Crains New York - November 19, 2012 - (Page 4)

No thanks, I’ll shop instead Lord & Taylor, other retailers open on Thanksgiving Day BY ADRIANNE PASQUARELLI The heat is on for Manhattan retailers. After department store Lord & Taylor announced plans to keep its Fifth Avenue flagship open on Thanksgiving, other local stores could be pressured to do the same. “It’s a bold move on Lord & Taylor’s part to test the market,” said Michael Brown,a partner in the retail practice of management consulting firm A.T.Kearney.“Others may learn from it,” he added. Stores may need all the help they can get as they fight for every dollar. In the New York metro area, consumers plan to spend $1,492 in total this holiday season, a 6.9% decline over 2011, according to an annual survey conducted by Deloitte. In recent years,Black Friday has lost some of its relevance as the official start to the holiday shopping season, as bigbox stores like Toys R Us and Target open as early as Thanksgiving evening.The rise in e-commerce has also paved the way for other shop’til-you-drop days such as Cyber Monday. Macy’s, does not plan to open until midnight on Black Friday, as it did last year. A company spokeswoman could not say what the plans are for next year.Saks Fifth Avenue will also be closed on Thursday, as usual. But a big change in a Macy’s Thanksgiving Day Parade route, which will shift to Sixth Avenue from Seventh this year, could persuade some local stores to open on the day to lure shoppers from the 3.5 million parade spectators. Gadget store Brookstone, in Rockefeller Center, will be open on Thanksgiving—as it was last year. The Gap, which has an outpost on Sixth Avenue and West 47th Street, will open all of its locations on Thursday, in a repeat of 2011. And while experts have yet to assess the day’s sales potential—“It’s an untested shopping day,” said Mr. Brown—some see it as an example of rampant commercialism. Dozens of petitions have been launched on Change.org against Thanksgiving Day openings of retailers such as Target and Walmart. IN THE MARKETS by Aaron Elstein JOSHUA STEINBERG, Wisdom Tree’s founder and CEO, with wife Maria Bartiromo of CNBC. No ‘doorbusters’ Though Lord & Taylor, which is owned by Canadian firm Hudson’s Bay Co., will not offer “doorbuster” deals on Thanksgiving, it will offer some discounts and be open from 10 a.m. to 7 p.m. It may capitalize on the thousands of tourists in midtown. The 48-store chain, which generated $1.4 billion in retail sales for the year ended Sept. 30, will also organize street teams to let people know its flagship is open. “In the evolving multichannel retail world, customers have grown accustomed to being able to shop at their convenience,” said a spokesman, noting that employees volunteered to work that day. Lord & Taylor’s chief rival, Wisdom Tree backers leave nest J.H. COHN AND REZNICK GROUP ARE NOW ONE. J.H. Cohn and Reznick Group have come together to create CohnReznick — setting a new standard for accounting, tax, and business advisory services nationally. Expertise and leadership are critical to achieving success. Just ask Joe Torre, world championship winning manager. With combined strengths, game-changing advice, and deeper industry expertise, CohnReznick delivers big-picture business solutions to help you solve complex challenges and capitalize on future opportunities. That’s forward thinking. That’s CohnReznick. T he New York-based financial services company Wisdom Tree seems to be that rarest of Wall Street beasts: a genuine success story over the past few years. It has grown into a significant provider of exchange-traded funds, the popular instruments that people use to invest in most any market sector or index at a fraction of the cost charged by traditional mutual funds. cerns that tax rates for capital gains will rise next year, because both Messrs. Steinhardt and Robinson have made substantial profits from Wisdom Tree. Both appear to have first invested in the company back in 2005, when Wisdom Tree raised $7.5 million,and they added more in a 2009 private placement that raised $5 million. Last week, Mr. Steinhardt reaped about $69 million selling a piece of his stake, and Mr. Robinson’s firm, RRE Ventures, exited its position for $107 million. Still, even if taxes on gains were to rise in January, it’s hard to understand why these savvy investors would sell if they thought Wisdom Tree’s stock still had room to run. Since 2007, Wisdom Tree’s revenue has more than tripled, and it has grown into the seventh-largest ETF provider, with $17 billion invested in its funds.But it’s a minnow compared with big fish like BlackRock and Vanguard, which recently launched a price war to attract more investor cash to their ETFs. And lo: Wisdom Tree’s growth rate appears to be slowing, with revenue rising 25% over the first nine months of this year, down from a 75% spurt in the year-earlier period. Looking at it that way, it’s understandable if Messrs. Steinhardt and Robinson thought now was a good time to pocket some winnings. But the most interesting thing about Wisdom Tree has always been the boldfaced names attached to it: Its founder and CEO is Jonathan Steinberg, the husband of CNBC’s Maria Bartiromo and son of renowned corporate raider Saul Steinberg. Its chairman is legendary hedge-fund manager Michael Steinhardt. Board members include James D. Robinson IV, a noted New York venture-capital investor and son of a former American Express CEO. It’s a lot of star power for a company that generated just $65 million in revenue last year and is coming off its first profitable year, with $3 million in earnings. Now, however, the big-name backers are in retreat. Last week, the company disclosed that Mr. Steinhardt and a foundation he controls sold 11 million shares,or about onethird of his stake, although he retains a 16% holding. At the same time, Mr. Robinson’s VC firm sold all of its 18 million Wisdom Tree shares, reducing what had been a 15% stake in the company to zero. Representatives for the two directors did not return calls seeking comment. But whatever their reasons for selling, other investors aren’t happy: Wisdom Tree’s stock has fallen 16% since a regulatory filing last month offered a hint about the two men’s plans. The sales may in part reflect con- Ken Baggett, CPA Co-CEO Joe Torre World Champion Manager Tom Marino, CPA Co-CEO cohnreznick.com CohnReznick is an independent member of Nexia International 9,225 NUMBER OF CREDITORS listed by New York-based Overseas Shipholding Group, the largest oil-tanker company in the U.S., which filed for bankruptcy last week. Parties owed money range from Bank of America to Zaro’s Bakery. 4 | Crain’s New York Business | November 19, 2012 newscom http://www.Change.org http://www.cohnreznick.com http://www.cohnreznick.com

Table of Contents for the Digital Edition of Crains New York - November 19, 2012

IN THE BOROUGHS
IN THE MARKETS
THE INSIDER
SMALL BUSINESS
BUSINESS PEOPLE
OPINION
GREG DAVID
REAL ESTATE DEALS
OWNED COMPANIES
THE LIST
CLASSIFIEDS
NEW YORK, NEW YORK
SOURCE LUNCH
OUT AND ABOUT
SNAPS

Crains New York - November 19, 2012