FTI TACKLES MF GLOBAL
FTI Consulting is counseling brokerage firm MF Global through its high-profile Chapter 11 bankruptcy.
FTI revealed the strategic communications assignment during its Q3 earnings call Nov. 2. The business consulting firm, which also offers services in M&A, bankruptcy/restructuring and tech consulting, also said it is advising Kodak.
The brokerage, led by former politician and Goldman Sachs partner Jon Corzine, was brought down by heavy bets on European debt.
Corzine voluntarily stepped down from the helm on Nov. 4 after a two and a half-year stint.
Q3 Net Jumps 46%
FTI Consulting on Nov. 2 reported a 20 percent increase in third quarter revenue to $413.8M, although the business advisory firm said its strategic communications operation saw only a three percent climb to $57M mostly due to currency fluctuations.
Net income for Q3 climbed 46% to $29.4M compared with Q3 of 2010.
FTI said several key financial communications and restructuring projects benefited its PR unit, but it continued to be impacted by “ongoing sluggish capital markets activity.”
During Q3 its communications unit, FD, was renamed under the FTI banner.
That unit accounted for 12% of total earnings with 579 staffers via financial and brand comms., public affairs, and crisis comms.
For the first nine months, the communications division posted revenues of $143.3M.
President and CEO Jack Dunn said Latin America, particularly Brazil, continued to exceed expectations.
LAK HANDLES SYMS BANKRUPTCY
Linden Alschuler & Kaplan is handling the Chapter 11 filing of “off-price” retailer Syms Corp. and its Filene’s Basement unit.
CEO Marcy Syms, daughter of founder Sy Syms, said in a statement that the 46-member chain was hurt by large department stores mimicking its discount strategy and the growth of private label chains during the “worst economic downturn in our lifetimes.”
She thanked Syms’ “educated consumers and bargain hunters for their dedicated support over many years.” The liquidation of the Syms and Filene’s stores is expected to run through January.
Syms was founded in 1959. Filene’s, which opened in 1909, was acquired by Syms during a bankruptcy auction in 2009. Filene’s recently emerged from bankruptcy, but was struggling to rebuild its customer base.