Business digest

STEWART, HOME DEPOT IN TALKS: Martha Stewart Living Omnimedia is in talks with Home Depot about bringing her home-products line to the home-improvement chain, MSNBC reported. A Home Depot spokesman would not comment, and a Martha Stewart spokeswoman was unavailable to discuss the report. Analysts said Martha Stewart may also be talking with retailers such as Target Corp. in case an agreement with bankrupt discount retailer Kmart Corp. ends. Martha Stewart didn't lose sales at Kmart after Kmart's January bankruptcy filing, but it lowered its 2002 profit forecast partly because it expects Kmart to close 400 stores. Shares of Martha Stewart Living fell 90 cents to $18.45. Home Depot fell $2.40 to $47.50.

COUPLE SENTENCED FOR FRAUD: A husband-and-wife team was sentenced to more than five years in federal prison in a scheme that inflated the value of their fragrance and cosmetics distribution business to attract investors. Manuel and Rita Dearmas used investors' money to buy a $2.5-million house, which was lost in bankruptcy. Defrauded investors lost their businesses and homes. The Dearmases created at least seven companies in Florida and Uruguay, where the couple also was a target of lawsuits.

BUFFETT ON ENRON: Warren Buffett is telling shareholders to get tough with companies. The billionaire investor thinks the solution to the Enron Corp. mess isn't new laws, but rather shareholders demanding better disclosure from executives. "The important thing is the figures," Buffett said at a Securities and Exchange Commission round-table discussion. Buffett appeared with New York Stock Exchange Chairman Richard Grasso, along with academics, lawyers and business executives.

VIVENDI POSTS LOSS: French media giant Vivendi Universal reported a $11.81-million net loss in 2001 -- largely to account for a buyout spree -- but provided a bullish outlook for 2002. Vivendi, parent of the Universal music and movie studios, blamed much of the loss on costs to write down goodwill -- the difference between the price paid for an asset and its book value -- as it adopts U.S. accounting principles. Vivendi reported a net profit of $2-billion a year earlier. In December, the company said it would buy the movie and TV businesses of USA Networks Inc. to give it bigger reach in the U.S. market.

TREASURY AUCTION: Interest rates on short-term Treasury securities rose in Tuesday's auction. The Treasury sold $21-billion of the bills at a discount rate of 1.75 percent, up from 1.745 percent the previous week. The government received bids for the bills equal to 2.16 times the amount sold, down from 2.22 at the last auction.

FORMICA DECLARES BANKRUPTCY: Formica Corp. filed for protection under Chapter 11 of the federal bankruptcy code, citing burdensome debt and interest expenses and challenges due to the recession. Formica, whose countertops decorated U.S. homes for much of the 20th century, has secured $78-million in credit to cover operating costs and other needs and said it expects to conduct business while it develops a financial reorganization plan. The company's assets amount to $858.6-million and its debt is $816.5-million.

JANNUS AWARD WINNER: Sir Freddy Laker, who shook up the airline business by selling cheap trans-Atlantic flights in the late 1970s, will receive the Tony Jannus Award for his contribution to commercial aviation. His airline, Laker Skytrain, sold $240 round-trip flights between London and New York, forcing major airlines to match his fares. Skytrain went out of business in 1982. In 1992, he started Laker Airways (Bahamas) Limited, which flies between U.S. cities and Freeport, Grand Bahamas, for tour operators. Laker will receive the Tony Jannus Award, sponsored annually by the Greater Tampa Chamber of Commerce and St. Petersburg Area Chamber of Commerce, on Oct. 17 at the Renaissance Vinoy Resort in St. Petersburg.

TEXTILE COMPANY TO SEEK PROTECTION: Guilford Mills Inc. said it will file for Chapter 11 bankruptcy protection under a plan approved by lenders that reduces its debt, reduces existing shareholders' stake in the textile maker and completes its transition to a producer of automotive fabrics. The agreement in principle with a syndicate of lenders led by Wachovia Corp. cuts $270-million in outstanding loans to about $145-million. The company's unsecured vendors, who are owed nearly $25-million, will be paid in full under the plan.

MARINEMAX KEEPS ANDERSEN: Shareholders of MarineMax Inc., a Clearwater boat retailer, voted overwhelmingly to renew Arthur Andersen's contract as outside auditor. Chief financial officer Michael McLamb said more than 90 percent of shareholders approved the accounting firm's renewal, despite its role in the collapse of Enron Corp. Three Andersen staff, including Michael Blount, managing partner of its Florida and Caribbean operations, attended the shareholders meeting.

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