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HAWAII
Embattled spas close again
Aveda Corp. has closed the Malama Salon & Spa locations at Ala Moana and Manoa; the latter will not reopen, employees were told.Minnesota-based Aveda has announced plans to enter into a lease agreement for the Ala Moana location with Illinois-based General Growth Properties Inc., which owns and operates the center. Efforts to sponsor a plan of reorganization within Hawaii-based Malama's bankruptcy proceeding were not successful, the company said in a statement.
Malama filed for Chapter 11 bankruptcy reorganization in September, listing debts of more than $5 million and assets of $2.5 million, leading to the abrupt closure of the locations Nov. 20.
Once Aveda reopens the Ala Moana spa, it will honor gift cards purchased from either location.
Outrigger adds resort in Australia
Outrigger Hotels & Resorts said it is opening its 12th property in Australia, a $9.5 million, 31-unit resort in North Queensland.Outrigger in The Village is scheduled to open next month, and will become Outrigger's third resort to open in Port Douglas.
The property is being built by Cairns-based developer George Dimitri. Port Douglas is 30 miles north of the Cairns International Airport.
In neighboring New Zealand, Outrigger plans to operate up to six hotels and resorts in three years.
MAINLAND
Continental Airlines loss shrinks
NEW YORK >> Continental Airlines, the No. 5 U.S. airline, today said it cut its fourth-quarter loss by 27 percent as its holiday traffic and cargo shipping surged, but said it did not expect to return to profitability this year.Houston-based Continental, the first of the major carriers to report its results, posted a net loss of $109 million for the fourth quarter, or a loss of $1.67 per share. It showed a loss of $149 million, or $2.58 per share, a year earlier.
Continental's results, while dismal in general terms, are likely to set it near the top of the airline industry pack by the time the rest of the major U.S. carriers finish reporting their results this month.
Wall Street expects U.S. airlines to post at least $2.5 billion in losses for the fourth quarter.
Simon Property boosts offer for Taubman
INDIANAPOLIS >>Shopping mall giant Simon Property Group Inc. raised its hostile tender offer for rival Taubman Centers Inc. by 11 percent and added a partner to aid in the takeover attempt.Simon Property increased its bid to $20 a share from $18, valuing Taubman Centers at about $4.25 billon in stock and debt, according to a Bloomberg News report. Westfield America Inc., the U.S. unit of one of Australia's biggest property owners, has joined Simon Property and will pay half the cost if Taubman Centers is purchased, according to Simon Property.
The higher offer and the addition of Westfield escalates the battle between family-run Simon Property and Taubman Centers, among the first U.S. mall developers. Taubman Centers' board will respond to the offer within 10 days.
Travelers to take $1.3 billion charge
HARTFORD, Conn. >> Travelers Property Casualty Corp. said yesterday it would charge $1.3 billion against earnings after taxes in the fourth quarter to strengthen its reserves for asbestos claims.For the fourth quarter, Travelers expects a net loss of $793 million, or 79 cents per share with the charge. It expects a net loss including the charge of about $27 million, or 3 cents per share, for all of 2002.
Travelers plans to release fourth quarter results on Jan. 23. The insurer expects profits for 2003 of $1.69 to $1.79 per share.
AOL unit reshuffles top management
NEW YORK >> Jon Miller, the head of America Online, is sending clear signals he intends on turning around the troubled unit as he reshuffles duties of some of his top deputies under an ambitious game plan.In a memo to staff sent out Monday after the resignation of AOL Time Warner Chairman Steve Case, Miller said he is tapping America Online Vice Chairman Joe Ripp and broadband head Lisa Hook to be at the forefront of some of the new initiatives. AOL's other Vice Chairman Ted Leonsis, another top deputy to Miller, will also oversee the company's core Internet service and offerings, according to the memo.
