Atari U.S. operation files for bankruptcy









The U.S. operations of iconic but long-troubled video game maker Atari have filed for bankruptcy in an effort to break free from their debt-laden French parent.


Atari Inc. and three of its affiliates filed petitions for Chapter 11 reorganization in U.S. Bankruptcy Court in New York late Sunday.


Its leaders hope to break the American business free from French parent Atari S.A. and in the next few months find a buyer to take the company private. They hope to grow a modest business focused on digital and mobile platforms, according to a knowledgeable person not authorized to discuss the matter privately.





Although the 31-year-old brand is still known worldwide for its pioneering role with video games such as "Pong" and "Asteroids," Atari has been mired in financial problems for decades. Since the early 2000s it has been closely tied to French company Infogrames, which changed its name to Atari S.A. in 2003 and in 2008 acquired all the gaming pioneer's American assets.


Chief Executive Jim Wilson has been with Atari Inc. since 2008, and in 2010 became CEO of the French parent. The New York-based executive has attempted to rebuild the company, which has just 40 employees in the U.S., by developing games for smartphones and the Web based on well-known properties -- among them a successful "greatest hits" compilation of arcade titles and an updated version of "Pong." He has also licensed the Atari logo for consumer products, a business that provides about 17% of the company's revenue.


There is evidence that the U.S. operation, which after the sale of other assets now makes up the bulk of Atari S.A.'s business, has been improving. The corporate parent has been profitable for the last two fiscal years, save for the effect of a money-losing French subsidiary, Eden Games, that has been up for sale. Before that, neither Atari S.A. nor Infogrames had been profitable for about a decade.


Still, its profits have been small ($11 million and $4 million, respectively, for the last two fiscal years) and revenue plummeted 34% in fiscal 2012 and 43% in fiscal 2011.


But the company's growth potential has been hampered by its near total reliance on London financial company BlueBay Asset Management for cash. A $28-million credit facility with BlueBay lapsed Dec. 31, leaving Atari without the resources to release games currently in the works, including a real-money gambling title titled "Atari Casino."


Efforts to recapitalize the corporation have been unsuccessful, in part because of its complex structure as essentially an American business with a French public stock listing.


Shares in Atari S.A. have dropped in value from more than 11 Euros in 2008 to less than 1 Euro recently.


Atari Inc. has secured several a commitment for $5.25 million dollars in debtor-in-possession financing to continue operations and release games. If Chapter 11 is successfully completed, the U.S. business could reemerge with its own resources and little or no debt to BlueBay.


It's not yet clear who might step up to buy Atari Inc., although Wilson will probably seek backers to help him keep control. It's also possible the company could be sold to another buyer, whole or in pieces.


Atari's remaining French businesses would probably seek legal protection to find a buyer or dissolve in that country.


Representatives for Atari S.A. and Bluebay did not immediately respond to requests for comment.


ALSO:


Atari reboot is underway


Digital projection has drive-in movie theaters reeling


Weinstein Co. asks toymakers to discontinue 'Django' action figures





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Some give up their guns as others rally against tighter laws









DALLAS — On one side of Young Street, volunteers from First Presbyterian Church of Dallas attempted to persuade gun owners to turn in their firearms. They would receive $50 to $200 — from donors — and know that their guns would be destroyed.


Across the downtown street, members of the Right Group — formed to compete with the church event — set up in a rented vacant lot to urge visitors to resell their firearms rather than destroy them. They had signs reading "We pay more" and "Gun rescue."


The dueling buybacks came on a day when thousands attended peaceful Guns Across America rallies at state capitals nationwide to oppose tighter gun laws. Separately, a Republican consulting firm had promoted Saturday as Gun Appreciation Day, three days after President Obama laid out a slew of proposals designed to restrict gun access in the wake of last month's Newtown, Conn., school shooting.





Among the hundreds who gathered in Sacramento in front of the Capitol was Christina Marotti, 33, of East Sacramento, who brought her daughters, ages 2 and 4. One had a sign saying, "My mom [hearts] guns." The other's said, "Arm my teacher."


"Wherever you take away the right to have guns, the crime rate increases," Marotti said. "As a mother, that scares me."


Some customers at the bustling Los Angeles Gun Club, a popular downtown shooting range, were unaware of the Gun Appreciation Day campaign.


"Yay for the 2nd Amendment, especially in the times we're in now," said Jonathan Wright, who was celebrating his upcoming 24th birthday with a group of friends.


Alex Katz, 25, who said he visited ranges a couple of times a month and described himself as pro-gun control, found the "appreciation day" concept "a little tasteless right now."


In Dallas, the church made the first buyback purchase: $50 for an old pistol from a pair of local women.


Scott Mankoff, 43, of Dallas waded through the rival group's crowd of about 100 — then headed to the church.


Mankoff, a retired artist, opposes new gun laws but came to turn in a spare .22 rifle to be destroyed because of the Newtown shootings.


"It's not about the money — it's about getting it off the street," he said.


For others, it was more about the money.


They showed up to sell .22 rifles, .40- and .45-caliber handguns, a Ruger M-77 rifle, a Chinese SKS rifle, some for $400. One 19-year-old showed up trying to sell his customized AR-15, worth about $1,000, knowing gun prices spiked after the Newtown shootings.


James Brown, 41, of Dallas initially went to the church buyback but got tired of waiting in the long line with his 13-year-old son.


When they crossed the street, they were applauded and led to the back of a pickup truck, where Brown's Rossi Ranch Hand .45 was auctioned for $300 and his .25 handgun for $200.


"I prefer to keep it in the family. If it's a good gun, and people can use it, why not sell it?" he said.


Brown said he didn't blame guns for the tragedy at Newtown.


"A gun can be your best friend. You get thugs on the street and you can protect your family," he said.


The church, a long-established landmark with a congregation of 1,600 that includes the mayor, has staged buybacks in the past, but it had never faced a counter-buyback. Some organizers were irritated to see people drawn to the other lot. The pastor's wife, Carol Adams, started toting a sign of her own and alerting police when she thought those across the street were becoming too aggressive.





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100 Years of U.S. Presidential Inaugurations






On March 4, 1913, Woodrow Wilson took the oath of office. Nearly 100 years later, Barack Obama will take that same oath.


The U.S. presidential inauguration looks a tad different than it did a century ago. In 1913, women still did not have the right to vote and Wilson rode to the Capitol in a horse-drawn carriage. And don’t expect to see President Obama wearing a silk top hat like Wilson either.






[More from Mashable: Watch Every President’s Inauguration Since Reagan in 36 Seconds]


Thanks to the digital archiving of government images, zipping through 100 years of presidential history doesn’t even require a trip to the library. We’ve compiled the most memorable photographs and videos taken at presidential inaugurations since 1913 for a scrollable history lesson.


[More from Mashable: The Letters Kids Wrote to Obama About Gun Control]


If you like your history well-aged, then there’s also a special gallery at the bottom featuring images from inaugurations that occurred before 1913 — including those of Abraham Lincoln, Theodore Roosevelt and Ulysses S. Grant.


Woodrow Wilson, March 4, 1913


“President-elect Wilson and President Taft, standing side by side, laughing, at White House prior to Wilson’s inauguration ceremonies” Image courtesy of Library of Congress


Image courtesy of Library of Congress


Image courtesy of Library of Congress


Woodrow Wilson, March 5, 1917


Image courtesy of Library of Congress


“Telegram from Evangeline Booth, Commander of the Salvation Army” Image courtesy of Library of Congress


Warren G. Harding, March 4, 1921


“Woodrow Wilson, Warren G. Harding, Philander Knox and Joseph Cannon, in convertible” Image courtesy of Library of Congress


Image courtesy of Library of Congress


Calvin Coolidge, March 4, 1925


“President Coolidge, Mrs. Coolidge and Senator Curtis on the way to the Capitol” Image courtesy of Library of Congress


Herbert Hoover, March 4, 1929


Image courtesy of Library of Congress


Franklin D. Roosevelt, March 4, 1933


Inaugural Program, Inauguration. Franklin D. Roosevelt President of the United States. John N. Garner Vice President of the United States. Image courtesy of Library of Congress


Image courtesy of Library of Congress


Franklin D. Roosevelt, January 20, 1937


Image courtesy of Library of Congress


Image courtesy of Library of Congress


“Ticket for the 1937 inauguration, the first to take place on January 20th.” Image courtesy of FDR Library


“Eleanor Roosevelt poses in her inaugural gown at the White House.” Image courtesy of FDR Library


Franklin D. Roosevelt, January 20, 1941


“Franklin and Eleanor Roosevelt riding in an open car, returning to the White House from FDR’s third inauguration.” Image courtesy of FDR Library


Excerpt from home movie of FDR driving and walking with assistance to take the Oath of Office on January 20, 1941.


Franklin D. Roosevelt, January 20, 1945


Image courtesy of Library of Congress


“Crowd stands in snow for inauguration” Image courtesy of Library of Congress


Harry S. Truman, January 20, 1949


“Truman and Barkley during Inaugural parade.” Image courtesy of Truman Library


Dwight D. Eisenhower, January 20, 1953


“Ike responds to cheers of crowd.” Image courtesy of Library of Congress


“With smiles and a wave, President Harry Truman and his successor, Dwight D. Eisenhower, leave White House in an open car on way to Capitol for inauguration ceremonies.” Image courtesy of Library of Congress


Dwight D. Eisenhower, January 21, 1957


“President Eisenhower waves to the crowd” Image courtesy of Eisenhower Library


“Dwight Eisenhower and Richard Nixon watching inaugural parade with Anne & David Eisenhower and Julie & Tricia Nixon” Image courtesy of Eisenhower Library


“Dwight and Mamie Eisenhower attend the Inaugural Ball with John and Barbara Eisenhower” Image courtesy of Eisenhower Library


John F. Kennedy, January 20, 1961


Image courtesy of National Archives


“President-elect John F. Kennedy shakes hands with Father Richard J. Casey, the Pastor, after attending Mass at Holy Trinity Church … prior to inauguration ceremonies.” Image courtesy of Library of Congress


Lyndon B. Johnson, January 20, 1965


“President Lyndon B. Johnson, Lady Bird Johnson, Lynda Bird Johnson, and Luci Baines Johnson preparing for Inauguration ceremonies.” Image courtesy of LBJ Library


Image courtesy of Library of Congress


“Secret service agents try to hold back the crowds that surge forward to watch President Johnson dance with the First Lady at the inaugural ball at the National Guard Armory” Image courtesy of Library of Congress


Richard M. Nixon, January 20, 1969


Image courtesy of Library of Congress


“President and Mrs. Nixon waving to the crowd from the Presidential limousine in the inaugural motorcade” Image courtesy of Library of Congress


Richard M. Nixon, January 20, 1973


Image courtesy of White House


Image courtesy of Library of Congress


Jimmy Carter, January 20, 1977


Image courtesy of Jimmy Carter Presidential Library


Image courtesy of Library of Congress


Ronald Reagan, January 20, 1981


Image courtesy of Library of Congress


Image courtesy of Library of Congress


Ronald Reagan, January 21, 1985


Image courtesy of Reagan Library


“1985 Inaugural Ball: President and Mrs. Reagan in National Air and Space Museum” Image courtesy of Smithsonian


George H. W. Bush, January 20, 1989


Image courtesy of Smithsonian


“1989 Presidential Inaugration, George H. W. Bush, Opening Ceremonies, at Lincoln Memorial” Image courtesy of Smithsonian


Bill Clinton, January 20, 1993


“While the Clintons and Gores watch, Chelsea Clinton rings a replica of the Liberty Bell during festivities kicking off the Clinton/Gore 1993 Inaugural events.” Image courtesy of Smithsonian


“George Bush and Bill Clinton shake hands just after the inaugural ceremonies at the U.S. Capitol.” Image courtesy of Smithsonian


Image courtesy of Smithsonian


Bill Clinton, January 20, 1997


Image courtesy of Smithsonian


Image courtesy of Smithsonian


George W. Bush, January 20, 2001


Image courtesy of White House


Image courtesy of Library of Congress


George W. Bush, January 20, 2005


Image courtesy of White House


Image courtesy of White House


Image courtesy of White House


Barack Obama, January 20, 2009


Image courtesy of Master Sgt. Cecilio Ricardo, U.S. Air Force


“President Barack Obama is given the Oath of Office for a second time by Chief Justice John G. Roberts” Image courtesy of Pete Souza/White House


“President Barack Obama and First Lady Michelle Obama share a private moment in a freight elevator at an Inaugural Ball” Image courtesy of Pete Souza/White House


“President Barack Obama and First Lady Michelle Obama ride in a golf cart at an Inaugural Ball” Image courtesy of Pete Souza/White House


BONUS: Pre-1913 Presidential Inaugurations


Inauguration of Abraham Lincoln, March 4, 1861


Image courtesy of Library of Congress


Click here to view this gallery.


This story originally published on Mashable here.


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Obama girls rock out with military kids at concert


WASHINGTON (AP) — Usher sang "Yeah!" Katy Perry donned star and stripes for "Firework." And a ballroom full of lucky kids got to rock out with Sasha and Malia Obama at Saturday's Kids' Inaugural Concert, a star-studded event that honors America's military families.


"Now, inauguration is a pretty big deal," first lady Michelle Obama, who hosted the event along with Jill Biden, told the assembled families at the Washington Convention Center. "But I have to tell you that my very favorite part of this entire weekend is being right here with all of you." She paid tribute to the sacrifices that military families make, including their kids.


Pointing out that such kids often attend six to nine schools by the end of high school, always having to be "the new kid," she said being a military kid meant "growing up just a little faster, and working just a little harder than other kids." The concert was streamed live to several military bases around the country.


This was the second such concert for the Obama girls, and the choice of talent seemed to reflect the fact that they are four years older. While in 2009 they were entertained by Miley Cyrus and the Jonas Brothers, this time it was Usher and Perry, along with the groups Mindless Behavior and Far East Movement. Also performing were cast members from the Fox TV hit "Glee."


Usher, in black leather, kicked off the proceedings with his hit "Yeah!," followed by "Without You" and "OMG," earning a huge cheer from the crowd. In between acts, there were kid-friendly diversions like a dance-off, or a race among mascots of the Washington Nationals: oversized versions of presidents like George Washington, Abraham Lincoln and Teddy Roosevelt.


Three members of the "Glee" cast were greeted warmly by the crowd: Naya Rivera, who plays Santana; Darren Criss, who plays Blaine; and Amber Riley, who plays Mercedes.


Nick Cannon emceed the evening, but it was Mrs. Obama, sporting her new bangs and wearing a white peplum shirt over black pants, who got to introduce the top attraction.


"It is now my pleasure to introduce the fabulous Katy Perry!" she said, and the singer emerged in what looked like a vintage swimsuit, covered patriotically with stars and stripes. She sang her hits "Teenage Dream," ''Part of Me," ''Wide Awake" and then "Firework," which was accompanied by a slide show of President Barack Obama: Obama in the Oval Office, Obama exiting Air Force One, Obama greeting LeBron James.


"I'm very proud to be here ... and to see the Obamas and the Bidens here for four more years," she said.


Perry was the favorite of concertgoer Dylan Garvin, 12, who came from Wilmington, Del. "I thought it was incredible," Dylan said of the concert. "It's a great way to celebrate."


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Well: Holly the Cat's Incredible Journey

Nobody knows how it happened: an indoor housecat who got lost on a family excursion managing, after two months and about 200 miles, to return to her hometown.

Even scientists are baffled by how Holly, a 4-year-old tortoiseshell who in early November became separated from Jacob and Bonnie Richter at an R.V. rally in Daytona Beach, Fla., appeared on New Year’s Eve — staggering, weak and emaciated — in a backyard about a mile from the Richter’s house in West Palm Beach.

“Are you sure it’s the same cat?” wondered John Bradshaw, director of the University of Bristol’s Anthrozoology Institute. In other cases, he has suspected, “the cats are just strays, and the people have got kind of a mental justification for expecting it to be the same cat.”

But Holly not only had distinctive black-and-brown harlequin patterns on her fur, but also an implanted microchip to identify her.

“I really believe these stories, but they’re just hard to explain,” said Marc Bekoff, a behavioral ecologist at the University of Colorado. “Maybe being street-smart, maybe reading animal cues, maybe being able to read cars, maybe being a good hunter. I have no data for this.”

There is, in fact, little scientific dogma on cat navigation. Migratory animals like birds, turtles and insects have been studied more closely, and use magnetic fields, olfactory cues, or orientation by the sun.

Scientists say it is more common, although still rare, to hear of dogs returning home, perhaps suggesting, Dr. Bradshaw said, that they have inherited wolves’ ability to navigate using magnetic clues. But it’s also possible that dogs get taken on more family trips, and that lost dogs are more easily noticed or helped by people along the way.

Cats navigate well around familiar landscapes, memorizing locations by sight and smell, and easily figuring out shortcuts, Dr. Bradshaw said.

Strange, faraway locations would seem problematic, although he and Patrick Bateson, a behavioral biologist at Cambridge University, say that cats can sense smells across long distances. “Let’s say they associate the smell of pine with wind coming from the north, so they move in a southerly direction,” Dr. Bateson said.

Peter Borchelt, a New York animal behaviorist, wondered if Holly followed the Florida coast by sight or sound, tracking Interstate 95 and deciding to “keep that to the right and keep the ocean to the left.”

But, he said, “nobody’s going to do an experiment and take a bunch of cats in different directions and see which ones get home.”

The closest, said Roger Tabor, a British cat biologist, may have been a 1954 study in Germany which cats placed in a covered circular maze with exits every 15 degrees most often exited in the direction of their homes, but more reliably if their homes were less than five kilometers away.

New research by the National Geographic and University of Georgia’s Kitty Cams Project, using video footage from 55 pet cats wearing video cameras on their collars, suggests cat behavior is exceedingly complex.

For example, the Kitty Cams study found that four of the cats were two-timing their owners, visiting other homes for food and affection. Not every cat, it seems, shares Holly’s loyalty.

KittyCams also showed most of the cats engaging in risky behavior, including crossing roads and “eating and drinking substances away from home,” risks Holly undoubtedly experienced and seems lucky to have survived.

But there have been other cats who made unexpected comebacks.

“It’s actually happened to me,” said Jackson Galaxy, a cat behaviorist who hosts “My Cat From Hell” on Animal Planet. While living in Boulder, Colo., he moved across town, whereupon his indoor cat, Rabbi, fled and appeared 10 days later at the previous house, “walking five miles through an area he had never been before,” Mr. Galaxy said.

Professor Tabor cited longer-distance reports he considered credible: Murka, a tortoiseshell in Russia, traveling about 325 miles home to Moscow from her owner’s mother’s house in Voronezh in 1989; Ninja, who returned to Farmington, Utah, in 1997, a year after her family moved from there to Mill Creek, Wash.; and Howie, an indoor Persian cat in Australia who in 1978 ran away from relatives his vacationing family left him with and eventually traveled 1,000 miles to his family’s home.

Professor Tabor also said a Siamese in the English village of Black Notley repeatedly hopped a train, disembarked at White Notley, and walked several miles back to Black Notley.

Still, explaining such journeys is not black and white.

In the Florida case, one glimpse through the factual fog comes on the little cat’s feet. While Dr. Bradshaw speculated Holly might have gotten a lift, perhaps sneaking under the hood of a truck heading down I-95, her paws suggest she was not driven all the way, nor did Holly go lightly.

“Her pads on her feet were bleeding,” Ms. Richter said. “Her claws are worn weird. The front ones are really sharp, the back ones worn down to nothing.”

Scientists say that is consistent with a long walk, since back feet provide propulsion, while front claws engage in activities like tearing. The Richters also said Holly had gone from 13.5 to 7 pounds.

Holly hardly seemed an adventurous wanderer, though her background might have given her a genetic advantage. Her mother was a feral cat roaming the Richters’ mobile home park, and Holly was born inside somebody’s air-conditioner, Ms. Richter said. When, at about six weeks old, Holly padded into their carport and jumped into the lap of Mr. Richter’s mother, there were “scars on her belly from when the air conditioner was turned on,” Ms. Richter said.

Scientists say that such early experience was too brief to explain how Holly might have been comfortable in the wild — after all, she spent most of her life as an indoor cat, except for occasionally running outside to chase lizards. But it might imply innate personality traits like nimbleness or toughness.

“You’ve got these real variations in temperament,” Dr. Bekoff said. “Fish can by shy or bold; there seem to be shy and bold spiders. This cat, it could be she has the personality of a survivor.”

He said being an indoor cat would not extinguish survivalist behaviors, like hunting mice or being aware of the sun’s orientation.

The Richters — Bonnie, 63, a retired nurse, and Jacob, 70, a retired airline mechanics’ supervisor and accomplished bowler — began traveling with Holly only last year, and she easily tolerated a hotel, a cabin or the R.V.

But during the Good Sam R.V. Rally in Daytona, when they were camping near the speedway with 3,000 other motor homes, Holly bolted when Ms. Richter’s mother opened the door one night. Fireworks the next day may have further spooked her, and, after searching for days, alerting animal agencies and posting fliers, the Richters returned home catless.

Two weeks later, an animal rescue worker called the Richters to say a cat resembling Holly had been spotted eating behind the Daytona franchise of Hooters, where employees put out food for feral cats.

Then, on New Year’s Eve, Barb Mazzola, a 52-year-old university executive assistant, noticed a cat “barely standing” in her backyard in West Palm Beach, struggling even to meow. Over six days, Ms. Mazzola and her children cared for the cat, putting out food, including special milk for cats, and eventually the cat came inside.

They named her Cosette after the orphan in Les Misérables, and took her to a veterinarian, Dr. Sara Beg at Paws2Help. Dr. Beg said the cat was underweight and dehydrated, had “back claws and nail beds worn down, probably from all that walking on pavement,” but was “bright and alert” and had no parasites, heartworm or viruses. “She was hesitant and scared around people she didn’t know, so I don’t think she went up to people and got a lift,” Dr. Beg said. “I think she made the journey on her own.”

At Paws2Help, Ms. Mazzola said, “I almost didn’t want to ask, because I wanted to keep her, but I said, ‘Just check and make sure she doesn’t have a microchip.’” When told the cat did, “I just cried.”

The Richters cried, too upon seeing Holly, who instantly relaxed when placed on Mr. Richter’s shoulder. Re-entry is proceeding well, but the mystery persists.

“We haven’t the slightest idea how they do this,” Mr. Galaxy said. “Anybody who says they do is lying, and, if you find it, please God, tell me what it is.”

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Downtown L.A.'s edgy arts district is neighborhood in transition









When Gideon Kotzer set out to open a discount electronics store in the mid-1990s, he deliberately chose an old warehouse in the cultural middle of nowhere — the arts district of downtown Los Angeles, which charitably could be called sketchy.


Crazy Gideon's on Traction Avenue became an island of commerce in an area that saw little other retail activity beyond illegal drug sales. The store's remoteness in an otherwise unwelcoming warren of aging brick and concrete industrial buildings was central to Kotzer's business strategy.


"He bought that space with the mind-set that if people would drive to a desolate, faraway neighborhood, they wouldn't want to leave empty-handed," his son Daniel Kotzer said.








PHOTOS: A neighborhood in transition


Crazy Gideon's has closed, and its formerly shabby space in the 1917 structure is expected to open to the public again this year as an expansive brew pub serving house-made beer with meals. The upgrade is emblematic of changes going on throughout the arts district.


The neighborhood along the Los Angeles River east of downtown's Civic Center is drawing favorable comparisons to New York's meatpacking district, where trendy shops, restaurants, hotels and offices have taken over many industrial buildings that were strictly blue collar for decades.


The transformation has such momentum that some of the neighborhood's biggest supporters expect that it will be difficult to find artists in the arts district in another decade as gentrification drives up rents and pushes low-paid artists to cheaper locales.


But for now, the arts district is in a sweet spot of transition for many. Vegetable wholesalers and furniture makers share streets with top-flight restaurants and front-line technology and entertainment firms. Its walls sport elaborate murals — and foreboding razor wire.


"There are very rough patches," said architect Scott Johnson, who lives in a condominium on Industrial Street. "It's muscular. It's complicated. It's interesting."


Part of the appeal for Johnson, who lived in the meatpacking district in the late 1970s, is the roughness most suburbanites would find off-putting. He calls it "authenticity" in a time when "we're getting bombarded with fake stuff."


The spine of the arts district is Mateo Street, a truck-laden thoroughfare named after early landowner Matthew "Don Mateo" Keller. The district evolved from agricultural uses including Mateo's winery in the mid-1800s to being the city's industrial heart in the early 20th century.


One of the most ambitious private developments of that era was Union Terminal Annex, which was connected by rail to the city's seaport and was the second-largest wholesale terminal in the world. Two of the four large remaining buildings are occupied by clothing manufacturer American Apparel Inc., and the owners are improving and divvying up long-vacant remaining space for other business tenants including the makers of Splendid and Ella Moss apparel.


The advanced age of the neighborhood's buildings worked against the district in recent decades as businesses moved to more modern, efficient industrial properties elsewhere in the region. Those that remained often barricaded themselves behind tall gates and barbed wire as the area gained a reputation for crime and homelessness.


"There were drug addicts and prostitutes on the corner when we started," said restaurateur Yassmin Sarmadi, who began working on French bistro Church & State seven years ago. "Now limousines pull up on a regular basis."


Sarmadi opened her bistro in the former West Coast headquarters of National Biscuit Co., a seven-story factory built in 1925 that was renovated and converted to condos in 2006. She was attracted to the historic nature of the building, she said, and the fact that it was remote from the elite restaurant enclaves of the Westside.


"It was far more exciting for me to be in a place that wasn't already 'there,' so to speak," Sarmadi said.


She lives in the arts district and enjoys the company of artists who are neighbors, but knows that the march of prosperity will make it hard for some of them to stay. It may take 10 more years to become as affluent as once-lowly Venice, Sarmadi said, but gentrification will come.


"I think it's inevitable," she said. "It brings a tear to my eye, but it's also progress."


Guiding change is Tyler Stonebraker, who helps young businesses such as film and television production company Skunk set up shop in old warehouses and factories.


Stonebraker's real estate firm Creative Space caters to creative companies that consider nontraditional offices essential to their identities and part of their appeal to desirable workers in the millennial generation.





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A backyard nuclear shelter? Yes, paranoia does sell








One sterling quality of American businesses is that they'll try to make money from anything.


Paranoia, for instance. So say hello to Ron Hubbard, the owner of Montebello-based Atlas Survival Shelters, which converts huge corrugated metal tubes up to 50 feet long into fully equipped, all-the-comforts-of-home underground shelters at a price of up to about $78,000 each, not including shipping and interment.


You may have spotted the Atlas shop from the 5 Freeway as you're heading into downtown. There's a corrugated tube out front, painted bright yellow and looking like a tipped-over corn silo. High on the exterior wall facing the road is a banner declaring that the shelters offer protection from nuclear blasts, nuclear fallout, EMP (that's electromagnetic pulses, which can foul electrical systems), solar flares, mobs, looters, earthquakes and chemical warfare. If there's anything left off that list, it's probably not worth worrying about.






"People who buy my shelters are not radical crazy people," Hubbard told me recently as he guided me around the Montebello shop. "I get maybe three crazy calls a year. They're practical people."


Hubbard, 50, is a big Texan with a toothy grin and the friendly enthusiasm of someone trying to sell you something. He'll expound cheerily on the basic practicality, not to mention the sheer joy, of having a 40-foot corrugated steel drum buried 20 feet deep in your yard and tricking it out with a big-screen TV and Internet connection for those long days and nights hunkered down against nuclear blasts, the Chinese army or domestic looters. His shelters also offer such necessities as microwave ovens, space for a year's worth of provisions and high-grade air filtration.


"We don't know where our country will go," he said. "If we're going to be attacked, my shelters will protect you from Sarin gas or super flu. If we go bankrupt and we don't pay China, that could be the start of World War III. We could attack Iran or back Israel, and that could start a war. This is insurance. Why do we carry insurance on our homes? Just. In. Case."


Hubbard doesn't describe these dystopias as though he actually believes in them, but rather with the air of a salesman trying out any buzzword that might trigger a deal. During the couple of hours we were together, he described his products serially as underground condos, second homes, combination second homes and bomb shelters, man caves, man caves that happen to be bombproof, weekend cabins and hunting cabins.


Atlas Survival Shelters hasn't turned a significant profit yet. Hubbard said it made no money in the start-up year of 2011, was modestly in the black last year and may show a profit for 2013. But the business is unusual enough that it has won featured spots on several reality shows. An episode on A&E Network's "Shipping Wars" shows a team of moving experts trying to figure out how to transport a 32-foot shelter on their flatbed truck. During the episode Hubbard regales them with the virtues of the unit's escape-hatch feature, a second portal that opens only from the inside, in case of an attack.


"Somebody sees you going down; while they're trying to smoke you out, you're going to the back tunnel, you're gonna come up through an escape hatch that's hidden underground, you can shoot 'em in the back. Pretty cool, huh?" (Remarked one of the show's plainly creeped-out female cast members, "Remind me to never pay him a visit.")


More recently, Atlas was featured on an episode of the National Geographic Channel series "Doomsday Preppers," which chronicles the lifestyles of the scared and nervous. Hubbard's customer is described in network publicity as Brian Smith, a father of 12 "preparing for a total collapse of the U.S. monetary system."


Hubbard got into the underground shelter business a little more than a year ago after years of selling wrought-iron doors from the same location, operating as Hubbard Iron Doors. That business was brought low by the poor economy and cheap Chinese knockoffs, Hubbard says. It filed for bankruptcy in 2011; Hubbard says it's now owned and run by his brother, though the two companies share space with each other.


While he was casting about for a new business, Hubbard said, he happened across a brochure for Radius Engineering International, a Texas company that manufacturers fiberglass shelters mostly for business, government and military buyers. But the Radius products were expensive — they run from $150,000 up to millions, depending on the design and capacity. Hubbard thought he could do better on price while turning out a more appealing hideaway.


He's still trying to get a feel for the market, however. With his six or seven full-time workers, he can turn out one shelter a week. Orders, he said, come in at somewhere between one a month and one a week, more in periods of publicity-driven paranoia — during the run-up to the supposed Mayan apocalypse at the end of December, he said, calls jumped up to one a day.


The joke was on the callers, however, because Hubbard's six-week lead time meant that no one who called because they had just seen a Mayan feature on TV could get a shelter built, much less on site and in the ground, in time to beat the end of the world. Luckily, the apocalypse was a bust.


And for all that he plays up Armageddon in all its possible varieties in his sales pitch, doomsday may not be that great a marketing tool. "If I just sold bomb shelters, there would be about this big of a market." Hubbard holds his thumb and forefinger a half-inch apart. "But if I say, 'man cave,' 'wine cellar,' 'getaway,' then I get the recreational shelter owner too."


He says most of his calls come from retired military men, doctors, lawyers and business owners — possibly because the latter are among the few categories of buyers with the wherewithal to plunk down $60,000 or $70,000 for a man cave/bomb shelter, plus installation.


The size of the overall shelter market is unclear, in part because its promoters make a point of secrecy about whom they sell to and where. Privately held Radius has claimed to sell more than $30 million worth of shelters a year, but you have to take their word for it.


Then there are firms like Vivos Group, a Del Mar, Calif., company that claims to have started survivalist communities in three states — but they appear to be sort of co-op arrangements in which you have to apply to be considered for "co-ownership" of your refuge community. Once you're chosen, they'll let you know where to go when the end times come.


"This is just the threshold of something that's going to become common," Hubbard said, putting a hopeful spin on his words as though aware that paranoia may be peaking today, but gone tomorrow. "So I say, don't buy a bomb shelter. Buy an underground cabin, and enjoy it."


Michael Hiltzik's column appears Sundays and Wednesdays. Reach him at mhiltzik@latimes.com, read past columns at latimes.com/hiltzik, check out facebook.com/hiltzik and follow @latimeshiltzik on Twitter.






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Paid apps are history






This week marked an important moment in the evolution of the iOS app market. As Pages just slipped out of the iPad top 10 highest grossing apps chart, there are now no paid apps among the ten applications that generate most revenue on the iPad. When the iPad application market was born a few years ago, it was dominated by relatively stiffly priced applications, mimicking the PC software or game console software markets. But over the past couple of years, app vendors have realized that free apps with clever in-app purchasing hooks create much more revenue than paid apps.


[More from BGR: BlackBerry 10 browser smokes iOS 6 and Windows Phone 8 in comparison test [video]]






The same applies to the iPhone — there is only one paid app among the twenty highest grossing iPhone apps today. It is notable that some of the highest grossing apps have relatively low download volumes. Clash of Clans has been the top-grossing iPad application for all of January, but it is only ranked 53rd on the iPad download chart. Hay Day is the seventh-biggest application when it comes to revenue generation on the iPhone, but is only ranked at #104 when it comes to download volume.


[More from BGR: Galaxy S IV benchmarks may confirm 1.8GHz CPU and Android 4.2]


Leading app developers have figured out how to decouple download volume from revenue generation by creating free games that seduce their fans into paying steadily for in-app features. The types of of games that require a $ 0.99 or a $ 2.99 fee per download are turning into something resembling nostalgia items. For a stark example of how badly the revenue generation power of paid apps has faded, consider that the current #1 paid app on iPhone, Wood Camera, is 46th on the iPhone chart that lists top-grossing apps.  The future belongs to free apps.


This article was originally published on BGR.com


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J.J. Abrams to produce Lance Armstrong biopic


LOS ANGELES (AP) — He's already gotten the Oprah treatment. Now Lance Armstrong is headed for the silver screen.


Paramount Pictures and J.J. Abrams' production company, Bad Robot, are planning a biopic about the disgraced cyclist, a studio spokeswoman said Friday.


They've secured the rights to New York Times reporter Juliet Macur's upcoming book "Cycle of Lies: The Fall of Lance Armstrong," due out in June. Macur covered the seven-time Tour de France winner for over a decade.


No director, writer, star or start date have been set.


Armstrong is in the midst of a two-part interview with Oprah Winfrey in which he admits to using performance-enhancing drugs to reach his historic victories, something he'd defiantly denied for years. The International Olympic Committee stripped him of his 2000 bronze medal this week.


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Business Briefing | Medicine: F.D.A. Clears Botox to Help Bladder Control



Botox, the wrinkle treatment made by Allergan, has been approved to treat adults with overactive bladders who cannot tolerate or were not helped by other drugs, the Food and Drug Administration said on Friday. Botox injected into the bladder muscle causes the bladder to relax, increasing its storage capacity. “Clinical studies have demonstrated Botox’s ability to significantly reduce the frequency of urinary incontinence,” Dr. Hylton V. Joffe, director of the F.D.A.’s reproductive and urologic products division, said in a statement. “Today’s approval provides an important additional treatment option for patients with overactive bladder, a condition that affects an estimated 33 million men and women in the United States.”


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