GETCH deal with Citicorp called off
WEST GREENWICH — GTECH Corp., the world’s largest lottery operator, announced Citicorp Services has called off an $11.5 million deal to buy its electronics benefits transfer business. GTECH announced last February that it was selling its money-losing Transactive Corp. electronics benefits service in Austin, Texas to Citicorp. The deal was expected to close last November. But the two companies failed to meet a deadline for the sale to be completed, GTECH said. Transactive provides electronic food stamp and welfare benefits programs to state governments.
Caldor stores closing
NORWALK, Conn. — After struggling for three years to revive its ailing company, discount retailer Caldor Corp., with stores in the Warwick and Lincoln Malls in Rhode Island, said it will close all of its 145 stores and go out of business for good. More than 20,000 employees who work at Caldor’s stores, including those in Rhode Island, will lose their jobs after the stores close in May. The decision to liquidate, which comes after three years of operating under Chapter 11 bankruptcy court protection, followed the refusal of a group of creditors to agree to a plan of reorganization.
Rhode Island's Market Has Changed. Developers, Builders, Investors and Sellers Must Change With It.
By Emilio DiSpirito IV License Partner | Engel & Völkers Oceanside Leader | The DiSpirito…
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Bill would bar fee for using human teller
PROVIDENCE — Banks would be prevented from charging a fee to customers who use a human teller to make a deposit or withdrawal under a bill discussed by a Senate panel. The measure is in response to a $2 fee charged by Fleet Bank to customers who sign up for an electronic banking account called “Self Service Checking,” then use a human teller for something they could have done at an automated teller machine or from a personal computer. Fleet appears to have been the first bank in New England to adopt the fee. People’s Bank and Webster Bank, both in Connecticut, also charge the fee to electronic banking customers.
Pay board gives department heads 3.5 percent raise
PROVIDENCE — The state Unclassified Pay Board has decided to give heads of state departments a 3.5 percent pay raise that will go into effect in July. The only significantly larger raise was given to Barbara Rayner, director of the Department of Elderly Affairs. Her salary will go up from $78,810 a year to $85,212. The Almond administration said Rayner’s salary is too low compared to other department heads, The Providence Journal reported. Others received additional bonuses based on longevity and education. Under the pay raise, Correction Director George Vose will see his pay go from $107,769 to $111,541 a year, Administration Director Robert Carl’s salary will go up from $114,128 to $118,056; and Health Director Patricia Nolan’s pay hike puts her at $119,396 from $115,411. The Board also applied the 3.5 percent increase to two vacant positions. The director of the Environmental Management will get $96,890 and the director of the Department of Business Regulation will get $90,761.
Officials worried about investment in Alpha-Beta
SMITHFIELD – The Rhode Island Economic Development Corporation was concerned last week that Alpha-Beta Technology, which said it would close its Smithfield plant in the wake of its decision to halt late-stage trials for a drug it was developing to prevent infections in patents undergoing stomach or internal surgery, would default on payments on $30 million in state bonds. The bonds were issued by the Port Authority to help finance the company’s $42 million Smithfield facility. Company officials said that early findings showed the drug didn’t work. The Nasdaq Stock Market halted trading as it awaits additional information from the company.
Governor sets Y2K deadlines
PROVIDENCE — Gov. Lincoln Almond, in the wake of some public concern about the state’s progress in resolving potential Year 2000 computer problems, issued an executive order last week calling for state departments to designate Year 2000 teams to resolve operation issues by the end of 1999. Almond’s executive order included specific deadlines for various steps: remediation, June 30; testing, Aug. 15; development of contingency plans, July 31; confirmation of vendor compliance, June 30; verification and validation, Sept. 15. The governor is also requiring monthly reports on Y2K progress, beginning in March.
Microsoft sues Johnston store, 7 others
JOHNSTON – A small computer store, Compusource, is among eight New England retailers being sued in federal court by Microsoft, which is accusing the companies of selling counterfeit software. Microsoft maintains that the retailers have violated copyright and trademark laws by selling and distributing software that is unlicensed and sometimes pirated. The suit against the Johnston company was filed in federal court in Providence. Microsoft has been cracking down on software piracy and previously had filed similar suits in Texas, Missouri, California, Oregon and North Carolina
Unemployment rate lowest in a decade
The state’s seasonally adjusted unemployment rate of 4 percent in December was the lowest in a decade – since August 1989 – and down from 5 percent in November and 4.9 percent for December 1997. Rhode Island’s unemployment rate was below the national rate of 4.3 percent. The number of unemployed Rhode Islanders fell by 4,400 to 20,200. Job growth over the year – from December 1997 to December 1998 – was 0.7 percent.
