Other items of interest Orange County Business Journal
ECONOMY
Orange County lost 5,900 jobs in July, taking non-farm employment to 1,362,000, according to the state’s Employment Development Department. The unemployment rate rose to 9.3% in July from 9.2% the prior month. It was 9.9% a year earlier. The local jobless rate is on par with the nation and better than the statewide level of 12.4%. The summer recess in education accounted for the local decline, with a loss of 15,800 jobs reported at local and state schools here. Other declines came in the trade, transportation and utilities category, which shed 2,000 jobs, and manufacturing, which lost 900. Professional and business services posted the biggest gain from a month earlier, adding 2,500 jobs. Construction gained for the second month in row, adding 2,100 jobs, the vast majority in the specialty trade contractors sector.
ENGINEERING
Canada-based engineering and environmental consultant Stantec Consulting Services Inc. named Irvine resident Aram Keith chairman. Keith is expected to remain in Irvine. He’s been a Stantec director since 2005, when he sold his Irvine-based The Keith Companies Inc. for $175 million. Stantec’s Irvine office serves as its Western U.S. hub, employing about 100 here. The company provides planning, engineering, architecture, interior design and other consulting services. Stantec counts about 11,000 workers in 170 offices companywide.
RETAIL
Foothill Ranch-based Wet Seal Inc. offered a better-than-expected profit outlook for the current quarter as the company looks to continue improving its merchandise mix at stores. The teen mall retailer said it expects a profit for the three months through October of $5.5 million to $6.6 million. Analysts had expected $4.4 million. Wet Seal projects sales for the current quarter of $159 million to $161 million, which would be up as much as 10% from a year earlier. Wall Street analysts on average expect Wet Seal to hit the high end of that projection. Wet Seal reported earnings for the recently ended quarter of $2.2 million, in line with analysts’ expectations. The company beat Wall Street’s outlook on revenue during the recently ended quarter with $148.8 million. Analysts on average expected revenue of $146.9 million.
RESTAURANTS
Costa Mesa-based El Pollo Loco Inc. named IHOP Corp. veteran Dennis Farrow chief operating officer to oversee the flame-grilled chicken chain’s roster of about 400 restaurants. Farrow most recently served as chief executive of retail and restaurant consultant Restaurant Peak Performance LLC. He previously served as chief operating officer at Glendale-based IHOP and counts stints with Dublin, Ohio-based burger chain Wendy’s International Inc. and Taco Bell Corp. in Irvine. Farrow’s appointment fills a position left open after Steve Sather was promoted from chief operating officer to chief executive in January. It comes as El Pollo Loco struggles on sales and profits and amid a new marketing campaign that includes redesigns of stores and a new advertising campaign.
Cypress-based Mexican restaurant chain Real Mex Restaurants Inc. reported another quarterly loss and lower sales from a year ago, declines that came as the company works to restructure its debt. Real Mex reported a $4.1 million loss for the three months through June, which excluded non-cash impairment charges of about $70 million. The company lost $1 million for the same period a year earlier. Real Mex saw revenue fall about 2% from a year earlier to $127.2 million in the second quarter. Real Mex owns 178 restaurants mostly in California. It has another 30 restaurants that are run by franchisees. The company operates under various brands, including El Torito, Acapulco and Chevys Fresh Mex along with a few smaller brands such as Las Brisas in Laguna Beach. It also owns a food manufacturing and distribution subsidiary called Real Mex Foods. Last month Real Mex missed an interest payment due July 1. It ended up making the $9.2 million interest payment later that month within a 30-day grace period, and announced plans to work with lenders to restructure its debt. Real Mex is required to prepare a restructuring proposal by Sept. 15 and come to a final agreement with lenders on new debt terms by the end of October.
OTHER NEWS
Rob Rojas of San Clemente won the O’Neill Seas Paddle NYC race around Manhattan. He completed the 26.5-mile, stand-up paddleboard competition in 3 hours and 56 minutes to become the second winner from San Clemente in a row. Thomas “Maxiumus” Shahinian won last year but didn’t compete this year due to finances. The winner gets $1,500. The event is sponsored by the O’Neill action sports brand. Irvine-based La Jolla Group Inc. markets clothing under the O’Neill brand. The event raises money for charity.
ECONOMIC INDICATOR
UP: Attendance at the Orange County Fair, which drew a record 1.4 million visitors during its 23-day run in Costa Mesa. The fairgrounds also saw a record opening day with 72,239 visitors and an all-time high of 180,446 for its opening weekend.
