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Business in brief

Nurses at 2 hospitals vote no confidence in CEO

October 21, 2008
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THE REGION
Registered nurses at Beverly Hospital and Addison Gilbert Hospital in Gloucester have taken a vote of no confidence in the chief executive of the two institutions, Stephen R. Laverty. Members of the Massachusetts Nurses Association said in a petition that Laverty created a "punitive organizational culture that continues to be characterized by oppressive management practices" at Northeast Health Corp., the hospitals' parent organization. Marie Freeman, who is grievance chair for nurses at Beverly Hospital, said there were about 200 votes expressing a lack of confidence in Laverty and only two supporting the hospital administration. In a statement, Northeast spokesman Chip Payson said, "We do not believe that the MNA's expressed point of view is consistent with the facts or the sentiment of the broader nursing workforce." (Jeffrey Krasner)

Abt Associates receives $250m UK contract
Abt Associates Inc. won a $250 million, six-year contract from the UK Department for International Development to reform and strengthen the health systems and services in several places, including Nigeria, the company said. This is the largest contract in the Cambridge company's 43-year history. Abt will lead a group of organizations in improving the financing, management, and delivery of health services in Nigeria. The goals include making it easier to deliver affordable drugs to the poor, increasing awareness that people are entitled to quality healthcare, and improving individuals' ability to prevent and manage health conditions. (Nicole C. Wong)

Casual Male to begin online operations in EU
Casual Male Retail Group Inc. said it is expanding its Casual Male XL and Rochester brands into six European countries online. The online stores are live in the United Kingdom and will debut in France, Spain, Germany, Italy, and the Netherlands in the coming week, Canton, Mass.-based Casual Male said. Each country will have its own online store with components specific to the country, such as translation, online payment processing and customer service. (AP)

THE NATION
AIG suspends lobbying, cancels events to cut $80m
American International Group Inc., the insurer bailed out by the government, suspended all lobbying and canceled about 160 events with a total cost of $80 million after lawmakers criticized the company's spending. The insurer will still monitor legislation "to determine what impact it might have on us," said Nicholas Ashooh, a spokesman for New York-based AIG. Congressional members lambasted AIG for hosting a $440,000 gathering at a California resort days after the $85 billion federal bailout. (Bloomberg)

Circuit City might close 150 stores to stay afloat
Beleaguered electronics retailer Circuit City Stores Inc. might close at least 20 percent of its stores to shore up its finances and avoid filing for bankruptcy protection, according to The Wall Street Journal. Citing "several people familiar with the matter," the newspaper said the nation's second-largest consumer electronics chain was considering closing at least 150 locations and slashing thousands of jobs to avert a Chapter 11 filing. Closing dozens of stores would allow the retailer to liquidate $350 million in inventory that could be used to pay real-estate costs, including leases on abandoned sites. A Circuit City spokesman said the chain wouldn't comment on the details of the report or "rumors." (AP)

NYSE to delist GateHouse Media for low stock price
GateHouse Media Inc., the owner of 97 newspapers and online publications, including The Patriot Ledger in Quincy and the Brockton Enterprise, will be removed from the New York Stock Exchange Friday because the stock has remained below $1. The NYSE will suspend the shares rather than allow the company time to meet listing standards because of the "abnormally low" price, the exchange said. GateHouse has lost 97 percent of its value this year. (Bloomberg)

EBay to ban all sales of ivory products in January
Online auction site eBay Inc. said it will institute a global ban on the sale of all ivory products starting next year. The ban, made public on the company's blog eBay Ink, sought to ensure the protection of African and Asian elephants, eBay blogger Richard Brewer-Hay wrote. The company banned cross-border sales of ivory products last year, he said, but the sale of it on the site "continued to be a concern within the company and among stakeholders." The policy change will go into effect in December and will be enforced starting in January. (AP)

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