In the Region
Marriott sells resort in California for $190 million in cash
Marriott International Inc., the largest U.S. hotel company, sold its Laguna Beach, Calif., resort development for $190 million in cash yesterday to focus on its main business of managing hotels.
Laguna Beach Resorts LLC, an investment group formed by Alan Fuerstman, Athens Group and other private investors, bought the 30-acre development. Marriott decided to sell because the price was "economically lucrative," said Roger Conner, a spokesman for Bethesda-based Marriott. He declined to elaborate.
Hotel sales are showing signs of picking up after the terrorist attacks of Sept. 11 curtailed travel, and investors expect occupancies to start rising, consultants said
Kerns replaces Shull as Digex president, CEO
George Kerns was named president and chief executive officer yesterday of Digex Inc. of Laurel, a corporate Internet provider that has struggled with the downturn in e-business.
Kerns, senior vice president of operations since early last year, succeeds Mark Shull in both jobs. A Digex spokeswoman provided no information about Shull or the circumstances of his departure, except to say the board decided to replace him effective immediately.
This spring, the company, majority-owned by WorldCom Inc., trimmed its work force to 1,293 employees from 1,455 a year earlier and lost $50.4 million in the first quarter, worse than its $44.2 million loss a year earlier.
Micros introduces 2 deals in hospitality technology
Micros Systems Inc. announced two new customer deals yesterday for the technologies it develops for the hospitality and restaurant industries.
The Sheraton Petaluma Hotel at the Marina in Petaluma, Calif., a franchise of the Starwood hotels, has begun full use of Micros' Opera software to help it manage its properties, sales and catering.
Meanwhile, fast-growing Atlanta Bread Co. has purchased about 60 systems from Columbia-based Micros. The European-style bakery chain expects to expand to 150 outlets by the end of this year. Contract prices were not disclosed.
Elsewhere
Kmart reports loss of $96 million for May as sales fall 11%
Kmart Corp., the largest U.S. retailer to file for bankruptcy, said it had a loss of $96 million last month as sales declined.
The loss includes reorganization costs of $11 million in professional fees and $6 million in employee-retention bonuses in the four weeks ended May 29. Same-store sales, excluding results at the 283 stores Kmart closed, fell 11 percent, the retailer said in a filing yesterday with the U.S. Securities and Exchange Commission.
Since filing for Chapter 11 protection Jan. 22, Kmart has reported a total loss of $2.12 billion as it has reduced prices to clear out inventory and made payments to cancel leases.
Partner charges sex bias in suing Deutsche Bank AG
Deutsche Bank AG faces a sex discrimination lawsuit by a female managing director who said she attended a 1999 company meeting at which a Marilyn Monroe look-alike fondled several male executives.
Virginia Gambale, a partner in the DB Capital partners unit of Europe's largest bank, says she was passed over for a promotion because of her gender. Gambale, who also sued Deutsche Bank's Bankers Trust Co. unit, said the company's work environment is hostile to women.
Her lawsuit cites a September 1999 meeting in Cannes, France, that was attended by 100 male and five female executives. It says the Monroe imitator fondled several men. Several other Wall Street firms face sex-bias claims, including Morgan Stanley Dean Witter & Co. and Citigroup Inc.'s Salomon Smith Barney Inc.
This column was compiled from reports by Sun staff writers, the Associated Press and Bloomberg News.