The Northridge temblor that hammered the region in January is still shaking the business community as the year draws to a close. Retailers, contractors, insurers and a host of large and small businesses whose livelihood depends on a local customer base have all been coping with its aftereffects.
To be sure, the earthquake wasn't the only big business story in the San Fernando Valley this year. Aerospace and defense industry downsizing continued to plague the region. The beleaguered real estate market showed signs of recovery--albeit a weak one.
But there were some success stories, including a few booming health-care concerns. Saban Entertainment, the Burbank firm behind the hit "Power Rangers" children's TV show, and growing pool supplies retailer Leslie's Poolmart in Chatsworth both enjoyed a good year.
Amgen Inc. in Thousand Oaks also remained a standout. The world's largest biotechnology concern, still riding high on sales of two blockbuster drugs, is expected to post a record profit of $430 million in 1994. In November, Amgen said it would buy Synergen Inc., a struggling Boulder, Colo., biotech company, for $240 million. Analysts said the deal will broaden Amgen's research in developing drug No. 3 in hopes of fueling its future growth.
And there were failures--including the liquidation of DAK Industries, the once-popular Canoga Park electronics catalogue firm, and the Chapter 11 bankruptcy filings of apparel maker Cherokee Inc. and fabric retailer House of Fabrics Inc.
But it's the earthquake that reigned as the No. 1 story this year.
One of the companies hardest hit by the quake was 20th Century Industries. For years, the Woodland Hills insurer was profitable due to its low-cost auto insurance business. But its smaller homeowners' business nearly sank the company in 1994 as it suffered a staggering $900-million estimated loss from earthquake damage claims.
On the brink of insolvency, 20th Century closed a deal this month with American International Group Inc., the big New York insurer, under which AIG could eventually invest more than $400 million in 20th Century and own more than 40% of its stock.
The quake also threw the local retailing industry into a tailspin. In the first weeks after the temblor, stores and shopping malls struggled to get back in operation. Home repair meccas such as Home Depot were crowded with weary shoppers, and big-selling items included flashlights, batteries and bottled water.
