Hartford Business Journal

www.HartfordBusiness.com • September 11, 2017 • Hartford Business Journal 7 of creating a fake certificate of coverage for the redevelopment of Dillon Stadium in Colt Park without issuing a corresponding insurance policy, according to published reports. BDD has 35 employees and specializes in various industries, including construction. Lembo projects $94M CT deficit for fiscal '18 Unless a budget materializes soon, Connecticut is on track to end fiscal 2018 with a $93.9 million deficit under the provisions of the governor's executive order, Comptroller Kevin Lembo said. In a letter to Gov. Dannel P. Malloy, Lembo said the administration's control of discretionary spending in the absence of a budget should allow him to achieve his targets, but prolonged legislative budget gridlock will have a "devastating" impact in the short and long term. Lembo said that expenditures through July — the first month of the fiscal year — were 10.1 percent higher than last year and reflect the problems the state will face throughout the year. The double-digit increase is due to rising fixed costs, including debt and retirement costs, he said. The state and its municipalities can look forward to receiving downgrades in credit ratings if the budget impasse continues, and that will cost taxpayers even more, Lembo said. Lego slashes 1,400 jobs as sales slump Lego will cut 1,400 jobs as part of a broad overhaul of its strategy after a decade of rapid growth. The job cuts, which account for roughly 8 percent of the toymaker's workforce, were announced alongside a drop in profit and sales for the first six months of 2017. The Danish company hasn't suffered an annual revenue decline in 13 years. Lego was forced to reinvent itself after coming under intense pressure from electronic toys and video games in the early 2000s. It slimmed down and refocused, finding success with The Lego Movie and product lines based on Star Wars and Disney Princess. It expanded factories in Mexico, Hungary and Denmark as sales quintupled over a decade to reach 38 billion krone ($6 billion) in 2016. The number of employees boomed too, jumping from 4,200 in 2007 to the current 18,200. But the company now acknowledges that it needs to simplify operations. "We have added complexity into the organization, which now in turn makes it harder for us to grow further," Lego chairman Jorgen Vig Knudstorp said in a statement. "As a result, we have now pressed the reset button." Lego will hope for a return to profits under its new CEO, Niels Christiansen, who is set to start in October. His first task will be turning around declining sales in established markets including the U.S. and parts of Europe. China, meanwhile, remains a bright spot. A Lego spokesperson declined to comment on where the jobs would be cut, but the company said a majority of the 1,400 positions will be gone before the end of the year. It is not clear what impact that would have on its North American headquarters in Enfield. Developer inks $13M Storrs Center sale A California-based realty manager has purchased a commercial portion of the mixed- use Storrs Center development for $13 million, the broker for the seller said. An affiliate of ACF Property Management bought the 34,500-square-foot space, which includes ground-floor retail and office space. Tenants include Amazon, Blaze Pizza, Dunkin' Donuts and T-Mobile. The commercial space was part of what is known as Phase II of the $220 million Storrs Center project, which is overseen by master developer LeylandAlliance, of Westchester, N.Y. Phase II also includes 205 residential units, according to LeylandAlliance's broker, JLL Retail Capital Markets. Manchester's Lydall combines metals, fibers businesses into one Manchester manufacturer Lydall is forming a new business segment by combining its thermal/ acoustical metals and fibers businesses. The new entity, dubbed Lydall Thermal/ Acoustical Solutions, will be led by President Scott M. Deakin, who had been serving as executive vice president and CFO. Lydall has launched an external search for Deakin's replacement. He will continue to serve as CFO until a successor is named, said CEO Dale G. Barnhart. Aligning the two complementary businesses will allow Lydall to better serve customers and drive efficiencies across global operations, Barnhart said. listening to you What better banking's all about sm . making it simple basic respect fast response personal service working together local loan decisions time respecting your Allen Miles Executive Vice President, Senior Lender Richard Hanchett Senior Vice President, Commercial Lender Sean Millane Commercial Lender Christopher Fager Assistant Vice President, Commercial Lender Wayne Webster Vice President, Commercial Lender Are you looking to expand your business, buy or build a new facility, or purchase equipment? Westfield Bank can help your business take flight with our team of local business banking experts. We're just the right size to provide the resources you need with the service you deserve. To learn more, call 800.995.5734 or visit westfieldbank.com/soar. Member FDIC With a $35 million lending limit per business entity, we'll help you soar. Kevin Lembo, Comptroller, State of Connecticut The developer of Storrs Center (shown here) near UConn's campus has sold a portion of the development for $13 million. PHOTO | CONTRIBUTED Continued from page 4

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