ough it won’t cause immediate changes, the bankruptcy ling last week of the owner of the Bally Sports network that broadcasts the Detroit Red Wings, Tigers and Pistons promises to put the world of TV sports in a state of ux.
Diamond Sports Group LLC announced Tuesday night that it isnalizing a Chapter 11 restructuring support agreement with debt hold-
HOPES
ers and parent company Sinclair Broadcast Group Inc. to eliminate more than $8 billion in debt. Diamond led for protection in the U.S. Bankruptcy Court for the Southern District of Texas.
The Detroit Tigers games are broadcast on Bally Sports Detroit. CRAIN’S FILE PHOTO THE CONVERSATION: Co-owner of Green Dot Stables on navigating challenges. PAGE 26 PSYCHEDELIC-ASSISTED THERAPY STARTS TO SPAWN BUSINESSES BY
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BY JAY DAVIS
Slows Bar BQ, the celebrated restaurant that opened in Detroit’s Corktown neighborhood nearly 20 years ago, has shifted ownership to a newly formed company.
Co-founder Phil Cooley, who opened the restaurant at 2138 Michigan Ave. in 2005 with Brian Per-
rone, sold his stake in the company to Slows Holdings LLC. Cooley’s brother Ryan and father Ron also sold their stakes in the business. Slows Holdings is made up of Perrone, the restaurant’s founding chef; Terry Perrone, its managing director and Brian’s brother; and catering director Josh Keillor. e deal was nalized Jan. 1, according to Terry Perrone. Terms of the deal were not disclosed.
lege degree from 50.5 percent currently to 60 percent by 2030, WSU said in a release.
Chevy Bolt EVs. In announcing the switch, Mayor Mike Duggan said the purchase was an attempt to honor a commitment that the city would reduce its emissions by 75 percent by 2034.
THE NEWS: Wayne State University last week announced a guarantee of free tuition for Michigan students from families with less than $70,000 in annual income. e Wayne State Guarantee will provide tuition assistance to eligible new undergraduates to eliminate out-of-pocket tuition costs for those who attend the Detroit-based university beginning this fall. e tuition assistance is renewable for up to four years, with the option to apply for a fth year, provided a student is on track to graduate in that year, Wayne State said.
WHY IT MATTERS: e guarantee, coupled with the state’s new Michigan Achievement Scholarship, which provides up to $5,500 per year for up to ve years to students attending a Michigan public university, is another step toward the state’s goal of increasing the number of working-age adults with a skill certi cate or col-
THE NEWS: Some Michigan Medicine patients will see their prescriptions delivered to their homes via autonomous drone starting next year. e Ann Arbor health system announced Wednesday it entered into a contract with South San Francisco-based Zipline to begin o ering home delivery services in parts of Washtenaw County starting in 2024. e service coincides with a $58 million expansion of its mail-order pharmacy facility on West Joy Road in Dexter, roughly 11 miles northwest of its main hospital campus in Ann Arbor.
WHY IT MATTERS: Michigan Medicine espouses the reduction of waste and emissions savings as a bene t of the drones, but it also will allow its pharmacy to ll orders quicker, adding more capacity.
THE NEWS: Detroit has moved its rst city department to an all-electric vehicle eet, spending $3 million to completely convert the municipal parking department’s 48 cars to
WHY IT MATTERS: Duggan said the city’s plan is to switch its entire eet of about 2,700 vehicles away from internal combustion engines. Now, about 250 vehicles are hybrid or electric.
THE NEWS: Christopher Dougherty, who is currently serving as an associate professor of business at Chestnut Hill College in Philadelphia, will become the eighth president for Madonna University, the 2,100-student liberal arts university in Livonia, effective July 1. Dougherty’s appointment is the result of a six-month, nationwide presidential search. He will take over from Ian Day, who has been serving as acting president since the retirement of Michael Grandillo on Feb. 21, 2022.
WHY IT MATTERS: With more than 30 years of higher education experience, Dougherty brings experience in academic leadership, fundraising, enrollment management, mission integration and student a airs at several colleges and universities.
Grand Rapids-based Fox Motors has further expanded its presence in metro Detroit with the purchase of three dealerships. Fox Motors bought Sellers Subaru in Macomb and Sellers Buick-GMC in Farmington Hills from Sam Slaughter last week, and the stores were renamed Fox Subaru Macomb and Fox Buick-GMC, respectively. e transaction also included an Isuzu commercial truck center and a collision center, both in Farmington Hills. ey will now operate as Fox Isuzu Truck and Fox Motors Collision Center.
“We have been strategic with our growth in metro Detroit these last two years and are excited to expand our footprint with General Motors and Subaru given our strong relationships with both brands,” Daniel DeVos, CEO of Fox Motors and son of the late Amway Corp. co-founder Richard DeVos, said in a news release. “And we are excited to add Isuzu Truck to our lineup.”
Fox Buick GMC and Fox Isuzu Truck’s operations will be overseen by General Manager Colin Barrett, who previously was the general manager of Fox GMC in Grand Rapids. James Cagle, who has been with Sellers Auto Group since 2017, will continue as the GM of Fox Subaru Macomb.
Needless to say, it was a busy week for global nancial executives.
Multiple banks have collapsed since March 10, largely those with signi cant asset sensitivity and too many eggs in the proverbial one basket. More banks, including San Francisco-based First Republic, have been on the edge of signi cant trouble and on ursday got a signi cant injection of deposits — $30 billion — from some of the largest banks in the country.
Lamb
While the impact has been felt locally and many are taking stock and assessing what comes next, some say it’s business as usual. For starters, Michigan’s community bankers say they’re sticking to their guns following the tumult of the last week.
While fully cognizant of the impact of multiple bank collapses in a short period of time, local executives say they see few parallels between how they operate their lending institutions and what’s known about the circumstances that brought down Silicon Valley Bank and at least two other banks, largely with concentrated ties to the tech industry.
Swiss banking giant Credit Suisse also appears to be teetering into the danger zone, albeit for reasons largely separate than what brought down SVB, as well as Signature Bank and Silvergate.
“It’s amazing the di erent business models we all have, but we’re all called banks,” said Dave Lamb, president and CEO of Oxford Bank in northern Oakland County with about $792.6 million in total assets.
See BANKS on Page 23
Bridgeport-based Amigo Mobility International Inc. had a problem.
e nation’s largest manufacturer of motorized shopping carts could not wheel them o the line fast enough to meet demand from stores ush with cash amid the COVID-19 pandemic.
e family-owned company, whose biggest customers include Walmart Inc. and Kroger Co., has seen top-line growth of 25 percent for the past two years as it plans to hit $50 million in revenue this year. Headcount has grown at a similar clip, to about 145, with eight positions still open.
“It went absolutely nuts,” said
Jordan ieme, operations manager. “Our orders went to like nothing, and then over the course of a couple months, we had record years since then … Our business is still growing like crazy.”
e scooter surge has led to large-scale expansion and vertical integration plans for the company, which aims to bring more business and manufacturing to its home base, about 10 miles south of Saginaw. Amigo Mobility is investing more than $4 million to grow its footprint and production capabilities, and it bought one of its main suppliers in January.
Growth has not been a given, though. While Amigo stood to capitalize on grocers reinvesting re-
cord pro ts into stores, manufacturing problems stood in its way. Supply chain constraints and operational ine ciencies, which have been especially hard on small manufacturers, threatened to stunt expansion.
Being family owned and operated has been central to the company’s identity since its inception. It was founded in 1968 by Al ieme. His wife Beth is president and CEO, while their children Jordan ieme and Jennifer ieme-Kehres also work in leadership roles. Al remains active in the company, turning 86 years old next month and looking to retire “never,” according to his son.
See AMIGO on Page 21
A metro Detroit-based, Black woman-owned tequila company has earned a capital investment that will help it accelerate plans to scale up the business.
Anteel Tequila, whose base is in Canton Township, earlier this month received the investment from Pronghorn Co., which specializes in incubation, recruitment programs and capital investments into Black-owned liquor companies. e nancial investment comes along with consulting services, access to industry experts, and marketing and budgeting assistance.
Financial terms of the agreement were not disclosed.
Nayana and Don Ferguson estab-
lished their tequila company in 2017 as Teeq Tequila and rebranded as Anteel in 2020 after learning another business had been operating under the name Teeq. e company in 2022 posted sales of about $750,000 — a nearly 43 percent increase from 2021.
Don Ferguson, 50, said the partnership with Pronghorn will serve as a way for Anteel sales to continue to grow.
“ e thing about being an emerging brand is you run into a lot of potholes and closed doors,” he said. “(Pronghorn) is giving us the tools to open those doors.”
ose doors include placement at events including Carnegie Hall in New York City and the 2022 BET Hip-Hop Awards. Anteel Tequila’s spirits were also o ered at the March 8 Uptown
Hollywood Honors event celebrating Black comedians. Anteel will also have a presence at next month’s Wine & Spirits Wholesalers of America 2023 Access Live event in Orlando, Fla. “ at’s one of the biggest shows for spirits in the world,” Ferguson said. “It’s typically about $10,000 for a spot and we didn’t have to pay that much because of the partnership with Pronghorn. Your alcohol is featured for a four-hour block. at’s a pretty big deal for us.”
Detroit native Nayana Ferguson, who previously worked for more than 20 years as a nancial analyst in the auto industry, said partnering with Pronghorn will help their business remain authentic.
If you’ve driven around Detroit in recent years, you’ve probably noticed a proliferation of murals on commercial buildings.
at’s been on purpose, a tactic o cials have deployed as part of the City Walls program, considered a beauti cation and blight remediation strategy that’s also one piece of a larger e ort to tackle blight through things like murals, alley cleanup and other e orts in Detroit’s vast network of commercial corridors.
ey’ve certainly not just been cropping up in Eastern Market, long known for its constellation of public art pieces.
A large recent one at Mack and Van Dyke called “ e Spirit” by Waleed Johnson is an eye-catcher, for example.
So what if you’re the owner of a commercial building in Detroit and you want to participate?
First, there are some ground rules, said Zak Meers, division head for the blight remediation division, which oversees City Walls.
“So as a property owner, if you’re going to donate your wall, then you’re part of a process,” Meers said. “You’re one vote in a larger conversation. It’s public facing art.”
An FAQ for building owners recently posted to the city’s website says there are a few community engagement meetings and it generally takes three to four months to produce. e city also notes that for property tax purposes, murals will not be considered improvements, so that won’t a ect your tax bill.
In addition, the mural curated — at no cost to the building owner — has to t within some guidelines.
I’ll use a couple examples Meers did: If you’re a landlord and you have a dog you really love, you can’t have a muralist paint the dog on your building. Likewise, if you’re a
plumbing company with a building, the mural cannot be a toilet as that could be considered an advertisement.
e City Walls program has been around since 2017 and has a budget this year of $400,000 from the general fund; in addition, it has another $400,000 from private funding, Meers said.
In a separate but complementary e ort, the Arts, Culture and Entrepreneurship department said it is spearheading an e ort to create another 200 neighborhood murals by 2025. at is funded through the city’s Public Art Fund, plus money from the Ford Foundation and Kresge Foundation.
To take part in City Walls, get in touch with the program through either its website or Instagram page. At that point, the city would set up a
meeting to look at the wall, determine whether it meets certain criteria — what kind of shape is it in, is it public facing, is it in a high-impact location, Meers said.
If the wall is selected, the owner “must be open to a group project process,” Meers said.
Of note: Artists signing up as part of City Walls are asked to waive their rights under the Visual Artists Rights Act. If that sounds familiar, that’s because it came into play when the building now known as Chroma was going through a potential ownership change and redevelopment proposal.
As a result of that waiver, the landlord could paint over the mural, remove it, renovate the building and otherwise tamper with the mural. However, the artist has the rights to reproduce it elsewhere, Meers said.
Of note for artists, Meers said: Over $600,000 is available for Detroit artists to create murals and that period closed March 19. A second wave of open calls opens May 29.
Since it was started, more than 125 murals have been completed on more than 193,000 square feet of wall space.
Capital Impact Partners has awarded $415,000 in grants to 19 developers working on 16 di erent projects in Detroit and Highland Park.
All the awardees are graduates of CIP’s Equitable Development Initiative, which focuses on training developers of color.
In all, the developments proposed
to redevelop or build 293,000 square feet with 262 residential units with 93 a ordable for those making at or below 80 percent of the Area Median Income, plus 29 commercial spaces, according to a release.
ose receiving funding are: Anthony Askew; Darius Bennett and Cecily King Plummer; Chase Cantrell, Damon Dickerson and Brandon Hodges; Edward Carrington; Ponce D. Clay; Yvonne Cross; Charles Dickerson III; Rashard Dobbins; Samantha Jenkins; Karasi Development Group LLC; Bobby D. Lewis; Alisha Moss and Je rey Policicchio; Chad Rhodes, Clayton Neal and Kishon Harbert; Tanya Stephens; Luis Antonio Uribegan; and Terence Willis.
Contact: kpinho@crain.com; (313) 446-0412; @kirkpinhoCDB
An affiliate of Ford Motor Co.’s real estate arm has added more Corktown property to its sizable portfolio there.
An entity called 20th Street Properties LLC, whose most recent annual statement filed with the state lists Ford Land Development Co. Chair and CEO Jim Dobleske as its officer, bought at least six properties earlier this year, according to land records filed with Wayne County. The deeds are dated Feb. 7.
Included in the purchase is the Arrow Chemical Products Inc. property on St. Anne Street behind Michigan Central Station.
In all, the six properties total about 1.1 acres and include three buildings totaling nearly 29,000 square feet, according to marketing
materials from the Southfield office of Dallas-based CBRE Inc. from 2021.
The asking price at that time was $2.5 million although how much Ford paid is not known.
Plans for the property are also not known.
An outside spokesperson for Ford Land said the company declined comment, and a voicemail was left with Arrow Chemical Products last week. An email was also sent to a CBRE broker who had the listing two years ago.
Ford’s real estate portfolio in that Corktown neighborhood west of downtown includes Michigan Central Station, which is to anchor a nearly $1 billion autonomous and electric vehicle campus.
Contact: kpinho@crain.com; (313) 446-0412; @kirkpinhoCDB
We celebrate the commitment of our employees with initiatives like Sharing Success, which awarded 96% of colleagues additional compensation this year, nearly all in stock. This is the sixth time teammates received this award, totaling more than $4 billion.
We are committed to being a Great Place to Work for our teammates in Detroit and around the globe. This includes providing leading benefits, minimum wage at $22/hr on track to $25/hr by 2025 and opportunities to build a career with us. These are key reasons we’ve been named America’s Most JUST Company.
Matt Elliott President, Bank of America Detroit
ichigan residents with mental illnesses, developmental disabilities or substance use disorders rely on more than 100,000 mental health clinicians and direct support professionals or DSPs — sta of the state’s comprehensive public mental health system — for recovery and the ability to live a full life. Due to unprecedented turnover and vacancies in mental health positions in Michigan, many individuals nd themselves unable to access the treatment and support they need.
The days are long gone when a person could walk out of high school, into an auto plant and make enough money to raise a family and buy a cabin Up North.
We know that. You know that. But, clearly, not enough people in Michigan know that.
A recent survey commissioned by the Detroit Regional Chamber contains alarming ndings about the perception some Michigan voters have toward higher education. e chamber notes that a bachelor’s degree is the foundation for two-thirds of high-paying “hot jobs” that are expected to grow the most by 2030. Yet, just 27 percent of Michigan voters believe a college education is very important for landing a successful job in the state. And about the same number said a college degree is not important.
Meanwhile, nearly half of those surveyed — 49 percent — said a four-year college degree is not worth the money.
Our public universities in Michigan could certainly do more to control costs and increase e ciencies, and we are concerned about the impact of high levels of college debt on young people, but the positive, long-term nancial impacts of a college degree are clear.
As the Pew Research Center noted just last year, citing Bureau of Labor Statistics, full-time workers ages 22-27 who held a bachelor’s degree earned a median wage of $52,000 in 2021.
at compares with just $30,000 for those of the same age and with only a high school diploma.
Meanwhile, the unemployment rate for college graduates is consistently lower than for those with only a high school diploma.
In his story on the ndings, Crain’s Detroit Business senior reporter David Eggert noted employers need a skilled workforce to ll in-demand, higher-paying jobs to compete in a global economy.
An analysis by Michigan Future Inc. found that nearly eight in 10 Michigan jobs that pay more than $64,000 are held by people with a bachelor’s degree or higher.
“ is demand is just continuing to grow, and we need Michiganders to really understand the importance of having real skills,” Chamber President and CEO Sandy Baruah said. “We don’t always think that a college degree is the right answer for everyone. ... But clearly getting the public policy right requires people to understand how important this is for our economic future. Right now there’s a disconnect.”
Like Baruah, we’re not saying everyone must have a four-degree to succeed. But the evidence is clear that those who earn a college degree earn more. ose who choose not to pursue a four-year degree will still need additional technical training, whether through a trade school or community college, to put themselves in the best position to compete for high-paying jobs in the economy of today and tomorrow.
Michigan’s economic future is bright if we choose to seize the moment. One place we can start is by teaching everyone that some form of education past high school shouldn’t be considered an optional add-on.
e work of mental health clinicians and caregivers is both rewarding and challenging. Over the last decade, the pay for these professionals has not kept pace with the market, making recruitment and retention of these essential workers extremely di cult. While there are many factors contributing to these challenges, low wages and administrative burden have proven to be the primary driving factors of this turnover.
A recent survey of public mental health service providers in Michigan by our Community Mental Health Association found the average vacancy rate across mental health employers was 19 percent, with the vacancy rate for some mental health employers at 63 percent. Among direct care worker positions — providing hands-on support — the average vacancy rate was 27 percent, with vacancy rates for some of these employers above 85 percent. For these workers, the turnover rate averages 40 percent, with a shocking four out of every 10 workers leaving every year. is shortage has hindered the ability of the public and private mental health systems in Michigan to ensure access to care, and the proper intensity and duration of that care.
e problems caused by this vacancy rate are many, including lack of sta to meet demand, lack of continuity in sta ng and extremely high caseloads.
ere are 60 million Americans with mental health conditions, and nearly half go without treatment. In Michigan, nearly 1.5 million residents have a mental health condition, and 355,000 adults have a serious
mental illness. Even the young are impacted, with 119,000 Michiganders ages 12 to 17 experiencing depression.
MEven when insurance covers treatment, nding an available provider can prove extremely di cult. ere are, however, solutions that can be implemented to solve the issue of sta ng shortages in the eld.
` Increase wages: Increase starting wages of DSP and DCW sta to $18 per hour, through increases in Medicaid and General Fund dollars provided to state programs.
` Cross-sector e orts: Behavioral health workforce plans should be jointly developed and implemented by MDHHS, MDE, and their stakeholders in communities across the state.
` Background check requirements: Change Michigan’s laws and policies on criminal background checks to include a “rehabilitation review,” similar to those authorized in 17 other states, to increase the potential pool of applicants for direct support careers.
` Tuition reimbursement and stipends: Provide publicly nanced tuition reimbursement and stipends to support Michiganders in their pursuit of their undergraduate and graduate degrees in mental health disciplines — social work, psychology, psychiatry, nursing.
` Sign-on bonuses: Create the Behavioral Health Crisis Continuum Workforce SignOn Bonus, which would provide sign-on bonuses of $3,000 for social workers, licensed professional counselors, and other behavioral health clinicians entering into a public sector behavioral health position.
` Reduce documentation demands: e documentation demands required of clinicians within Michigan’s public mental health system are far greater than mental health practitioners in schools and those in private practices. Simplify the burden to increase available time for working with patients.
` Lean record keeping: Develop a lean clinical record-keeping system that supports rapid engagement and immediate access to care, especially for persons with episodic and brief needs for mental health services.
` Limit reporting requirements: Michigan’s public mental health system is burdened by a large number of reporting requirements, many with little or no value.
` Streamline training and credentialing requirements: Modify training requirements for clinical sta and clinical supervisors in a way that does not reduce the clinical skills of these practitioners.
NEARLY HALF OF THOSE SURVEYED — 49 PERCENT — SAID A FOURYEAR COLLEGE DEGREE IS NOT WORTH THE MONEY.ROBERT SHEEHAN
LANSING — Democrats on Tuesday approved bills to rescind Michigan’s 2012 “right-to-work” law, voting to again allow labor contracts that require workers to pay union fees as a condition of employment.
e Senate passed the legislation 20-17 on party lines, as union members cheered and clapped from the gallery. It also voted 20-17 to restore a law mandating “prevailing,” usually union-scale wages and bene ts, on construction projects funded partly or wholly with state money.
e move followed House approval of bills this month. Democratic Gov. Gretchen Whitmer will sign the measures after the House takes nal votes on some of the Senate-passed measures this week. e bills would take e ect in March 2024 because Senate Republicans in opposition refused to let them go into e ect immediately.
e “right-to-work” repeal, which is opposed by business groups, would a ect private-sector workplaces. e U.S. Supreme Court in 2018 ruled that government employees who are represented by unions but do not pay dues cannot be required to pay agency fees to cover unions’ costs to negotiate contracts.
Sen. Roger Hauck, a Mount Pleasant Republican, voted no. He said he was a member of the United Steelworkers Local 2-585 for 28 years and
was elected as steward and chief steward to negotiate with management. He said he did not “bat an eye” when the law took e ect a decade ago because “I knew the value of our union.”
“I didn’t believe then that those men and women should be forced into joining our union just to work alongside me, and I don’t believe it now,” he said. “Right-to-work shouldn’t a ect any union in the state that’s doing it the right way. Make your case, prove your worth and the members will follow.”
Sen. John Cherry, a Flint Democrat,
voted yes, criticizing the “freedom to freeload.” Another supporter, Democratic Sen. Darrin Camilleri of Wayne County’s Brownstown Township, called it an “unpopular, anti-union law.”
“With this repeal, we are making a future for our state’s workers, creating opportunity for the next generation of Michigan families and stating clearly that we are restoring the union promise in our state,” he said. “Today is a rst step toward a new era of Michigan governance. is is in fact the people’s House, the people’s Senate,
As the EVP of Corporate Development and Operations, Brittany Westerman defines 365 Retail Markets’ growth strategy and evaluates new opportunities to expand its product offerings.
365 Retail Markets is constantly evaluating our solutions to enable food service operator customers to better serve the business, hotel and educational campuses that make up their client base.
Initially, our focus was on vending replacement solutions in the business and industry sectors. ese self-service kiosks placed alongside a variety of packaged consumer goods grew into the popular concept, micro markets. Over time, we expanded our o erings to include consumer engagement tools that incentivized consumer behaviors, such as making more nutritious purchases.
As micro market popularity soared, 365 Retail Markets noticed that our customers’ business logistics challenges
also grew. Likewise, other external factors, such as the pandemic and capacity constraints, forced technological advancements.
Given our industry trends, the goal was clear — we needed to expand our capabilities while keeping pace with the market. 365 Retail Markets set out to acquire companies that simpli ed our customers’ day-to-day operations. In the height of the COVID-19 pandemic, we completed a series of acquisitions that empowered us to:
• Improve our customers’ stock control and business logistics, leading to 15 to 20% inventory reductions.
• Reduce back-of-house order preparation and consumer wait times in corporate cafeterias.
• Increase e ciency of available sta by o ering more versatile self-checkout devices.
To date, 365 Retail Markets has completed 11 acquisitions, including:
• Acquisitions in 2017 and 2019 that became the cornerstone of our dining product, providing key nutritional information and order-ahead functionality.
• A 2021 acquisition that helped us
and will deliver on our promise to workers. We will not turn our backs on those who built this economy.”
Ron Bieber, president of the Michigan AFL-CIO, said it is time to reverse decadeslong attacks on working people.
“ e current worker-suppression laws in Michigan should be a source of shame,” he told the Senate Labor Committee during a Tuesday hearing. “ ey have absolutely nothing to do with good public policy but rather were just a power grab by the rich and powerful and greedy corporations.”
e “right-to-work” law, Bieber said, undermines unionized workers’ ability to collectively bargain for better pay and bene ts and has “no impact” on businesses deciding to locate in the state or not. He said when the law’s defenders say it keeps Michigan competitive, that means workers will have lower wages and bene ts.
But Wendy Block, senior vice president of business advocacy and member engagement for the Michigan Chamber of Commerce, said the law makes Michigan more competitive nationally and “especially with our neighboring states who also have these laws. It helps Michigan compete for desperately needed jobs and economic development projects.”
She said the law is a tool and certainly not a “silver bullet.”
“But if a company is choosing between a site in a right-to-work state
and in another state without this law in place, right-to-work can positively impact that decision. It is a big factor.
It puts your state in the game.”
e law, which took e ect in 2013, was a blow for unions in what is considered the birthplace of the American labor movement.
In 2012, 629,000, or 16.6 percent, of workers were union members and 17.1 percent were represented by unions — gures that had been declining for decades. ere were 1 million union members in 1989, according to the U.S. Bureau of Labor Statistics.
In 2022, 589,000, or 14 percent, of workers were union members and 15.3 percent were represented by unions.
Last week, Whitmer told reporters she would sign the repeal bills despite the inclusion of $2 million in spending that would shield them from an up-or-down voter referendum. She had criticized the tactic when Republicans used it when they were in power, and in 2019 she signed an executive directive pledging to veto legislation that circumvents the right to a referendum.
Regardless of whether the legislation is referendum-proof, “right-towork” proponents are considering a potential 2024 ballot drive to enshrine the policy in the state constitution.
Contact: david.eggert@crain.com; (313) 446-1654; @DavidEggert00
penetrate the healthcare industry.
• Another 2021 acquisition that added catering management to our portfolio and broadened our international footprint.
Our customers now have best-inclass technology that creates end-user convenience while improving our customers’ back-end operations. An example of this e ort is our Connected Campus. It is a consumer experience ecosystem that connects a location’s 365-based micro market, o ce co ee service, vending and dining technology through a single cloud-based management portal.
As the need for unattended point-of-sale systems grows across more channels, 365 Retail Markets will continue to support a multitude of industries by building and acquiring tools, technologies and team members to service these areas.
Explore how 365 can create consumer convenience and operational e ciency in your facility at 365retailmarkets.com.
e rst of nearly two-dozen restaurants from a famed TV chef is coming to metro Detroit in a couple of weeks.
Chicken Guy!, a fast-casual restaurant chain from Food Network star Guy Fieri, is scheduled to open April 1 at 30130 Plymouth Road in Livonia. Farmington Hills-based Tomey Group LLC is the franchisee.
e Livonia location will be the eighth Chicken Guy! restaurant, joining locations in New Jersey, Florida, Tennessee, Pennsylvania and Maryland.
Tomey Group, operating as Tomey Chicken LLC, plans for a total of 20 Chicken Guy! locations to open across metro Detroit. Tomey Group is partnering with Birmingham-based real estate investment services Jonna Group. Jonna, run by Simon and Ray Jonna, will handle seeking potential spaces for future Chicken Guy! locations in Southeast Michigan, according to Anthony Tomey, who heads Tomey Group with his brother Michael Tomey.
e move expands the Tomey portfolio, which also operates 45 Jimmy John’s franchises in Michigan, and owns 8 Mile Vodka and the Born in Detroit apparel line.
Anthony Tomey on Tuesday told Crain’s that the Chicken Guy! opportunity came about by chance.
“We own Jimmy John’s stores.
at’s what we do. My brother, though, is a big fan of the Food Network and he saw a TV show where a Chicken Guy! location was being given away as a prize,” Tomey said. “(My brother) loved it. We talked and decided it was something we could do. During the pandemic, we lost about 300 employees at our Jimmy John’s stores, and we kind of said we would never do food again. is came up and seemed like a good opportunity. e food looked good. We met with their team in Florida and were impressed and we went from there.”
e 2,500-square-foot Livonia store will have a sta of at least 50 and seating for 30-35 guests.
Tomey said the group could open two locations this year and three additional restaurants in 2024, depending on how lease agreements play out.
Letters of intent have been put in for spaces in downtown Detroit, Washington Township and Madison Heights, but no additional lease agreements are in place.
e other Tomey Group restaurant properties are back on solid ground following a handful of uneven years.
e company’s 45 Jimmy John’s franchises in 2022 brought in $38 mil-
lion in revenue, surpassing pre-pandemic gures by $6 million. Tomey projects those Jimmy John’s stores will surpass $40 million in revenue this year.
Helping that growth is the addition of sta . Prior to the COVID-19 pandemic, the Tomey Group Jimmy John’s restaurants had around 800 employees. e locations closed for six weeks early in the pandemic and about 300 sta ers were laid o . e stores now have a combined 650 employees, according to Tomey.
“We’re doing very well,” Tomey said. “ e rebound is part of the reason we decided to get in with (Chicken Guy!). We looked at it and said one of the things we know is the food industry. Chicken Guy! is a great concept with a great name behind it. It’s something we couldn’t pass up.
“Getting in as early as we are allows us to build the brand the way we want to. We’re going to bring that Jimmy John’s speed of service to Chicken Guy.”
Established in 2018 in Orlando, Chicken Guy! serves up fried or grilled chicken sandwiches and tenders, along with 22 di erent sauces. Depending on the location, diners can also get fried pickles, mac ‘n’ cheese, salads and Flavortown shakes, according to the company website.
“ e people of e Motor City have spoken … I’m bringin’ my real deal chicken tenders, sandwiches, and shakes to Livonia,” Fieri said in the release. “From shooting (“Diners, Drive-ins and Dives”) to taking part in the Woodward Dream Cruise, the Detroit area has always been a go-to for me, so I’m stoked for everyone to give us a try.”
Each location has a franchise fee of $20,000 and a total investment ranging from $818,000 to $2.55 million. Costs also include a 4 percent marketing fee and 6 percent royalty fee. Contact:
Brian Elias found great success with his 1-800-Hansons home improvement company, and he believes he can do it again with his latest venture.
Elias and his 25-year-old son Daniel are the founders and owners of Troy-based Re oor, which o ers shop-at-home ooring services.
Brian Elias, 57, CEO and Re oor’s chief imagination o cer, believes he can lean on his experience and achievements with 1-800-Hansons to push Re oor to the top of the U.S. ooring market. e father-and-son duo believe their customer-friendly business model — which includes next-day installation of vinyl, hardwood and laminate ooring — lends itself to growth.
“If you go to (a big box store), you see aisles and aisles of oor,” Brian Elias said. “ ey could build the best oor, but they’re choosing not to put the best product out on the oor. If you sell one person ve oors in their lifetime as opposed to one, you make more money. It’s that simple.
“We wanted to change that experi-
ence. So many people walk in (to a store) looking at oors and walk out with nothing. ey want to know what things look like in their own house. We’re o ering a totally di erent buying experience. e consumer is able to make a decision quickly. We make it easy.”
e company was established in 2020, but delayed branding and marketing until 2022 because of the COVID-19 pandemic. Re oor has seven locations in the Midwest — 5,000- to 6,000-square-foot warehouses in Detroit, Toledo, Grand Rapids, Indianapolis, Cleveland, Cincinnati and St. Louis, Mo. Each warehouse has 32 colors of ooring for customers to choose from.
Re oor completed more than 4,000 jobs in 2022, according to Director of Operations Daniel Elias — 30 percent more than projected. He estimates Re oor will complete about 7,000 jobs this year, a projection bolstered by plans to open four more locations by the end of the year.
e company expects to grow its workforce from close to 200 sta ers to 300, Elias said.
“We really are trying to build the
largest ooring company in America,” said Brian Elias, a 1999 Crain’s 40 Under 40 honoree. “We’re looking to be everywhere. We want to be a national brand. We want to be the most trusted brand. I think what we’ve done so far is good, but every week we have meetings to gure out what we can do better.”
Elias looks to have made a savvy move.
The U.S. flooring market was a $20 billion industry in 2021, ac-
cording to the most recent data from market research firm Grand View Research. The market is expected to grow annually by 5.6 percent through 2030.
Re oor amassed about $32 million in sales in 2022, according to Daniel Elias. He estimates it will bring in between $50 million and $60 million in sales this year.
“We’ve seen some great growth across the board,” he said. “We’ve been able to open up a lot of new
stores. It’s been an awesome experience. We’d like to start opening a new location every 90 days for the next two years.”
Brian Elias is leaning on his years of experience as an entrepreneur and in home improvement to help grow Re oor.
See FLOORING on Page 10
Women account for 47% of the labor force, but only 27% of the autoindustry workforce, according to Deloitte’s Shifting diversity into high gear: Helping to close the auto industry’s talent gap. This disparity comes at a time when manufacturing is expected to see 2.4 million jobs vacant through 2028, according to Deloitte research.
StidhamThe auto industry can be a bumpy ride for women, according to those surveyed for Women at the Wheel, a Deloitte report on diversity, equity and inclusion in the auto industry. Those surveyed perceive work in the industry as unappealing (65%) as well as lacking work-life balance (59%), exible work schedules (46%) and advancement opportunities (39%). These perceived negatives have generational legs, as 14% of women surveyed said they’d encourage their daughters or female relatives to pursue a job in the industry. Even more concerning is that nearly half the women surveyed would choose a different industry if given a chance for a career do-over. They cited lack of diversity, equity and inclusion as the reasons why.
Yet, women in the industry enjoy their work,
according to the 330 surveyed as part of a collaboration between Deloitte and Automotive News honoring 100 leading women in the North American auto industry. The 330 women surveyed have an average tenure of 15 years at the same company, and over 26 years in the industry. Four- fths (83%) are senior managers (vice presidents, c-suite occupants, or directors) and more than half (57%) are in marketing, sales, operations, or product development.
Clearly, the industry faces some challenges if it wants to get women on board. There are plenty of reasons to do so, including that projected 2.4 million jobs gap in manufacturing and the fact that diversity of all types results in stronger business results and happier customers.
The automotive industry must communicate more clearly that it is a place for women to forge enjoyable careers. Women at the Wheel offers several steps, the rst of which is acknowledging that there’s an issue. The second step is getting leadership involved in making real change, with real outcomes, which happens in tandem with the third step: recognizing the bene ts, including better decision-making and stronger nancials within diverse teams. The industry must offer women a clear path for advancement, which includes mentorship.
There’s a real gap here, as 60% of women surveyed see a clear path to management, compared with 75% of men.
Finally, automotive has an opportunity to look to other industries, including technology and healthcare, for guidance. The women surveyed who indicated they opt for a different career path said they’d choose either of those sectors (both perceived as leaders in DEI) for their career redo.
Before joining Deloitte in 2019, I spent over 20 years at two auto manufacturers, both leaders in the global automotive business. I stayed in the automotive industry because I loved the business and recognized the vast amount of opportunity to grow with all the change that was happening around me. I had allies, which was imperative. Perseverance and resiliency also helped me navigate my career.
With that in mind, I’d offer a few suggestions to effect positive change now, including a greater focus on inclusion of younger women as early as possible. While mentorship programs have been widely implemented, it’s important to include allies and continue to evolve those programs where women can get exposure to a wide network. Everyone plays a role and needs to be a part of the solution to solving these challenges. And lastly, there needs to be more accountability for advancing women and giving women equal opportunity to advance.
Automotive can’t afford to be idle when it comes to selling itself as a welcoming career for women. Let’s get moving.
This publication contains general information only and Deloitte is not, by means of this publication, rendering accounting, business, nancial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a quali ed professional advisor. Deloitte shall not be responsible for any loss sustained by any person who relies on this publication. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member rms, and their related entities. DTTL and each of its member rms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. In the United States, Deloitte refers to one or more of the US member rms of DTTL, their related entities that operate using the “Deloitte” name in the United States and their respective af liates. Certain services may not be available to attest clients under the rules and regulations of public accounting. Please see www.deloitte.com/about to learn more about our global network of member rms. Copyright © 2023 Deloitte Development LLC. All rights reserved.
From Page 9
At 23, he started Hansons’ Windows & Siding Inc. in Fraser with $5,000 he had saved from a job selling windows, according to the bio on his website. Elias was the only employee when he launched his company in 1989 and grew it from a replacement window company into an $80 million home improvement and remodeling business with a catchy jingle. In 2017, Elias sold a controlling interest to Detroit-based private equity firm Huron Capital Partners LLC, but maintains a seat on the board.
Elias believes his experience, coupled with his son’s education as a 2019 graduate of the University of Michigan Ross School of Business, can help Refloor go national.
“This is something that we’ve always wanted to do, since Daniel was a kid. We’ve always wanted to do something together and the pandemic helped push us closer together,” Elias said. “This business is kind of the opposite of 1-800-Hansons. Everybody at some point, multiple points, needs roofing or windows. With floors, it’s something you want. We want to ensure we have what the customers want because they’ll likely not have to come back again.
“I’m not saying we never have problems. If we see a fire, we put it out right away. With this, I try to do things how my wife would want
them. That’s how we think about everything.”
In establishing Refloor, Brian Elias bet on himself, investing $3 million to $4 million of his own money to get the business up and running.
“I’m looking forward to investing more. I really want to have lightning-fast growth with this business,” he said. “Based on our projections, I don’t think I’ll have to invest any more. I think this is going to be huge.”
Even with his son taking on a major role with Refloor, Brian Elias has
no plans to ride off into the sunset anytime soon. Daniel is a big reason for that.
“Nothing warms my heart more than waking up every day and going to work with my son. I think he feels exactly the same way,” Elias said. “I love the idea of working together and building something — taking his education and my in-home customer service experience and merging them together.
“And I see great things for this business. It took me 30 years to hit $80 million (in sales with 1-800-Hansons). It’s feasible we could hit $80 million next year with Refloor. Once you have a recipe for
success, you can re-create that. I’m thankful to God for 1-800-Hansons.
I’m able to take the things I’ve learned and combine it with Daniel’s organizational skills. I think we’re a dangerous team.”
Elias has no plans to retire. Enjoying working with Daniel is one reason why, but there’s more to it.
“I plan to work with my son for the rest of my life, or until he kicks me to the curb,” Elias said. “I’m 57. I go to work to have fun. I don’t have any hobbies. I don’t golf. My hobby is going to work. I work six days a week. I have a wonderful marriage. This is what I enjoy, though. I wake up every day ready to go to work.”
Following are some fast facts about the family-owned company:
Owners: Brian and Daniel Elias
Headquarters: Troy
Locations: Detroit, Toledo, Grand Rapids, Indianapolis, Cleveland, Cincinnati and St. Louis, Mo.
Sta : Close to 200 employees
Residential installations completed in 2022: About 4,000
Projected installations in 2023: Around 7,000
2022 sales: $32 million
2023 projected sales: $50 million-$60 million
Daniel Elias said he’s always wanted to own a business, and he believes Refloor has staying power.
“When I got to college, I heard from people that school was a place to get me ready for a job. In the back of my head, I knew I didn’t want to work for anybody else. I wanted to start a concept with myself or my dad,” Elias said. “When I graduated I took some time to figure out what I wanted to do and we’ve been able to start this business from scratch. ...
“I couldn’t be more excited about what we’re building. Being a part of the growth, you can feel the excitement in our building every day.”
Contact: jason.davis@crain.com
(313) 446-1612; @JayDavis_1981
is group of commercial banking professionals uses their diverse skills to grow their book of clients, increase loan portfolios and revenue, expand their banks into new regions and support startups and LGBTQ+-, diverse-, veteran- and women-owned businesses. ey are also active in their communities and industries through board membership and volunteerism.
Terri Cable Michigan President First Merchants BankCable is the top leader in the state for First Merchants Bank, an $18 billion nancial institution headquartered in Muncie, Ind., with operations in four states, including Michigan.
She managed the integration of First Merchants Bank with the former Level One Bank after their merger and is responsible for nearly $43 billion in deposits, $2.5 billion in loans and more than 300 team members.
e bank’s executive team “handpicked (Cable) to lead the Michigan Market’s integration and development because of her expertise in growing diverse, high-performing teams,” said First Merchants Corp. President Michael Stewart.
Additionally, Cable created the post-merger strategic growth plan for Michigan that incorporated talent recruitment, development and succession, client service segmentation and industry specialization.
Cable actively supports and volunteers for organizations that champion economic and community development. Her e orts include mentoring young professionals through Community Harvest Food Bank, Habitat for Humanity, St. Francis University in Pennsylvania and the Northeast Indiana Regional Partnership, where she served as council CEO. Cable is also a member of the American Heart Association leadership council.
Credit Union
Gasso joined Community Financial Credit Union in 2013 and, in less than 10 years, grew its collective commercial portfolio from $20 million to $220 million, a sizeable gure for the metro Detroit-based credit union.
Gasso’s team of commercial lenders closed 70 loans totaling $88 million in 2022. Many of those loans were for small businesses. About $20 million of that portfolio supports new residential construction in some of Detroit’s underinvested neighborhoods.
Under Gasso’s leadership, Community Financial also expanded its housing lending in Detroit, supporting the new construction of 112 housing units.
“Tommy pushes Community Financial to be one of the best commercial lenders in Michigan,” said Community Financial CEO Tansley Stearns. “He is a connector, dreams boldly and cares deeply about Michiganders and helping businesses thrive.”
Gasso’s drive to lend to communities of color is in uenced by his childhood experiences, seeing the challenges his family faced as business owners.
Gasso is a member of the Chaldean American Chamber of Commerce board and spearheaded the industry association Fuel Michigan’s DEI committee.
Davis oversees Comerica’s business and community engagement e orts in the state and leads the bank’s middle market and business banking teams.
Davis manages approximately 120 colleagues in this role and is responsible for over $10 billion in commitments and loans. He oversees the business and community engagement of approximately 4,500 colleagues throughout the state, managing more than $37 billion in deposits as of June 2022, and supports over 300 nonpro ts. Davis also serves as president of Comerica Leasing Corp.
“Steve’s leadership experience of over 30 years, in-depth understanding of the market, and extensive knowledge of numerous industries enable us to continue improving how we build relationships to support our customers,” said Peter Sefzik, senior executive vice president and chief banking ofcer at Comerica Bank.
Davis serves on Detroit Regional Partnership’s Leadership Circle and volunteers for Detroit Regional Partnership’s Talent Solutions program.
Kim Gorman Managing Director & Michigan Market ExecutiveWells Fargo Bank
Senior Vice President & Senior Commercial Executive Fifth Third Bank
Englehart oversees the bank’s middle market, health care, higher education, not-for-pro t and government/institutional relationships within the Eastern Michigan region. Englehart’s team includes 16 account managers working with more than 300 clients on credit, treasury, depository, investment and risk management needs.
Under his leadership, the Fifth ird Bank team was responsible for over $275 million in new outstanding loans and over $500 million in new loan commitments to Michigan-based businesses in 2022.
“Steve’s dedication to cultivating the talents of his team means our customers and the communities we are privileged to serve remain at the center of everything we do,” said David Girodat, regional president of Fifth ird Bank, Eastern Michigan.
Englehart also actively serves on the boards of Junior Achievement of Southeastern Michigan and the Michigan Chapter of National Multiple Sclerosis Society.
Executive Vice President
Commercial Banking, Wells Fargo
Gorman is responsible for leading the Wells Fargo Commercial Banking business for the state of Michigan, including the emerging middle market, middle market and mid-corporate segments. She manages Wells Fargo o ces in metro Detroit and Grand Rapids with well over $1 billion in loan commitments and several hundred million dollars in deposits.
Her team grew its portfolio by 26 percent in 2022 through multi-billion-dollar nancing packages, securitizations, asset-based lending, mergers and acquisitions, treasury solutions, health care and more.
Gorman led the team’s transition from o ce-based to remote-based work and collaborated with her associates to create processes that ensured client service support. She collaborates with the Michigan team at First Independence Bank to foster a partnership with its Black minority depository institution in Michigan and Minnesota to help build the bank’s loan assets.
Additionally, her charitable activities include a role as vice chair and future chair of the board of trustees for Leader Dogs for the Blind. She is a long-term member of Financial Executives International and Wells Fargo Women’s Connection.
Howe leads the Great Lakes Commercial Banking Division for Wells Fargo, which includes Michigan, Illinois, Indiana and Ohio. She oversees a team of 125 professionals working with businesses with $10 million to $2.5 billion in annual revenues. Howe supports credit origination, treasury management, investment banking and asset-based lending products and services.
e division has grown signi cantly under Howe’s leadership, increasing its portfolio by nearly 40 percent in commitments in 2022. Her team is the fastest-growing regional commercial banking division for Wells Fargo.
Howe serves as a member of the board of trustees of the Citizens Research Council and the Wells Fargo Great Lakes Charitable Committee, which directs funding to nonpro t enterprises in the Midwest.
“Marybeth generates innovative solutions while leading with a steadfast hand that only someone with her experience and institutional knowledge can have, said Laura Schmaltz Oberst, executive vice president and head of Central Region Commercial Banking at Wells Fargo.
METHODOLOGY: The honorees featured in this Notable Leaders in Commercial Banking report were nominated by their peers or companies. Crain’s Detroit Business editors selected nominated honorees based on their career accomplishments, track record of success in their eld and contributions to their industry and community, as outlined in the detailed eligibility forms. Special Projects Editor Leslie D. Green, lgreen@crain.com, managed this Notables Leaders in Commercial Banking report, and Mike Scott wrote the honoree pro les based on nomination and candidate forms. Crain's Detroit Business is accepting nominations for Notable Leaders in Behavioral Health until March 31, 2023. For questions about how to nominate someone for a future Notable award program, visit our Nomination Page or contact Notables Coordinator Ashley Maahs at notablesdetroit@crain.com.
Executive Vice President, Chief Technology O cer, Chief Administrative O cer
First Independence Bank
Hutcherson oversees First Independence Bank’s retail branches in Michigan and Minnesota and its technology, human resources and marketing departments. He is a member of the bank’s IT, HR/ compensation, audit, asset and liability and external a airs committee.
“Dimitrius provides impactful leadership with our institutions on a daily basis,” said First Independence Chairman and CEO Kenneth Kelly.
“His connectivity to our team and his network across banking, along with personal relationships, have allowed him to demonstrate success.”
Hutcherson’s biggest win may be leading the bank’s conversion to a new platform. e core banking platform is built on an open, scalable architecture that provides customers with a more robust digital banking experience.
A big part of Hutcherson’s role is creating relationships with community, business and charitable associations. His board memberships include the Michigan Strategic Fund, Detroit Economic Growth Corporation, Junior Achievement of Southeastern Michigan, Wendy Hilliard Gymnastics Foundation and Harvard Business School Club of Michigan.
Kerns manages $3 billion in loans and commitments for Comerica as of December 2022. In that capacity, she manages a middle-market team of 26 professionals. As a 29-year Comerica president, Kerns also doubles as its Ann Arbor regional president, responsible for building the bank’s market presence.
Her e orts contribute to Comerica’s Commercial Banking division having the highest concentration of commercial and industrial loans among the top 25 U.S. nancial holding companies. She participates in several professional organizations, including Inforum Michigan, the Association for Corporate Growth Detroit and the Detroit Economic Club. A big part of Kerns’ role is tied to community outreach and service. She serves on the Ann Arbor Symphony Orchestra board, volunteers with Big Brothers Big Sisters of Washtenaw County and United Way of Washtenaw County and is a Healing Hearts Society member of Ele’s Place in Ann Arbor.
“Kris has a deep passion and commitment to help our customers succeed, and she integrates those same qualities into her exceptional community involvement,” said Comerica Bank Michigan Market President Steve Davis.
Independent Bank created Johns’ lending group in 2021, and she grew her portfolio to $50 million in outstanding loans in less than two years. Johns booked $43 million in new loans and exposures in 2022 alone, adding six new commercial relationships to Independent Bank’s portfolio.
One of Johns’ most impressive professional accomplishments was when she used her history, connections and industry knowledge in health care nancing to lead the underwriting of a behavioral health hospital for Independent Bank.
“Kyle understands her customers’ business at a deep level, allowing her to anticipate needs and provide strategic advice to guide success,” said Joel Rahn, executive vice president of Commercial Banking for Independent Bank. “She is also an outstanding person, as evidenced by her willingness to give back to her community through board involvement and volunteerism.”
Johns dedicates time to community and charitable activities, serving as a member of the Henry Ford Hospital, Ascension Hospital and Oakland University boards. She also led the e orts to bring free women’s heart health testing to customers and employees at Independent Bank.
Mann has twice worked for Bank of America, returning as a senior relationship manager in 2019 after a stint with the bank from 2001-09. Mann oversees a team responsible for $591 million in total deposits and $432 million in loans and leases. He manages seven senior relationship managers and three commercial associates. at team provides strategic and nancial advice to metro Detroit companies with annual revenues of $10 million to $100 million. Mann’s team funded $98.7 million in loan originations and closed deposit balances of $24.4 million in 2022.
“Larry’s community engagement is as impressive as his work (in commercial banking),” said Dana Locniskar, a managing director and private wealth advisor for Bank of America.
Mann serves as a member of the Economic Development Alliance of St. Clair County, Motor City Mentors in Macomb County and Detroit Bible Institute boards. He is also a member of the Business Banking National Diversity and Inclusion Council and BELT (Black Executive Leadership Team) Michigan for Bank of America.
Mannarino is responsible for the overall strategic direction of Key Bank’s Michigan market. He leads the middle market, business banking, health care, real estate capital and retail lines of business and the bank’s various investment banking teams. He also oversees more than 120 Michigan-based Key Bank employees.
One of Mannarino’s notable accomplishments is playing an integral role in Key Bank’s expansion into Grand Rapids. His commercial banking team exceeded loan growth goals in 2022, signicantly expanding the number of its new client relationships while building the brand.
Mannarino’s e orts allowed Key Bank to be recognized as a primary market player in the state, said Cascade Partners Managing Director Raj Kothari. “He transformed (the Michigan market) from a side thought to a key market focus,” Kothari said.
Within the community, Mannarino chairs the American Heart Association Heart Walk and Cycle Nation fundraiser and is treasurer of the Methodist Children’s Home Society.
McCoy’s role at JPMorgan Chase is largely dedicated to supporting diverse-, women-, veteran- and LGBTQ+-owned businesses. She and her team of eight professionals provide clients with resources for business growth, including capital, mentorship, education and networking. Additionally, McCoy is the Detroit team lead for commercial banking, deploying Chase’s national strategy for underserved businesses locally.
She is involved in JPMorgan Chase Business Resource groups and is a member of its Volunteer Leadership Group board. McCoy is also the marketing and events co-chair for Chase’s Women on the Move Michigan chapter. McCoy spends time volunteering or as a mentor with the Michigan Hispanic Chamber of Commerce, Michigan Minority Supplier Development Council, National Veterans Business Development Council and Great Lakes Women’s Business Council.
“Mary has always been able to provide us with suitable loan options and cash management services that best suit our needs,” said McCoy’s client Tamira Chapman, president and CEO of technology rm Storehouse in a Box.
Nazareth largely collaborates with clients in the automotive and manufacturing sectors.
He manages a portfolio of 24 large corporate clients with loan commitments exceeding $2.25 billion. Most of Nazareth’s clients are mid-size to large Michigan-based public corporations worth more than $500 million. He recently played a leading and collaborative role at Citizens to nance a $2 billion-plus client acquisition.
Earlier in his career, Nazareth led international assignments in Australia, Hong Kong, Japan, and London with JP Morgan Chase. Nazareth serves as a mentor to several junior bankers throughout the company, according to Citizens Bank Michigan Market Executive Yasmeen Jasey.
“André is a collaborator who ensures (that) everyone’s voices are heard,” she said. “He delivers a fantastic customer experience and has earned trust and respect from everyone he works with.”
Nazareth serves on the Penn State University MBA advisory board.
JP
Morgan Chase
Under Opferman’s direction, revenue for middle market banking in Detroit, one of JP Morgan Chase’s largest regions, increased by 18 percent year over year in 2022.
She is co-chair of Chase’s Michigan Market Leadership Team.
Additionally, Opferman is passionate about coaching and development. She helps integrate junior members into the team, serving as a mentor and ensuring an inclusive learning environment.
“Amidst an unpredictable economic environment, her thoughtful leadership has provided stability for our clients and contributed to the growth of a wonderfully diverse team that is passionate about the community,” said Tony Maggiore, managing director and Midwest & Canada segment head for middle market banking & specialized industries, JPMorgan Chase. “Her intellect, warmth and positivity make her a very special leader.”
Opferman, who is also active with local charities, is a member of the Business Leaders for Michigan, Goodwill Industries of Greater Detroit and the Downtown Detroit Partnership boards.
Peacock developed and led Huron Valley State’s lending program and grew his team from three employees to 14 direct reports over the last 13 years. His team has a signi cant in uence within the Huron Valley community, which includes Milford, Commerce Township, White Lake and surrounding municipalities.
Under Peacock’s leadership, Huron Valley State Bank’s loan portfolio of primarily small, locally owned businesses grew to over $150 million. His team also experienced a record year in 2022, increasing revenue by 15 percent over 2021. Peacock works closely with members of the Huron Valley Chamber of Commerce to help grow their businesses, advises local entrepreneurs and volunteers to assist local churches looking to create long-term nancial plans.
“Steve has been instrumental with developing our strategic vision and ensuring our future growth and success through succession planning, market expansion, leveraging our human capital and technology development,” said Huron Valley State Bank President and CEO Jack Shubitowski.
Community Financial Credit Union proudly congratulates Tommy Gasso, SVP/Commercial Lending, on his Notable Leader in Commercial Banking nomination!
From everyone here at Community Financial, we are proud of your accomplishments and the heart you have for making Michiganders' impossible dreams come true. Huzzah!Mike Ritchie Executive Vice President, Head of National and Specialty Businesses Comerica Bank
Ritchie oversees Comerica’s national divisions in business deposit services, captive insurance, commercial real estate, national dealer services, environmental services, equity funds services, energy, international, mortgage banker nance, renewables, technology and U.S. banking.
He was promoted to head of Comerica’s national and specialty businesses in August after a role as Michigan Market president for the previous nine years. In his new position, Ritchie leads approximately 300 colleagues who collectively manage approximately $60 billion in commitment and loans as of December.
“His extensive knowledge and acumen not only bene t our existing customers but also play a crucial role in growing our portfolio across many of our national and specialty lines of business,” said Peter Sefzik, senior executive vice president and chief banking o cer for Comerica Bank.
Further, Ritchie actively serves as chair of the Detroit Public Safety Foundation board of directors and as a member of Business Leaders for Michigan, Downtown Detroit Partnership, and Sacred Heart Major Seminary boards.
Senior Vice President, Group Manager, Commercial Banking Flagstar Bank
Terrill has been a key gure in executing Flagstar’s national growth strategy and expanding its wholesale banking footprint.
A brigadier general in the U.S. Army, he holds a degree from the Army War College. He has used his experience to build business in such specialty industries as eld artillery and defense.
He focuses on specialized and growing categories, such as lender nance, corporate banking, environmental services and renewable power. And he doubled the size of his team while booking nearly $1 billion in new loan commitments in 2022. His team also produced more than $400 million in new loans in that period.
“Je represents the best leadership qualities that we value at Flagstar. He’s humble, decisive, collaborative, and goes about his job with high energy, professionalism and integrity,” said Tom Kuslits, executive vice president and chief lending o cer of commercial banking at Flagstar Bank.
Terrill is the nance committee chair for the Metropolitan Detroit YMCA and a graduate of Leadership Detroit.
Silver leads the Bank of America’s Michigan Market, which has o ces in Metro Detroit and Grand Rapids, and manages 14 relationship bankers.
Over the past ve years, Silver doubled the size of Bank of America-Michigan’s relationship team and helped it consistently be one of the top growth markets within the bank. He formed a dedicated Detroit-based AutoTech team that helps startups raise capital and global EV suppliers localize production in the U.S.
“Sean shares the intellectual capital, thought leadership and vast resources to our clients with a worldclass experience,” said Merrill Lynch Managing Director Phil Serra. Silver serves on the boards of MICHauto, the Automotive Hall of Fame and Inforum Michigan, is a member of the advisory board of the Detroit Chapter of the CFO Leadership Council and is a trustee and treasurer of Starr Commonwealth, which provides children, families and communities trauma-informed education and programs.
The Top 11 FDIC-insured banks in Michigan, by market share, as of June 30, 2022. Last year, Michigan had 103 FDIC-insured banking institutions with more than $313 billion in deposits.
SOURCE: FDIC
e owners of a long-in-the-works mansion on the fairways of Birmingham Country Club now seek a buyer for the yet-to-be-completed home.
Located just o the 12th tee box, the 5,200-square-foot home on a half-acre often makes for a source of amusement for golfers waiting to hit their shots due to the lengthy construction process, members tell Crain’s.
Now, a buyer will have the opportunity to complete the massive home — with ve bedrooms, 8.5 bathrooms and a ve-car garage — that’s already largely enclosed, although it’s unclear how much time and money a buyer would have to put into the house to nish it. e house is listed for $2.29 million “as is.”
e owners simply wanted to go “in a di erent direction,” and decided the home was “not the right space for them,” said Realtor Kathy Broock with Max Broock Realtors in Birmingham, who’s marketing the property. e house now being marketed for sale “gives someone else the opportunity to put their mark on it,” Broock told Crain’s in a brief interview earlier this month.
Jennifer Solcz, who public records show as the owner of the property, did not respond to messages seeking comment.
While having just hit the market two weeks ago, the home has long been well known locally.
Construction began in 2018 and since that time the property has racked up scores of enforcement actions by the city of Birmingham, according to records obtained by Crain’s under the Freedom of Information Act.
e complaints outlined in the documents are numerous. ey include:
Neighbors complaining about construction workers being at the site during later hours.
Contractors parking their vehicles in the driveways of neighbors.
In December 2019, “Construction waste, mostly insulation, was placed in about a dozen black bags at the curb, in the street, in front of the neighbor’s house.”
Concerns about erosion at the work site that could a ect neighboring property.
In late November, city of Birmingham code o cial Doug Manigold informed Solcz that the building permit for the property had expired April 3 and absent the owner providing “a strict timeline” for work at the site, “the permit will not be extended and the city will start condemnation proceedings.”
In early December in a letter sent to Manigold, Solcz agreed to meet a timeline.
“ is project has been impacted by several extraordinary and unprecedented factors impacting time to completion,” Solcz wrote. “ e global COVID pandemic, followed by signicant raw material and labor shortages, combined with exceptional in ation, all created substantial delays in the timeline.”
e letter from Solcz sought a ninemonth permit extension to December of this year, allowing for the home to be completed, “plus any needed inspections, permits and certi cates.” at extension was granted and work on the house and lot remains ongoing. Templeton Building Co., a Birmingham-based general contracting company, is under contract to continue working on the house until a buyer emerges.
Regardless, Broock, the Realtor marketing the property, said in a promotional Instagram video last week that everything is ready to move forward.
“ is home is ready for you to nish,” Broock says in the video. “I have all the blueprints ready to go. What is so special about this house? It sits on the Birmingham Country Club’s golf course with sunset views and golf course views.”
Contact: nmanes@crain.com; (313) 446-1626; @nickrmanes
A dispute over how long the city of Detroit has to fund pensions for police and re retirees is in the hands of a federal judge, a legacy of the city’s decade-old bankruptcy ling.
omas J. Tucker, the federal bankruptcy judge in the Eastern District of Michigan who heard arguments over the phone Wednesday, said he understood representatives of the city and the pension fund were eager for a ruling as to whether Detroit had 20 years or 30 to pay into pension programs. e Plan of Adjustment approved with the city’s bankruptcy ling in 2014 gave Detroit a 10-year “vacation” from making payments, but with that window ending this summer, there is disagreement between the parties regarding who gets to decide how quickly payments must be made.
Charles Raimi, representing the city of Detroit, argued that a con rmation order approving the plan to exit bankruptcy laid out a 30-year time period to replenish the pension fund’s co ers. In lings, the city said the 30-year period was necessary to make the math work, and a shorter payment window would mean disinvestment in other city priorities, including public safety. Additionally, the city said a miscalculation discov-
ered after the plan had been approved meant Detroit had not had a break from contributing to its pension fund after all; a Retiree Protection Fund has close to $500 million squirreled away and will be used to cover the gap in the coming years.
On the other hand, the Police and Fire Retirement System’s argument for a 20-year time period rested on the question of control.
Jennifer
Green,an attorney
reprsenting the PFRS, questioned why there was a pension board at all if they wouldn’t be able to decide the time frame for paying back the debt that is owed to them.
Green argued that the Plan of Adjustment only governed the rst decade after bankruptcy and said the PFRS’ board of trustees should be able to make decisions after that period about what was best for them.
“ e nancial projections were
merely a placeholder,” she told the court, asking why they would be part of the con rmation order, but not the Plan of Adjustment, if they were meant to be binding.
She said the order was “littered with assumptions,” including expectations for casino revenues and other sources of income. It was “essentially a best guess into the future,” she proposed. And while the Plan of Adjustment was negotiated over months, she said, the same wasn’t the case for the gures that appeared in the nal order. She said if the city is victorious, the court’s action would enjoin the PFRS board “from ever making an amortization decision,” something she said would undermine the board’s authority.
Tucker pushed back against Green, asking about the e ect on the plan if he sided with the city. She mostly sidestepped the questions.
“You don’t like my hypothetical questions because you’re not answering them, you’re ghting them,” he noted.
Raimi had no qualms about pushing back on Green’s logic.
“ eir theory, it’s legally unsound,” Raimi said. “It just makes absolutely no sense whatsoever.”
He argued that the conclusion by the court that the city would be able to service its post-bankruptcy debt
was dependent on the decision to give them 30 years to pay into the pension fund, a mandate “as nal and binding as anything that appears in the plan itself.” If it were only 20 years, Green said she thought an additional $12 million annually would be required by the city.
“PFRS’ argument is false on all accounts,” Raimi said.
He called the retirees’ settlement “miraculous” and said it would not have been achieved if the city thought it had 10 fewer years to make payments. Additionally, he said he worried that the PFRS could later decide to reduce the amortization window to ve years, or even one year — and that a victory in this case could lead the General Retirement System fund to also ask for a shorter window.
In lings, the city said that could have a detrimental e ect on its ability to continue its post-bankruptcy recovery plan.
“ is, in our view, is a classic baitand-switch,” Raimi said.
Tucker said he planned to issue a written decision as quickly as possible. After all, he said, the 10-year nonpayment window was closing quickly.
“2023 is here,” he said.
Contact: arielle.kass@crain.com; (313) 446-6774; @ArielleKassCDB
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A group that includes North Peak Brewing Co. co-owner Jon Carlson has purchased a building and business in a prime spot in downtown Traverse City.
e group, operating as 161 East Front Street TC LLC, on March 9 closed on a $3.2 million acquisition of Mackinaw Brewing Co. and its building at 161 E. Front St., according to Traverse City-based Realtor Jack Lane. Carlson’s group signed a contract in August to buy the space but wanted to close in 2023, Lane told Crain’s.
Mackinaw Brewing Co. opened in the 123-year-old building in 1997. Rod and Lisa Langbow bought the building and business in 2002. They listed it for sale in May for about $4.95 million. Mackinaw Brewing officially closed Dec. 30.
Carlson did not immediately respond to requests for additional information.
North Peak Brewing is part of a group of food and beverage businesses operated by Dexter-based Northern United Brewing Co. Other
Northern United properties operating in Traverse City include Jolly Pumpkin, Mission Table and Blue Tractor restaurants. A North Peak Brewing taproom opened in 2016 at 400 W. Front St.
e new owners have grand plans for the 8,400-square-foot space, where beer was brewed in the basement.
e 4,200-square-foot main oor will remain a restaurant and brewpub, Lane said. But law o ces on the 4,200-square-foot second oor will be transformed into Airbnb units, according to Lane.
Lane, with more than 30 years experience as a Realtor, said it wasn’t easy nding a buyer for the business and building because the Langbows wanted to sell to someone who would continue to use the space as a restaurant.
“It’s a challenging market to have sold the business in,” Lane said. “It’s hard with restaurants coming o COVID-19 with the labor market. It’s been rough selling restaurants the last two or three years.”
Contact: jason.davis@crain.com (313) 446-1612; @JayDavis_1981
EXPANSIONS
Metro Vein Centers, West Bloomfield Township, opened vein care centers at 9392 N Lilley Road, Plymouth; 25631 Little Mack Ave., Suite 204, St. Clair Shores; and 4870 Clark Road, Suite 102, Ypsilanti. The company now has eight vein clinics operating in Michigan. Phone: (866) 941-2903. Website: metroveincenters.com/locations
Kellogg Co. has selected the name Kellanova for its Chicago-based snack business while going with the more orthodox WK Kellogg Co moniker for its smaller North American cereal business, which will remain based in Battle Creek following a planned spino .
Kellogg announced new names for the companies Wednesday, nearly a year after announcing it would split into separate entities to focus on snack growth. e split is expected to be complete by the end of the year.
Kellanova, which combines Kellogg with the Latin word for “new,” was inspired by more than 4,000 name suggestions from employees, the company said in a news release.
e WK Kellogg Co name is an overt nod to company founder William Keith Kellogg.
“ e name Kellanova signals the company’s ambition for the future, building on the strong brand equity and legacy built over the past 117
MERGERS & ACQUISITIONS
SyBridge Technologies, Southfield, a design and manufacturing company, acquired Cavaform Inc., St. Petersburg, Fla., a plastic fabrication company.
Website: sybridgetech.com
TriMas, Bloomfield Hills, manufacturer of engineered products, is acquiring the operating net assets of Weldmac Manufacturing Co., El Cajon, Calif., designer and manufacturer of components and assemblies for the aerospace, defense and space launch end markets. Websites: trimascorp.com
years as Kellogg Company,” Steve Cahillane, chairman and CEO of Kellogg Co., said in the release.
e company announced last June a three-way split between its legacy North America cereal business, its high growth snack business and its plant-based foods business, which it had been trying to sell until halting those plans last month. Instead, the plantbased segment, anchored by MorningStar Farms, will be folded into Kellanova, the company announced last month.
Kellanova will include Pringles, Cheez-It, Pop-Tarts, Rice Krispies
Treats, Nutri-Grain, Eggo, RXBAR, Incogmeato and Gardenburger, as well as international cereal and noodles. ose brands make up nearly $12 billion of annual revenue, or 82 percent of the combined companies’ overall sales.
Cahillane will serve as chairman and CEO of Kellanova.
WK Kellogg Co will include cereal staples Frosted Flakes, Froot Loops, Mini-Wheats, Special K, Raisin Bran, Rice Krispies, Corn Flakes, Kashi and Bear Naked. ose products account for $2.4 billion in revenue.
Gary Pilnick, vice chairman, corporate development and chief legal o cer at Kellogg Co., will be CEO of WK Kellogg Co.
“ e name WK Kellogg Co honors the legacy of founder W.K. Kellogg, celebrating his spirit of innovation and entrepreneurship,” Pilnick said in the release. “At the same time, we are looking forward, focused on propelling the company into the future.”
e “Kellogg’s” brand will remain on product packaging of each company around the world, according to the release.
Kellanova will trade on the NYSE under ticker symbol “K.” Stock exchange information for WK Kellogg Co will be announced in the coming months, the company said.
Contact: knagl@crain.com; (313) 446-0337; @kurt_nagl
NEW SERVICES
Fullstack Academy, New York, N.Y., a technical education provider, has a partnership with Nexus at University of Michigan Engineering, Ann Arbor, to provide tech training bootcamps specializing in data analytics, DevOps, artificial intelligence, fintech with blockchain, and business analytics in Michigan. The live online part- and fulltime tech bootcamps are to help fill the more than 8,700 available tech jobs across Michigan.
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“THE NAME KELLANOVA SIGNALS THE COMPANY’S AMBITION FOR THE FUTURE, BUILDING ON THE STRONG BRAND EQUITY AND LEGACY BUILT OVER THE PAST 117 YEARS AS KELLOGG COMPANY.”
—Steve Cahillane, chairman and CEO, Kellogg Co.
From Page 3
Being family owned and operated also has its challenges. For instance, Amigo doesn’t have the same level of resources or operational e ciency tools wielded by larger corporations or private equity owners, which limited its ability to pivot quickly. Another thing lacking: a fresh set of eyes.
Streamlining and scaling is the bread and butter of Plymouth-based Michigan Manufacturing Technology Center, a government-funded consultant and training organization for smaller manufacturers. With the help of a $10,000 grant through the Great Lakes Bay Manufacturers Association, the company hired the MMTC in 2021 to gure out why it couldn’t churn out more than 80 units per day.
It didn’t take long for Chuck Werner, manager of operational excellence for the MMTC, to nd the problems and prescribe solutions.
“ ey are very business savvy, a very knowledgeable group,” said Werner, who spent three days with his team working on-site with the company. “But what they didn’t have was information.”
Step one was a 40-question assessment completed by the company, followed by a walk-through of Amigo’s value stream and Lean Six Sigma training. e MMTC also installed Tulip operations software on the shop oor to measure output and detect snags.
placency or a chronic dependency on tooling workarounds that add up and drag down the business.
Implementing a dashboard on production lines at Amigo allowed workers to pinpoint problems and de ne them.
“If someone tells me to go out and x scrap or x throughput, I can’t do that because I don’t know what that is,” Werner said. “But if someone comes out and tells me to x a software integration problem with a printer that’s causing it to delay, OK, now I’ve got something actionable.”
e software also made problems impossible to ignore. e dashboard would track whenever workers delayed or missed a cycle, and operators would enter a reason code for the issue.
“As those data points start to build up, you start to see patterns, and those patterns are the things you want to work on,” Werner said.
ieme, the company’s operations manager, said the company now produces 120-150 units per day and is expecting its third production line to be installed by June, with ambitions for 180 units per day. At the start of pandemic boom times, it had just one line rolling out 50-60 scooters daily.
“Every time they just walk through our building, they give us some idea and we think, ‘Shoot we should have thought of that,’” ieme said of the MMTC. “ e biggest thing is being able to grow as fast as possible without having to waste a lot of money.”
e growth has tightened Amigo’s grip on the shopping scooter market and allowed it to branch out into other areas.
our stores the ways they want to every day,” a Kroger spokesperson said in an email. “In addition to these carts in stores, we have also been testing some new technology features with Amigo International and we look forward to our continued collaboration with this Michigan-based business.”
Some of Amigo’s new technologies include lithium battery-powered carts, as opposed to sealed lead-acid, as well as a smart tracking systems with GPS boundaries to keep carts on store property and help them avoid obstacles.
e company is also making industrial scooters for customers including pet e-commerce giant Chewy to move orders around warehouses. A couple of years ago, Amigo acquired Wisconsin-based AeroTow, which makes machines that haul small aircraft around runways.
e company’s most recent purchase was Bridgeport Manufacturing, an on-site metal fabrication supplier that had been leasing space from Amigo until its owner retired.
While increasing production, ieme aims to increase the amount of manufacturing work done locally. All the assembly and roughly 30 percent of manufacturing takes place at the company’s plant, but that’s set to increase with the implementation of laser tube cutting and metal tube bending machines, along with three robotic welders.
About 65 percent of its parts come from Michigan or Midwest suppliers, while batteries, motors, seats and baskets are imported from China. Every other business function, from R&D to marketing and sales, is done at the Bridgeport site.
Pronghorn, also a Black-owned business, reached out to the Fergusons late last year.
“We had interest from some celebrities to back us, but they wanted to take over the brand and the story,” the 49-year-old Ferguson told Crain’s. “We received a lot of o ers from VC companies and after some conversations decided this was something to move forward with.”
Anteel is one of nine Blackowned liquor companies in which Pronghorn has invested since its establishment in 2021. Pronghorn is backed by British alcoholic beverage company Diageo whose brands include Johnnie Walker, Crown Royal and Ketel One and Guinness. Diageo earned more than $20.5 billion in revenue in 2022, a 20 percent increase from 2021. Pronghorn has o ces in New York and California, and is setting up shop in Atlanta, where the Fergusons have relocated. ey believe a move to an entertainment hot-spot will help accelerate the business’s growth.
e investment into Anteel is part of an exciting time for Pronghorn, CEO and Managing Director Jomaree Pinkard said in a statement.
“We are starting o the year strong ahead of schedule of our 10year goal,” Pinkard said, “and are now welcoming Anteel Tequila, a successful woman- and minority-owned business, into our network.”
Anteel o ers three types of tequila: blanco, coconut lime blanco and reposado. Plans call for the release of an anejo version later this year. Each of the Anteel varieties is produced in Jalisco, Mexico, and shipped to distributors in the United States. In order for a spirit to be called tequila, it must be produced in one of ve states in Mexico. Anteel has earned more than 50 awards since 2019.
Anteel is available statewide in Michigan, California, Georgia and Oklahoma. e tequilas are also available at select stores in Florida, New York, New Jersey, Colorado, Illinois, Texas and Maryland.
Establishing the business started as a leap of faith — something the Fergusons are familiar with. Nayana Ferguson is a 17-year pancreatic cancer survivor and a 10-year breast cancer survivor. Battling through those illnesses showed the team that anything is possible.
“I proposed to (Nayana) in 2016 in the Dominican Republic. We drank a lot of tequila,” Don Ferguson said. “We talked about our life goals and I always wanted to own a tequila company. We went back to our careers, discussed it some more, and at one point when (Nayana) was being laid o we just decided to go for it.”
Six months ago, the Fergusons relocated from Canton to Atlanta to scale their business, though they maintain a home and o ce in Canton. ey work with Livonia-based distribution partner Imperial Beverage, which has a sales team that facilitates in-store sampling events. e move to Atlanta is strategic, as several of the celebrities who have reached out about working with Anteel live in Atlanta. e move and the Pronghorn partnership, according to Nayana Ferguson, could help Anteel become a national brand.
“ is has been challenging, but it’s exciting,” she said. “I think we’re going to continue to grow this brand for a while.”
Although Pronghorn initially reached out to them, Don Ferguson said he and his wife had to pitch Anteel “Shark Tank”-style to Pronghorn. It was well worth going through the process, he said.
“ ey went through every nook and cranny of our business but we did it,” Ferguson said. “Now the sky’s the limit.”
Contact: jason.davis@crain.com (313) 446-1612; @JayDavis_1981
Canton Township-based Anteel Tequila o ers three varieties of the spirit. | ANTEEL TEQUILA
e rst problem it identi ed appeared harmless enough. e machine printing stickers for the scooters was delayed by a couple of minutes. But that’s a world of time on an assembly line, Werner said.
“When you’re trying to get something o the line every 5 minutes, it’s huge,” he said.
e instinct for companies and employees on the line is to power through obstacles on the oor to ensure the assembly keeps moving forward, Werner said. at can often lead to com-
e company’s products are found in every Kroger and H-E-B store in the country and more than half of all Walmarts, ieme said. Its main competitor, Mart Cart, located near Walmart’s Arkansas headquarters, still has signi cantly less market share.
Kroger, whose pro t topped $2.2 billion last year on revenue of $148 billion, said it has expanded its eet of Amigo motorized carts over the past three years.
“ e Amigo carts provide all our customers the opportunity to shop
Amigo enlisted help from the MMTC again at the start of the year to help with vertical integration. e company is planning to use a Michigan Economic Development Corp. technology matching grant worth up to $25,000.
ieme said he would seek services from the consultant in the future with or without a subsidy. Growing stronger has helped the small manufacturer buck the trend of industry consolidation and private equity takeover — and it has remained family owned, according to plan.
“We will always be family owned,” he said.
Contact: knagl@crain.com; (313) 446-0337; @kurt_nagl
“EVERY TIME THEY JUST WALK THROUGH OUR BUILDING, THEY GIVE US SOME IDEA AND WE THINK, ‘SHOOT WE SHOULD HAVE THOUGHT OF THAT.’”
—Jordan Thieme, operations manager, Amigo Mobility International Inc.
Expansion is a big part of the planned changes.
e Slows Holdings team signed a deal with New York-based Mighty Quinn’s Barbecue to come on as a strategic partner and investor. Terms of the partnership and investment were not disclosed.
Established in 2012, Mighty Quinn’s is a fast-casual restaurant chain that began franchising in 2019. It has 12 locations in New York, New Jersey, Maryland, Florida and Dubai. “We have been searching for complementary brands in new markets to strategically increase the scale of our organization,” Micha Magid, co-CEO of Mighty Quinn’s, said in a statement. “We found this opportunity with Slows as a great rst step into the Midwest. Slows shares our vision for community centered great BBQ, a diverse real estate strategy and passionate leadership.”
Phil Cooley on Wednesday told Crain’s that things have changed for himself, brother Ryan and their father Ron.
“If it were 2005, I would’ve been excited to join in (the expansion plans),” Cooley said. “My dad’s almost fully retired. My brother’s got three kids. ere are a lot of factors at play. When we started, I was very passionate about restaurants. Now I do a lot of building and design work. at’s what’s taking up most of my time now.”
Phil Cooley, a 2007 Crain’s 20 in their 20s honoree, is active with building renovation and his nonprofit Ponyride creative incubator
“I have a strong a nity for Slows and all the employees,” Cooley said. “We’ve been less active in the day to day and more active in real estate and nonpro t work. In order to do the things they wanted to do, they don’t need us. We were able to come up with an amicable split.
From Page 1
League. Diamond listed $1 billion to $10 billion in assets and liabilities in the Chapter 11 ling.
e largest debt owed is more than $1.8 billion to U.S. Bank. DirecTV is also listed as a creditor, with Diamond Sports owing it more than $40 million.
e ling lists the 30 creditors owed the most debt, but says Diamond Sports has 50-99 creditors. It was unclear if any of the Detroit teams are among those unlisted creditors.
Diamond in a news release said it and regional sports networks including Bally Sports would continue broadcasting games as normal and it would seek court support to continue operating as usual during bankruptcy proceedings. Diamond’s regional sports networks produce about 5,000 live local professional telecasts each year in addition to a wide variety of locally produced sports events and programs.
A spokesperson for the Detroit Pistons, owned by private equity billionaire Tom Gores, directed a request for comment to the NBA league o ces.
NBA spokesperson Mike Bass told Crain’s in an email that Diamond’s bankruptcy ling was expected and the league remains committed to ensuring that NBA fans in the markets served by Bally Sports have continued access to all local games.
Inquiries seeking comment from the Tigers and Red Wings were not immediately returned. e Tigers and Red Wings are owned by the Il-
“Our kids go to the same school. We live in the same neighborhood. is took some time, but we wanted to make sure we were all able to be successful.”
Still, Slows Holdings’ partnership with the Cooley brothers is not 100 percent over. e Cooleys own the buildings that house the Corktown restaurant and 4107 Cass Ave., home of Slows takeout location Slows to Go. Slows Holdings signed new ve-
itch family, who also own Little Caesars Pizza, multiple entertainment venues and real estate developments in Detroit.
Major League Baseball has said it would stream games for free for about six teams a ected by the bankruptcy.
e Tigers are not in that group. In 2018, Tigers ownership said it was considering launching a sports network of its own to air games, as Crain’s reported at the time. In 2021, Crain’s reported that the Ilitch organization had reserved ve company names related to a regional sports network under consideration for years.
By ling for bankruptcy, Diamond said it intends to separate its business from Sinclair and become a standalone company. Sinclair loaded up on debt to buy 21 regional sports networks from Walt Disney Co. in 2019 for $9.6 billion.
“ e (restructuring agreement) will further provide that Diamond’s rst lien lenders will be unimpaired, while Diamond’s other secured and unsecured creditors will equitize their debt in exchange for equity and warrants issued by reorganized Diamond,” it said in the statement. “Sinclair is expected to continue to provide management services during the proceeding and to provide transition services for a period after Diamond emerges from Chapter 11.”
In the ling, Diamond said it has about $425 million of cash on hand to fund its business and restructuring.
According to the petition, the regional sports networks are also ling separate bankruptcy petitions.
Cooley is a general contractor for the real estate company.
“ e Cooleys have a lot of other businesses. ey’re very established in real estate. We’ve been talking about this for a couple of years — from the initial discussions on how to proceed as a company, to then the Cooleys deciding they would sell if we found an investor, to working out details that work out for everybody.”
at includes sta .
Terry Perrone said Slows general managers, all of whom have been with the company for at least ve years, were made aware of the change in advance. Management and key sta were told the news Wednesday. He doesn’t anticipate much if any sta turnover among the more than 130 Slows employees.
Keeping sta on and building its ranks will be key if expansion plans are to come to fruition.
In addition to the Detroit locations, Slows has a restaurant in Grand Rapids and a concession stand inside Huntington Place in downtown Detroit. During the 2021-22 basketball season, it operated a food stand inside Crisler Arena at the University of Michigan during men’s games. Slows also introduced a food truck during the pandemic.
Slows Holdings plans to open new locations in undisclosed locations in Southeast Michigan. First, though, is the build-out of a second food truck. Slows used its food truck at 120 events last year, which brought in more than $300,000 in revenue.
for entire neighborhoods. We have good sales gures from that, and that will inform us on future decisions regarding brick and mortar.”
Slows revenue overall has rebounded since the start of the pandemic. Revenue was up 30 percent in 2022 from 2021, when revenue fell 40 percent-50 percent from pre-pandemic levels. Terry Perrone did not disclose nancials for a dismal 2020, when restaurants were forced to close down for weeks and limit dine-in service amid the rst year of the pandemic.
“A mitigating factor for the drop is hours of operation. We were open limited hours most of 2021,” he said. “We’re starting to see that liveliness and excitement again from our customers.”
It’s an exciting time for the new owners. Some menu changes and minor renovations are on the horizon, according to Brian Perrone, along with the addition of a line of retail products.
“We’re thrilled with how everything has gone,” Terry Perrone said. “I can’t emphasize how much we’re excited about what’s happening in Corktown with Ford and everything else. Corktown has changed a lot. When you think about what you see there with the activation of the (Michigan Central Station) and everything else, we’re very excited.
year leases with automatic renewals on both Detroit spaces.
“Essentially, the gist of the sale is the Cooleys remain our landlords,” Terry Perrone told Crain’s. “ ings have gone smoothly. It helps when you’ve been partners for 20 years. Any success we have going forward, they’ll be rooting for us.”
Ryan Cooley owns and operates Detroit-based O’Connor Real Estate, which he purchased in 2004. Phil
“We are utilizing this process to reset our capital structure and strengthen our balance sheet through the elimination of approximately $8 billion of debt. e nancial exibility attained through this restructuring will allow DSG to evolve our business while continuing to provide exceptional live sports productions for our fans,” David Preschlack, CEO of Diamond, said in the release. “DSG will continue broadcasting games and connecting fans across the country with the sports and teams they love. With the support of our creditors, we expect to execute a prompt and ecient reorganization and to emerge from the restructuring process as a stronger company.”
In its ling with the court, Diamond is seeking a variety of “ rstday” relief options, including authority to pay employee wages and bene ts and honor customer programs in the ordinary course of business and without disruption.
In addition to Detroit, Diamond has 18 more owned-and-operated regional sports networks around the country. ose networks serve as the TV home to more than half of all MLB, NHL and NBA teams based in the United States. Diamond Sports Group also has a joint venture in Marquee, the home of the Chicago Cubs, and a minority interest in the YES Network, the local destination for the New York Yankees and Brooklyn Nets.
Diamond has nearly $1 billion in rights payments, mostly to baseball teams, due in the rst quarter this year. e company is current on pay-
“ e food truck was a lifesaver. It’s been great for us,” Terry Perrone said. “In the peak of COVID-19, we put the truck at Cherry Hill Village in Canton, and there was a three-hour wait for food. People were ordering food for themselves and their neighbors. We realized we could run a traditional food truck there, and do pre-orders with family-sized meals. We were able to o er more catering ... to a point where we did catering events
ments to hockey and basketball teams, but it might withhold payments from some baseball teams where it is trying to renegotiate a better deal.
Major League Baseball has set up a local media department in case it has to take over broadcasts for teams. Games would air locally via MLB Network or be streamed on MLB.TV in case that happened.
“Diamond Sports Group’s bankruptcy declaration today is an unfortunate development that we have been expecting. Despite Diamond’s economic situation, there is every expectation that they will continue televising all games they are committed to during the bankruptcy process,” MLB said in a statement late Tuesday night. “Over the long term, we will reimagine our distribution model to address the changing media climate and ultimately reach an even larger number of fans.”
As its traditional broadcast business struggled with the decline in pay television subscribers and the COVID-19 pandemic curtailed live sporting events, Diamond planned to stake its future on its own direct-to-consumer service, which launched last year after lenders provided the company with additional capital.
Diamond’s nancial struggles are a bad omen for the industry at large, given the amount of revenue from media rights in uences how much players get paid, among other things. As the pay-TV business contracts, some sports and media executives are warning that teams and leagues
“Nimbleness is something that’s served us well the last few years. e food truck, vending at (University of Michigan Hospital), UM basketball games. We leaned into things like take and bake. Being nimble — that’s what you’ll see going forward. We’ll have a blend of brick and mortar, but we’ll also continue with the alternative revenue streams. We want to continue to re ne the experience at our dine-in locations, but as far as the food, you’ll be able to get that experience everywhere.”
Contact: jason.davis@crain.com (313) 446-1612; @JayDavis_1981
will need to accept smaller rights payments going forward.
One positive for fans that could come from the move is the possible loosening of league blackout rules. Games airing on streaming services like MLB.TV and NBA League Pass are blacked out in local markets. If Bally’s can no longer broadcast games, that could change, giving fans another avenue to watch their favorite teams. Blackout rules are privately negotiated by the leagues and their broadcast partners, following the FCC repealing its blackout rules in 2014.
Diamond Sports isn’t the only company experiencing nancial woes with its regional sports networks. Warner Bros. Discovery, which has an ownership stake in three of the AT&T SportsNet networks, has given the Colorado Rockies, Houston Astros and Pittsburgh Pirates until March 31 to reclaim their broadcast rights. WBD Sports is ending its investment in the networks.
Paul, Weiss, Rifkind, Wharton & Garrison LLP and Wilmer Cutler Pickering Hale and Dorr LLP are serving as Diamond’s proposed legal counsel and AlixPartners LLP is serving as its proposed restructuring adviser. LionTree Advisors LLC and Moelis & Company LLC are serving as the company’s investment bankers, and Reevemark is serving as communications adviser to the company.
— Bloomberg and the Associated Press contributed to this report.
Contact: jason.davis@crain.com
(313) 446-1612; @JayDavis_1981
“ e No. 1 business we’re all in is (managing) risk. We should never predict the future. And the answer to that is diversi cation,” he said.
Other executives at Michigan community banks — institutions generally with less than $1 billion in assets, placing them on the much smaller side of the banking world — o ered a similar critique as Lamb.
At Chelsea State Bank, a community bank in western Washtenaw County with about $425 million in assets, “discipline” is the name of the game, according to President and CEO Joanne Rau, who said that calls from concerned customers have been few.
“For us, there aren’t big red ags in front of us,” Rau said of the recent events. “While customer needs may change, staying true to the fundamentals of banking are essential.”
Banks in Michigan’s small towns like Chelsea and Oxford play in a very different world than a bank like Silicon Valley Bank. While the 16th largest bank in the country with over $200 billion in assets, SVB was still very much just a regional bank.
Because SVB had less than $250 billion in assets, it fell short of many of the regulations put in place under the Dodd-Frank Act, which today largely polices just the largest banks in the country.
Attempts by Crain’s to interview executives with many of the larger regional banks operating around Michigan were unsuccessful. Spokespeople with banks including Comerica, PNC, Huntington, Fifth ird and others either did not respond to interview requests Wednesday and ursday or said executives were unavailable.
Spokespeople with Huntington and Fifth ird — both headquartered in Ohio, but each among the largest banks operating in Michigan — provided separate statements saying their operations have been una ected by the recent events and the banks see no indication of the troubles that have befallen Silicon Valley Bank and others.
Dallas-based Comerica, another large regional bank with a signi cant Michigan presence, has been listed by Moody’s Investor Services as one of a handful of banks the ratings agency is reviewing for potential trouble. e ratings agency has cited concerns over the lenders’ reliance on uninsured deposit funding and unrealized losses in their asset portfolios.
A Comerica spokesperson last week took issue with the bank’s presence on the list of banks being reviewed by Moody’s, writing “that any correlation between Comerica and the recently impacted banks in regard to deposits is an apples-to-oranges comparison.”
Taking a step back, while being careful to not “underestimate the interconnectedness” of the global nancial system, Nick Juhle said he believes the instability being experienced is likely to be relatively con ned.
“ ere’s plenty of uncertainty out there,” said Juhle, the chief investment o cer of Greenleaf Trust, a Kalamazoo-based trust bank and wealth manager with o ces around the state. “But a repeat of the global nancial crisis? at still seems like a little bit of a stretch to us.”
So where does the trouble lie?
At least in the case of Silicon Valley Bank, the issue appeared to be an over-reliance on deposits from the tech sector and poor risk management that failed to see the diminishing value of
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assets acquired with those deposits. An announcement by the bank that it needed a capital injection led to a bank run and the ultimate collapse March 10, which ended with regulators taking over the bank and ultimately guaranteeing all deposits.
Such a business model is vastly different at a lender like Oxford Bank, its CEO said.
“ e di erence in community banks is we’re very granular,” Lamb said. “Our customers are granular. We can’t be concentrated in deposits.”
e goal, according to Lamb, is to “balance” between liabilities — loans — and assets.
“If the world changes on you, you don’t have one side or the other reprice on you,” he said, referring to how the value of both can change, largely from interest rate uctuation.
Still, the tumult has led to some opportunity for banks, particularly larger ones, such as Bank of America. A Bloomberg report last week said the Charlotte, N.C.-based bank had mopped up more than $15 billion in new deposits in a matter of days, emerging as one of the big winners after the collapse of three smaller banks dented con dence in the safety of regional lenders.
e statement from Fifth ird Bank, sent to Crain’s on ursday, also alluded to increased deposits and new customers opening accounts, but a spokesperson did not provide an amount.
Lamb told Crain’s that deposits at his bank have been “consistent with previous weeks,” and noted that’s what he has heard from colleagues in the smaller community banking space.
Like others, Rau with Chelsea State Bank expressed a general sense of optimism for conditions going forward, but acknowledged an economic downturn is likely in the coming months.
“Do I think a recession is in sight? All the investment banks have been talking about this for a year and a half,” Rau said. “I do believe we’ll likely be in a recession, but I don’t think it will be a hard landing like 2008 or 2009. Maybe that makes me a little naive, but looking at where we stand in Southeast Michigan, I feel pretty good. But I’m cautious as well.”
Beyond the banking world, other industries are also closely monitoring the instability in nancial markets. at’s particularly true in venture capital, an industry that had a close relationship
with Silicon Valley Bank going back decades prior to its collapse and government takeover.
Much of Silicon Valley Bank’s book of business was tied to banking services tailored to the needs venture capital funds and their portfolio companies.
Farmington Hills-based Beringea — the state’s largest VC fund with about $750 million in assets under management, according to Crain’s data from 2021 — did have portfolio companies unable to access money following the bank run at SVB, according to Michael Gross, Beringea’s managing director. e rst step that executives at Beringea are taking, Gross said, is “tactical” changes and changing up the fund’s “treasury strategy” to ensure holdings aren’t overly concentrated at any one bank.
But at a larger level, the death of SVB — which has yet to secure a buyer — is something that will likely create challenges for startups and investors going forward, he said. One of the key services the bank provided was debt lending to startups, essentially bridge capital a company could raise to tide over operations in between equity rounds.
“While it wasn’t venture lending that caused the (collapse of SVB), the outcome is venture lending will get tougher to secure, or go away all together,”
Gross told Crain’s, noting that the overall landscape for venture capital investment has cooled amid the period of higher interest rates. “ at will leave a void in the industry at a time when it’s critical for companies.”
Small business consultants told Crain’s that their clients are taking notice and watching the bank instability, but it’s “front page stu ” like interest rates, in ation and nding workers that continue to be the largest challenges, according to Brooks Kindel, a business growth consultant with the statewide Michigan Small Business Development Center, housed with the Seidman College of Business at Grand Valley State University.
e goal for many of his clients — which range from bars and restaurants to manufacturers and professional service companies — and are largely “doing quite well,” he said — is to focus on “hardening their business” to provide as a hedge against the types of events that have played out over the last week or so.
“ ey’re trying to reduce risk, reduce debt, re unpro table customers,” Kindel said. “ ey’re trying to do all the things you need to do to protect your margins. at helps provide a sense of a little more calm or condence.”
— Bloomberg contributed to this report.
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Soon after the needle enters her arm, the walls turn red and pulsate like the inside of a breathing whale, or the warm center of a lava lamp. e knots in her muscles, constricting her skeleton like a python begin to loosen. Her mind is euphoric.
Elissa Ray, a 68-year-old self-employed attorney from Dexter, is high. But she’s not in an opium den. She’s in therapy.
Ray, su ering from a complex post-traumatic stress disorder linked to early childhood trauma, is among a growing faction of mental health patients using psychedelics or psychedelic-like drugs at clinics cropping up across the state.
“It was the rst time in a very, very long time I felt hope,” Ray said of her therapy. “ at I can work through these things and nd peace. at’s what you carry with you after the infusions, the feeling that there is a place that is peaceful and maybe that’s the rst time in your life that you’ve found peace.”
Ray is a patient at Royal Oak-based Michigan Progressive Health, a ketamine-assisted therapy clinic run by former emergency room physician Dr. Megan Oxley, M.D. e clinic administers doses of ketamine, a dissociative anesthetic prominently used during surgery, to treat chronic depression, anxiety, pain and other mental illnesses. e clinic mixes the often hallucinogenic drug with talk therapy as a treatment for more than 500 patients from its Royal Oak and Ann Arbor o ces.
Just like medical marijuana a decade ago, ketamine used to be classed as an illegal drug but has recently become more popular for medical uses. And like the medical marijuana industry of the past, there is now a growing number of businesses that are embracing what is recreationally called “Special K” for health care uses.
“We split the di erence between Eastern and Western medicine,” Oxley, 43, said. “Most of our patients have exhausted other avenues of relief. Many of them are suicidal when they get to us. I spent a decade in the ER witnessing the Band-Aid-system of mental health care in America.
ere had to be a better way, and I do believe this is it.”
ousands of ketamine clinics have cropped up across the U.S. in the last decade, and ketamine is likely the rst of many similar drugs to come. Psilocybin mushrooms, LSD, MDMA and more are currently in clinical trials at various research institutions, including the University of Michigan, as scientists get closer to unlocking the power of these hallucinogens to battle for mental health and wellness.
Ketamine was approved by the U.S. Food and Drug Administration as an anesthetic in 1970. But research in recent years has found the drug also works for treatment-resistant
depression in some people, and psychiatrists began using ketamine as a treatment for mental health disorders over the last 20 years.
It wasn’t, however, until the last decade that clinics began to o er the drug o -label as either an infusion or injection for those problems. “O -label” use means the drug hasn’t been speci cally approved for those conditions.
In 2019, the FDA even approved a version called esketamine, under the brand name Spravato. It’s an inhaled treatment that is required to be administered in a doctor’s o ce and is only approved for patients where other treatments have failed.
“Some patients don’t respond to traditional antidepressants,” said Dr. Avinash Hosanagar, M.D., psychiatrist at the Veterans A airs’ VA Ann Arbor Healthcare System and clinical associate professor at UM’s Michigan Medicine.
“At the turn of the century, there was interest in new ways to treat depression. We had discovered serotonin’s link to depression and wanted to try a di erent compound than typical treatments. We have found that with ketamine, symptoms of depression and suicidal ideation improved very rapidly.”
e VA has been using ketamine to treat veterans’ mental health disorders since 2019 and UM Health began using it clinically in 2021, Hosanagar said.
Oxley opened her Royal Oak clinic in 2016 after being discouraged over mental health treatment as an ER doctor at Ann Arbor-based Emergency Physicians Medical Group, which employs physicians at several hospitals throughout the region.
She remained an ER doctor through 2019.
“ e system doesn’t adequately care about mental health,” Oxley said.
“ ere is no piecemeal approach. We look at all the things that are causing a patient’s distress and use ketamine as only part of the solution.”
e rst ketamine regimen at Michigan Progressive Health is 90 minutes and includes meetings with a therapist and a doctor, like Oxley.
e clinic employs 22, including ve therapists, two physicians and two physician assistants, Oxley said.
Ray found Michigan Progressive Health during an internet search looking to nd any new treatments that could alleviate her PTSD.
“I had been through ve or six medications, talk therapy, EMDR (eye movement desensitization and reprocessing therapy) and neurofeedback,” Ray said. “I was doing all of those things, and it was almost a full-time job to keep me functioning and working. I wasn’t really making any progress, and I was getting desperate.”
Oxley said about half of her 500 or so patients found the clinic during a Google search and another 25 percent were referred by a growing network of therapists.
Ray said the experience of dosing ketamine was like experiencing a different planet, one where her chronic troubles were alleviated, and she was
able to think about her trauma without the typical mental and physical hang ups.
“It’s not scary. You don’t feel threatened or out of control,” Ray said. “It’s very comforting. It lets me think about all those things in my past without causing anger, sadness or stress. Even thinking about my experiences can throw me into a panic attack, but with ketamine I can think about those things without the terror and physical reaction.”
Ray has undergone about 20 ketamine sessions and is now active in the clinic’s virtual group therapy sessions as well as seeing a therapist individually once a month.
“After the rst infusion, I felt better for a couple of days,” Ray said. “ en with each infusion after, I felt better a little longer. I can go almost a year now between regimens. I do believe it saved my life.”
e treatment, however, isn’t for everyone, Oxley said. Sometimes the ketamine doesn’t achieve the right af-
fect and can make suicidal thoughts more prominent. And because the clinics are not federally regulated and this speci c use of ketamine is not an approved treatment by the FDA, some caution should be exercised.
“ e concern with these clinics popping up is that people are getting treatments that haven’t been well-proven, well-studied or following any guidelines,” Dr. Smita Das, M.D., an associate professor at Stanford University School of Medicine and chair of the American Psychiatric Association’s Council on Addiction Psychiatry, told NBC News in January. “My concern is that people who need treatment will spend their money and energy in these ketamine clinics that aren’t well-proven.”
e treatments are costly. Ketamine use in these clinics is not covered by health insurance. At Michigan Progressive Health, a ketamine session costs between $350 and $600 and is usually coupled with a $250 consultation and $125 per hour ther-
apy sessions.
Ketamine is, coincidentally, the gateway drug to further research into other psychedelics to treat mental illness.
Hosanagar will help lead a clinical trial at UM and the VA this summer on the use of psilocybin mushrooms to treat depression. e initial trial, funded by U.K.-based life sciences company Compass Pathways plc, is expected to be carried out with 25 to 50 patients, Hosanagar said.
Initial research is hopeful, he said.
“ e early research seems to indicate two doses of psilocybin given a week apart reduces depression symptoms,” Hosanagar said. “In head-to-head comparisons, along with psychotherapy, those who were given psilocybin responded the same as patients taking regular antidepressants daily for six weeks.”
Research on psychedelics is
in the trials are people who believe in drugs. ey are having these positive results because they want them to work. I believe the treatment e cacy is going to come down somewhere in the middle to closer to the e cacy of current antidepressants.
Ray said although she was in high school in the early 1970s, she never succumbed to the drug culture of the time and had never taken any drugs recreationally.
“I had no experience with this and the whole thing was creepy at rst,” Ray said. “But I was desperate. I wish I hadn’t been so desperate and had found this clinic sooner.”
Regardless, the federal government appears primed to bring more psychedelics to health care.
ere’s a psychedelic renaissance afoot. In clinical research settings around the world, scientists are investigating the use of psychedelic drugs to treat illness, such as depression, addiction, anxiety, post-traumatic stress disorder and much more.
e renewed interest is a continuation of research mostly conducted between the 1950s and 1970s, before most psychedelics were classied by governments as illegal narcotics with no medical value. e research capitalizes on improved methodologies and the public’s increasingly greater awareness and tolerance of these drugs.
Psychedelics are generally classied into two categories: classic psychedelics, like LSD or psilocybin, that mimic or contain chemicals found in plants or fungi; or entactogens, like MDMA, that acts as an agent for the body to release serotonin.
Ketamine isn’t technically classied as a psychedelic, but it produces much of the same euphoric and sometimes hallucinogenic e ects of classic psychedelics.
Ketamine was approved for therapeutic use in 2019. e other drugs remain in clinical trials only.
Below is a list of the most common psychedelics being tested or used for therapy.
Ketamine: Categorized as a disso-
ciative anesthetic, it’s primarily used in anesthesia. But about a decade ago, doctors began using the drug “o -label,” or not for its intended use, at clinics across the country. e FDA only in 2019 approved a form of the drug to treat depression and only in cases where traditional methods have failed. Ketamine-assisted therapy most often involves use in a clinical setting with therapists who guide the patient through the experience and break down meaning behind the experience.
Psilocybin mushrooms: A classic psychedelic, “magic mushrooms” have been used recreationally for nearly 70 years. However, changing attitudes and new research point to legitimate uses in therapy settings. Clinical trials have been ongoing at major research institutions, like
Johns Hopkins, for a few years. A new national clinical trial will begin this summer at other institutions such as the University of Michigan.
3,4-Methylenedioxymethamphetamine (known as MDMA, ecstasy or molly): MDMA medical research is also ongoing. e synthetic drug alters awareness and perception and produces an increase in dopamine, norepinephrine and serotonin in the body and is being tested for use treating severe PTSD.
N,N-dimethyltryptamine (DMT): DMT is a naturally occurring psychoactive molecule that can by synthesized in a lab. e molecule is similar to serotonin, a neurotransmitter in the body that regulates happiness, optimism and satisfaction. DMT would mimic in a more natural way modern anti-depressant drugs called selective serotonin reuptake inhibitors, or SSRIs, to increase serotonin. Studies are ongoing across the U.S., including at the University of Michigan, to see if DMT can be used correctly in a clinical setting to treat chronic depression.
Lysergic acid diethylamide (LSD): LSD remains a Schedule 1 narcotic in the U.S., but is under clinical trials to treat alcoholism, depression and PTSD in Europe. e drug can alter perception and cause hallucinations.
Contact: dwalsh@crain.com; (313) 446-6042; @dustinpwalsh
spreading rapidly. Nick Glynos, a doctoral candidate in molecular and integrative physiology at UM and vice president of the Student Association for Psychedelic Studies at the university, is researching the neurochemistry of rats who ingest the psychedelic N, N-Dimethyltryptamine, or DMT.
“ is whole psychedelic renaissance happened right when I was going to grad school,” Glynos said. “We’re facing the biggest mental health crisis right now and it’s coupled with massive interest in decriminalizing and the liberation of these substances and this whole psychedelic renaissance. ere’s a huge amount of potential with the therapeutic e ects of psychedelics.”
Both Ann Arbor and the city of Detroit have decriminalized the possession and use of psilocybin mushrooms. It is still, however, illegal to sell or buy the drugs on the street.
Glynos and his colleagues at the student group host doctors, professors and others with insight into the eld in hopes of propelling the discussion on psychedelic therapies forward.
Glynos, however, believes the warm feelings toward these drugs will wane as more and more studies come on line.
“It’s the wild west right now,” Glynos said. “I am deeply skeptical of the biases present right now. e people
In May last year, the U.S. Department of Health and Human Services said it is likely the FDA would approve not only psilocybin, but also 3,4-Methylenedioxymethamphetamine (MDMA, also known as ecstasy or molly) by the end of 2024. is has the support of President Joe Biden, who is expected to create an interagency task force to explore deployment of these psychedelics to treat mental health disorders.
“We are now clearly recognizing the importance of mental health and treatment far more than before,” Hosanagar said. “We simply don’t have the resources to care for everyone, so a lot of money is owing into this because there is a need. e small effects in early trials are so profound, there is a lot of interest to erase the stigma in hopes of developing enough evidence that these drugs work e ectively and can make an impact in the mental health community.”
Ray said she is interested in how psilocybin could improve her mental health, and Oxley plans to o er it and other psychedelics as soon as it is legal to do so.
“ e world would be a lot better place if people did more mushrooms,” she said.
Contact: dwalsh@crain.com; (313) 446-6042; @dustinpwalsh
Like so many things, ketamine’s true origins blossomed out of Detroit.
America in the 1950s was witnessing a health care renaissance after a decade prior where anyone with medical training was dispatched to Europe or the South Paci c. New procedures and technologies were being created — dialysis, pacemakers, u vaccines.
Detroit’s Parke, Davis & Co. (often called Parke-Davis and later acquired by P zer) sought to formulate better, more stable ways to improve post-surgical pain. Amphetamine abuse rose out of World War II and anesthesia drugs like cyclopropane, an expensive and explosive gas, were becoming outmoded.
Parke-Davis scientists created phencyclidine, or PCP, or sometimes called Angel Dust when used illicitly, later marketed as Sernyl. e drug was e ective at treating pain in animals and widely used by veterinarians, but the side e ects proved too harmful for widespread use and was discontinued in 1962.
But out of the Parke-Davis discovery, scientists elsewhere were able to create another synthetic drug using the same structural analog. In 1962, ketamine was rst synthesized.
Two years later, ketamine was being injected into volunteer prisoners and reportedly achieved similar
pain reduction to PCP but with fewer side e ects. e patients also reported psychedelic e ects, like the sensation of oating in outer space and hallucinations.
But its widespread use didn’t last long as other, less psychedelic anesthesia drugs, such as Propofol (marketed as Diprivan), were created in the 1970s and made their way into operating rooms in the 1980s.
However, another group began nding uses for ketamine shortly after its invention — a group of counterculture scientists that peddled in pseudo-mysticism and human consciousness. at group consisted of psychologist and LSD advocate Timothy Leary, psychologist and yoga guru Ram Dass and neuroscientist and “psychonaut” John Lilly.
Lilly famously ran a highly controversial NASA-funded laboratory where he and his colleagues sought to communicate with dolphins out of a house they ooded to live in close proximity to their subjects.
Lilly also began using ketamine to treat his chronic migraines.
“When he was under the in uence of a small dose, Lilly said that he felt the migraine being pushed out of his body and, miraculously, he never had one again,” Vice reported in 2015.
Soon after he began shooting up ketamine, then transitioning to taking it via an IV while in a deprivation
tank (which he also invented), as documented in his 1978 autobiography “ e Scientist.”
Lilly’s self-experimentation with “Special K” continued and the psychedelic properties led to vivid hallucinations that led him to believe he was being contacted by an alien group called the Earth Coincidence Control O ce, which was later documented in the Paddy Chayefsky book “Altered States” — later adapted into the 1980 Ken Russell movie of the same name. His drug-fueled dreams also inspired the early 1990s video game series “ECCO the Dolphin.”
Lilly’s ketamine experimentation, alongside that of his peers, led to the movement of exploring human consciousness and became the precursor to psychedelic-assisted therapy that’s on the rise today.
e U.S. Food and Drug Administration only approved ketamine for therapeutic use in March 2019. But ketamine clinics have been using it “o -label” to treat chronic depression and other mental illnesses for a decade and these clinics are increasingly cropping up across the country — all thanks to that early innovation led by Parke-Davis in Detroit and the potentially unhinged experimentation by “psychonauts” like Lilly.
Contact: dwalsh@crain.com; (313) 446-6042; @dustinpwalsh
InLaws Hospitality co-ownerChristine Driscoll is a busy woman. Driscoll’s group — which includes her husband, Jacques, and husband and wife Les and Jessica Molnar — operates ve restaurants, all of which opened since 2012. That portfolio includes Detroit-based Green Dot Stables, Yellow Light Co ee & Donuts, Johnny Noodle King and Goblin Detroit sushi. InLaws, established in 2010, also operates Lansing-based entertainment venue The Junction, which opened last fall in a space that previously housed another Green Dot Stables. And late last year, InLaws Hospitality began running holiday-themed pop-up bars out of a space at 2545 Bagley Ave. in Detroit. The 39-year-old Driscoll talked with Crain’s about her company’s expansion, ups and downs, and future.
InLaws Hospitality has a lot of properties. How’s business across the board right now?
Business is great and growing. We really feel the energy now that events have returned downtown. Our places have become destinations before and after big gatherings and we love it. Our teams always keep it interesting, expressing their creativity through food with things like mystery meat, special ramen bowls, weekly doughnut specials, sushi and onigiri specials, and the holiday bar keeps things changing all the time.
How have those holiday-themed pop-ups been received? Why did you decide to use that Bagley space for the themed bar?
The holiday themed pop-ups are exceeding our expectations. It was a happy accident that the space (formerly Bagley Central bar) was available in December right before the holidays. The team is having a blast creating the menus, snacks and decorations for all these fun spaces. Stay tuned for what’s next.
InLaws was involved in a bit of a labor spat with employees that played out on social media. How did that a ect business?
Until we met face to face with the former employee (at Green Dot in Detroit) and were able to put out a public statement, there was some confusion. Our employee handbook contains a set of protocols on how we should treat and respect each other. It is an important part of our culture. Unfortunately, while we were respectfully waiting for the opportunity to publicly clarify the confusion, there was an astonishing amount of misinformation spread on social media and other places. Fortunately we’ve cleared the air and the confusion and continue to talk regularly with the former employee. We’ve learned from our experience and today we’re a stronger team than ever.
You opened The Junction entertainment venue last fall in Lansing. How has business gone there so far?
The new team in Lansing is doing a good
job reaching a broader clientele with a varied entertainment lineup. It’s nice to see the crowds grow again and we’re getting positive feedback from guests.
Where does the name come from?
It’s a play on the building’s physical location. We’re located at the junction of Lansing’s city and township boundaries, and the boundary of East Lansing, so the name came from that cross section of municipalities.
Are you o ering Green Dot sliders there?
Yes, but a much smaller and limited menu.
After closing the Lansing Green Dot and before you rebranded the space The Junction, did you get any interest from potential buyers for that property? Why did you decide to hold onto the property?
Yes, we had some interested parties, but we really liked this group’s energy and ideas. This hybrid opportunity felt right because of the people involved, and we loved the idea of the space returning to an entertainment venue format like it had been many years ago.
The Green Dot in Lansing was a great idea — just o the edge of the Michigan State University campus, close to the freeway. Outside of COVID-19, why do you think it didn’t work long-term?
I don’t think it’s a matter of the concept not working in Lansing. As Spartan alum, the Lansing location is sentimental for my husband and I and we really experienced incredible business ow and feedback after it opened in December 2017 with clientele from the academic, business, political and residential realms. In February 2018, there was a ood substantial enough to trigger a state of emergency in Lansing. We had 5 feet of water sitting in the entirety of the building for weeks. Our contractor sent us a photo of himself in a boat outside the front door of the building. The area was evacuated, and we couldn’t legally access the property until the state of emergency was lifted.
BY | JAY DAVISIt was heartbreaking and drew a ton of media attention. We had to redo the interior of the building. It took us a good year or so to re-establish that we were open again and business started to boom. And then COVID came, and it was a blow that impacted a big portion of our clientele in a way that felt almost impossible at times to climb back up from. We opened and closed on and o with the mandates and then we came to the drawing board with a fresh perspective, imagining the space in its best form and the obvious answer was to focus on bringing its venue potential to the forefront.
How does InLaws feel about business coming out of the pandemic?
We are rejuvenated, more creative and grateful for the fact that events are back, and people are dining out again.
Johnny Noodle King added a patio and a rooftop bar during the pandemic that has increased seating and sales. Green Dot is about even with pre-pandemic levels and Yellow Light and Goblin Sushi opened up in the middle of the pandemic, so we don’t have comparable data points there. Yellow Light started as a carryout window and continues that way today.
What’s your favorite menu item at each of your restaurants?
Bánh mì Slider at Green Dot; New Seoul Bowl at Johnny Noodle King; co ee slushie and an egg sandwich with pickles, hot sauce and garlic mayo at Yellow Light; yellowtail and scallion roll at Goblin Sushi.
AFTER BAKER TILLY’S revenue tripled during his seven-year tenure as CEO, Alan Whitman is suddenly out at the top 10 accounting and consulting rm. Baker Tilly last week said he had resigned “with immediate e ect” and with no permanent successor in place.
“While Alan and the board were closely aligned on strategy, they differed on aspects of execution,” the rm said in a statement. “While change is never easy, we respect Al-
an’s decision to move on.”
Whitman, 57, did not respond to a message left on his cellphone, and a spokeswoman for the rm said he would not be available for an interview. His bio was scrubbed from Baker Tilly’s website.
Baker Tilly appointed Je Ferro, 60, a regional managing partner in charge of the rm’s eastern and central regions, as interim CEO. Je rey DeYoung, a managing partner in Minneapolis, is taking over as chairman, the other role held by Whitman, who was promoted to the top job in 2016 after heading up the accounting rm’s Michigan market.
Whitman was promoted to CEO from a role as managing partner of Baker Tilly’s local o ce in South-
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