Business news in brief

QUOTE OF THE DAY “Layoffs are still very, very low. Claims are pointing toward an improvement in the job

market. It’s evidence that the economy’s struggles this year were temporary.” Ryan Sweet, Moody’s Analytics Inc. senior economist Article, 1D

Cage-maker sold, but staying in family

Ownership of Alternative Design Manufacturing & Supply, a manufacturer of animal pens and cages based in Siloam Springs, is changing hands.

Grant Loyd purchased the business from his parents, Eddie and Georga Loyd, for an undisclosed price. No changes are expected for the company’s 51 employees.

Eddie Loyd will continue to work as vice president of business development and he and his wife will remain on the company’s board of directors. Grant Loyd has overseen the company the past two years. He began working in his family’s business in 1987.

Alternative Design reports between $5 million and $10 million in annual revenue, a company spokesman said.

The company produces a number of animal housing options, but is “known for modular ventilated rodent housing for vivariums,” according to a news release.

Mortgage rates show upward twitch

WASHINGTON - Average U.S. rates on fixed mortgages rose slightly this week but remained near historically low levels.

Mortgage buyer Freddie Mac said Thursday that the average rate for the 30-year loan ticked up to 4.41 percent from 4.40 percent last week. The average for the 15-year mortgage increased to 3.47 percent from 3.42 percent.

Mortgage rates have risen about a full percentage point since hitting record lows about a year ago.

To calculate average mortgage rates, Freddie Mac, the Federal Home Loan Mortgage Corp., surveys lenders across the country between Monday and Wednesday each week. The average doesn’t include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.

The average fee for a 30-year mortgage rose to 0.7 point from 0.6 point. The fee for a 15-year loan was unchanged at 0.6 point.

Europe lawmakers back ‘Net neutrality’

AMSTERDAM - The European Parliament voted 534-25 to stop Internet providers from charging for preferential access to their networks on Thursday.

The bill on “net neutrality” will force Internet providers to treat all traffic the same, regardless of its source.

That will prevent major telecom and Internet providers such as Vodafone and Deutsche Telekom from reserving the best of their network for their own services, or selling the lion’s share of bandwidth to big companies such as Google and Netflix, while leaving a slower Internet for everyone else.

While startup companies, consumer groups and online freedom activists welcomed the bill, large European telecommunications companies protested, saying they are increasingly operating at a disadvantage to counterparts in the United States, where a similar bill was rejected this year.

The European bill must pass a final hurdle before it becomes law: approval by the leaders of European Union countries at a Council of the European Union meeting, likely in October.

  • The Associated Press

Libya, rebels hit deal to restart oil flow

The prospects for a recovery in Libyan oil exports moved closer after rebels blocking shipments from the country’s east since July said they reached a deal with the government to allow a resumption.

The rebels’ Executive Office for Barqa, representing the eastern region of Cyrenaica, reached an “agreement in principle” for the terminals to reopen, Ali Al-Hasy, a spokesman for the group, said by phone Wednesday.

Barqa politicians indicated the ports could operate within 24-48 hours, Sliman Qajam, a member of the energy committee in Libya’s government, said by phone Thursday from Tripoli, the capital.

Libyan oil production plunged by more than 1 million barrels a day in the past year as protests halted oil fields and ports. Brent crude futures, used to price more than half of the world’s oil, have fallen to their lowest level in almost four months amid speculation that the export terminals may reopen, adding to supply.

Just-sold Brookstone files Chapter 11

MERRIMACK, N.H. - Brookstone, a staple in malls and airports nationwide, is seeking Chapter 11 bankruptcy protection as part of its $147 million sale to Spencer Spirit Holdings.

The purveyor of personal massagers, iPad keyboards and other gadgets said Thursday that its 240 stores will remain open and business will continue as usual.

The Merrimack, N.H., company announced last week that it would be acquired by Spencer after it had filed for bankruptcy protection. Both companies are privately held.

Brookstone, which was punished by more pragmatic shoppers during the recession and then by growing online competition, has watched sales decline sharply. In its most recent quarter, sales declined by more than 7 percent.

In its bankruptcy filing, Brookstone estimated that it has liabilities between $100 million and $500 million and assets in the same range.

Spencer Spirit, based in Egg Harbor Township, N.J., also has a strong presence in malls. It sells clothing, jewelry and gag gifts at its 644 Spencer’s stores and Halloween costumes at its Spirit pop-up shops.

  • The Associated Press

Kentucky offsets bourbon-barrel tax

FRANKFORT, Ky. - State lawmakers have effectively eliminated a tax on aging barrels of bourbon in a move to protect one of the state’s signature industries.

Kentucky spends that tax money on public education, making it difficult to eliminate the tax completely. This week lawmakers approved a tax credit that would offset the cost of the tax. Public schools would still get their tax money, but overall state revenue would decrease by about $14 million in five years once the tax credit is fully implemented.

Kentucky distillers have increased their inventory of aging bourbon by more than 1 million barrels since 1999.

State tax collections have more than doubled since then.

The law requires Kentucky distillers to spend the savings from the tax on improving facilities in Kentucky, including remodeling to promote tourism.

  • The Associated Press

Business, Pages 28 on 04/04/2014

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