RLOC Reachlocal, Inc. (MM)

WYNN RESORTS

Macau Resort Delay Extends to August

Wynn Resorts Ltd. expects to open its Wynn Palace casino resort in Macau on Aug. 22, another delay for the $4 billion hotel project in the Chinese gambling enclave.

Last year, Wynn said the big hotel project in the Cotai area of Macau would open in June, instead of March.

Gambling revenue in Macau, which had been a growth area for the casino industry, is in the midst of a prolonged slump, as an anticorruption drive in China has led to a decline in the number of high rollers that generate the bulk of the sector's revenue.

Wynn's latest project, and those by other operators, were planned when Macau's casinos were booming but are now seen weighing on prospects for a recovery there.

In May, Wynn reported a first-quarter profit, reversing a year-ago loss, and its smallest quarterly decline in revenue from Macau since the third quarter of 2014.

--Tess Stynes

GANNETT

Publisher to Buy Digital Services Firm

Gannett Co. agreed to buy digital marketing services company ReachLocal Inc. for about $156 million, the latest move by a traditional newspaper publisher to diversify beyond print media.

The deal is worth $4.60 a share, a hefty premium to ReachLocal's closing price of $1.66. ReachLocal shares, which resumed trading following a halt, surged to $4.57.

Gannett said the deal will expand its digital revenue by roughly 50%.

ReachLocal, based in Woodland Hills, Calif., has more than 16,000 customers in markets including home services, health care, automotive and professional services.

"ReachLocal's focus on local small and medium sized businesses aligns well with Gannett's local-to-national strategy and extends our reach into new local markets," Gannett said.

Gannett expects the deal to be approximately neutral to earnings per share in its first full year and add to earnings modestly in the second full year.

Gannett, whose holdings include USA Today, has been active on the deal front since the 2015 split of the company's print and television assets. The TV assets are now included in a separate company, Tegna Inc.

Gannett bought Journal Media Group's 15 daily newspapers for $280 million and in May, sweetened its unsolicited bid to buy Tribune Publishing Co.

--Josh Beckerman

WAL-MART STORES

New Chief Is Tapped for Canada Business

Wal-Mart Stores Inc. on Monday said Lee Tappenden would take over the helm of its Canadian business from Dirk Van De Berghe, who was earlier tapped to lead the retailer's operations in China.

Mr. Tappenden has been with Wal-Mart for 20 years in various positions globally and is currently chief operating officer of the company's Canadian division, the company said in a news release.

His appointment is effective Aug. 15.

"Lee is extremely well poised to lead Wal-Mart Canada and continue the momentum of growth we are seeing in this market," said David Cheesewright, chief executive of Wal-Mart International.

Wal-Mart has been expanding its presence in Canada and now has more than 400 stores across the country. Last year it announced plans to build 29 new supercenters and expand its distribution network in the country.

It also agreed a year ago to buy a dozen store leases and other assets from rival Target Corp. after Target's failed attempt to expand beyond the U.S. into Canada.

Mr. Tappenden takes the helm of the Canadian operations as Wal-Mart and Visa Inc. face off over credit-card fees. The retailer has said it would stop accepting Visa cards at its stores across the country after failing to agree on terms with the credit-card processor.

The move will start with three stores in northern Ontario on July 18 and will be phased in for other locations. Visa is the largest payments network in Canada.

In a surprise move earlier this month, Wal-Mart said it would replace the chief executive of its struggling U.K. business Asda with its China head, Sean Clarke.

The world's largest retailer at that time said Mr. Van De Berghe, who has headed Canadian operations since 2014, would head the China operations starting in late August.

--Judy McKinnon

ION WORLDWIDE

Wearables Maker Files for Bankruptcy

ION Worldwide Inc., a maker of wearable digital recorders that competes with industry leader GoPro Inc., has filed for bankruptcy protection after seeing its revenue drop significantly last year.

The New Jersey company has already reached a restructuring support agreement with one of its lenders, which would cut more than $15 million in debt from its balance sheet and allow iON to stay in business.

ION Chief Financial Officer Chris Oatway said in court papers filed last week that the cash-starved company has been mired with problems, including disputes with one of its licensed brands and an intellectual-property lawsuit with GoPro.

ION makes a line of wearable cameras in a variety of sizes, home-security products and dash cams, among other products, under the iON and Contour brands.

ION saw its revenue drop to $12.4 million in 2015 from more than $25 million in 2014, Mr. Oatway said in court papers. The company sought to cut costs, and it laid off employees, but that wasn't enough to stave off bankruptcy.

Litigation involving the company has also cut into iON's bottom line. The company filed a patent lawsuit against GoPro late last year. And though the lawsuit is "likely years from producing any result," the company will be incurring high legal costs, Mr. Oatway said in court papers.

Contour LLC also sued iON earlier this year in a bid to get out of its licensing agreement. The two companies have since reached an agreement that allows iON to continue selling Contour products, according to court papers.

ION expects to keep its business going and said in court papers that it will launch a new 4K camera by the end of the summer, which the company says will be priced to compete with GoPro.

ION's debt load includes roughly $5.4 million in secured debt owed to supplier and manufacturer Skylight Holdings Ltd., which has agreed to provide a $1.5 million bankruptcy loan to the company.

In addition, iON's debt includes a $4.6 million secured convertible promissory note and about $12.6 million in trade and other unsecured debt. ION also owes approximately $7.8 million to affiliate World Wide Licenses Ltd., which owns the trademarks and intellectual property related to iON's camera designs. World Wide isn't under bankruptcy protection.

ION will seek permission to use its bankruptcy loan and pay employee wages at a hearing Tuesday in the U.S. Bankruptcy Court in Wilmington, Del.

--Lillian Rizzo

ALCOA

Australian Partner Files Counterclaim

Alcoa Inc.'s Australian partner, Alumina Ltd., filed a counterclaim in a U.S. court that aims to block Alcoa's planned split without its consent and threatens to delay a breakup that would separate Alcoa's more profitable parts-making businesses from its raw aluminum operations.

New York-based Alcoa laid out plans last September to split in two to boost its sagging stock market value, weighed by weak aluminum markets.

But the move raised the ire of Alumina which said it has serious concerns its new partner would be financially weaker.

Alcoa and Alumina are joint-venture partners in AWAC, or Alcoa World Alumina & Chemicals, the world's biggest producer of alumina and largest bauxite miner. Alcoa owns 60% of the venture, while Alumina holds the rest.

In May, Alcoa filed a suit in the Court of Chancery in the U.S. state of Delaware seeking a declaration that Alumina has no rights to block the breakup it aims to complete in the second half of 2016.

In the counterclaim, Alumina asks the court to prevent Alcoa from moving ahead with the split without its permission and that it be given the right to buy Alcoa's interests in the joint venture if it chooses. The court has set a trial date of Sep. 20, Alumina said.

Under plans for a breakup of Alcoa, the aluminum giant wants to create a "value-add company," to be named Arconic, that will comprise its global rolled products, engineered products and solutions, and transportation-and-construction businesses. The remaining raw metals business, which will retain the Alcoa name, includes its stake in AWAC, a partnership the pair established two decades ago.

A representative for Alcoa couldn't immediately be reached. Alcoa said last week it intends to file a Form 10 on how it will structure the split on June 29. Alcoa has previously said splitting its businesses would enable it to sharpen its focus and make each entity individually more attractive to investors.

--Rhiannon Hoyle

(END) Dow Jones Newswires

June 28, 2016 02:48 ET (06:48 GMT)

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