP Television Writer Frazier Moore in New York contributed to this report.

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Walmart protests draw crowds, shoppers largely unfazed









Dozens of local workers, and hundreds nationally, took advantage of Black Friday crowds and camera crews at major retailers like Walmart to call for wage increases.

But there was little evidence that the chanting disrupted holiday shoppers.

Steven Restivo, a spokesman for Wal-Mart Stores, said the chain had done its "best Black Friday event ever" despite protests organized by the United Food and Commercial Workers International Union in Chicago and other cities.

At a Walmart in Chicago's Chatham neighborhood on the south side, only one of the store's 500 employees took part in the demonstration, the Bentonville, Ark.-based retailer said. "Almost all the folks you'll see protesting today are not Walmart associates," Restivo said. "I guess you can't believe everything you read in a union press release."

According to the union, protests took place in Miami and Washington, D.C., with additional events planned at Midwestern and Southern stores.

Walmart has so far avoided a union presence, which has become cumbersome for competitors like Jewel-Osco and Dominick's Finer Foods. Those chains have been closing stores as Walmart has expanded locally.

Separately Friday, dozens of members of the Workers Organizing Committee of Chicago and its supporters marched from the Loop to the Magnificent Mile to demand a $15 minimum wage and union contracts for downtown workers. Organized on November 15, the union has about 150 members and has received financial support from Service Employees International Union, Action Now and Stand Up Chicago.

Deborah Sims, marching Friday, said she worked at Macy's for 12 years, eventually making $13 an hour, before losing her job during the recession. She was rehired last holiday season, but at $8.50 an hour, with no benefits.

Sims said she expects retailers to turn to younger, less-experienced workers because "$8.25 an hour is going to look good to them."

Macy's did not respond to a request for comment.

Peter Gill, a spokesman for the Illinois Retail Merchants Association, called the demand for a $15 minimum wage dangerous "because people are out looking for jobs and it's tough in this economy."

He explained that if retailers were forced to nearly double the starting hourly wage, "you're going to have to cut the number of employees."

Reuters contributed to this story.



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For early Black Friday shoppers, mission accomplished

Ambitious holiday shoppers skipped dessert on Thanksgiving to get a good spot in line for this Black Friday. (Posted Nov. 23rd, 2012)








The line may seem impressive outside St. Alfred's -- a streetwear clothier in Wicker Park -- but that's because the tiny shop is only letting in one person at a time, apparently to avoid a run on the Michael Jordan sneakers out Friday.

"But we don't even want them," said Armin Hajdarovic, 17, bundled up outside the store with a half a dozen friends as it began to snow.

The crew of Northsiders was waiting to get inside to buy shirts at 20 percent off.

Asked who they were shopping for, the group said: themselves, of course.

By 9:30 a.m. on Black Friday, still a half hour before Yorktown Shopping Center in Lombard would open on any other weekday, Santa was in his green armchair and lines had queued at Caribou Coffee for those refueling, some after an entire night of shopping.

At the food court, three sisters sipped from cartons of orange juice, their daughters having awakened them hours before dawn for a 4 a.m. excursion. One, Patricia Baker, 54, of Maywood, had made an 8 p.m. jaunt to Target Thursday and a midnight run to Anna's Linens.

Now, she and her sisters, Donna Holliday, 48, of Bellwood, and Carolyn Baker, 56, of Lombard, and their daughters had spread their J.C. Penney, Forever 21, Victoria's Secret and Bath and  Body Works bags across several tables, taking a break before heading to Chicago Premium Outlets in Aurora.

The sisters hadn't been able to get together for Thanksgiving dinner on Thursday, so shopping signified bonding time.

"I'm just hanging with my sisters and nieces," said Holliday. "Just hangin'."

Baker added that she lets her daughter, Jahanna Baker, 19, and nieces, Azia and Amber Welch, both 17, do most of the shopping while she and her sisters chat at the follow. 


"My income has become more secure," said Carolyn, a nurse. "The fear has died down. My work hours are more steady." She plans to spend a couple thousand dollars more this year, including a new stove she bought for herself.

Holliday, too, says she has been working more hours this year and plans to spend a couple  hundred dollars more .

"I buy what I like," she said, "as long as I'm not broke."

At the courtyard in front of Von Maur at Yorktown, three generations of shoppers sat on a bench with bags from the Gap, Justice, Claire's and Aeropostale around their feet.

athy Zuehlke, 69, had driven in from Rantoul, in central Illinois, to go shopping with her daughter, Lisa Salgado, 43, and granddaughter Alicia Salgado, 14, both of Rockford.

It was the first time Alicia had joined the decade-long tradition, which Kathy views as "a chance to get together because we're all spread out across Illinois."

They followed a system, scouring the circulars from three newspapers before plotting a course that took them to Target on Thanksgiving evening, back at a relative's house to nap for a few hours and on to Kohl's, Best Buy, Toys "R" Us and Yorktown.

They had budgeted about as much for gifts this year as the last, about $300 to $500 for Lisa and $800 to $900 for Kathy, who says she has several grandchildren to spoil.

They pay in cash, however, so as not to overspend.  The deals they snagged on Black Friday, including 60 percent off most apparel, helped them stay within budget, too.

In Chicago's rapidly gentrifying Logan square neighborhood, most shops and restaurants were closed Black Friday, but not Torres-Omar Jewelry.

The tiny shop, near the Blue Line stop, was offering double discounts on watches.

Bob Garza -- dressed as Santa Claus and handing out fliers for the jewelry store and candy canes as CTA riders exited the train station -- said he usually delivers groceries for Mariano's but the shop is closed through the weekend so he got out his Santa outfit to make a little extra cash.

Tomorrow, Santa will be handing out Chamber of Commerce fliers on Belmont.

"The economy is bad right now," he said. "There's work out there. You just have to create it."

Across the street at the jewelry store, Jose Torres, the store's owner, said they've been in the same location since 1980 and stay open Black Friday because their regular customers expect it.

"We're always open," he said. The store was quiet, but Torres said traffic to the store looked better than last year.

Just before 7 a.m. the door busters and the crowds had dwindled at the Target in Schaumburg. Store leader Aaron Stephenson said that while the store was still busy, the crowd had died down a bit. "This is what I consider normal busy for a weekend," said Stephenson.

This is the Minneapolis-based Target's first year offering staggered door busters, the first at 9 p.m. on Thanksgiving, when the store opened and the second, at 4 a.m. Friday. Beyond consumer electronics, housewares had been popular according to Stephenson and by early morning some had also disappeared, including a Dyson Vacuum, a Farberware 18-piece cook set and a Pyrex 20-piece set.

The stack of PlayStation 3 and XBox 360's also were gone and toys, including Legos, he said, flew off the shelves. There are plenty of still good deals, Stephenson added. "We still have quite a few big TVs," he said.

In a form of subtle protest, several people who roamed Yorktown Shopping Center in Lombard as early as 4 a.m. started buying when they usually did -- on Friday morning -- and refused to give into retailers that opened their doors on Thursday evening.

"I boycotted anything midnight or earlier," said Chrissy Wojdyla, 29, of Downers Grove. "I will not shop there. I think it's ruining Thanksgiving tradition and infringing on my family." Moving Black Friday hours up to Thanksgiving, she added, "takes people away from their families." 

Instead, Wojdyla, her sister, Mary Steele, 26, and their mother, Patti Wojdyla, 54, dedicated their Thanksgiving Day to family and food, withholding themselves from any kind of shopping until they met at Yorktown at 4 a.m. Friday.

"Four a.m. is early enough!," said Patti, of Glen Ellyn. "Why would anyone want to do it on Thanksgiving evening? You're full. You're tired."

Steele, also of Glen Ellyn, said that caring for her young kids all day had made Thanksgiving too tiring to shop. 

Plus, she said, "when you start on Thanksgiving Day, it's not even Black Friday. We enjoy our 4 a.m. Friday tradition."

So they all got sleep on Thursday, ranging from 1 to 6 hours , and woke up to glam themselves out with glitter, tiaras and garland necklaces for their early morning of shopping. Steele wore a paper crown that read "Happy Holidays." |

For their efforts to keep with Yorktown's "bling" theme, Lynette Steinhauser, the assistant marketing director at the mall, rewarded them with $10 gift cards to Von Maur, which prompted a profusion of delighted thank-yous. 

Outside of J.C. Penney, Ramiro Carrizales, 44, waited with his wife, Lorena Carrizales, 40, in a seven-people-deep crowd for the store to open at 6 a.m.

They were looking for good clothing deals for their kids, specifically Mickey Mouse-themed items, but the couple, who lives in Forest Park, adamantly stuck to early Friday morning shopping hours instead of venturing out on Thursday evening. 

On Thanksgiving, said Ramiro, "I wanted to spend time with family. I didn't want to go out."

Post-Thanksgiving shopping also is a ritual for Elk Grove's Krys Slattery, Chris Duncker and Gina Wirth -- a decade-long tradition among friends.

Each year, they finish Thanksgiving dinner with their families and embark upon a 12-hour pilgrimage to knock-out the bulk of the Christmas shopping by visiting several stores in and around Woodfield Mall in Schaumburg. They power-up with coffee and breakfast at Panera and then wind-down the spree at Olive Garden for lunch. 

"We're constantly laughing," said Duncker.  "It's not just about the deals for us really, It's all about the experience, we love it," added Wirth. 

On Thanksgiving night they were in the Target on Higgins Road in Schaumburg.  Each with carts, a list and Target's "door buster" circular holding folded in their hands. All three giggled and called out to each other, squealing with delight when they spied a good deal.

After picking-up some blue sequined slippers for her teenage daughter, Slattery held them up for Wirth and Duncker to inspect.  "Do you think she'll like these?" she said.

This year Slattery was lucky. Target was opening earlier than ever -- at 9 p.m. so her mother cooked Thanksgiving dinner.

The trio weren't alone, the Target on Higgins Road in Schaumburg was swarmed, many pushing carts piled high with merchandise, from 50-inch televisions, to game consoles, tablet computers, MP3 players, apparel and cameras, which manager Brett Thiele said sold out in an hour.

The scene was similar at Yorktown Shopping Center in Lombard. 

Laura Maxey and six of her closest friends shrieked when they saw the black bags. They had carved out a spot in front of the information booth at Yorktown, standing for 5 1/2 hours at the head of a 250-person line, until the mall officially opened at 5 a.m. Friday and the staff began handing out goodie bags filled with multicolored totes and $10 gift cards to stores throughout the mall.

"We pretty much just slept over at the mall," said Laura, 14, of Lombard. "We wanted to be first."

Their parents had dropped the friends, plus two older brothers, off at the mall shortly before midnight, and they rushed to the booth to claim their spots -- only the first 200 people in line would receive gift bags, with another 50 turned away -- before taking turns to embark on a shopping rotation that included Victoria's Secret, American Eagle and PacSun. At Charlotte Russe, they picked up $15 jeans.

The friends said they were at the mall for the joy, the deals and the once-a-year feel of Black Friday, and they were hardly the only ones caught up in the retail frenzy.

"I got a suitcase thrown at my head!" said Melanie Malczewski, 14, of Lombard, recalling her experience at Victoria's Secret, though she was smiling broadly at the memory later that morning.

Lynette Steinhauser, assistant marketing director at Yorktown, said that this, her 14th Black Friday at the mall, "is the busiest it's ever been." About half of the stores had been open since midnight, she said, with nearly all the rest the turning on their lights when the mall officially opened at 5 a.m. Steinhauser compared the foot traffic at 5: 30 a.m. on Black Friday to what it feels like on a Saturday afternoon.

"Everyone is in a really happy mood," she said. "And festive!"

Black Friday, which for years kicked-off the holiday shopping season for retailers and consumers, has bled into Thanksgiving, with retailers including Target, Sears and Toys R US opening on Thursday night aiming to boost their bottom lines by enticing consumers to shop early and often.  



Holiday shopping is crucial for retailers -- it accounts for up to 40 percent of their yearly sales. That's why it's called "Black Friday" as for years they've used the day to go from red to black -- or turn a profit.  

This year, retail watchers are expecting holiday shoppers to oblige.  Consumers are expected to spend, on average, $586.1 billion this year on gifts for friends and family, just over a 4 percent increase from last year. Experts are saying this pick-up in spending is conservative, but a glimpse at popular hotspots for early Black Friday shopping, it wasn't apparent.  

This year a handful opened earlier than ever, Walmart set an 8 p.m. opening and Sears followed suit.  Target opted for an opening scheduled an hour later at 9 pm.

Despite some criticism around the increasingly early open times, shoppers in Schaumburg were out in full-force last night.  A Deloitte survey found that 60 percent of consumers plan to shop over Thanksgiving weekend, aiming to take part in sales that offer merchandise at prices the dip below 50 percent off. 

Experts said that this year, as in most years, low-priced flat screen televisions would move fast.  So would deeply discounted Android-powered tablet computers. 

The line to get into the Sears at Woodfield Mall stretched along the building by 7 p.m., an hour before opening time.  

Manager April Buehler said the line outside the store looked larger than last year, and about a mile away at Target, Thiele said this year the store was filled with more families, instead of the hardcore, deal-hunter that typically shows up when the store opens early on Friday morning.  "It's a lot more casual shopper, which I'm excited about," said Thiele. "It's not necessarily people that had to get up super early and be dedicated, just people going out with families. Grandparents and grandkids," he said. 

Carol and Russel Freitas fall into the deal-hunter category.  It's date night for the Palatine couple of 26 years when they head out to shop each year after dinner, leaving their two teenaged sons behind to tackle the stores.  They said they love it.

They waited patiently in line for more than an hour, hoping to snag one of Sears' hot door busters, a 32-inch flat screen for less than $100. 

As it turns out, they waited in vain.  By the time the store opened, they were in the first third of the line, but the Sears employee had run out of TV vouchers when she got to the Freitas' in line.  "It's okay," said Carol Freitas, "There's other stuff on our list, we're going to head to the boys' department to get shirts for my son."

Shortly before Sears opened, about 12 feet away from the Freitas, there was a small, but growing crowd of suspected "line jumpers,"  who stood about 12 feet away staring at the line.

At close to 9:30 at Target, some shoppers could be seen pushing carts stockpiled with 32 inch flat screen for $147.  Alex Gackle  from Fargo, N.D., left his grandmother's dinner with his dad and brother-in-law to buy  another of the Minneapolis-based retailer's most sought-after deals: They bought  four televisions. One for himself, another for his grandmother, one for her caretaker and the fourth for his father.  They waited in line for more than an hour and things were calm, said Gackle.  That changed when Target's doors opened, said Gackle. "That's when people started getting crazy and rushing toward things."

By 10:30 a long line of shoppers were still waiting to get inside the Toys R Us in Schaumburg.  Customers said they were told that shoppers would be allowed in the store every 10 minutes in increments of 50.

After 10 p.m. the temperature had dropped and Laura Saul stood in a sweater with her two daughters and their cousin to get into Toys R Us.  The item of the evening -- "Monster High" dolls for her 10-year-old daughter, Emily.  She pointed to Emily and said, giggling, "She conned us to do this."  Saul's old daughter, Lauren, who stood nearby, was not in such good spirits, "I could be sleeping," she said.

The trio from Elk Grove shopping at Target said over the years they've seen it all -- fights and shoving matches.  As the 10 p.m. hour approached at Target, they thought things were pretty calm.  At Target People get angry, but this is fun for us," said Wirth.  "Even if we don't get what we want, we don't care."

Erin Chan Ding contributed to this story.

crshropshire@tribune.com | Twitter: @corilyns






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Sony at greater risk than Panasonic in electronics downturn: Fitch

TOKYO (Reuters) - Panasonic Corp has a better chance than rival Sony Corp of surviving Japan's consumer electronics slump because of its unglamorous but stable appliance business of washing machines and fridges, credit rating agency Fitch said Friday.


Fitch cut Panasonic's rating by two notches to BB and Sony three notches to BB minus on Thursday, the first time one of the three major ratings agencies have put the creditworthiness of either company into junk-bond territory.


Rival agencies Moody's and S&P rate both of Japan's consumer electronic giants at the same level, just above junk status. Moody's last cut its rating on Panasonic on Tuesday.


Panasonic "has the advantage of a relatively stable consumer appliance business that is still generating positive margins", Matt Jamieson, Fitch's head of Asia-Pacific, said in a conference call on Friday to explain its ratings downgrades.


But at Sony, he added, "most of their electronic business are loss making, they appear to be overstretched."


Japan's TV industry has been bested by cheaper, more innovative models from Samsung Electronics and other foreign rivals, while tablets and smartphones built by Apple Inc have become the dominant consumer electronics devices.


Investors are focusing on the fate of Sony and Panasonic after another struggling Japanese consumer electronics firm, Sharp Corp, maker of the Aquos TV, secured a $4.6 billion bail-out by banks including Mizuho Financial Group and Mitsubishi UFJ Financial Group.


Sony and Panasonic have chosen divergent survival paths.


Panasonic, maker of the Viera TV, is looking to expand its businesses in appliances, solar panels, lithium batteries and automotive components. Appliances amount to around only 6 percent of the company's sales, but they generate margins of more than 6 percent and make up a big chunk of operating profit.


Sony, creator of the Walkman, is doubling down on consumer gadgets in a bid to regain ground from Samsung and Apple in mobile devices while bolstering digital cameras and gaming.


The latest downgrades will curtail the ability of both Japanese companies to raise money in credit markets to help fund restructurings of their business portfolios.


For now, however, that impact is limited, given the support Panasonic and Sony are receiving from their banks.


In October, Panasonic, which expects to lose $10 billion in the year to March 31, secured $7.6 billion of loan commitments from banks including Sumitomo Mitsui Financial Group and Mitsubishi UFJ, a financing backstop it says will help it avoid having to seek capital in credit markets.


Sony, which has forecast a full-year profit of $1.63 billion helped by the sale of a chemicals business to a Japanese state bank, announced plans to raise $1.9 billion through a convertible bond before the latest rating downgrade.


Thomson Reuters' Starmine structural model, which evaluates market views of credit risk, debt levels and changes in asset values gives Panasonic and Sony an implied rating of BB minus. Sharp's implied rating is three notches lower at B minus.


Standard & Poor's rates Panasonic and Sony at BBB, the second lowest of the investment grade, while Moody's Investors Service has them on Baa3, the lowest of its high-grade category. Moody's has a negative outlook for both firms while S&P sees a stable outlook for Panasonic and a negative one for Sony.


Stock markets in Japan were closed on Friday for a national holiday.


(Reporting by Tim Kelly; Editing by Mark Bendeich)


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Ugly loss 'hard to fathom' for Jets' Ryan

NEW YORK (AP) — Rex Ryan is embarrassed yet defiant after the New York Jets collapsed against the New England Patriots.

The Jets coach says Friday it's "still hard to fathom the one stretch" in which the Patriots scored three touchdowns in a 52-second span Thursday night in the second quarter of a 49-19 loss. Still, Ryan says he'll "never concede" the Jets won't ever catch their biggest rivals, calling that suggestion "ridiculous."

But at 4-7, Ryan's bunch can forget about the playoffs for now. They'll have enough trouble even getting to .500 with the way they played.

Ryan also defends his decision to keep backup quarterback Tim Tebow active despite having two broken ribs, saying he could have played — but Ryan ruled against it.

___

Online: http://pro32.ap.org/poll and http://twitter.com/AP_NFL

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