Briefcase

Sears’ Kmart unit to close 188 eateries

Sears Holdings Corp.’s Kmart chain will close more than a fifth of its in-store restaurant areas, citing a lack of profits.

Kmart will close 188 of the chain’s 823 restaurants, Kmart spokesman Steven Pagnani said. The discount chain has 1,479 Kmart stores and a distribution center in Lawrence.

Kmart will continue to operate in-store restaurants at the other locations, many of which are called “K Cafe.” Kmart doesn’t sublet space to other restaurateurs, the way competitors such as Wal-Mart Stores Inc. and Target Corp. do.

Report

Economic growth forecast declines

The nation’s economy is expected to continue growing at a 3.4 percent rate, The White House said Wednesday, for a rate a fraction less than the administration had forecast in December.

With rising energy prices, the administration’s Council of Economic Advisers increased its inflation forecast to 2.3 percent for 2005, and predicted that it would drop to 2.1 percent after that as previously projected.

The administration predicts an average of 178,000 payroll jobs being added per month this year.

In December, the administration had projected a 3.5 percent economic growth rate.

Gaming

Feds OK merger of Harrah’s, Caesars

The Federal Trade Commission on Wednesday gave Harrah’s Entertainment Inc. permission for its $5.2 billion acquisition of Caesars Entertainment Inc., according to two sources familiar with the deal.

An FTC spokesman said the agency would have no announcement Wednesday, but the sources, including a Harrah’s official with knowledge of the transaction, confirmed federal regulatory approval had been granted.

The approval leaves Harrah’s one step closer to regaining its title as the world’s biggest gambling company. Nevada gambling regulators still must sign off on the merger.

Once the merger is completed, Harrah’s will own and manage more than 40 properties, including casinos in Mayetta and North Kansas City, Mo.

Mortgage fraud

Ex-Ameriquest workers plead guilty

A second former account executive at Ameriquest Mortgage Co. pleaded guilty Tuesday in a $4 million fraudulent loan conspiracy and agreed to help investigators bring down a larger mortgage fraud ring, the U.S. Attorney’s office said.

Avonda L. Nicodemus, 33, of Kansas City, Mo., worked for Ameriquest at an office in suburban Gladstone, Mo., and was indicted by a federal grand jury in August for allegedly defrauding investors and the Orange County, Calif.-based company from May 1999 to December 1999.

On Monday, Chauncey J. Calvert, 34, also of Kansas City, pleaded guilty under a similar indictment to being a co-conspirator with Nicodemus at Ameriquest. The two allegedly used the company to approve 66 fraudulent loan applications worth $4 million.