The Rhode Island economy is looking like there are some glimmers of lights, but the state still seems to be trapped by unemployment and a lack of a coherent vision.
On the bright side, there are some signs of life - real estate is showing that it is on the upswing. The Arcade's re-opening is symbolic, but it is a good indicator that we have hit bottom and are on are way up regardless of how slow the recovery may be.
Biz Winners and Flops identifies some new initiatives that may help Rhode Island emerge out of its malaise, as well as some established business leaders whose work and vision continue to affirm efforts that help Rhode Island grow.
Gary Glasman is the founder and Directed by Taliesin Gilkes-Bower, Digital City is a shared work space for new economy digital innovators.
Housed at AS220's Mercantile Block, this production and work space will be a hub for digital media artists (television and film producers, animators, video game designers, sound engineers, public relations and design professionals, distributors, software developers, and many others!) to gather, work, and collaborate in an affordable, community-oriented environment.
Like Betaspring, Dgitial City helps to create the launching pad for start-ups and emerging technologists and designers.
The Providence-based brewery with a mission won $50,000 at the business start-up competition, Mass Challenge.
The company was started by two best friends, Victor Bartash and Lily Ricci, who are working to crowd source the fundraise for $1.5 million to build a full brewery. The company is committed to giving a portion of the revenue to help support clean water around the world.
Kudos to Hasbro for being selected by Greatist as one of the best companies in the country at promoting good health for its work force.
“We were thrilled to receive Greatist’s top ranking in our category,” said Dolph Johnson, EVP and Chief Human Resources Officer. “The Hasbro Wellness Team, part of our Hasbro Employee Network, takes a strategic approach to wellness, focusing on the whole employee and is always looking for new ways to keep wellness top of mind.”
Rhode Island's homegrown wind company Deepwater Wind scored a feature in Forbes. It was good to see Forbes coverage on something other than pension reform and hedge fund fees. Forbes wrote:
Years of investment and planning may be beginning to pay off for Deepwater. Grybowski highlights several reasons for growing optimism, with an emphasis on two projects: the Block Island Wind Farm and the Deepwater Wind Energy Center (DWEC).
The Block Island Wind Farm is a 30 MW installation to be located three miles off of Block Island. It will consist of five turbines, and will generate over 125,000 megawatt hours annually (estimated to be sufficient to power 17,000 homes). The electricity will be delivered to the mainland power grid through the 21 mile Block Island Transmission System.
The Container Store, which is expected to open in the Spring of 2014 at Garden City in Cranston, will feature more than 10,000 innovative products to help consumers save space, and ultimately save time. The Container Store will be located in the old Linens 'n Things space.
The 26,500 square foot store will be divided into lifestyle sections marked with brightly colored banners such as Closet, Kitchen, Office and Laundry.
"We are thrilled to have The Container Store join the center to offer a shopping option that can't be found anywhere else in Rhode Island," said Deb DiMeo, Vice President of Leasing for The Wilder Companies, the management company of Garden City Center.
Also this fall, J. Crew, Corner Bakery Cafe and LA Fitness are all expected to open stores as Phase II of the transformation of the shopping center continues. The Container Store and Sleep Number join Pottery Barn, Anthropologie, lululemon athletica, as well as LA Fitness and Corner Bakery Cafe as retailers with their only Rhode Island stores located at Garden City Center.
Providence Equity Group Buys Broadway and West End
Providence Equity Partners, which has put Providence on the map for investments in AT&T Canada, Hulu, and Warner Music is now on buying one of the biggest theater companies in the world - Ambassador Theater Group (ATG).
ATG owns theaters both in London and in New York and is valued at between $300 million and $400 million.
It is still dark. The most visually dominant building in the Providence skyline is dark - pitch black dark.
The building that once was a symbol of Providence being a financial hub and an emerging regional/super-regional banking center is empty and the $75 million bailout plan proposed by the developer seems to be the only plan.
French eyewear giant Essilor International has agreed to bid $284 million for Costa (formerly AT Cross).
The deal values Rhode Island-based Costa at $21.50 a share, a 9% premium - the deal is functionally the end of the AT Cross company's local ownership legacy in Rhode Island.
For generations, almost every Rhode Islander and much of America was given a Cross pen for high school or college graduation.
In the past few decades, AT Cross had expanded to other products including bags and sunglasses. Earlier this year, AT Cross had sold off its accessories division. At the time the company announced:
"With the completion of the sale of the Cross Accessory Division, we are very excited to enter our next phase as a growth company focused on the continued expansion of our premium sports sunglass business. Since our 2003 acquisition of Costa and subsequent purchase of Native Eyewear in 2008, revenue from our sunglass business has grown more than tenfold to nearly $100 million. In the coming years through our expertise and capital, we will bring Costa and Native to the many more consumers anxious to experience the authenticity and technology that Costa and Native deliver," said David G. Whalen, President and Chief Executive Officer of A.T. Cross.
"The high quality sunglasses and prescription sun lenses segment offers high potential given its low penetration rate," Essilor Chairman and CEO Hubert Sagnieres said in a statement.
