Business news in brief

QUOTE OF THE DAY

“I think there’s as strong a pipeline as I’ve seen in the international defense business in a long, long time.”

James McNerney,

chairman and chief executive officer of Boeing Co.

Article, 1DGrowth Group LLC files for Chapter 7

Growth Group LLC, a company doing business in Arkansas and Florida and owned by former Fayetteville developer Mitchell Massey, filed for Chapter 7 bankruptcy protection Saturday.

Chapter 7 bankruptcy allows for liquidation of assets to satisfy outstanding debts.

Two petitions for bankruptcy were filed in the U.S.

Bankruptcy Court for the Western District of Arkansas, one for the company doing business in Arkansas and the other for the company doing business in Florida.

The Arkansas company’s petition estimated assets at under $50,000 and liabilities between $100,000 and $500,000. The Florida company’s petition estimates assets of up to $50,000 and liabilities of up to $50,000.

Massey filed individual bankruptcy in April 2009, and that case was discharged in April this year.

Two former company investors also filed for individual bankruptcy protection: Carlen G. Hooker filed in June, and Ricky Lee Hancock filed in April. Both cases are pending in Arkansas’ Western District court.

Growth Group has until Aug. 9 to file its schedules of property, assets, debts and creditors.

With Peltz in, Family Dollar stock up Shares of Family Dollar Stores Inc. climbed Wednesday after investor and billionaire financier Nelson Peltz disclosed he’d amassed a 6.6 percent stake in the discount store owner, calling its shares “undervalued.”

Family Dollar has been one of the retailers to benefit from the recession as more consumers come into its stores hunting for bargains. Family Dollar has seized on the opportunity, expanding its food offerings, lengthening store hours and accepting food stamps in all its stores.

Peltz’s investment arm, Trian Fund Management LP, owns large stakes in a variety of major American businesses.

In a regulatory filing, Peltz said he now owns more than 8.7 million shares of the Matthews, N.C., chain, which operates more than 6,700 stores nationwide. He noted that he has met with Family Dollar Chairman and Chief Executive Officer Howard Levine and senior management to discuss the company’s direction and ways to increase shareholder value, including increasing sales per square foot and boosting the size of Family Dollar’s stock buyback plan.

Over the course of his investment in the company, Peltz said he may propose one or more nominees to the company’s board.

The news sent Family Dollar shares up 4.6 percent to close at $41.29.

Home-loan applications fall in week

WASHINGTON - Applications for home loans fell last week despite the lowest mortgage rates in decades.

The Mortgage Bankers Association said Wednesday that overall applications fell 4.4 percent from the week earlier. Applications to refinance home loans dropped 5.9 percent. Those taken out to purchase homes rose 2 percent. The numbers are seasonally adjusted.

Mortgage rates have been at or near record lows since mid-April.

The average rate for a 30-year fixed loan rose to 4.69 percent last week from 4.59 percent a week earlier, according to the trade group’s report. The rate for a 15-year fixed loan rose to 4.12 percent from 4.05 percent a week earlier.

Refinance applications made up 78 percent of total applications, down from 79.4 percent a week earlier.

The Mortgage Bankers Association’s survey covers more than 50 percent of all applications nationwide.

Registry a must for mortgage lenders

WASHINGTON - Loan officers at banks will be required to provide their names and fingerprints to a national database as part of an effort to crack down on shady operators who fed the real-estate bubble.

The new requirements were mandated by a bill passed by Congress two years ago. Federal bank regulators approved them Wednesday.

The rules apply to employees of banks regulated on the federal and state levels. Mortgage brokers are already required to be licensed by the system.

The registry is expected to start accepting new applications by the end of January. Once registrations start, banks will have 180 days to comply.

Apple sues over knockoff add-ons

Apple Inc. sued companies it said are selling unauthorized electronic accessories such as chargers, speakers and cables for the iPod music player, iPhone and iPad tablet computer.

“Many are of inferior quality and reliability, raising significant concerns over compatibility with and damage to Apple’s products,” Apple said in the complaint, citing a user comment that a charger from one of the companies drained his iPod rather than replenishing the battery.

Apple said it has a program called “Made for iPod” under which manufacturers can get a license to sell accessories for the devices. The unauthorized products are infringing as many as 10 patents and violating Apple’s trademarks, the Cupertino, Calif.-based company said in the filing.

The complaint, filed July 22 in federal court in San Francisco, identifies six sellers based in California and one in Washington and said Apple could name as many as 20 additional companies. Calls or e-mails to four of the named companies weren’t immediately returned, and contact information for two companies couldn’t be obtained.

Report: Small firms see grim times

CHICAGO - Small businesses are facing the most difficult business climate in three years, according to a report released Wednesday.

Among the most troubling signs: Four out of every 10 small-business owners can’t secure adequate financing, according to the National Small Business Association’s midyear economic report.

It has been 17 years since this many small businesses have had such a difficult time getting loans, said Todd Mc-Cracken, president of the Washington-based organization.

“Given the direct correlation between access to capital and job growth, unless small-business owners are able to secure financing, we will continue to see high unemployment,” said McCracken.

In the past 12 months, 11 percent of small businesses hired workers and 25 percent cut jobs, the report said.

Business, Pages 24 on 07/29/2010

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