Business
L.A.’s most over-the-top mansion has a buyer: Fashion Nova owner Richard Saghian
Richard Saghian, proprietor of fast-fashion juggernaut Vogue Nova, was the profitable bidder who spent $141 million to purchase “The One” mega-mansion, he confirmed to The Occasions.
Saghian, whose firm has benefited from its affiliation with celebrities and influencers similar to rapper Cardi B, mannequin Kylie Jenner and pop celebrity Lil Nas X, beat out 4 different bidders Thursday for the 105,000-square-foot home on a Bel-Air hilltop — the most important house in Los Angeles.
“The One Bel-Air is a once-in-a-lifetime property that may by no means be duplicated. There may be nothing else prefer it. As a lifelong Angeleno and avid collector of actual property, I acknowledged this as a uncommon alternative that additionally lets me personal a novel property that’s destined to be part of Los Angeles historical past,” Saghian stated Sunday in an emailed assertion.
Saghian, 40, based Vogue Nova in 2006 within the industrial suburb of Vernon and continues to function its chief govt. His enterprise has discovered massive success by promoting cheap fashionable attire on its web site, supported by marquee names from the hip hop world and a legion of Instagram influencers. The privately held firm is owned outright by Saghian and its annual gross sales now high $1 billion, in keeping with a supply near the corporate.
He owns two different houses in Southern California, together with a Malibu seashore home that he bought from Netflix CEO Ted Sarandos final 12 months for $14.7 million. He additionally owns a house within the so-called Chook Streets of the Hollywood Hills that he purchased for $17.5 million in 2018. It was at that property the place armed robbers in June adopted Saghian’s Rolls Royce house and demanded jewellery and different valuables from his pals. Saghian, who had already gone inside, was not injured. All of the suspects have been caught and one killed by an armed guard.
The One price Saghian way over his different houses, however his profitable bid was lower than half the property’s $295-million record value.
“It’s an unimaginable deal,” stated Branden Williams, who listed the house along with his associate, Rayni Williams, and Aaron Kirman of Compass. “Nobody understands till they stand up there. A home like this can by no means be constructed once more. At any time when it sells once more, it is going to be for much more.”
The Williamses, together with Stuart Vetterick of Hilton & Hyland, represented Saghian within the deal. The brokers beforehand represented him within the Malibu buy, as properly. Nondisclosure agreements saved all three from discussing the client, and coated others concerned within the public sale. Within the days for the reason that sale, a number of sources informed The Occasions the profitable bidder was Saghian.
Buying The One wouldn’t solely broaden Saghian’s actual property portfolio, however may additionally doubtlessly make sense as a advertising device for Vogue Nova, serving as a backdrop the place its influencers may showcase the corporate’s reasonably priced, of-the-moment designs.
The corporate, which is presently promoting a brand new spring assortment with many articles below $30, has come below scrutiny for alleged wage theft by its suppliers, prompting it a couple of years in the past to tighten up contracting practices. In January, it agreed to pay $4.2 million to settle authorities allegations that it blocked adverse evaluations of its merchandise on its web site however known as the allegations “inaccurate and misleading.”
The One, which already has been rented out for filming, is the magnum opus of flamboyant developer Nile Niami. He initially marketed the house for $500 million a number of years in the past however was compelled to place it out of business after Crestlloyd, the house’s restricted legal responsibility firm, defaulted on $106 million in building loans to L.A. billionaire Don Hankey.
Though some within the L.A. actual property group have dismissed the residence as garish, others have seen it as the final word trophy house — with a listing of facilities aimed on the celebration set. There’s a sky deck with cabanas, a number of swimming pools, a non-public theater, a bowling alley, a billiard room, a sweet room, salon and spa in addition to a nightclub. It has 21 bedrooms and 42 full bogs.
The ultra-modern marble-and-glass house was designed by Orange County architect Paul McClean, who additionally designed Saghian’s Hollywood Hills house.
The net public sale, nonetheless, was a little bit of a bust. Saghian’s profitable bid got here in at $126 million, with the whole price to the client rising to $141 million with the 12% public sale payment. Though the value simply set a report for the most expensive home ever bought at public sale, it amounted to lower than half its $295-million itemizing value.
It additionally was properly below the California report set by enterprise capitalist Marc Andreessen, who bought a Malibu property for $177 million in October, which some speculated it would break.
Greater than three dozen potential consumers toured the 944 Airole Method property during the last couple of months, together with billionaires from the Center East, Asia and California, The One’s itemizing brokers have stated.
Concierge stated its public sale website drew views from 170 nations, together with Australia, the UK, Germany, France and Italy — and generated some 2,800 prospects. Nevertheless, after the net public sale opened Monday, solely 5 bidders from the USA and New Zealand participated.
Noting how few individuals there have been, a number of L.A. actual property observers have speculated that The One may have gone for extra had its public sale not occurred amid Russia’s invasion of Ukraine, creating worldwide stress and financial uncertainty, particularly for potential abroad consumers.
The value didn’t come near the quantity of claimed debt hooked up to the property, which entered Chapter 11 chapter safety with about $180 million in secured and unsecured debt, a determine that has risen to $256 million as extra collectors have filed claims, in keeping with a March 2 courtroom submitting.
Hankey informed The Occasions that he expects that the public sale value needs to be sufficient for him to get well money he put into the challenge, although his claims additionally embody penalties and costs. Lots of the property’s different collectors will take losses.
The most important new declare is from Niami himself, who says he’s owed $44.4 million. Courtroom recordsdata don’t present a lot element on the declare, however an individual acquainted with the chapter stated it stems from loans the developer made to the challenge.
U.S. Chapter Courtroom Decide Deborah Saltzman will maintain a listening to later this month on whether or not to approve the sale. In making her willpower, the decide will think about whether or not she believes the profitable bidder has the monetary wherewithal to shut the sale, its impact on collectors and different points.
Lawrence Perkins, the turnaround specialist accountable for Crestlloyd, has raised the chance that the profitable bidder might not find yourself with the home. Perkins has stated it’s his accountability to the bankrupt property to proceed fielding different provides.
Underneath the phrases of the public sale settlement, Saghian is below authorized obligation to shut the sale by March 21.
Saghian might have some work on his palms earlier than he can transfer in to The One. Regardless of being below building for years, it isn’t full and it lacks a certificates of occupancy in addition to essential permits for grading, electrical and different work. There are additionally allegations in courtroom paperwork that it has building defects and violates zoning codes, which the native owners affiliation has cited in calling the home a “brewing scandal.”
Business
Albertsons to pay $3.9 million over allegations it overcharged, lied about weight of groceries
Grocery titan Albertsons will pay $3.9 million to resolve a civil law enforcement complaint alleging that it ripped off customers at hundreds of its Vons, Safeway and Albertsons stores in California, authorities said Thursday.
According to the complaint, groceries sold by Albertsons Cos. — including produce, meats, baked goods and other items — had less product in the package than indicated on the label. The company also is accused of charging customers prices higher than its lowest advertised price.
“False advertising preys on consumers, who are already facing rising costs, and unfairly disadvantages companies that play by the rules,” L.A. County Dist. Atty. George Gascón said. “This kind of corporate conduct is especially egregious when it comes to essential groceries, as Californians rely on accurate advertised prices to budget food for their families.”
The case was filed in Marin County Superior Court in partnership with the consumer protection units of the district attorney’s offices of Los Angeles, Marin, Alameda, Sonoma, Riverside, San Diego and Ventura counties.
The settlement will be divided among the seven counties and used to support future enforcement of consumer protection laws, according to the Marin County district attorney’s office. None of the money will be paid back to consumers.
The fine comes just over a year after the same company was ordered to pay $3.5 million for selling expired over-the-counter drug products. The company is also currently fighting a federal antitrust lawsuit that seeks to block its planned merger with grocery giant Kroger Inc.
Albertsons Cos. operates 589 Albertsons, Safeway and Vons stores in California. The company did not admit wrongdoing. It cooperated with the investigation and has taken steps to correct the violations, according to the L.A. County district atttorney’s office.
In a statement on the settlement, the company said it takes the matter seriously and is committed to ensuring its customers can shop with confidence.
“We have taken steps to ensure our price accuracy guarantee is more visible to customers by posting signage at multiple locations at the front of our stores,” the company stated. “We have conducted additional comprehensive training for associates to reinforce the importance of price accuracy and customer transparency. Additionally, we have enhanced price tracking systems to better ensure real-time accuracy at stores.”
Prosecutors in the lawsuit alleged that the company failed to implement a price accuracy policy ordered by a court in 2014.
The policy requires that customers who are overcharged for an item either receive the item for free or receive a $5 gift card, depending on which option is worth more. It is designed to encourage customers to immediately report false advertising.
Under the judgment reached Thursday, the grocery giant must implement this policy and ensure staff are properly trained to place accurate weight labels on products.
The serial overcharging was discovered through inspections by Marin County’s Department of Agriculture, Division of Weights and Measures and its counterparts across the state.
“We could not have achieved this result without the outstanding work of our Weights and Measures inspectors as well as vigilant consumers,” said Deputy Dist. Atty. Andres Perez, who prosecuted the case for Marin County.
For the next three years, Albertsons Cos. is required to hire an independent auditor to ensure it is complying with the terms of the judgment.
Business
Disney faces class action lawsuit over employee data breach
Walt Disney Co. has been hit with a class action lawsuit accusing the Burbank-based entertainment giant of negligence, breach of implied contract and other misconduct in connection with a massive data breach that occurred earlier this year.
Plaintiff Scott Margel submitted the complaint on Thursday in Los Angeles County Superior Court against Disney and Disney California Adventure. The 32-page document also accuses the company of violating privacy laws by not doing enough to prevent or notify victims of the extent of the leak.
The class members, estimated to number in the thousands, are described in the complaint as individuals who gave “highly sensitive personal information” to Disney in connection with their employment at the company — information that was allegedly compromised in the breach.
Representatives of Disney did not immediately respond Friday to The Times’ request for comment.
The lawsuit cites an article published in September by the Wall Street Journal, which reported that a hacking group known as NullBulge publicly released data spanning more than 18,800 spreadsheets, 13,000 PDFs and 44 million internal messages sent via the workplace communication platform Slack.
According to the Journal, the compromised Slack messages contained sensitive information belonging to Disney cruise employees, including passport numbers, visa details, birthplaces and physical addresses; at least one spreadsheet listed the names, addresses and phone numbers of some Disney Cruise Line passengers. The publication later reported that Disney planned to stop using Slack after the breach.
The plaintiff and class members “remain, even today, in the dark regarding which particular data was stolen, the particular malware used, and what steps are being taken, if any, to secure their [personal information] going forward,” the complaint reads.
The plaintiff and class members “are, thus, left to speculate as to where their [data] ended up, who has used it and for what potentially nefarious purposes.”
In July, NullBulge said that it had leaked roughly 1.2 terabytes of Disney data in rebuke of the company’s treatment of artists, “approach to AI” and “pretty blatant disregard for the consumer.” The self-proclaimed hacktivists told CNN that they were able to penetrate Disney’s system thanks to “a man with Slack access who had cookies.”
A Disney spokesperson said in a statement at the time that the company was “investigating this matter.”
Margel is demanding that Disney take steps to reinforce its security system and educate class members about the risks associated with the breach. The plaintiff is also seeking unspecified damages and a jury trial.
Business
Rivian cuts production forecast, citing supply chain issue; its stock dips
Electric vehicle maker Rivian saw its shares dip Friday after the Irvine-based company cut its production targets amid ongoing supply issues.
Citing a shortage of a component used to build its electric pickups, sport utility vehicles and vans, Rivian said production could drop as much as 18% this year at its lone U.S. assembly plant.
Rivian did not specify the part that is in low supply but noted that the shortage has become more acute in recent weeks.
The company now forecasts its full-year production will be between 47,000 and 49,000 vehicles, down from an earlier estimate of 57,000. During the most recent quarter, Rivian produced 13,157 vehicles and delivered 10,018, falling short of analysts’ expectations.
Shares of Rivian ended the day at $10.44, down 3.2%. The company’s stock has been battered since the start of the year, falling by more than 50% amid underwhelming financial reports. In the second quarter this year, Rivian posted a net loss of $1.46 billion compared with a loss of about $1.12 billion during the same period a year earlier. The company is scheduled to announce its third-quarter earnings next month.
Rivian received a lifeline in June when Volkswagen agreed to a massive investment in the company that is expected to total $5 billion. Rivan has nonetheless continued to struggle in the face of dropping demand for electric vehicles and other supply chain issues that forced the company to pause its production of commercial vans for Amazon.com in August.
Early this year, the automaker announced a 10% cut in its workforce that sent stocks plummeting 25% in one day. The pool of interested wealthy buyers who don’t already own an electric vehicle is shrinking, analysts said, while the broader market weighs the advantages and feasibility of switching to electric.
The average car buyer is not likely to be able to afford a Rivian vehicle, and concerns remain about charging infrastructure and the distance vehicles can drive on a single charge. Rivian’s R1T electric pickup truck starts at around $70,000; its R1S SUV starts at nearly $75,000.
With sleek design and outdoorsy features, Rivian’s vehicles garnered much attention from analysts and attracted investors such as Amazon and Volkswagen. The company exceeded expectations during its initial public offering of stock in 2021, ending its first day of trading valued at nearly $88 billion.
The production issues announced this week could get in the way of Rivian’s goal of achieving positive gross profits by the fourth quarter of this year. According to analysts, the company’s gross margins are expected to remain in negative territory in the final three months of 2024.
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