Obituary: Herb Segal, Founder Of Pilgrim Plastics 

Herb Segal, founder of Boston-based Pilgrim Plastics (asi/78100), passed away on September 13 after a lengthy battle with cancer. A decorated veteran of World War II and a survivor of the Normandy Invasion, Segal was 85. "He was a true member of the generation that came home from World War II and built a successful business," says Alan Meixner, Segal’s son-in-law and longtime employee at Pilgrim. "He was a pioneer of the promotional products industry."

Under Segal’s leadership for four decades, Pilgrim became one of the first companies to print on plastic. One of his many innovations was a breast cancer awareness card that included information on performing self checks. When the product gained popularity, Segal donated $500,000 in proceeds to the Albert Einstein Health Foundation for cancer research and services. Along with a group of other companies, Segal also developed and ran celebrated sales contests for distributors with travel incentives. "Distributors won trips to Paris, Rome and Greece," remembers Meixner, now the national sales manager for Jayline (asi/63253) and Tempo Industries (asi/90859).

Known as a loyal supporter of industry organizations, Segal often attended shows and trumped the value of advertising specialties. "He would go around and give out stress control cards to stewardesses and waitresses and tellers in banks," Meixner says. "He told people promotional products opened doors."

Outside of work, Segal enjoyed golf, poker and travel. Most of all, he valued time with family and friends. Segal is survived by four daughters and their families, which include nine grandchildren. Segal was predeceased by his wife Shirley. Memorial donations may be made to the American Cancer Society in Framingham, MA.

Cintas Reports Declining Profits

Counselor Top 40 distributor Cintas Corporation (asi/162167) announced its overall first quarter 2010 profits dropped 31%, resulting from an 11% loss in revenues that slipped below $900 million. However, the company exceeded analysts’ projections, leading to Cintas’ stock quickly rising to more than $30 per share, an increase of roughly 4%. "Market conditions remain difficult and will continue to impact our businesses," said CEO Scott Farmer, in a statement. "However, we continue to be a market leader in our businesses, with state-of-the-art technology, extremely efficient operations and very dedicated employee-partners."

Within the past year, Cintas has cut 12% of its work force and reduced other costs as well. Currently, the company holds $350 million in cash and marketable securities and no short-term debt. In 2008, Cintas reported promotional product sales of $167 million, down from $171 million in 2007. "Our balance sheet and cash flow both continue to be strong," said Farmer. "The leadership position in our businesses combined with this strong financial condition will provide us enhanced opportunities when economic conditions improve."

SBA Changes Financing Rules For Acquisitions

The U.S. Small Business Administration (SBA) has loosened limits on financing sales, meaning it will soon become easier for companies to obtain money or credit for small business acquisitions. The decision reverses a policy created in March that capped the guarantee the SBA was willing to extend on “goodwill” financing, known as the amount of a loan used to buy the intangible assets of a business, such as a brand. For service or Internet companies which may have limited property or inventory, the value of intangible assets can often greatly influence the market price of that business.

The rules established in March were created to stop sellers from inflating companies’ intangible assets, but the move only furthered a downturn in the number of acquisitions. According to BizBuySell.com, closed business sales were already down 33% in March from a year earlier.

Beginning in October, the new SBA cap for goodwill financing will be $500,000, double the current amount. If the goodwill financing exceeds $500,000, lenders will likely be required to secure more equity from the borrower or seller. An SBA spokesperson said the policy change was made after the agency found that the average goodwill amount was close to $400,000.

Battling Lost Productivity Due To H1N1

In a just-released report, the United States Chamber of Commerce is telling business owners to be prepared for lost productivity this fall and winter due to the H1N1 virus. The National Security and Emergency Preparedness Department sent out a 16-page report, titled "It's Not Flu as Usual: An H1N1 Business Preparedness Guide,” to offer companies suggestions to help keep employees from getting sick as well as how to keep business going throughout flu season.

The government agency notes that 6% to 8% of those within communities where H1N1 hit were infected by the virus during a three- to four-week span. Because of its contagious nature, "small business owners should take time to create a plan, talk with their employees and make sure they are protected for flu season," said Karen Mills, small business administrator for Department of Homeland Security Secretary Janet Napolitano, in a statement. "For countless small businesses, having one or two employees out for a couple of days has the potential to negatively impact operations and their bottom line. A thoughtful plan will help keep employees and their families healthy, as well as protect small business and local economies."

So what can business owners do? The Chamber of Commerce offers a 10-point checklist:
1. Update sick leave policies. If your employee is ill encourage them to stay away from the workplace. Do not ask them for a note from their doctor.
2. Maintain a healthy work environment. Provide hand sanitizer products, ensure adequate air circulation and post tips on how to stop the spread of germs.
3. Establish an emergency communications plan. Create a process for communicating pandemic status to employees, suppliers and customers. Include key contacts as well as backups.
4. Cross-train employees to perform essential functions including accounting, payroll and information technology.
5. Plan for disruptions in government services like mass transportation. Car pooling may be necessary.
6. Determine which outside activities are critical to maintaining operations and develop alternatives.
7. Promote "social distancing." Reduce the number of face-to-face meetings. Allow employees to work from home.
8. Create a contingency plan in case of long-term absenteeism. Check to see if core business activities can be sustained over several weeks with only a minimal workforce.
9. Collaborate with insurers, health plans and health care facilities to share your contingency plans and learn about their capabilities and plans.
10. Educate employees now and over the course of a pandemic to limit the negative effects of H1N1 among your workforce.

For more information, go to www.flu.gov.

Floods Impact Atlanta Businesses

An unprecedented eight-day stretch of intense rainfall has ended in Atlanta, but not before flooding claimed nine lives and caused an estimated $250 million in damage. At the center of the devastation is the Chattahoochee River, which rose to levels unseen since 1919. “The waters are subsiding but we’ve lost business,” says Neil Schwartz, president of Balloon Innovations Inc. (asi/131105). “So many roads are closed and people haven’t been able to get to us.” Like many other Atlanta residents, Schwartz lost his car in the storms when a tree was uprooted. “There’s been so much rain and the ground is so saturated that a 75 foot tree landed on it,” Schwartz says.

Todd Duffy, owner of Duffy Promotions (asi/183747), lives about 500 feet from the Chattahoochee in Vinings, GA. “There’s a restaurant called the Canoe Restaurant near me and people were actually taking canoes to get there,” Duffy says. “Just in that parking lot, the water’s been about six feet deep. I have never seen anything like this in all my life.” Duffy lost power for six hours at the height of the flooding. “I ran my business from my BlackBerry,” he says.

Supplier Boxercraft (asi/41325), which is located in Atlanta, says it wasn’t in direct line of the flooding and as a result its operations haven’t been impacted too greatly. However, Cynthia Ng, the company’s director of marketing for print media, says some of the supplier’s employees couldn’t get to work because their neighborhoods were flooded. Also, one of the supplier’s inventory shipments was delayed due to the flooding of rail lines in Atlanta. “The weather has gotten better as of yesterday,” Ng says. “We haven’t been impacted any further, [but] two of our employees had severe damage to their homes.”

Georgia Governor Sonny Perdue has asked for $16.35 million in federal aid and has requested that President Obama issue a federal emergency declaration. Already, the U.S. House of Representatives has unanimously passed a resolution promising assistance. More rain is expected in Georgia this weekend, although forecasters believe the storms will be fast-moving and not produce additional widespread flooding.

Nacabi Trading Acquires Tehama

Nacabi Trading has acquired fashion apparel brand Tehama (asi/62274), and has announced its plan to bring Tehama’s distribution to specialty retailers on an international level. Financial terms of the deal, which were completed on September 15, were not revealed. “We were immediately drawn to Tehama’s philosophy, culture and story,” says Nacabi’s Steven Banks, who becomes the new CEO of Tehama. “Our vision is to evolve the foundation of the brand that was so appropriately established 13 years ago. We believe in the integrity of Tehama, its people and its quality garments.”

Gord Peters, who becomes Tehama’s new president, says Nacabi intends to take the brand back to its roots, citing qualities like natural beauty, honest quality, respect and personal responsibility. “We see endless opportunity for this brand to move through the upscale sportswear industry into a whole host of related lifestyle categories,” says Peters.

Banks has four decades of experience in the men’s and boy’s apparel industry in Canada, including spending four years as the vice president of sales for Christian Dior Chemise. Peters is currently president and owner of Gordon Mitchell Inc., which sells an upscale line of woven dress and sport shirts to stores throughout Canada and the U.S.

According to a spokesperson, Tehama will retain its sales force but will move its headquarters to Palm Beach Gardens, FL, with operating offices in Denver and Toronto. Deliveries are also on track for both the Fall 2009 and Spring 2010 collections. A press release put out by the company says the move will not affect its corporate market operations, and that “the company has been proceeding with business as usual.”

PG-USA Inc. – which manufactures sporting goods, apparel and accessories – will continue to hold a minority stake in Tehama. Nancy Haley, former CEO and co-founder of Tehama, will remain involved as the vice chair of the Advisory Committee. "Nacabi brings the capital, knowledge and experience to take the Tehama brand to new levels within the golf, resort and mainstream retail markets,” she says. “Nacabi and I have the same vision of maintaining the Tehama brand as an industry leader for many years to come."

Broder Adds New Styles to Total Team Guarantee Selections

Broder Brothers Co. (asi/42090) has added several fleece styles to its popular Total Team Guarantee selection of Gildan and Jerzees products. The company also announced that additional Hanes and Outer Banks styles have been added to the TTG selection, due to the program’s success.

Broder's Total Team Guarantee program includes a price match guarantee, an order fulfillment and packing guarantee, and an in-stock guarantee for its Alpha, Broder and NES divisions.

The new Gildan, Jerzees, Hanes and Outer Banks styles will be added to the company’s in-stock guarantee, which previously applied to only the top three Gildan products [G200, G500 and G800] in select colors. The in-stock guarantee states that if the company is out of stock on any of the applicable items, the customer will receive a 5% off coupon that can be used on any order.

New Gildan items added include styles 12000, 12500, 18000 and 18500, in black, sport gray, navy, and white. The new Jerzees fleece styles include 4662M, 4997M, 562M and 996M, in black, true navy, oxford and birch.

The introduction of Hanes and Outer Banks styles to the in-stock guarantee includes a variety of products such as fleece, sport shirts and t-shirts. Hanes styles include 5170, 5180, 5250T, 5280, P1607, P170, 054 and 055 in white, black, navy and light steel. Deep royal is also guaranteed for styles 054 and 055. Outer Banks styles include 2100 and 5011 in white, black, navy and bright red.

To learn more about Broder's Total Team Guarantee visit any one of the company's division Web sites at www.broderbros.com/guarantee, www.alphashirt.com/guarantee or
www.nesclothing.com/guarantee.

SanMar Corp. (asi/84863) has released its 2009 Holiday Gift Guide, targeted to the lucrative gift-giving season.
 
“When buying for a few key clients or an entire office, finding gift ideas can be overwhelming,” says Lee Strom, SanMar senior marketing manager. “We’re hoping to introduce some simplicity to the experience — both to the shoppers and sellers.”
 
This year’s Gift Guide is grouped into six distinct personalities and offers further sales aids, like icons for Under $20 and Under $10 gifts. “We wanted to appeal to a broad range of price points, so there’s an option for nearly everyone,” Strom says.
 
The 2009 Holiday Gift Guide contains more than 65 gifting options and includes the newly arrived lines to SanMar, Columbia Sportswear and OGIO Apparel. For the first time, SanMar’s holiday catalog will be available for custom imprinting. Released in September, the catalog includes suggested retail prices on all items. To request a catalog, call (800) 426-6399 or visit www.sanmar.com.