Odetics Inks Sale, Leaseback of HQ
By ANDREW SIMONS
Anaheim-based Odetics Inc. is in escrow on its headquarters site, 16 acres across the street from Disneyland.
Odetics plans to lease its space back from the buyer, the company said. The name of the buyer wasn’t disclosed by Odetics, and sources close to the deal declined to comment.
“We believe monetizing our real estate holdings represents an important step in strengthening Odetics’ balance sheet through debt retirement and improved liquidity,” said Odetics Chief Executive Gregory Miner in a statement. “The leaseback of the facilities will minimize any business interruption to us. Over the coming weeks, we will be working diligently to bring this transaction to a successful conclusion.”
Miner took over as chief executive in January when founder Joel Slutzky stepped down.
The sale has been a long time coming. Cash-strapped Odetics raised $16 million in a promissory note that was secured by the property last summer. Odetics declined to reveal how much cash it would gain through the sale, but because of the property’s proximity to Disneyland, it could fetch upward of $24 million, according to real estate sources.
Odetics, which forms and spins off businesses, has been in triage in the past year. To help shore up costs, Odetics sold its Gyyr Inc. subsidiary and closed its Mariner Networks Inc. subsidiary. Odetics losses have narrowed to $2.3 million in the most recently reported quarter vs. $16.7 million in the same quarter a year ago.
T & O; Recruits Creative Director From Y & R; Cos.
By JENNIFER BELLANTONIO
Irvine-based The T & O; Group said it has hired a creative executive from Orange County’s largest advertising agency, the Y & R; Cos.
Mike Hall, formerly associate creative director at Y & R;’s Irvine office, worked on two of the agency’s biggest accounts, Sony Electronics Inc. and Ford Motor Co.’s Lincoln.
David Murphy, chief executive of Y & R;’s Irvine office, declined to comment. A source close to the agency said Hall’s departure wouldn’t impact any accounts.
Hall, a 15-year ad executive who’s won numerous industry awards, is set to start today at T & O; as the agency’s vice president and creative director under Scott Montgomery, executive vice president and executive creative director.
Montgomery and Hall previously worked together at Foote, Cone & Belding Southern California in Irvine. On Montgomery’s advice, T & O; started talking with Hall about joining the agency, according to President Steve O’Leary.
T & O;, which ranked No. 10 on the Business Journal’s March 25 list of OC’s largest ad agencies, made news earlier this year when Montgomery came onboard. He left his top creative post at FCB to golf and freelance.
“Mike is the rare combination of strategic thinker and big idea individual,” Montgomery said. “I’m excited to have his expertise and experience with me at T & O.;”
T & O; counts about 50 employees and reported 2001 billings of $63 million, which were down 3%. The agency’s clients include Irvine-based In-N-Out Burgers, Garden Grove-based FS Concepts Inc.’s Fantastic Sams and San Diego’s Sempra Energy.
In the past year or so, T & O; said it’s bent on bolstering its creative department so it can compete more aggressively for new accounts with “any agency in the West.”
