JOB CUTS AT SERVICE MERCHANDISE: Service Merchandise is trimming 1,750 full-time employees from its work force to reduce expenses. The job cuts represent 23 percent of the retailer's work force, which already had been reduced from 25,000 full-time employees two years ago to 7,600. The company cited a difficult holiday season for retail in general and a need to streamline amid competition as reasons for the latest cuts. It filed for Chapter 11 bankruptcy protection in March 1999.

EXTENDICARE EXITS FLORIDA MARKET: Extendicare Inc., an Ontario nursing home chain, said it is getting out of the Florida market. Arbors at St. Petersburg, Arbors at Safety Harbor and Arbors at Bayonet Point are among nine facilities leased to Tandem Health Care Inc. of Pittsburgh with an option to purchase for $48-million. Three St. Petersburg facilities -- Alpine Health & Rehabilitation Center, Concordia Manor and South Heritage Health & Rehabilitation Center -- are among six facilities leased to Senior Health Properties-South of Chambersburg, Pa., with an option to purchase for $10.7-million. Arbors at Tampa was sold to AOTOP LLC of Lake Worth for $3.7-million.

XEROX LANDS FINANCING: Struggling Xerox Corp. has received $435-million in financing from GE Capital Corp. and is discussing the possibility of GE Capital providing equipment financing for Xerox customers in several European countries. The office machines manufacturer has been struggling for more than a year with increased competition, slow sales of its copiers and a plummeting stock price. The company is in the midst of a major restructuring, including the sales of between $2-billion and $4-billion in assets. Shares of Xerox rose $1.25, or 22.6 percent, to $7.13.

REGAL CINEMA DEBT ACQUIRED: Regal Cinemas Inc., the world's largest theater chain, confirmed that a large portion of its bank debt was purchased by privately held Anschutz Corp. and Oaktree Capital Management. Regal chief executive Michael Campbell did not specify dollar amounts. The Wall Street Journal reported the two companies acquired about $350-million of Regal's $1-billion in syndicated bank loans. Anschutz holds about 80 percent and Oaktree holds the rest. Anschutz, controlled by telecommunications and railroad magnate Philip Anschutz, is the biggest bondholder and creditor of United Artists Theatre Circuit Inc., one of the six largest chains in the nation. He will gain majority control over the chain if a U.S. Bankruptcy Court in Delaware approves its restructuring plan.

BUSCH SELLS OHIO PARK: Anheuser-Busch Cos. is selling its SeaWorld Ohio near Cleveland to Six Flags Inc. for $110-million. Although Six Flags, which owns a nearby amusement park, plans to reopen the spot as a zoological park under a different name this spring, Busch will keep many of the marine mammals. The park had been the only one of the four SeaWorlds not open year round. Busch said the sale will help its theme park unit, which includes Busch Gardens Tampa Bay, concentrate on more profitable ventures.

ECKERD SHUFFLES EXECUTIVES: Eckerd Corp. chairman and chief executive Wayne Harris continues to assemble a new management team for the Largo drugstore chain. Dennis Cuff, whose job heading store operations will be taken over by newcomer and chief operating officer David Aston, announced his retirement after 30 years. Dennis Miller was promoted to chief financial officer, replacing Bob Cavanaugh, who was named chief financial officer of Eckerd's parent, J.C. Penney Co. Inc. in Plano, Texas. Jeff Thompson, director of advertising for Randalls Food Markets in Houston, was named vice president of marketing, replacing Lorraine Coyle, who left Eckerd in August.

YAHOO FALLS ON OUTLOOK: Web portal giant Yahoo Inc. posted fourth-quarter earnings in line with Wall Street estimates but warned that income and revenue in the first quarter of 2001 would be hit by slower advertising spending and the general economic slowdown. The gloomy outlook sent Yahoo stock sharply down in extended-hours trading, falling to $24.63 from a regular closing price of $30.50. Yahoo reported income of $80-million, or 13 cents a share, compared with $55-million, or 9 cents, a year ago. Yahoo said it expected first-quarter earnings of 4 cents to 7 cents a share, well below analysts' estimates of 13 cents a share.

ARTHUR ANDERSEN NAMES CEO: Professional services giant Arthur Andersen -- which split last year with sister firm Andersen Consulting, since renamed Accenture -- named Joseph Berardino as its chief executive. Berardino, 50, succeeds interim managing partner Louis Salvatore. Berardino most recently served as managing partner for the company's assurance and business advisory practice in North America.

Earnings

SunTrust Banks Inc.

Fourth-quarter income fell as the bank replenished its loan loss reserve after writing off $53.4-million in bad loans. The Atlanta bank said non-performing loans in the quarter ended Dec. 31 rose 6 percent over the third quarter, a significant slowdown from a 35 percent rise from the second quarter to the third. Earnings per share rose for the year as the company repurchased stock.

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