Business
End of the line for Farmer John, a smelly L.A. landmark of Dodger Dogs, tourists, protests
Guests to Los Angeles typically placed on their record of metropolis sights the Hollywood signal, the Venice boardwalk, the Watts Towers, and for the extra adventurous and olfactory-challenged, the Farmer John’s meatpacking plant in Vernon.
A well-liked vacation spot for location scouts, for aficionados of camp, muralists and scorching canine connoisseurs, this hidden-away abattoir was much less distinguished for what occurred inside its partitions than for its civic packaging.
From the corners of Bandini Boulevard, Soto Road and Vernon Avenue, vacationers and locals alike can absorb scenes of a bucolic, agrarian previous resembling Los Angeles has by no means recognized. Painted pigs gambol in inexperienced fields by meandering streams below blue, cloud-studded skies fortunately oblivious of the destiny that awaited them inside.
That destiny took a barely completely different flip Friday when the proprietor of the power, Smithfield Meals, introduced the power will shut early subsequent 12 months. The Virginia-based firm mentioned that this step is important resulting from “the escalating price of doing enterprise in California.”
The destiny of the constructing has but to be decided. “We’re exploring all our choices,” mentioned Jim Monroe, vice chairman of company affairs for Smithfield.
But, he added, “Farmer John is alive and nicely, and we shall be offering the nice, wholesome, nutritious merchandise that Farmer John prospects have come to anticipate” however from one other location.
Town of Vernon was much less sanguine. “We’re saddened,” Metropolis Supervisor Carlos Fandino mentioned.
“Farmer John’s closure announcement represents one other nail in California’s coffin, indicative of yet one more distinguished enterprise set to go away the state,” Vernon Chamber of Commerce President Marisa Olguin mentioned.
As a consequence of the transfer, employees on the plant — between 1,800 and a pair of,000 — are left to marvel what comes subsequent.
Monroe mentioned that Smithfield is offering a $7,500 bonus to staff to proceed to work throughout the closing, and the union representing the meatpackers in Vernon issued an announcement expressing hope that one other operator will take over the plant and workforce.
Animal rights protesters have lengthy made the plant a popular website for his or her demonstrations, accusing Smithfield of animal cruelty and employee exploitation and calling on lawmakers to ban slaughterhouses and manufacturing facility farms in California. (If pigs might fly: For a time, goose liver was off the menu.)
In the meantime, employees on the plant wouldn’t converse on report in regards to the closing, however one worker, who gave his title solely as Omar, mentioned Smithfield Meals had described an “all palms on deck” assembly Thursday morning, and staff have been instructed to not speak to the information media.
Omar mentioned the corporate and the meatpacking union had struggled with negotiations. “I assume Smithfield thought it was simpler to shut the plant,” he mentioned.
One employee who was employed inside the previous few months mentioned that data was sparse and that “no person actually is aware of something about our jobs or our future.”
“It sucks as a result of we simply need to work,” he mentioned.
Neighbors in Vernon have been extra forthcoming with their opinions.
Herman Valle, who works throughout the road on the Inexperienced Olive Mediterranean restaurant on Soto Road, shall be relieved to be accomplished with the “terribly sturdy” odor he attributed to the plant.
On Monday, he mentioned, a pair of outside diners have been having fun with breakfast on the patio once they shortly grabbed their plates and dashed inside. It wasn’t the primary time.
“It’s normally round 9 a.m. that the scent is so sturdy and highly effective that we’ve got to shut the doorways,” Valle mentioned. “Everybody consuming exterior runs inside as a result of it’s so sturdy.”
Agustín Álvarez, supervisor of the adjoining El Primo Mexican diner, was much less sure the plant is liable for the stench.
“It’s straightforward to level to the large manufacturing facility and say the scent is coming from there,” he mentioned. “We’re in a metropolis of factories and vegetation. The scent can come from wherever, together with the river and different rendering vegetation.”
Álvarez, nevertheless, is much less involved in regards to the scent than the lack of jobs.
“My coronary heart goes out to the employees who misplaced their jobs,” he mentioned. “They arrive in, perhaps about 50 or extra a day, so it’s a giant loss throughout.”
The plant’s New 12 months’s Eve order — 70 trays of rice and 70 trays of beans — was a pleasant vacation bonus, mentioned Álvarez.
For a lot of Angelenos although, the loss could also be anticlimactic. Many are nonetheless reeling from the choice on the finish of the 2019 Dodger season by Smithfield to not renew its contract with the staff in blue.
The world-famous, footlong Farmer John Dodger Canine have been no extra, and followers misplaced a well-recognized model (Papa Cantella’s Dodger Canine simply doesn’t have the identical ring to it) made much more well-known by the legendary voice that hawked it.
“Easternmost in high quality, westernmost in taste,” their pitchman, Vin Scully, intoned for practically a half-century, phrases that nearly rivaled his well-known opening line: “It’s time for Dodger baseball!”
In a metropolis that modifications so typically, nostalgia is a tough notion for Angelenos to dwell with, however Smithfield’s determination places into jeopardy a treasured creative landmark.
When Leslie A. Grimes lifted his paintbrush exterior the Clougherty meatpacking plant in 1957, town was extra tolerant of its lower than delicate industries.
In Vernon at one time, there have been greater than 60 packing vegetation and 12 slaughterhouses.
Shut by the Los Angeles River, this ignored stretch of town was straight out of “The Jungle,” Upton Sinclair’s muckraking have a look at the meatpacking business in Chicago. However Grimes’ portrait was decidedly much less scathing.
Engaged on a principally cinder-block canvas overlaying greater than 30,000 sq. ft, he lavished his considerably weird trompe l’oeil that includes greater than 200 piggies (sure, they’ve been counted), permitting motorists and pedestrians to indulge a Tom Sawyer/Sadie Hawkins-esque imaginative and prescient of pig farming the place Farmer John may truly be Outdated MacDonald’s next-door neighbor.
For 11 years, Grimes — an Austrian immigrant and former movie-scene painter — labored over the vignettes, even as soon as indulging a portrait of himself on thirty seventh Road standing on a ladder portray a pig. Norman Rockwell could be proud.
However as the traditional sages as soon as mused, ars longa, vita brevis (life is brief, artwork is lengthy), and in 1968, Grimes got here to an unlucky finish, falling to his loss of life from a scaffold exterior the plant.
His substitute, Arno Jordan, accepted the mantle of duty for sustaining and upgrading the work.
When requested by The Occasions if he ever thought in regards to the pig he was portray in something aside from aesthetic phrases, Jordan replied, “No … I didn’t need to spoil my urge for food.”
Business
Cookies, Cocktails and Mushrooms on the Menu as Justices Hear Bank Fraud Case
In a lively Supreme Court argument on Tuesday that included references to cookies, cocktails and toxic mushrooms, the justices tried to find the line between misleading statements and outright lies in the case of a Chicago politician convicted of making false statements to bank regulators.
The case concerned Patrick Daley Thompson, a former Chicago alderman who is the grandson of one former mayor, Richard J. Daley, and the nephew of another, Richard M. Daley. He conceded that he had misled the regulators but said his statements fell short of the outright falsehoods he said were required to make them criminal.
The justices peppered the lawyers with colorful questions that tried to tease out the difference between false and misleading statements.
Chief Justice John G. Roberts Jr. asked whether a motorist pulled over on suspicion of driving while impaired said something false by stating that he had had one cocktail while omitting that he had also drunk four glasses of wine.
Caroline A. Flynn, a lawyer for the federal government, said that a jury could find the statement to be false because “the officer was asking for a complete account of how much the person had had to drink.”
Justice Ketanji Brown Jackson asked about a child who admitted to eating three cookies when she had consumed 10.
Ms. Flynn said context mattered.
“If the mom had said, ‘Did you eat all the cookies,’ or ‘how many cookies did you eat,’ and the child says, ‘I ate three cookies’ when she ate 10, that’s a false statement,” Ms. Flynn said. “But, if the mom says, ‘Did you eat any cookies,’ and the child says three, that’s not an understatement in response to a specific numerical inquiry.”
Justice Sonia Sotomayor asked whether it was false to label toxic mushrooms as “a hundred percent natural.” Ms. Flynn did not give a direct response.
The case before the court, Thompson v. United States, No. 23-1095, started when Mr. Thompson took out three loans from Washington Federal Bank for Savings between 2011 and 2014. He used the first, for $110,000, to finance a law firm. He used the next loan, for $20,000, to pay a tax bill. He used the third, for $89,000, to repay a debt to another bank.
He made a single payment on the loans, for $390 in 2012. The bank, which did not press him for further payments, went under in 2017.
When the Federal Deposit Insurance Corporation and a loan servicer it had hired sought repayment of the loans plus interest, amounting to about $270,000, Mr. Thompson told them he had borrowed $110,000, which was true in a narrow sense but incomplete.
After negotiations, Mr. Thompson in 2018 paid back the principal but not the interest. More than two years later, federal prosecutors charged him with violating a law making it a crime to give “any false statement or report” to influence the F.D.I.C.
He was convicted and ordered to repay the interest, amounting to about $50,000. He served four months in prison.
Chris C. Gair, a lawyer for Mr. Thompson, said his client’s statements were accurate in context, an assertion that met with skepticism. Justice Elena Kagan noted that the jury had found the statements were false and that a ruling in Mr. Thompson’s favor would require a court to rule that no reasonable juror could have come to that conclusion.
Justices Neil M. Gorsuch and Brett M. Kavanaugh said that issue was not before the court, which had agreed to decide the legal question of whether the federal law, as a general matter, covered misleading statements. Lower courts, they said, could decide whether Mr. Thompson had been properly convicted.
Justice Samuel A. Alito Jr. asked for an example of a misleading statement that was not false. Mr. Gair, who was presenting his first Supreme Court argument, responded by talking about himself.
“If I go back and change my website and say ‘40 years of litigation experience’ and then in bold caps say ‘Supreme Court advocate,’” he said, “that would be, after today, a true statement. It would be misleading to anybody who was thinking about whether to hire me.”
Justice Alito said such a statement was, at most, mildly misleading. But Justice Kagan was impressed.
“Well, it is, though, the humblest answer I’ve ever heard from the Supreme Court podium,” she said, to laughter. “So good show on that one.”
Business
SEC probes B. Riley loan to founder, deals with franchise group
B. Riley Financial Inc. received more demands for information from federal regulators about its dealings with now-bankrupt Franchise Group as well as a personal loan for Chairman and co-founder Bryant Riley.
The Los Angeles-based investment firm and Riley each received additional subpoenas in November from the U.S. Securities and Exchange Commission seeking documents and information about Franchise Group, or FRG, the retail company that was once one of its biggest investments before its collapse last year, according to a long-delayed quarterly filing. The agency also wants to know more about Riley’s pledge of B. Riley shares as collateral for a personal loan, the filing shows.
B. Riley previously received SEC subpoenas in July for information about its dealings with ex-FRG chief executive Brian Kahn, part of a long-running probe that has rocked B. Riley and helped push its shares to their lowest in more than a decade. Bryant Riley, who founded the company in 1997 and built it into one of the biggest U.S. investment firms beyond Wall Street, has been forced to sell assets and raise cash to ease creditors’ concerns.
The firm and Riley “are responding to the subpoenas and are fully cooperating with the SEC,” according to the filing. The company said the subpoenas don’t mean the SEC has determined any violations of law have occurred.
Shares in B. Riley jumped more than 25% in New York trading after the company’s overdue quarterly filing gave investors their first formal look at the firm’s performance in more than half a year. The data included a net loss of more than $435 million for the three months ended June 30. The shares through Monday had plunged more than 80% in the past 12 months, trading for less than $4 each.
B. Riley and Kahn — a longstanding client and friend of Riley’s — teamed up in 2023 to take FRG private in a $2.8-billion deal. The transaction soon came under pressure when Kahn was tagged as an unindicted co-conspirator by authorities in the collapse of an unrelated hedge fund called Prophecy Asset Management, which led to a fraud conviction for one of the fund’s executives.
Kahn has said he didn’t do anything wrong, that he wasn’t aware of any fraud at Prophecy and that he was among those who lost money in the collapse. But federal investigations into his role have spilled over into his dealings with B. Riley and its chairman, who have said internal probes found they “had no involvement with, or knowledge of, any alleged misconduct concerning Mr. Kahn or any of his affiliates.”
FRG filed for Chapter 11 bankruptcy in November, a move that led to hundreds of millions of dollars of losses for B. Riley. The collapse made Riley “personally sick,” he said at the time.
One of the biggest financial problems to arise from the FRG deal was a loan that B. Riley made to Kahn for about $200 million, which was secured against FRG shares. With that company’s collapse into bankruptcy in November wiping out equity holders, the value of the remaining collateral for this debt has now dwindled to only about $2 million, the filing shows.
Griffin writes for Bloomberg.
Business
Starbucks Reverses Its Open-Door Policy for Bathroom Use and Lounging
Starbucks will require people visiting its coffee shops to buy something in order to stay or to use its bathrooms, the company announced in a letter sent to store managers on Monday.
The new policy, outlined in a Code of Conduct, will be enacted later this month and applies to the company’s cafes, patios and bathrooms.
“Implementing a Coffeehouse Code of Conduct is something most retailers already have and is a practical step that helps us prioritize our paying customers who want to sit and enjoy our cafes or need to use the restroom during their visit,” Jaci Anderson, a Starbucks spokeswoman, said in an emailed statement.
Ms. Anderson said that by outlining expectations for customers the company “can create a better environment for everyone.”
The Code of Conduct will be displayed in every store and prohibit behaviors including discrimination, harassment, smoking and panhandling.
People who violate the rules will be asked to leave the store, and employees may call law enforcement, the policy says.
Before implementation of the new policy begins on Jan. 27, store managers will be given 40 hours to prepare stores and workers, according to the company. There will also be training sessions for staff.
This training time will be used to prepare for other new practices, too, including asking customers if they want their drink to stay or to go and offering unlimited free refills of hot or iced coffee to customers who order a drink to stay.
The changes are part of an attempt by the company to prioritize customers and make the stores more inviting, Sara Trilling, the president of Starbucks North America, said in a letter to store managers.
“We know from customers that access to comfortable seating and a clean, safe environment is critical to the Starbucks experience they love,” she wrote. “We’ve also heard from you, our partners, that there is a need to reset expectations for how our spaces should be used, and who uses them.”
The changes come as the company responds to declining sales, falling stock prices and grumbling from activist investors. In August, the company appointed a new chief executive, Brian Niccol.
Mr. Niccol outlined changes the company needed to make in a video in October. “We will simplify our overly complex menu, fix our pricing architecture and ensure that every customer feels Starbucks is worth it every single time they visit,” he said.
The new purchase requirement reverses a policy Starbucks instituted in 2018 that said people could use its cafes and bathrooms even if they had not bought something.
The earlier policy was introduced a month after two Black men were arrested in a Philadelphia Starbucks while waiting to meet another man for a business meeting.
Officials said that the men had asked to use the bathroom, but that an employee had refused the request because they had not purchased anything. An employee then called the police, and part of the ensuing encounter was recorded on video and viewed by millions of people online, prompting boycotts and protests.
In 2022, Howard Schultz, the Starbucks chief executive at the time, said that the company was reconsidering the open-bathroom policy.
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