How Your Great-Grandmother’s Hobby Is Transforming One Alabama Town

Natalie Chanin’s life-changing epiphany struck while standing on a New York City street corner.

For days, she had traversed throughout the city with a trash bag of her deconstructed T-shirts, seeking a manufacturer to help her make them. None of them, however, understood what kind of stitching she wanted on her creations, which had become popular in New York fashion circles after she made one on a whim and wore it to a party. Chanin was frustrated.

But then, she remembered a group of women who constructed hand-made quilts with bold stitching passed down through the generations. Chanin envisioned those stitches on her deconstructed T-shirts, She believed that those women could help her fuse the past with the present.

So, like a modern-day Scarlett O’Hara, Chanin knew where her immediate future lay, and it was back home in Florence, Ala. When Chanin returned to Florence in 2000, it was a much different place than when she left it in the 1980s. Then, the historic quaint town was the T-shirt capitol of the world, thanks to a thriving textile industry that employed thousands.

But a decade later, that industry had nearly vanished. People were unemployed in the town of 40,000 and warehouses were closed. The cotton once used for T-shirts was now shipped aboard. Chanin squarely blames NAFTA for these changes.

Public Citizen, a non-profit grassroots organization, cites that Alabama lost 118,125 manufacturing jobs from 1994 to 2012. The Bureau of Labor Statistics stated in a 1995 report that while the textile industry was seeing employment decline in the 1980s because of technology and overseas jobs, but it noted, “Future employment levels will be affected by the North America Free Trade Agreement” and that job loss would be “incremental” over the years.

NAFTA was touted as a good thing by many people because it would ease trade regulations and increased investment between the United States, Canada and Mexico. In 1993, President Bill Clinton signed the legislation, saying at the time: “NAFTA means jobs, American jobs, and good-paying American jobs. If I didn’t believe that, I wouldn’t support this agreement.”

Chanin doesn’t proclaim to be an expert on NAFTA, but the trade agreement angers her, and she blames Clinton for it.

“I often wonder if he regrets NAFTA,” Chanin says. “NAFTA helped to put a nail in the coffin of manufacturers in America. It created fear and anger, and we didn’t get the open commerce we wanted.”

The unemployment and the textile industry’s death in Florence haunted Chanin. She says she did what she knew how to do – sew – and never had a plan to become an eco-friendly fashion leader, a cheerleader for artisan seamstresses or a poster girl for Made in the USA. But that’s exactly what happened.

Chanin’s handcrafted, organic couture line – Alabama Chanin – has become emblematic of what’s possible when someone focuses on community commitment, sustainability and local traditions.

“I believe in ‘Made in America’ where at all possible,” Chanin says. “I see it almost as a matter of national security. It’s disturbing when you see that there are no steel mills in the South anymore. Food, clothing, shelter, right? Those are essential to sustaining life. Sewing was once a vital necessity for men and women.”

 Photo: Alabama Chanin

Chanin, 50, has certainly stitched her own path with a needle and thread.

On this January day, Chanin wears a black skirt, white boots and a white long-sleeve shirt with a black overlay T-shirt. Her trademark white hair frames her ageless face. Sitting at a long white table, she weaves her story like any good Southern storyteller. To fully grasp Chanin’s role in the Slow Fashion movement that promotes quality over quantity, you have to absorb Florence’s history and Chanin’s connection to it.

In the 1800s, Florence, a river town, had an abundance of water and streams that made it geographically suited as a cotton mill town. Villages soon cropped up where men, women and even children made underwear, union suits and undershirts for paltry wages. It was a rough life, dependent on soil, water and the seasons. Cotton was king, and it supported generations through the Civil War, the Great Depression and World War II.

Chanin’s Alabama roots cross many decades, and her family tree goes back seven generations in the area. Her great-grandmother knitted socks in east Florence’s Sweetwater Mill. Both of her grandmothers were avid quilters. Her parents still live around Florence and her 30-year-old son, Zachariah, moved to the town five years ago. Six years ago, Chanin’s daughter, Maggie, was born, and five months ago, her son became a father to Chanin’s first grandchild, Stella Ruth.

“There are five generations of my family alive and living here now,” she says. “It’s home, and that’s why I came back. It’s home.”

Sweet Home Alabama

When Chanin returned to Alabama, she set up shop in a three-bedroom brick house “10 miles as the crow flies” from Florence in a community known as Lovelace Crossing. “We say it like ‘loveless’,” Chanin says.

There, she began what she considered “just an art project” with the recycled, reworked T-shirts. She visited the quilting circle, and the women still met weekly, sold their completed quilts and reinvested the money into the community center – just as Chanin remembered. She told the women that she wanted to hire them for her project. But she hit a deadend.

“They said, ‘This is something we do for the community, we don’t want a job,” Chanin recalls. “They had gardens, grandchildren and they didn’t want the responsibility.”

Chanin persevered.

She placed an ad in the local newspaper seeking part-time seamstresses. Sixty people responded; she locked in 20 of them as independent contractors, creating a cottage industry that allowed women to work on their own terms and time. Many of these women lived in rural areas, had limited, if no, transportation and children to care for during the day.

The idea worked and evolved into the company Project Alabama. Eventually a few hundred stitchers sewed for her Project Alabama line. But, then the U.S. Department of Labor entered the picture in 2003 and investigated the independent contractor methods.

“We lost 90 percent of our workforce from one day to the next,” she says. “We refined the system because the Department of Labor was instrumental in showing us how the independent contractor system could work.”

The Birth of Alabama Chanin

“There are no rules; that is how art is born.” That’s the greeting on a lighted sign inside the front door of the Alabama Chanin spacious office and work space. Another handmade fabric sign states, “Waste Not Want Not.” On the back of two chairs, the words “Simplify, Simplify, Simplify” are carved into the natural wood. All of these sum up Chanin’s ethos.

Chanin left Project Alabama in 2006 amid differences about the company’s future regarding retaining jobs in her home town.

She soon started Alabama Chanin, leaving the house in Loveless and renting a 5,000-square-foot warehouse in Florence with a long history in the textile industry. The space was once part of a larger 100,000-square-feet complex that housed wall-to-wall sewing machines and workers who dyed fabric and made T-shirts.

Now a rack of Chanin’s designs – beautiful white coats with red stitching, appliqué skirts, stenciled T-shirts – has replaced the machines. Wire shelves hold Chanin’s white swatch books with hundreds of appliqué designs. Southern books, including the three she wrote, are displayed along with her examples of her jewelry and ceramic lines. Vintage Alabama quilts, which Chanin has “stabilized” with remnant fabrics and embroidery that tells stories, hang on one wall.

 Photo: Rinne Allen/Alabama Chanin

Unlike most clothing companies, Alabama Chanin doesn’t mass produce hundreds of items for retail, in an effort to maintain a policy of zero waste. Instead, each piece is a work-of-art, an item to be treasured, and like art, an Alabama Chanin garment is expensive – some range upwards of $ 5,000 and beyond. Fans often save for two or three years to own one.

Chanin uses only 100 percent organic cotton grown in Texas. It is spun into yarn in North Carolina, knitted into fabric in South Carolina and dyed in Tennessee and North Carolina. In the best case scenario, Chanin says, she attempts to use 100 percent American products, but occasionally organic domestic cotton is not available.

She no longer shows her designs at New York City Fashion Week, instead developing her brand through trunk shows, word-of-mouth and the Internet. While many designers keep their designs secret, Chanin does not. She is a zealous believer in the DIY and open-source movement. A significant part of her business is now centered on teaching workshops, writing books and her blog and selling custom sewing kits that allow others to create their own clothing and accessories.

It’s the operation of her business, however, that is most innovative.

Chanin employs only eleven people at the warehouse, but 30 seamstresses work as independent contractors. Over the years, Chanin estimates that more than 500 seamstresses in the Florence area have contributed to her design business. Her system is now similar to a cottage industry.

The concept hearkens to the Industrial Revolution when workers couldn’t travel from rural areas to urban ones. It allowed workers to have employment and also flexibility, something that is still needed in the 21st century.

“I’m just as proud of the system [we’ve developed] as for the designs that have been in Vogue,” she says. “Women are the primary caregivers whether it is a sick child or a caregiver for an elderly parent. They can work when they want, where they want and it empowers them to set their own schedule.”

A product isn’t made until a customer places an order. A bidding sheet for projects is sent to the 30 seamstresses via email and is also available at the warehouse. Seamstresses bid on projects, quoting Chanin a price that they think is fair depending on the project’s complexity with design, beading and appliqué. The bid may be in the thousands of dollars and take several months to complete as every piece is hand-sewn with not one stitch made on a machine.

 Photo: Rinne Allen/Alabama Chanin

The seamstress then invests her money into the project by purchasing the unassembled raw materials (fabric panels, thread, an Alabama Chanin label and other supplies) in person at the warehouse.

“When everyone is invested, you have a better ratio for success,” Chanin says. “They work by the project not by the time,” she explains. “We don’t ask. That’s their business. It’s totally up to them how they want to do it.”

When the project is finished, the seamstress initials the label and sells the creation back for the value she thinks it is worth. Rarely does an item fail to meet standards or a deadline. Ever conscious, Chanin tries to ensure everyone has a project during slow periods.

“We are always looking for ways to keep our artisans busy, and if we don’t, they will try to find other jobs because they have to feed their families,” she says. “These people are like our families. We care about them. We know their kids. We know who they are. We have become grandmothers together. We have broken bread together. We have prayed together. Keeping them in work is one of the responsibilities I have as a business owner.”

The Future Is Bright

Along back roads of the South, cotton fields extend for miles. The fluffy white bolls remain an integral part of the Southern economy and culture. No one knows this better than Southerners like Chanin and Florence fashion designer, Billy Reid, and his staff.

“This whole conversation sprang up about two years ago because there is an organization interested in bringing manufacturing back to the South,” Chanin says. “We were saying that it would be amazing if we could have vertical manufacturing here from growing the cotton to cutting and sewing it.”

Chanin gives credit to K.P. McNeill, who works for Billy Reid, for finding the six-acre untouched and unfarmed spot for the organic cotton experiment. From there, Chanin calls the farming adventure “a miraculous journey.”

“We found two sacks of seeds after we couldn’t find any,” she says. “We didn’t have a tractor and suddenly we had a tractor. We didn’t have a planter and then we had a planter.”

A severe drought threatened to kill the cotton crop, but amazingly, the cotton grew. Last October, Chanin closed her warehouse for the day and headed to the cotton patch to attend Alabama Chanin and Billy Reid Cotton Picking Party and Field Day. Family, friends and the community were invited to join Chanin. She hoped that people would learn about organic farming and the future possibilities that exist for Florence textile industry. While the acreage only produced a bale and half of cotton, it offered hope for the next season.

For Chanin, growing jobs was once her primary concern, but she has expanded her mission to include cultivating DIY ingenuity and, now, tackling the land. Her latest farming project should not surprise those who know and admire Chanin. After all, she believes that other businesses and designers should simply follow their heart.

“It’s about making the right decisions which aren’t always the easiest decisions,” Chanin says. “But every time I’ve made the right decision, I’ve been rewarded.”

---

Suzi Parker is an Arkansas-based political and cultural journalist whose work frequently appears in The Washington Post and The Christian Science Monitor. She is the author of two books. @SuziParker | TakePart.com 

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J.J. Abrams to produce Lance Armstrong biopic

LOS ANGELES (AP) — He's already gotten the Oprah treatment. Now Lance Armstrong is headed for the silver screen.

Paramount Pictures and J.J. Abrams' production company, Bad Robot, are planning a biopic about the disgraced cyclist, a studio spokeswoman said Friday.

They've secured the rights to New York Times reporter Juliet Macur's upcoming book "Cycle of Lies: The Fall of Lance Armstrong," due out in June. Macur covered the seven-time Tour de France winner for over a decade.

No director, writer, star or start date have been set.

Armstrong is in the midst of a two-part interview with Oprah Winfrey in which he admits to using performance-enhancing drugs to reach his historic victories, something he'd defiantly denied for years. The International Olympic Committee stripped him of his 2000 bronze medal this week.

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Business Briefing | Medicine: F.D.A. Clears Botox to Help Bladder Control

Botox, the wrinkle treatment made by Allergan, has been approved to treat adults with overactive bladders who cannot tolerate or were not helped by other drugs, the Food and Drug Administration said on Friday. Botox injected into the bladder muscle causes the bladder to relax, increasing its storage capacity. “Clinical studies have demonstrated Botox’s ability to significantly reduce the frequency of urinary incontinence,” Dr. Hylton V. Joffe, director of the F.D.A.’s reproductive and urologic products division, said in a statement. “Today’s approval provides an important additional treatment option for patients with overactive bladder, a condition that affects an estimated 33 million men and women in the United States.”

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Col Needham created IMDb

The gig: Col Needham, 45, is founder and chief executive of Internet Movie Database, the world's leading online source for information about movies and television shows and for celebrity news. Every month, the site attracts more than 160 million visitors who come to watch movie trailers, read reviews or check out the comprehensive rundown of a movie's cast and crew. Its database contains more than 100 million items, including information about more than 2 million movies and TV shows and some 4 million cast and crew members.

Lifelong movie fan: Hollywood provided the highlights of Needham's childhood. His earliest memory is of seeing Walt Disney's animated classic "Snow White and the Seven Dwarfs" at age 5 with his grandmother, after winning a newspaper coloring competition. "She took me in a taxi to the middle of Manchester, the town in the north of England where I grew up," Needham said. "I can remember the taxi, I can remember the movie."

The 1975 summer thriller "Jaws" kept Col — who at the time was 8 — out of the local swimming pool. The home video revolution allowed him to more thoroughly indulge his passion for film. A family friend who owned a video rental store would lend him video cassette tapes for up to two weeks. "My ridiculous claim to fame was as a 14-year-old when I saw "Alien" 14 times in 14 days," he joked.

Computer geek: An early technology enthusiast, Needham received his first computer — a do-it-yourself hobbyist kit — as a Christmas gift when he was 12. "My love of film and love of technology were kind of on a collision course for the creation of IMDb." Before long, Needham converted his paper diary of the films he'd watched into a computer database that included each movie's title, director, writers, principal cast and crew and plot summary. He would watch movies on VHS tape and faithfully record each film's credits.

Finding movie fans online: Needham graduated from Leeds University in 1988 with a computer science degree and began working in Hewlett-Packard Co.'s research lab in Bristol. Around that same time, he turned to an early type of Internet discussion group, known as the "usenet," to chat about films with other cinephiles. Invariably, talk would turn to actresses — and one member of the news group compiled a list of actresses with their credits.

Needham merged this list with his own data, then took it upon himself, in 1990, to prepare a companion list of actors, and later, of golden-age Hollywood actors and actresses who had died. At the suggestion of someone within the online group, he converted his private database to a version that could be used by any computer connected to the Internet. The IMDb was launched Oct. 17, 1990.

World Wide Web: A doctoral student at Cardiff University in Wales urged Needham to adapt IMDb in 1993 for upstart World Wide Web. At the time, he had no thought of making money with his passion project. "We were all just volunteers who cared passionately about movies, about TV shows, about personalities, and we wanted to share that love with the rest of the world," he said. But after a period of rapid growth, Needham and three others incorporated IMDb in 1996, using a credit card to cover startup expenses. Within two weeks of launch, IMDb sold its first ad. "We were able to pay off the credit card debt before it was due," he said. "I'd like to think that we became the world's first profitable Internet company."

Amazon comes calling: Needham quit his day job in the summer of '96, after IMDb sold its first movie studio ad (to promote 20th Century Fox's "Independence Day"). Within a year, Amazon.com's general counsel approached Needham to arrange a meeting with the online retailer's chief executive, Jeff Bezos, in London. Such an email should have sent Champagne corks popping, said Needham, who mistakenly believed the face-to-face session would focus on advertising. Bezos had something else in mind.

"Jeff had such a clear vision for how IMDb could fit within the Amazon family yet exist as a separate brand," Needham said. "The information on the IMDb site would be optimized for search and discovery, helping you find great things to watch. At the same time, IMDb data could be used on the Amazon website where it would create a great customer experience for buying movies. So we found ourselves saying 'yes.'" The deal was announced in April 1998.

IMDb grows up: Amazon's acquisition afforded the resources to redesign the IMDb site and update the information daily instead of weekly. It began diversifying its offerings in 2002, with the introduction of the IMDbPro subscription service for entertainment industry professionals. It developed more extensive information about television programs in 2006, providing details about individual episodes. This fueled a period of explosive growth for the site. IMDb made a pair of purchases in 2008 to augment its offerings, acquiring online box office reporting service BoxOfficeMojo and a site that streamlines the film festival submission process, Withoutabox.

Going mobile: IMDb made the leap to smartphones in 2009 and has been downloaded more than 50 million times. Mobile users make an average of 175 million visits every month. "We can see our U.S. usage very much mirrors the peak [TV viewing] time," Needham said. "So clearly people are accessing IMDb while they're watching TV shows, while they're watching movies."

Amazon's Kindle Fire tablet boasts X-Ray for Movies, a feature powered by IMDb that allows users to retrieve casting information and other details with the touch of the screen. A new version of the IMDb app for Apple Inc.'s iPad focuses on discovery and recommendations. "People suffer from overwhelming choice," Needham said. "Having IMDb there with our rich database ... combined with your own personal watch list data, we can come up with a list of things that you should see next."

All-time favorite movie? Alfred Hitchcock's "Vertigo." "It's been my favorite movie since I first saw it in November 1989.... It changed the way I view movies. Alfred Hitchcock played me like a piano."

Favorite movies of 2012? Top of the list is Ridley Scott's sci-fi thriller "Prometheus," the indie critical fave "The Perks of Being a Wallflower" and the French drama "Rust and Bone."

A credit of his own: Col Needham is listed in IMDb, for his appearance in a 2001 television documentary "Shawshank: The Redeeming Feature."

Getting personal: Needham and his wife, Karen, have twin daughters. His main hobby is watching movies, although he describes himself as an avid swimmer, "which is quite ironic given my experience of seeing 'Jaws.'"

dawn.chmielewski@latimes.com

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Colorado movie theater reopens after shooting

AURORA, Colo. — A quiet crowd gathered Thursday at what is now Century Aurora for an "evening of remembrance." Young employees offered candy, sodas and popcorn to visitors who mingled inside the complex, which had been painted soft blues, greens and yellows.

The movie theater where a gunman killed 12 people and injured dozens more last July reopened under a new name after extensive remodeling. The governor, mayor, theater officials and a few hundred victims, families and community members attended, but relatives of several who died boycotted the event.

In one aisle, a young man comforted a young woman as she cried. A small room was set up with tables and tissues for those who might need a quiet space to grieve.

Corbin Dates, 23, who said he was in the second row of Theater 9 during the rampage and escaped with a small burn from a bullet casing, called the event empowering.

"Evil doesn't have the best of me and it never will," he said.

But Scott Larimer, whose son John Larimer, 27, was killed, did not come. He was among those who called for a boycott after receiving a brief email shortly after Christmas inviting him to the ceremony and to an unspecified movie.

"They were treating it like I lost my raincoat there and not my son," he said. "I'm not sure if they're just trying to drum up support so they can just reopen their theater and make some money, or what it is."

The fate of the Century 16 theaters was the subject of much debate in the aftermath of one of the worst mass shootings in U.S. history, for which James E. Holmes, 25, has been ordered to stand trial. City officials launched an online survey to gauge public opinion and said the response was overwhelming in favor of reopening.

But earlier this month, 15 family members of nine people killed wrote a letter to Cinemark, the theater's owner, blasting the invitation to the opening and criticizing the company for showing "ZERO compassion to the families of the victims whose loved ones were killed in their theater."

One of them, Jerri Jackson, said Cinemark had never contacted her before she received the invitation, which was sent by a victims' group on Cinemark's behalf.

"I would have thought early on that they would have contacted us and offered their condolences, tried to do something for the families, but they've done nothing," she said. Her son Matt McQuinn, 27, was among the dead.

Some who came to the ceremony had a different perspective.

"We will not let this tragedy define us," Aurora Mayor Steve Hogan said during the 30-minute remembrance. "Aurora is strong, Aurora is caring, and our focus remains on the road before us."

Democratic Gov. John Hickenlooper acknowledged the families who were absent but praised Cinemark and its chief executive for working closely with the community in the aftermath of the shooting.

"Everyone heals. Some slower, some in different ways. Some wanted this theater open, some didn't," Hickenlooper said. "For many here tonight, this is the path to healing."

After the ceremony, everyone was invited to stay for a screening of "The Hobbit."

Tom Sullivan, whose son Alex Sullivan, 27, died, came to the remembrance. He and other family members spent several minutes exploring the complex before taking a seat for the ceremony. He sees the theater as part of his community, which supported him after the death of his son.

"The people of Aurora decided that's what they wanted," to reopen the theater. "So I decided, 'Well, that's what we'll do,'" he said. "The people of Aurora have done everything they can to help us through this very difficult time."

paloma.esquivel@latimes.com

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Bolshoi's artistic director attacked in Moscow

MOSCOW (AP) — The artistic director of the Bolshoi Theater's ballet troupe was attacked with acid in Moscow and his eyesight is threatened, the theater said Friday.

Sergei Filin, a 42-year-old former ballet star, was approached Thursday night by an unknown man who splashed acid on his face as he got out of his car outside his home in central Moscow, Russian television reported.

Bolshoi spokeswoman Katerina Novikova, who visited Filin at the hospital Thursday night, told The Associated Press that his condition is stable but his eyesight is threatened.

Filin was appointed artistic director of the Bolshoi's ballet company in March 2011. He danced for the Bolshoi on and off from 1988 to 2004 when his sustained a severe injury onstage.

The theater's director general Anatoly Iksanov told Russia's Channel One that he believes the attacked is linked to Filin's work.

"He was a man of principle and never compromised," Iksanov said. "If he believed that this or that dancer was not ready or was unable perform this or that part, he would turn them down."

Several stars at the Bolshoi including Nikolai Tsiskaridze, one of its most celebrated dancers, have complained about what they call Filin's unfair treatment of dancers at the Bolshoi.

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The Neediest Cases: Medical Bills Crush Brooklyn Man’s Hope of Retiring

Andrea Mohin/The New York Times

John Concepcion and his wife, Maria, in their home in Sheepshead Bay, Brooklyn. They are awaiting even more medical bills.

Retirement was just about a year away, or so John Concepcion thought, when a sudden health crisis put his plans in doubt.

For the past 100 years, The New York Times Neediest Cases Fund has provided direct assistance to children, families and the elderly in New York. To celebrate the 101st campaign, an article will appear daily through Jan. 25. Each profile will illustrate the difference that even a modest amount of money can make in easing the struggles of the poor.

Last year donors contributed $7,003,854, which was distributed to those in need through seven New York charities.

2012-13 Campaign

Previously recorded:

$6,865,501

Recorded Wed.:

16,711

*Total:

$6,882,212

Last year to date:

$6,118,740

*Includes $1,511,814 contributed to the Hurricane Sandy relief efforts.

“I get paralyzed, I can’t breathe,” he said of the muscle spasms he now has regularly. “It feels like something’s going to bust out of me.”

Severe abdominal pain is not the only, or even the worst, reminder of the major surgery Mr. Concepcion, 62, of Sheepshead Bay, Brooklyn, underwent in June. He and his wife of 36 years, Maria, are now faced with medical bills that are so high, Ms. Concepcion said she felt faint when she saw them.

Mr. Concepcion, who is superintendent of the apartment building where he lives, began having back pain last January that doctors first believed was the result of gallstones. In March, an endoscopy showed that tumors had grown throughout his digestive system. The tumors were not malignant, but an operation was required to remove them, and surgeons had to essentially reroute Mr. Concepcion’s entire digestive tract. They removed his gall bladder, as well as parts of his pancreas, bile ducts, intestines and stomach, he said.

The operation was a success, but then came the bills.

“I told my friend: are you aware that if you have a major operation, you’re going to lose your house?” Ms. Concepcion said.

The couple has since received doctors’ bills of more than $250,000, which does not include the cost of his seven-day stay at Beth Israel Medical Center in Manhattan. Mr. Concepcion has worked in the apartment building since 1993 and has been insured through his union.

The couple are in an anxious holding pattern as they wait to find out just what, depending on their policy’s limits, will be covered. Even with financial assistance from Beth Israel, which approved a 70 percent discount for the Concepcions on the hospital charges, the couple has no idea how the doctors’ and surgical fees will be covered.

“My son said, boy he saved your life, Dad, but look at the bill he sent to you,” Ms.  Concepcion said in reference to the surgeon’s statements. “You’ll be dead before you pay it off.”

When the Concepcions first acquired their insurance, they were in good health, but now both have serious medical issues — Ms. Concepcion, 54, has emphysema and chronic obstructive pulmonary disease, and Mr. Concepcion has diabetes. They now spend close to $800 a month on prescriptions.

Mr. Concepcion, the family’s primary wage earner, makes $866 a week at his job. The couple had planned for Mr. Concepcion to retire sometime this year, begin collecting a pension and, after getting their finances in order, leave the superintendent’s apartment, as required by the landlord, and try to find a new home. “That’s all out of the question now,” Ms. Concepcion said. Mr. Concepcion said he now planned to continue working indefinitely.

Ms. Concepcion has organized every bill and medical statement into bulging folders, and said she had spent hours on the phone trying to negotiate with providers. She is still awaiting the rest of the bills.

On one of those bills, Ms. Concepcion said, she spotted a telephone number for people seeking help with medical costs. The number was for Community Health Advocates, a health insurance consumer assistance program and a unit of Community Service Society, one of the organizations supported by The New York Times Neediest Cases Fund. The society drew $2,120 from the fund so the Concepcions could pay some of their medical bills, and the health advocates helped them obtain the discount from the hospital.

Neither one knows what the next step will be, however, and the stress has been eating at them.

“How do we get out of this?” Mr. Concepcion asked. “There is no way out. Here I am trying to save to retire. They’re going to put me in the street.”

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Herbalife says fourth-quarter profit will exceed expectations

Herbalife Ltd. forecast that fourth-quarter earnings will come in higher than expected but said expenses could rise as the nutritional supplement distributor ramps up its fight with activist hedge-fund manager William Ackman.

The Los Angeles company said Thursday it also plans to buy back shares, a sign that management believes the stock is undervalued. It's a much-needed boost for a company that's been mired in a battle with an investor who says the company is on its way downhill.

"Herbalife is a financially strong and successful company, having created significant opportunities for distributors and positively impact the lives and health of our consumers over our history," company Chief Executive Michael Johnson said in a statement.

Herbalife said it expected fourth-quarter earnings of $1.02 to $1.05 a share, higher than Wall Street's expectation of $1.01 a share. Sales for the fourth quarter are expected to rise 19.9%, the company said, and its taxes will be lower than projected. The company plans to begin repurchasing shares Tuesday.

The company also said it expected expenses to be temporarily higher "because of recent events."

Herbalife has been battling allegations by Ackman, who said in a December presentation that the company is a glorified pyramid scheme. He's sold short about 20 million shares of the stock, expecting the company to tank. Herbalife is also reportedly being investigated by the Securities and Exchange Commission.

A week ago in Manhattan, Johnson and other Herbalife executives rebutted Ackman's points one by one, proving, they said, that Herbalife has a stable business model and is not scamming anyone. Shares of the company, which had been slumping, began rising again after Johnson's presentation.

Ackman foe Carl Icahn stepped into the controversy this week, taking a stake in Herbalife, according to reports. Icahn could not be reached for comment.

Investors showed mixed reaction to Herbalife's preliminary earnings Thursday. The stock initially shot up in morning trading but leveled off in the afternoon and closed down $1.54, or 3.4%, at $43.52.

Herbalife will release its final fourth quarter results Feb. 19.

Analysts such as Timothy Ramey, of D.A. Davidson & Co., say they're optimistic about the company's future. Ramey also adjusted his expectations of the company's earnings.

In 2013, earnings will be $4.85 a share, up from his previous estimate of $4.55, he said in a note. He also adjusted his forecast for 2012 earnings to $4.05 a share from $4.03.

Ramey said he expects Herbalife stock to thrive once it emerges from the current controversy, which he expects will happen in 2013. In five years, the stock could hit $180, he said.

"There has never been a period of greater scrutiny for Herbalife," he wrote.

alana.semuels@latimes.com

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Robert L. Citron dies at 87; central figure in O.C. bankruptcy

Robert L. Citron, the Orange County treasurer whose bad bets on exotic Wall Street investments resulted in what at the time was the largest municipal bankruptcy in U.S. history, died Wednesday. He was 87.

Citron died at St. Joseph Hospital in Orange of complications from a heart attack, said his wife, Terry Citron.

Until the 1994 financial collapse, Citron was a low-key bureaucrat who won praise from Orange County supervisors for earning much higher yields from the county's complex array of investments than many other government agencies. His investment pools attracted funds from governments around the country as well as from schools, cities and public agencies.

The county declared bankruptcy Dec. 6, 1994, buffeted by losses that, when the final count was tallied, amounted to $1.64 billion. The county was forced to postpone repayments on bonds it had sold, ruining its credit rating, but eventually repaid its creditors in full. The bankruptcy sent shock waves through Wall Street and the municipal bond markets. It also made national headlines, with some asking how such a prosperous county could become insolvent.

A grand jury investigation would later find that the treasurer who over the years won so much praise for his investment skills relied upon a mail order astrologer and a psychic for interest rate predictions as the county's treasury began to falter.

Citron pleaded guilty to six felony counts, including filing false statements to participants in the Orange County Treasury Investment Pool. His lawyer, David Wiechert, submitted medical testimony indicating that Citron was in the early stages of dementia.

Citron was sentenced to work in the county jail, sorting inmates' requests for personal items by day before returning to his home in Santa Ana. He never spent a night behind bars but worked for months in the jail's commissary. He remained on probation until 2002.

In a 1997 interview with The Times, Citron insisted that he was duped into making rashly imprudent investments by Merrill Lynch. He became a key witness in Orange County's $2-billion lawsuit against the investment giant. The suit said that Citron was a "pigeon" for greedy brokers at the investment house.

Merrill Lynch maintained that the bankruptcy was Citron's fault. It later settled the case with the county, paying $400 million.

A third-generation Californian, Citron was born in Los Angeles on April 14, 1925, according to public records, and grew up in Burbank. Because he had asthma as a child, his family moved out to the town of Hemet in the foothills of the San Jacinto Mountains. His father, Jesse, was a doctor who earned a measure of fame for being liquor-loving W.C. Fields' doctor and weaning him off Scotch.

Citron rose through the ranks of the county's treasury department to become county treasurer-tax collector, a post he held for 24 years. He was one of the few Democrats to hold countywide elected office in a region dominated by Republicans. He lived in Santa Ana, just a few miles from work, and was famous for his long hours. In a 1994 interview, his wife told The Times that the weekends were hardest for her husband because he could not go to work.

"He can barely stand the weekend at home," she said. "He can't wait to get back. I think he'd go crazy without that job."

The bankruptcy tarnished Citron's name as well as the county's. County government slashed hundreds of jobs and cut budgets. Orange County's repayment plan siphoned money from four county departments every year, affecting projects big and small.

Citron's assistant, Matthew Raabe, was convicted of fraud and misappropriation and served 41 days in jail before the verdict was overturned. Taxpayers spent $1 million on his defense. The county's financial director, Ronald S. Rubino, was tried on fraud and misappropriation charges, but a jury deadlocked in favor of acquittal. He pleaded no contest to one record-keeping violation under a deal that allowed his record to be erased after a year. County Supervisors Roger R. Stanton and William G. Steiner were indicted by a grand jury on grounds of failing to safeguard public funds. The indictment was later dismissed by an appeals court ruling that said failing to do their jobs wasn't a crime.

Citron is survived by his wife of 57 years.

scott.reckard@latimes.com

Times staff writers Shelby Grad and Robert J. Lopez contributed to this report.

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Obama calls for research on media in gun violence

NEW YORK (AP) — Hollywood and the video game industry received scant attention Wednesday when President Barack Obama unveiled sweeping proposals for curbing gun violence in the wake of the Newtown, Conn., school shooting.

The White House pressed most forcefully for a reluctant Congress to pass universal background checks and bans on military-style assault weapons and high-capacity ammunition magazines like the ones used in the Sandy Hook Elementary massacre.

No connection was suggested between bloody entertainment fictions and real-life violence. Instead, the White House is calling on research on the effect of media and video games on gun violence.

Among the 23 executive measures signed Wednesday by Obama is a directive to the Centers for Disease Control and Prevention and scientific agencies to conduct research into the causes and prevention of gun violence. The order specifically cited "investigating the relationship between video games, media images and violence."

The measure meant that media would not be exempt from conversations about violence, but it also suggested the White House would not make Hollywood, television networks and video game makers a central part of the discussion. It's a relative footnote in the White House's broad, multi-point plan, and Obama did not mention violence in entertainment in his remarks Wednesday.

The White House plan did mention media, but suggested that any effort would be related to ratings systems or technology: "The entertainment and video game industries have a responsibility to give parents tools and choices about the movies and programs their children watch and the games their children play."

The administration is calling on Congress to provide $10 million for the CDC research.

The CDC has been barred by Congress to use funds to "advocate or promote gun control," but the White House order claims that "research on gun violence is not advocacy" and that providing information to Americans on the issue is "critical public health research."

Since 26 were killed by a gunman at Sandy Hook in December, some have called for changes in the entertainment industry, which regularly churns out first-person shooter video games, grisly primetime dramas and casually violent blockbusters.

The Motion Picture Association of America, the National Association of Broadcasters, National Cable & Telecommunications Association and the Independent Film & Television Alliance responded to Wednesday's proposal in a joint statement:

"We support the president's goal of reducing gun violence in this country. It is a complex problem, and as we have said, we stand ready to be a part of the conversation and welcome further academic examination and consideration on these issues as the president has proposed."

After the Newtown massacre, Wayne Pierre, vice-president of the National Rifle Association, attacked the entertainment industry, calling it "a callous, corrupt and corrupting shadow industry that sells and sows violence against its own people." He cited a number of video games and films, most of them many years old, like the movies "American Psycho" and "Natural Born Killers," and the video games "Mortal Kombat" and "Grand Theft Auto."

President Obama's adviser, David Axelrod, had tweeted that he's in favor of gun control, "but shouldn't we also question marketing murder as a game?"

Others have countered that the same video games and movies are played and watched around the world, but that the tragedies of gun violence are for other reasons endemic to the U.S.

The Entertainment Software Association, which represents video game publishers, referenced that argument Wednesday in a statement that embraced Obama's proposal.

"The same entertainment is enjoyed across all cultures and nations, but tragic levels of gun violence remain unique to our country," said the ESA. "Scientific research an international and domestic crime data point toward the same conclusion: Entertainment does not cause violent behavior in the real world."

Several R-rated films released after Newton have been swept into the debate. Arnold Schwarzenegger, the former California governor and action film star, recently told USA Today in discussing his new shoot-em-up film "The Last Stand": "It's entertainment. People know the difference."

Quentin Tarantino, whose new film "Django Unchained" is a cartoonish, bloody spaghetti western set in the slavery-era South, has often grown testy when questioned about movie violence and real-life violence. Speaking to NPR, Tarantino said it was disrespectful to the memory of the victims to talk about movies: "I don't think one has to do with the other."

In 2011, the Supreme Court rejected a California law banning the sale of violent video games to children. The decision claimed that video games, like other media, are protected by the First Amendment. In dissent, Justice Stephen G. Breyer claimed previous studies showed the link between violence and video games, concluding "the video games in question are particularly likely to harm children."

In the majority, Justice Antonin Scalia wrote that the government can't regulate depictions of violence, which he said were age-old, anyway: "Grimm's Fairy Tales, for example, are grim indeed."

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AP Entertainment Writer Derrik J. Lang contributed to this report from Los Angeles

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