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A local LGBTQ+ nightclub was denied COVID-19 aid. Its owner is fighting back

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A local LGBTQ+ nightclub was denied COVID-19 aid. Its owner is fighting back

On a Saturday night at North Hollywood’s Club Cobra, a drag queen dressed as Miley Cyrus lip-synced to “Zombie” by the Cranberries, with Halloween decor and disco balls dangling from the ceiling. Muscular go-go dancers grooved in a cloud of rainbow fog while patrons vibed to hits by Selena and Bad Bunny.

It wasn’t easy for the popular Latin LGBTQ+ nightclub to rebuild to this level of live entertainment after nearly going out of business because of the COVID-19 pandemic.

The public health crisis shut the operation down for 18 months and left its owners hundreds of thousands of dollars in debt. Making matters worse, the U.S. Small Business Administration has repeatedly denied Club Cobra’s application for COVID-19 relief money, alleging that the establishment offered services of a “prurient sexual nature.”

For Marty Sokol, 56, owner of Club Cobra, the lack of government assistance has been frustrating and surprising.

“We’re the good guys in this town,” Sokol said by phone. “We’re the place you have your birthday party at. We’re the place you bring your tía to. … It’s beyond insulting.” (Tía is Spanish for aunt.)

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Sokol is one of multiple business owners who say they were unjustly denied money from the Shuttered Venue Operators Grant program, launched by the federal government in 2021 to provide financial support of up to $10 million to arts and entertainment venues and promoters decimated by the pandemic.

Some have taken legal action against the SBA. And though the courts have sided at various points with the business owners, Sokol and others are still fighting for financial aid.

“We really feel wronged,” Sokol said. “If it wasn’t for our community, there’d be no way we would have survived.”

The issue isn’t limited to nightclubs. The Times also spoke with a North Carolina-based movie theater chain and a Tennessee concert promoter that have struggled to secure grants. Prominent cases — including a dispute between the SBA and exhibition basketball team the Harlem Globetrotters over $10 million in grant money — have drawn attention to the problems. (The court dismissed the Globetrotters’ complaint against the SBA last October.)

The SBA has also drawn scrutiny for awarding more than $200 million in SVOGs to companies with rich and famous owners — such as Post Malone, Chris Brown and Lil Wayne — while withholding assistance for others, according to a report by Business Insider.

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“The overarching complaint has been there is a lack of transparency in the SBA’s decision-making process,” said James Sammataro, a Miami-based partner at law firm Pryor Cashman who has represented entertainment businesses in other SVOG cases.

“What [critics have] essentially said is it’s too subjective. … It’s applied unevenly, and the SBA has — intentionally or otherwise — created a hierarchy of who is more entitled to receive the grant money.”

The SBA declined to comment, saying it “does not provide comment on pending litigation.”

The SVOG controversy serves as a reminder of the lingering consequences of COVID-19 years after the pandemic first wreaked havoc on the economy and judicial system. Just as entertainment businesses were disrupted by the global health crisis, so too were the courts, Sammataro said, compounding the typical tedium.

“There’s no expedition that’s applied to these types of cases, even though you’re literally dealing with companies [whose] very lifeline may be on the line,” Sammataro said.

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Marty Sokol at Club Cobra in North Hollywood.

(Michael Blackshire / Los Angeles Times)

Club Cobra has been serving drinks, DJ sets and live performances to the local LGBTQ+ community for more than a decade. Its sister establishment, Club Chico in Montebello, is coming up on its 25th anniversary.

During the COVID-19 shutdowns, Sokol and his team kept their business alive by streaming a socially distanced drag and go-go show on the subscription platform OnlyFans. Proceeds weren’t enough to dig Club Cobra out of debt, so Sokol applied for a $486,762 grant in April 2021.

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When the SBA rejected Club Cobra’s application, Sokol appealed.

After some prodding, Sokol received an SBA email on Nov. 3, 2021 explaining that Sokol’s application was denied “at least in part” because Club Cobra “presented live performances of a prurient sexual nature” or derives meaningful revenue “through sale of products or services, or the presentation of any depictions or displays, of a prurient sexual nature.” In official materials regarding the SVOG program, the SBA outlines prurience as grounds for disqualification.

The SBA took issue with images of Club Cobra dancers in “seemingly sexualized” poses and “revealing” outfits posted on the business’ social media platforms. It also disapproved of the virtual drag and go-go shows that Club Cobra streamed on OnlyFans, calling them “erotic dance shows.”

A man in a green hat and a man in a black mesh shirt smiling at each other in a dark club.

Club goers enjoy each other’s company at Club Cobra in North Hollywood.

(Michael Blackshire / Los Angeles Times)

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Sokol sued, accusing the agency of arbitrarily and capriciously refusing Club Cobra grant money while awarding SVOGs to similar establishments around Los Angeles — such as LGBTQ+ nightclub Reload Entertainment on Cahuenga and Silver Lake’s Los Globos. The SBA argued that it had conducted an informal review of the other establishments and determined that an additional “prurience review” was not necessary.

Sokol demanded that the U.S. district court in D.C. force the SBA to reconsider his application. The court concluded that the SBA failed to provide a “reasoned analysis for why these apparently similarly situated competitors were treated differently.”

Sokol said it was painful to see other nightclubs receive emergency aid while Club Cobra was refused money he could use to cover renovations, outstanding rent payments and other obligations.

“Watching them rebuild with great ease, we didn’t begrudge them,” Sokol said. “We just wanted equal treatment.”

In December 2022, the SBA vetoed Sokol’s application again, this time providing analyses of five “alleged competitors” and why they qualified for grants. The SBA reasoned that, for the most part, those establishments did not regularly post suggestive images or present live performances of a prurient nature.

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Sokol filed another motion for summary judgment in May 2024. The court has yet to respond.

A drag queen wearing a blond-and-pink wig, a pink crop top and a pink miniskirt performs onstage under a spotlight.

Audry Cobra performs during a drag show at Club Cobra in North Hollywood.

(Michael Blackshire / Los Angeles Times)

Another business in contention with the SBA is Golden Ticket Cinemas, a North Carolina-based theater chain. .

Golden Ticket Cinemas President John Bloemeke had opened his fifth and sixth locations when COVID-19 ravaged the entertainment industry

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Bloemeke was able to secure grants for most of his locations, but not for two based in DuBois, Pa., and Rapid City, S.D. After Bloemeke challenged the SBA’s move to shun those theaters, the government agency offered the business owner roughly $500,000 — down from the roughly $2.8 million he asked for.

Two shirtless men dancing together in a dark nightclub.

Patrons dance together at Club Cobra in North Hollywood.

(Michael Blackshire / Los Angeles Times)

Bloemeke filed complaints accusing the SBA of shortchanging Golden Ticket Cinemas and then failing to disburse those funds.

The SBA countered that Golden Ticket Cinemas wasn’t eligible for the full SVOG amount requested because those locations had allegedly been operational for longer than Bloemeke reported.

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The court agreed with the SBA’s position that it was not legally obligated to disburse the funds. However, it also concluded that the agency’s logic for awarding a significantly lower amount was flawed and ordered the SBA to reevaluate the application.

According to Bloemeke, the SBA has yet to heed the court’s ruling.

“It was very frustrating,” Bloemeke said. “I mean, we have a nine-plex that’s only operating five of the screens because we’re still trying to get our head a little bit above water with some of this stuff.”

A muscular male go-go dancer performing at a club in a turquoise speedo with cash tips peeking out of it.

A go-go dancer performs at Club Cobra in North Hollywood.

(Michael Blackshire / Los Angeles Times)

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Meanwhile in Nashville, Justin Roddick is still trying to snag a grant for his company, Concert Investor, which produces tours for up-and-coming musicians. Over the past 12 years, Concert Investor has helped launch the careers of Twenty One Pilots, Little Big Town, Kelsea Ballerini and other artists.

When acts stopped touring during the pandemic, Roddick’s business suffered.

“A year after COVID, we found ourselves with no other option other than to completely restart,” Roddick said. “So when I heard about the grant, I was very excited.”

Roddick was soon disillusioned. His request for about $5 million was denied multiple times, with the SBA deciding that Concert Investor did not control enough aspects of its productions to “meet the definition of a performing arts organization operator.”

A person wearing sunglasses and a halo headband smiles underneath a disco ball and pink lights at a nightclub.

A club goer dances in the crowd at Club Cobra in North Hollywood.

(Michael Blackshire / Los Angeles Times)

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. The Concert Investor team alleged that the SBA unfairly altered the definition and moved the goal posts after the fact.

Initially, the court ruled in favor of the SBA. But an appeals court reversed that ruling in May 2024.

According to Patrick Corcoran, a representative for the businesses, the SBA was given a deadline of Dec. 11 to deliver a new decision. Depending on how the agency responds, Roddick might have to wait for the next Ballerini or Twenty One Pilots to come along and revive his touring business.

“It’s devastating to pay into the system and to believe it works a certain way … and then to have no action,” Roddick said. “It’s kind of unreal to me.”

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U.S. Space Force awards $1.6 billion in contracts to South Bay satellite builders

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U.S. Space Force awards .6 billion in contracts to South Bay satellite builders

The U.S. Space Force announced Friday it has awarded satellite contracts with a combined value of about $1.6 billion to Rocket Lab in Long Beach and to the Redondo Beach Space Park campus of Northrop Grumman.

The contracts by the Space Development Agency will fund the construction by each company of 18 satellites for a network in development that will provide warning of advanced threats such as hypersonic missiles.

Northrop Grumman has been awarded contracts for prior phases of the Proliferated Warfighter Space Architecture, a planned network of missile defense and communications satellites in low Earth orbit.

The contract announced Friday is valued at $764 million, and the company is now set to deliver a total of 150 satellites for the network.

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The $805-million contract awarded to Rocket Lab is its largest to date. It had previously been awarded a $515 million contract to deliver 18 communications satellites for the network.

Founded in 2006 in New Zealand, the company builds satellites and provides small-satellite launch services for commercial and government customers with its Electron rocket. It moved to Long Beach in 2020 from Huntington Beach and is developing a larger rocket.

“This is more than just a contract. It’s a resounding affirmation of our evolution from simply a trusted launch provider to a leading vertically integrated space prime contractor,” said Rocket Labs founder and chief executive Peter Beck in online remarks.

The company said it could eventually earn up to $1 billion due to the contract by supplying components to other builders of the satellite network.

Also awarded contracts announced Friday were a Lockheed Martin group in Sunnyvalle, Calif., and L3Harris Technologies of Fort Wayne, Ind. Those contracts for 36 satellites were valued at nearly $2 billion.

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Gurpartap “GP” Sandhoo, acting director of the Space Development Agency, said the contracts awarded “will achieve near-continuous global coverage for missile warning and tracking” in addition to other capabilities.

Northrop Grumman said the missiles are being built to respond to the rise of hypersonic missiles, which maneuver in flight and require infrared tracking and speedy data transmission to protect U.S. troops.

Beck said that the contracts reflects Rocket Labs growth into an “industry disruptor” and growing space prime contractor.

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California-based company recalls thousands of cases of salad dressing over ‘foreign objects’

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California-based company recalls thousands of cases of salad dressing over ‘foreign objects’

A California food manufacturer is recalling thousands of cases of salad dressing distributed to major retailers over potential contamination from “foreign objects.”

The company, Irvine-based Ventura Foods, recalled 3,556 cases of the dressing that could be contaminated by “black plastic planting material” in the granulated onion used, according to an alert issued by the U.S. Food and Drug Administration.

Ventura Foods voluntarily initiated the recall of the product, which was sold at Costco, Publix and several other retailers across 27 states, according to the FDA.

None of the 42 locations where the product was sold were in California.

Ventura Foods said it issued the recall after one of its ingredient suppliers recalled a batch of onion granules that the company had used n some of its dressings.

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“Upon receiving notice of the supplier’s recall, we acted with urgency to remove all potentially impacted product from the marketplace. This includes urging our customers, their distributors and retailers to review their inventory, segregate and stop the further sale and distribution of any products subject to the recall,” said company spokesperson Eniko Bolivar-Murphy in an emailed statement. “The safety of our products is and will always be our top priority.”

The FDA issued its initial recall alert in early November. Costco also alerted customers at that time, noting that customers could return the products to stores for a full refund. The affected products had sell-by dates between Oct. 17 and Nov. 9.

The company recalled the following types of salad dressing:

  • Creamy Poblano Avocado Ranch Dressing and Dip
  • Ventura Caesar Dressing
  • Pepper Mill Regal Caesar Dressing
  • Pepper Mill Creamy Caesar Dressing
  • Caesar Dressing served at Costco Service Deli
  • Caesar Dressing served at Costco Food Court
  • Hidden Valley, Buttermilk Ranch
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They graduated from Stanford. Due to AI, they can’t find a job

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They graduated from Stanford. Due to AI, they can’t find a job

A Stanford software engineering degree used to be a golden ticket. Artificial intelligence has devalued it to bronze, recent graduates say.

The elite students are shocked by the lack of job offers as they finish studies at what is often ranked as the top university in America.

When they were freshmen, ChatGPT hadn’t yet been released upon the world. Today, AI can code better than most humans.

Top tech companies just don’t need as many fresh graduates.

“Stanford computer science graduates are struggling to find entry-level jobs” with the most prominent tech brands, said Jan Liphardt, associate professor of bioengineering at Stanford University. “I think that’s crazy.”

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While the rapidly advancing coding capabilities of generative AI have made experienced engineers more productive, they have also hobbled the job prospects of early-career software engineers.

Stanford students describe a suddenly skewed job market, where just a small slice of graduates — those considered “cracked engineers” who already have thick resumes building products and doing research — are getting the few good jobs, leaving everyone else to fight for scraps.

“There’s definitely a very dreary mood on campus,” said a recent computer science graduate who asked not to be named so they could speak freely. “People [who are] job hunting are very stressed out, and it’s very hard for them to actually secure jobs.”

The shake-up is being felt across California colleges, including UC Berkeley, USC and others. The job search has been even tougher for those with less prestigious degrees.

Eylul Akgul graduated last year with a degree in computer science from Loyola Marymount University. She wasn’t getting offers, so she went home to Turkey and got some experience at a startup. In May, she returned to the U.S., and still, she was “ghosted” by hundreds of employers.

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“The industry for programmers is getting very oversaturated,” Akgul said.

The engineers’ most significant competitor is getting stronger by the day. When ChatGPT launched in 2022, it could only code for 30 seconds at a time. Today’s AI agents can code for hours, and do basic programming faster with fewer mistakes.

Data suggests that even though AI startups like OpenAI and Anthropic are hiring many people, it is not offsetting the decline in hiring elsewhere. Employment for specific groups, such as early-career software developers between the ages of 22 and 25 has declined by nearly 20% from its peak in late 2022, according to a Stanford study.

It wasn’t just software engineers, but also customer service and accounting jobs that were highly exposed to competition from AI. The Stanford study estimated that entry-level hiring for AI-exposed jobs declined 13% relative to less-exposed jobs such as nursing.

In the Los Angeles region, another study estimated that close to 200,000 jobs are exposed. Around 40% of tasks done by call center workers, editors and personal finance experts could be automated and done by AI, according to an AI Exposure Index curated by resume builder MyPerfectResume.

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Many tech startups and titans have not been shy about broadcasting that they are cutting back on hiring plans as AI allows them to do more programming with fewer people.

Anthropic Chief Executive Dario Amodei said that 70% to 90% of the code for some products at his company is written by his company’s AI, called Claude. In May, he predicted that AI’s capabilities will increase until close to 50% of all entry-level white-collar jobs might be wiped out in five years.

A common sentiment from hiring managers is that where they previously needed ten engineers, they now only need “two skilled engineers and one of these LLM-based agents,” which can be just as productive, said Nenad Medvidović, a computer science professor at the University of Southern California.

“We don’t need the junior developers anymore,” said Amr Awadallah, CEO of Vectara, a Palo Alto-based AI startup. “The AI now can code better than the average junior developer that comes out of the best schools out there.”

To be sure, AI is still a long way from causing the extinction of software engineers. As AI handles structured, repetitive tasks, human engineers’ jobs are shifting toward oversight.

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Today’s AIs are powerful but “jagged,” meaning they can excel at certain math problems yet still fail basic logic tests and aren’t consistent. One study found that AI tools made experienced developers 19% slower at work, as they spent more time reviewing code and fixing errors.

Students should focus on learning how to manage and check the work of AI as well as getting experience working with it, said John David N. Dionisio, a computer science professor at LMU.

Stanford students say they are arriving at the job market and finding a split in the road; capable AI engineers can find jobs, but basic, old-school computer science jobs are disappearing.

As they hit this surprise speed bump, some students are lowering their standards and joining companies they wouldn’t have considered before. Some are creating their own startups. A large group of frustrated grads are deciding to continue their studies to beef up their resumes and add more skills needed to compete with AI.

“If you look at the enrollment numbers in the past two years, they’ve skyrocketed for people wanting to do a fifth-year master’s,” the Stanford graduate said. “It’s a whole other year, a whole other cycle to do recruiting. I would say, half of my friends are still on campus doing their fifth-year master’s.”

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After four months of searching, LMU graduate Akgul finally landed a technical lead job at a software consultancy in Los Angeles. At her new job, she uses AI coding tools, but she feels like she has to do the work of three developers.

Universities and students will have to rethink their curricula and majors to ensure that their four years of study prepare them for a world with AI.

“That’s been a dramatic reversal from three years ago, when all of my undergraduate mentees found great jobs at the companies around us,” Stanford’s Liphardt said. “That has changed.”

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