Here are some other top stories from 2008

Here are some other top stories from 2008

Battered Emmis cuts costs

In 2008, locally based Emmis Communications Corp. weathered what may have been the most challenging times in the history of radio.

Even as the company’s stock slipped below 40 cents per share, Emmis CEO Jeff Smulyan remained undaunted.

Company officials feverishly slashed costs behind the scenes in hopes of staying in compliance with covenants on Emmis’ $455 million bank loan.

If Emmis falls out of compliance, banks could force the company to renegotiate terms, likely resulting in higher fees or interest rates. More daunting-but less likely, analysts say-lenders could shove the company into bankruptcy court.

Emmis has little margin for error, even as it wrestles with an advertising slump that’s been most severe in the nation’s biggest cities-where Emmis generates the bulk of its radio revenue.

In August, Emmis cut 40 jobs in its publishing division-which produces Indianapolis Monthly and other city magazines-and trimmed salaries for the remaining 348 workers by 2 percent.

In November, the company laid off 29 full-time and six part-time workers in its radio division, shrinking its work force to 614 full-timers and 311 part-timers. In addition, it snipped 3 percent off salaries of corporate and radio employees earning more than $50,000 a year.

Greensburg plan spits out Civics

Four-door Honda Civics began rolling off the line at a $550 million plant in Greensburg in October, but the successful car maker is looking to control inventory in 2009.

Honda Motor Co. said in December it will reduce production by 6,000 cars in Greensburg, part of a second round of cutbacks in North America. Overall, Honda planned to reduce production by 119,000 vehicles at five of its seven plants, so it would churn out 1.3 million cars and light trucks by the end of its fiscal year, March 31.

The cutbacks mean Honda might not reach its goal of creating 2,000 jobs in Greensburg by 2010. The plant currently employs 915 people.

Honda still plans to make natural-gaspowered vehicles in Greensburg next year.

Hospital merger talks heat up

Clarian Health led an active year of hospital merger activity, which could heat up even more this year.

Indianapolis-based Clarian signed letters of intent to acquire three hospital systems, including Bloomington Hospital and Muncie-based Cardinal Health Systems.

But talks broke down in November between Clarian and Bedford-based Dunn Memorial Hospital.

Also, in early 2008, Clarian made an overture to merge with Indianapolisbased Community Health Network. But Community officials said they were not interested.

St. Vincent Health and the St. Francis hospital systems also say they are interested in or are in discussions about mergers with other Indiana hospitals.

Ethanol loses momentum

The ethanol craze in Indiana slowed in 2008 as wildly fluctuating corn prices and a credit crunch stopped or slowed construction of refineries.

In November, Pekin, Ill.-based Aventine Renewable Energy Holdings said it would delay by nine months the opening of an ethanol plant in Mount Vernon. Another refiner, Sioux Falls, S.D.-based VeraSun Energy, filed for Chapter 11 bankruptcy protection. Its Linden plant continues to operate. VeraSun suspended construction of a plant in Reynolds.

Indiana has nearly a dozen ethanol plants operating or under construction.

Y&L loses Steak n Shake advertising account

Steak n Shake Co. this fall decided to pull the plug on its 18-year relationship with Indianapolis advertising agency Young & Laramore.

Sources say about 20 of Young & Laramore’s 66 employees lost their jobs as a result of the decision.

Y&L received numerous awards for its quirky ads for the Indianapolis diner chain, many featuring wisecracking employees.

Steak n Shake CEO Sardar Biglari said the chain wants to go in a different direction in an effort to improve financial results. The company has reported 13 consecutive quarters of declining same-store sales.

Angie’s List snags $53 million

Angie’s List snagged $53 million in venture capital to fund its rapid expansion, overcoming one of the toughest financing markets in decades.

The fast-growing company rates plumbers and other consumer services. It has more than 750,000 customers and is planning an international expansion.

In October, Angie’s List announced it plans to double its 400-employee work force within five years.

Corley, others exit Community

There’s a changing of the guard under way at Community Health Network.

In June, CEO Bill Corley gave 18 months’ notice of his plans to retire. Community launched a nationwide search to replace Corley, 65, who has been CEO for 24 years.

But in October, one of the internal candidates to replace Corley, Mark Dixon, took a hospital job in his native Minnesota. Dixon oversaw Community’s three Indianapolis hospitals.

In November, Community Hospital East President Anita Harden, 61, announced early retirement. Community East had lost $18 million during the previous two years.

New York company purchases Ritter’s Frozen Custard chain

After a couple of years of struggles, home-grown Ritter’s Frozen Custard sold to New York-based TruFoods LLC early in 2008.

Founder John Ritter started in 1990 with a store in Franklin, then expanded rapidly through franchising. Ritter’s had 60 locations by 2005.

When son Bob Ritter assumed the top job, he faced competition from a host of new chains, including Maggie Moo’s and Cold Stone Creamery. The younger Ritter stopped offering new franchises to focus on supporting existing operations and returning the company to profitability. The number of stores fell to 48 in nine states.

Terms of the deal with TruFoods were not disclosed.

Local Humane Society gets new leader, new strategy

The debt-ridden Humane Society of Indianapolis hired a new executive director, John Aleshire, who is charging into low-cost spay/neuter services and hopes to increase fund raising at the height of a recession.

Aleshire, a veteran
not-for-profit administrator, succeeds Martha Boden, who in 2003 oversaw the use of the Humane Society’s endowment as collateral for a $3.4 million line of credit.

After years of deficit spending, the Humane Society said it will balance its budget in 2009. The shelter has cut staff and changed its policy to accept a limited number of animals. Aleshire hired Christine Jeschke, a former Humane Society watchdog, as his second-in-command and to oversee the launch of low-cost spay/neuter services.

No go for tech firms’ IPOs

The stock market slide kept at least two local software firms from launching initial public offerings in 2008.

ExactTarget Inc. had laid out plans in December 2007 for an $86 million offering to grow its e-mail marketing software business. Market conditions soured in 2008, leaving the offering in limbo.

Aprimo Inc., a maker of marketing software, a year ago unveiled plans for a $50 million IPO. It pulled the offering in April because of poor market conditions and instead raised $15 million in a private offering.

Horse tracks earn millions

on electronic gambling

Gambling advocates spent years lobbying the Legislature to permit slot machines at the state’s two horse tracks, Hoosier Park in Anderson and Indiana Downs in Shelbyville.

Last spring, lawmakers desperate for new revenue sources finally said yes. Each track paid the state $250 million in license fees. The so-called “racinos”
opened in June.

Hoosier Park raked in $87 million in slots revenue during its first six months, while Indiana Live at Indiana Downs brought in $81 million.

Heads roll in Indiana U. athletics department

Indiana University fired basketball coach Kelvin Sampson in February following a scandal involving impermissible phone calls to recruits.

In April, IU hired Marquette coach Tom Crean to take over for interim coach Dan
Dakich, who had served as an assistant under Sampson.

After the NCAA found Athletics Director Rick Greenspan failed to properly monitor Sampson, the university showed him the door as well.

In October, IU announced that Baker & Daniels partner Fred Glass is the university’s new athletic director. Glass said the $410,000 he will earn annually at IU will be a six-figure pay cut from his Baker & Daniels salary.

In November, the NCAA announced that IU would not be subject to a post-season ban or any other penalties beyond stringent recruiting restrictions the school imposed on itself.

Charter Homes faces lawsuits

A local company that built and sold rental homes to novice investors saw its business begin to unravel in 2008.

Lenders foreclosed on at least 20 homes in five Charter Homes subdivisions. The lenders say they haven’t received payments since May, even though Charter continues to collect rent.

Charter also is facing numerous liens and more than a dozen lawsuits from unpaid contractors.

The company recruited and paid buyers to take out inflated mortgages on dozens of central Indiana homes it built, promising to manage the properties as rentals and make payments for the owners, current and former Charter business partners say.

The 3-year-old local company took advantage of eager real estate investors by offering them a cash bounty for each home purchased, along with checks from Charter to cover down payments. But as lax credit markets tightened and home values reversed course, the scheme began to crumble, an IBJ investigation found.

Arts advocates seek

new funding sources

In September, the Indianapolis City-County Council reduced its funding from the Arts Council of Indianapolis from more than $1.5 million to $1 million-a cut that has spawned soul-searching in the arts community.

The reduction-which stemmed from a city-wide budget crunch-has spawned an effort to finding sources that would be more stable long term.

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