Connect with us

Business

Ocean technology hub AltaSea blooms on San Pedro waterfront

Published

on

Ocean technology hub AltaSea blooms on San Pedro waterfront

A moon shot to make Southern California an international leader in the “blue economy” is taking shape in San Pedro as a $30-million renovation of three historic waterfront warehouses nears completion.

AltaSea at the Port of Los Angeles, as the complex is known, is home to sea-centered businesses such as the headquarters of explorer Robert Ballard, who located the wrecks of the Titanic and the German battleship Bismarck. His research vessel the Nautilus docks there, as does Pacific Alliance, a vessel for farming mussels far out at sea.

On barges docked on AltaSea’s wharf, scientists from USC, UCLA and Caltech are developing methods of reducing ocean carbon dioxide and technology to scrub ships’ exhaust stacks. Other tenants in the former warehouses include startup firms that are building a new generation of remote undersea cameras and 3-D printers to build parts for offshore wind, wave and solar farms.

Jenny Cornuelle Krusoe, executive vice president and COO of AltaSea at the Port of Los Angeles.

(Allen J. Schaben / Los Angeles Times)

Advertisement
An aerial view of the Captura barge, where crews monitor equipment used for pulling carbon dioxide from seawater.

An aerial view of the Captura, a barge at AltaSea where crews monitor equipment used for pulling carbon dioxide from seawater.

(Allen J. Schaben / Los Angeles Times)

“AltaSea is education, research and business all working together,” said Jenny Krusoe, executive vice president and chief operating officer. The size and waterfront location, she added, make AltaSea “a unicorn piece of property that is basically made to be the mother ship for the blue economy.”

Mayor Karen Bass and others who played a part in AltaSea, including City Councilman Tim McOsker and Port of Los Angeles Executive Director Gene Seroka, are expected to officially open the facilities at a ceremony Wednesday.

Advertisement

AltaSea is bringing new purpose to a previously moribund wharf that once played a rich part in the evolution of Southern California.

In the early 20th century, Los Angeles merchants and city leaders set out to capture a share of the increased global shipping trade expected to pass through the Panama Canal, a link between the Atlantic and Pacific oceans that opened in 1914. They created a municipal wharf on the waterfront of what has become the sprawling Port of Los Angeles, with a long stretch of warehouses where ships were loaded and unloaded into trains, carts and trucks by burly longshoremen.

The growth of containerized shipping after World War II gradually rendered City Dock No. 1 obsolete for moving goods, and the wharf was little used for decades. By 2011, advocates, including port officials, saw it for what it was: a choice 35-acre site for a research center and tech companies focused on sustainable uses of the world’s oceans.

A key part of the mission of the nonprofit enterprise is to create jobs with pioneering companies. Among them is the nonprofit AltaSeads Conservancy, the largest aquaculture seed bank in the United States. Like their terrestrial counterparts, aquaculture seed banks are meant to preserve genetic diversity in plant life for the future. AltaSeads is also advancing the use of kelp as an easily grown resource.

“It’s a super versatile crop,” said scientist Emily Aguirre of AltaSeads, that can provide food for humans and livestock while removing carbon from the atmosphere. “It can be also be used to fertilize terrestrial agriculture, and it’s fantastic because if you grow it out in the ocean, you’re not taking up any land.”

Advertisement
Michael Marty Rivera and Emily Aguirre monitor varieties of kelp in storage tanks at AltaSeads

Michael Marty Rivera and Emily Aguirre of AltaSeads Conservancy monitor varieties of kelp in storage tanks.

(Allen J. Schaben / Los Angeles Times)

Kelp is also a source of algae that cuts methane emissions from cows, Aguirre said, and has many other food applications, including reducing freezer burn in ice cream.

Eco Wave Power, an Israel-based company, is set to install the first U.S. onshore wave energy pilot station in the coming months on the port’s Main Channel, next to AltaSea. The system of floaters attaches directly to preexisting structures — like breakwaters, wharfs and jetties — and produces energy from the constant motion of the waves. Another AltaSea business, CorPower Ocean, uses buoys and hydraulic pressure for energy production.

 Rustom Jehangir, founder and CEO at Blue Robotics, demonstrates his BlueROV2

Rustom Jehangir, founder and CEO at Blue Robotics, demonstrates his BlueROV2, a high-performance remotely operated vehicle that can be used for inspections, research and adventuring.

(Allen J. Schaben / Los Angeles Times)

Advertisement

The figurative whale for AltaSea so far is Ballard, who set up shop at the aged docks several years ago and has captured public interest as a deep-sea explorer and scientific researcher. It’s his headquarters and home to his research and development.

AltaSea has an array of solar panels on the roof bigger than three football fields that generates 2.2 megawatts, enough to power 700 homes annually and more energy than the entire campus will need when it reaches full capacity.

BlueROV2, a high-performance remotely operated vehicle (ROV) that can be used for inspections, research, and adventuring,

The BlueROV2 vehicle.

(Allen J. Schaben / Los Angeles Times)

Advertisement

To fund the wharf’s redevelopment, AltaSea received $29 million from the state, Port of Los Angeles and private donors. The funds paid for construction, installation of the solar panels and the future creation of a park.

AltaSea is one of multiple projects that are part of a two-decade process to clean up the air and water at the port and turn unused docks, wharves and warehouses into places where more people will want to work or visit, port officials said.

“Bringing people to our waterfront has been a hallmark of the Port of Los Angeles for decades,” Seroka said in 2020, and recent investments “will really bring us to the next level.”

Before the pandemic, about 3 million people came to L.A.’s waterfront annually for recreation, a tally port leaders hope to see double in the years ahead. To smooth the path of new development catering to visitors, the Port of Los Angeles is investing about $1 billion in infrastructure improvements over 10 years, Seroka said. Private developers building AltaSea and other projects will invest an estimated $500 million.

Taylor Marchment shows off 3D concrete printing for offshore renewable energy

Taylor Marchment, the manufacturing R&D lead at RCAM Technologies, shows off 3-D concrete printing for offshore renewable energy.

(Allen J. Schaben / Los Angeles Times)

Advertisement

One of those projects, West Harbor, is a long-planned redevelopment of a 42-acre site that used to be home to Ports O’ Call, a kitschy imitation of a New England fishing village, built in the 1960s, that fell out of favor years ago and was razed in 2018.

Restaurants anchoring the dining, shopping and entertainment center will include Yamashiro, the second branch of a Japanese-themed Hollywood destination for locals and tourists. Another large restaurant will be Mexican-themed, with an over-water bar. There will also be a food hall and Bark Social, a membership off-leash dog park, bar and cafe. The complex is slated to open next year.

The waterfront developments represent improvements that San Pedro residents have been waiting decades to see, said Dustin Trani, whose family has been in the local restaurant business for nearly a century. Last year the chef opened Trani’s Dockside Station, a seafood restaurant situated between AltaSea and West Harbor, in part to capitalize on the expected influx of visitors.

“We’re on the cusp of a very big economic boom in this area that has not yet been seen,” Trani said.

Advertisement

Business

Kanye West sues ex-employee over Malibu mansion lien

Published

on

Kanye West sues ex-employee over Malibu mansion lien

Kanye West, the rapper now known as Ye, is suing his former project manager and his lawyers, alleging they wrongfully put a $1.8-million lien on his former Malibu mansion.

The suit, filed in Los Angeles Superior Court on Thursday, alleges that Tony Saxon, Ye’s former project manager on the property, and the law firm West Coast Trial Lawyers, “wrongfully” placed an “invalid” lien on the property “while simultaneously launching an aggressive publicity campaign designed to pressure Ye, chill prospective transactions, and extract payment on disputed claims already being litigated in court.”

Saxon’s lawyers were not immediately available for comment.

Saxon, who was also employed as West’s security guard and caretaker at the Malibu property, sued the controversial rapper in Los Angeles Superior Court in September 2023, claiming a slate of labor violations, nonpayment of services and disability discrimination.

In January 2024, Saxon placed the $1.8-million “mechanics” lien on the property in order to secure compensation for his work as project manager and construction-related services, according to court filings.

Advertisement

A mechanics lien, also referred to as a contractor’s lien, is usually filed by an unpaid contractor, laborer or supplier, as a hold against the property. If the party remains unpaid, it can prompt a foreclosure sale of the property to secure compensation.

Ye has denied Saxon’s allegations. In a November 2023 response to the complaint, Ye disputed that Saxon “has sustained any injury, damage, or loss by reason of any act, omission or breach by Defendant.”

According to Ye’s recent complaint, he listed the property for sale in December 2023. A month later, he alleged, Saxon and his attorneys recorded the lien and “immediately” issued statements to the media.

The suit cites a statement Saxon’s attorney, Ronald Zambrano, made to Business Insider: “If someone wants to buy Kanye’s Malibu home, they will have to deal with us first. That sale cannot happen without Tony getting paid first.”

“These statements were designed to create public pressure and to interfere with the Plaintiffs’ ability to sell and finance the Property by falsely conveying that Defendants held an adjudicated, enforceable right to block a transaction and divert sale proceeds,” the complaint states.

Advertisement

The filing contends that last year the Los Angeles Superior Court granted Ye’s motion to release the lien from the bond and awarded him attorneys fees.

The Malibu property’s short existence has a long history of legal and financial drama.

In 2021, West purchased the beachfront concrete mansion — designed by Pritzker Prize-winning Japanese architect Tadao Ando — for $57.3 million. He then gutted the property on Malibu Road, reportedly saying “This is going to be my bomb shelter. This is going to be my Batcave.”

Three years later, the hip-hop star sold the unfinished mansion (he had removed the windows, doors, electricity and plumbing and broke down walls), at a significant loss to developer Steven Belmont’s Belwood Investments for $21 million.

Belmont, who spent more money to renovate the home, had spent three years in prison after being charged with attempted murder for a pitchfork attack in Napa County. He promised to restore the architectural jewel to its former glory.

Advertisement

However, the property has been mired in various legal and financial entanglements including foreclosure threats.

Last August, the notorious mansion was once again put on the market with a $4.1 million price cut after a previous offer reportedly fell through, according to Realtor.com.

The legal battle surrounding Ye’s former Malibu pad is the latest in a series of public and legal dramas that the music impresario has been involved in recent years.

In 2022, the mercurial superstar lost numerous lucrative partnerships with companies like Adidas and the Gap, following a raft of antisemitic statements, including declaring himself a Nazi on X (which he later recanted).

Two years later, Ye abruptly shut down Donda Academy, the troubled private school he founded in 2020.

Advertisement

Ye, the school and some of his affiliated businesses faced faced multiple lawsuits from former employees and educators, alleging they were victims of wrongful termination, a hostile work environment and other claims.

In court filings, Ye has denied each of the claims made against him by former employees and educators at Donda.

Several of those suits have been settled.

Advertisement
Continue Reading

Business

The rise and fall of the Sprinkles empire that made cupcakes cool

Published

on

The rise and fall of the Sprinkles empire that made cupcakes cool

After the dot-com bubble burst in the early 2000s, Candace Nelson reevaluated her career. She had just been laid off from a boutique investment banking firm in San Francisco’s tech startup scene, and realized she wanted a change.

From her home, she launched a custom cake service that soon morphed into an idea for a cupcake-focused bakery. Nelson and her husband — whom she met at the Bay Area firm where she had worked — then pooled their savings, moved to Southern California and together opened Sprinkles Cupcakes from a 600-square-foot Beverly Hills storefront.

The store quickly sold out on opening day in 2005, and over the next two decades, the Sprinkles brand exploded across the country, opening dozens of locations of its specialty bakeries as well as mall kiosks and its signature around-the-clock cupcake ATMs in several states.

“It was an unproven concept and a big risk,” Nelson told the Times in 2013, at which point the business had 400 employees at 14 locations and dispensed upward of a thousand cupcakes a day from its Beverly Hills ATM alone.

But now, the iconic cupcake brand is no longer.

Advertisement

Sprinkles abruptly shut down all of its locations on Dec. 31, leaving hundreds of retail employees across Arizona; California; Washington, D.C.; Florida; Nevada; Texas; and Utah in a lurch with little notice, no severance and scrambling to fulfill a surge of orders from customers clamoring to get their last tastes.

Candace Nelson, the founder of Sprinkles cupcakes, in Beverly Hills in 2018.

(Mel Melcon / Los Angeles Times)

Although Nelson long ago exited the company, having sold it to private equity firm KarpReilly LLC in 2012, she shared her disappointment with its fate on social media.

Advertisement

“As many of you know, I started Sprinkles in 2005 with a KitchenAid mixer and a big idea,” Nelson said in the post. “It’s surreal to see this chapter come to a close — and it’s not how I imagined the story would unfold.”

The company, now headquartered in Austin, Texas, made no formal announcement regarding the closures and Nelson has not said more than what she posted online. The company did share a comment with KTLA, saying “After thoughtful consideration, we’ve made the very difficult decision to transition away from operating company-owned Sprinkles bakeries.” Neither Nelson nor representatives of Sprinkles and KarpReilly responded to The Times’ requests for comment.

Sprinkles’ demise comes at a tough time for the food and beverage industry. At brick-and-mortar food retail locations, the non-negotiable ingredient and labor costs can be high. And shifting consumer sentiments away from sugar-filled sweets and toward more healthy and functional options, strained pocketbooks, as well as pushes by federal and state governments to nix artificial colors and flavoring, are creating uncertainties for businesses, those in the food industry said.

A 24-hour cupcake ATM at Sprinkles Cupcakes in Beverly Hills in 2012.

A 24-hour cupcake ATM at Sprinkles Cupcakes in Beverly Hills in 2012.

(Damian Dovarganes / Associated Press)

Advertisement

“Over the last 10 years the consumer has wizened up tremendously and is looking at the back of the label and choosing where to spend their sweets,” said David Jacobowitz, founder of Austin-based Nebula Snacks, an online food retailer.

At the same time, it’s also not uncommon for businesses owned by private-equity firms to close on a whim, where relentlessly profit-driven decisions might be made simply to pursue more lucrative projects. In recent years, private-equity deals have been seen to milk businesses for profit by slashing costs and quality, and have appeared to play a role in the breakup of some legacy retail brands, including Toys ‘R’ Us, Red Lobster, TGI Fridays and fabrics chain JoAnn Inc. On the flip side, private equity can help infuse much-needed cash into a business and extend its life.

Stevie León and her co-workers received a text the night before New Year’s Eve informing them the franchise Sprinkles location in Sarasota, Fla., where they worked would close permanently after their shifts the next day.

León, 33, said her position as a scratch baker mixing batter and frosting cupcakes overnight had been a dream job, since she had been searching for ways to develop baking skills without paying for expensive schooling.

“I really thought it was my forever job and it was taken away literally in a day,” she said. “I’m just taking it one day at a time.”

Advertisement

Ivy Hernandez, 27, the general manager at the Sarasota store, said that after the news was delivered to her boss, the franchise owner, they rushed to learn their options to keep the store afloat but quickly learned it could be legally precarious to continue operating. The store had been open less than a year.

A nearby corporate store, Hernandez said, had been in disarray for months, with employees contending with broken fridges and lapsed ingredient shipments, as managers implored higher-ups to pay the bills so the business could operate properly.

“It really felt like they were trying to do everything they could to screw everyone over as hard as possible until the end,” Hernandez said.

Sprinkles did not respond to questions about the franchise program or allegations of mismanagement in the lead-up to the closure.

A person walks by Sprinkles on the Upper East Side in New York City in 2020.

A person walks by Sprinkles on the Upper East Side in New York City in 2020.

(Cindy Ord / Getty Images)

Advertisement

The obsession with tiny cakes in paper cups traces back to an episode of “Sex and the City” aired in 2000 showing Miranda and Carrie savoring cupcakes on a bench outside a West Village bakery called Magnolia’s Cupcakes.

“Big wasn’t a crush, he was a crash,” Carrie says to Miranda as she peels down the wrapper on a cupcake topped with bright pink buttercream frosting. She punctuates the quip by taking a big bite, leaving a glob of frosting on her face.

The scene sparked a tourism phenomenon for the bakery — which went on to create a “Carrie” line of cupcakes — and helped propel the burgeoning cupcake industry and companies like Sprinkles Cupcakes, Crumbs Bake Shop and Baked by Melissa to new heights.

Within a decade there was already talk of a “Cupcake Bubble,” coined by writer Daniel Gross in a 2009 Slate article where he argued that the 2008 economic recession laid the groundwork for a proliferation of cupcake stores across America, because a lot of people could figure out how to make tasty cupcakes cheaply and scale up without a huge capital investment.

Advertisement

Amid the decimation of many other local retail businesses, one could take over storefronts in heavily trafficked areas for cheap. As a result, “casual baking turned into an urban industry,” Gross said.

The cupcake fervor hit its peak when Crumbs, which had started as a single bakery on Manhattan’s Upper West Side in 2003, went public in a reverse merger worth $66 million in 2011. The wildly popular mini-cakes were selling at $4.50 a pop. But it became clear very quickly that it had grown too large, too fast. It closed in 2014 after it lost its stock listing on Nasdaq and defaulted on about $14.3 million in financing.

Analysts at the time said consumers were cooling on opulent desserts and suggested tougher times were ahead for bakeries that focused solely on cupcakes.

But Baked by Melissa has thus far proved those analysts wrong. The company has remained privately owned, and according to its founder, is focused on nationwide e-commerce operations — and on expanding the brand beyond sweets. Founder Melissa Ben-Ishay has gained a following on social media by sharing recipes for nutritious, easy-to-make meals.

“Businesses that prioritize quick value increases to get acquired often crash,” Ben-Ishay told Forbes last year. “We’re committed to maintaining product quality and steady, long-term growth.”

Advertisement

Before its unceremonious and sudden closure, Spinkles company leadership had pushed to diversify its business as part of a strategy to recover from a pandemic-era lull.

Chief Executive Dan Mesches told trade publication Nation’s Restaurant News in 2021 that comparable sales had grown since pre-pandemic years. He said the company had ramped up its direct-to-consumer and off-premises offerings and created a line of chocolates made to look like the tops of their cupcakes. The company also introduced a new franchise program with the goal of opening some 200 locations in the U.S. and abroad over three years.

“Innovation is everything for us,” Mesches said.

Sprinkles was known for, among other things, inventive and somewhat corny methods of customer delivery. Besides the trademark ATMs, the company’s vending machines found at many airports made loud, attention-drawing jingles, drawing dramatic complaints and jokes from TikTok travelers. In the 2010s, the company debuted a custom-built truck — “the Sprinklesmobile” — to deliver cupcakes to cities without physical locations.

Frances Hughes, co-founder of online wholesale marketplace Starch, said there’s no question that gourmet sweet treats are still in vogue. But brick-and-mortar locations are much more risky, with more unpredictability. Having large fixed costs makes a business “extremely sensitive to small changes in traffic or frequency,” while online or e-commerce models can be more flexible.

Advertisement

“I think cupcakes as a product still have demand. But the novelty paths that support that rapid retail expansion have passed,” Hughes said.

When Nelson, the Sprinkles founder, posted her somber message about the closure, she asked people to share memories of the company. Many offered heartfelt responses, her comments flooded with stories, for example, of poor college students making the trek to the Beverly Hills location for a limited number of first-come, first-served free cupcakes.

But many of the comments also criticized Nelson’s sale to private equity.

“You sold it to PE and expected it to not close?? What planet are you living on? I don’t begrudge you for selling as that’s entirely your choice but to think any PE firm cares about a company in the slightest is insanity,” one Instagram user said.

Nicole Rucker, an L.A.-based pastry chef and owner of Fat+Flour Pie Shop, said she didn’t observe a decline in the quality of the product after the private-equity takeover. She has been a longtime admirer of the company, driving up from San Diego to sample the cupcakes when its store opened. The simple attractiveness of the box and the logo, and the consistency in the way cupcakes were decorated, “was inspiring,” she said.

Advertisement

“It had a strong hold on people for years,” Rucker said.

Rucker said however that when a private-equity-owned business shutters, she doesn’t feel sadness: “I would rather give my money to a fellow small-business owner, because I would rather know that every dollar and every sale matters.”

Michelle Wainwright, the owner and founder of Indiana-based bakery Cute as a Cupcake! said that although the niche cupcake industry may no longer be in its heyday — with “Sex and the City” no longer airing and competitive baking show “Cupcake Wars” (which Candace Nelson served as a judge on) now canceled — they are still versatile treats, with great potential for creativity.

And they are sentimental to her, because she uses her grandmother’s recipe.

“Cupcakes are still a winner,” Wainwright said. “It’s my belief that a life with out cupcakes is a life without love.”

Advertisement

Continue Reading

Business

Bay Area semiconductor testing company to lay off more than 200 workers

Published

on

Bay Area semiconductor testing company to lay off more than 200 workers

Semiconductor testing equipment company FormFactor is laying off more than 200 workers and closing manufacturing facilities as it seeks to cut costs after being hit by higher import taxes.

The Livermore, Calif.,-based company plans to shutter its Baldwin Park facility and cut 113 jobs there on Jan. 30, according to a layoff notice sent to the California Employment Development Department this week. Its facility in Carlsbad is scheduled to close in mid-December later this year, which will result in 107 job losses, according to an earlier notice.

Technicians, engineers, managers, assemblers and other workers are among those expected to lose their jobs, according to the notices.

The company offers semiconductor testing equipment, including probe cards, and other products. The industry has been benefiting from increased AI chip adoption and infrastructure spending.

Advertisement

FormFactor is among the employers that have been shedding workers amid more economic uncertainty.

Companies have cited various reasons for workforce reductions, including restructuring, closures, tariffs, market conditions and artificial intelligence, which can help automate repetitive tasks or generate text, images and code.

The tech industry — a key part of California’s economy — has been hit hard by job losses after the pandemic, which spurred more hiring, and amid the rise of AI tools that are reshaping its workforce.

As tech companies and startups compete fiercely to dominate the AI race, they’ve also cut middle management and other workers as they move faster to release more AI-powered products. They’re also investing billions of dollars into data centers that house computing equipment used to process the massive troves of information needed to train and maintain AI systems.

Companies such as chipmaker Nvidia and ChatGPT maker OpenAI have benefited from the AI boom, while legacy tech companies such as Intel are fighting to keep up.

Advertisement

FormFactor’s cuts are part of restructuring plans that “are intended to better align cost structure and support gross margin improvement to the Company’s target financial model,” the company said in a filing to the U.S. Securities and Exchange Commission this week.

The company plans to consolidate its facilities in Baldwin Park and Carlsbad, the filing said.

FormFactor didn’t respond to a request for comment.

FormFactor has been impacted by tariffs and seen its growth slow. The company employs more than 2,000 people and has been aiming to improve its profit margins.

In October, the company reported $202.7 million in third-quarter revenue, down 2.5% from the third quarter of fiscal 2024. The company’s net income was $15.7 million in the third quarter of 2025, down from $18.7 million in the same quarter of the previous year.

Advertisement

FormFactor’s stock has been up 16% since January, surpassing more than $67 per share on Friday.

Continue Reading
Advertisement

Trending