Columbia Execs Learn to Dodge Fleiss Flak

Columbia Pictures: More than just a company; it’s one big, happy family.

That, at least, is the party line coming out of the studio in the aftermath of last weekend’s well-timed management retreat. Sources say executives there have been ordered to close ranks in the wake of stories linking Columbia to alleged Hollywood madam Heidi Fleiss.

The studio apparently has come to the conclusion that it is its own worst enemy in handling controversy, due to the overt gabbiness of some executives and the manic image it projects. After weathering a week of intense press speculation about possible wrongdoing--none of which has been substantiated--Columbia has put a premium on getting its house in order.

While the Santa Barbara retreat was pre-planned, it provided the perfect backdrop for hashing out the Heidi mess and for formalizing a decision to promote production chief Michael Nathanson and replace him with Lisa Henson. Sources report that while there was no utensil throwing or screaming at the Biltmore Hotel, there was plenty of strategizing by the studio, which has been sidetracked by the controversy for several weeks.

One defining moment was a speech by Peter Guber, chairman of Columbia’s parent company, Sony Pictures Entertainment, who gave what amounted to a Public Relations 101 pep talk. “They’re hoping the worst is over, but they’ve learned some lessons,” one source said.

At Columbia on Monday, executives turned aside routine questions about Fleiss, sounding annoyed and downright hostile that interest hasn’t subsided. In addition to remaining tight-lipped on that front, studio officials refused to discuss the weekend retreat. Columbia’s formal response to all questions, in fact, was no comment.

Columbia’s sister studio, TriStar Pictures, had its own retreat over the weekend at the Biltmore, where, according to sources, Heidi was not an official agenda item but was the target of some jokes among the executives.

Columbia was swept up in the Fleiss storm last week, when Nathanson publicly denied persistent rumors of involvement with her. Sources at Columbia subsequently said the studio had launched an in-house investigation into possible misuse of company funds in the case, but only as a precaution, and that nothing had turned up as of late last week.

Fleiss, meanwhile, was arraigned on five counts of felony pandering and one drug count Monday before a rapt media audience and a few other arraignees facing unrelated charges. The so-called madam to the stars looked shaken but stylish as she entered the press-packed courtroom dressed in a form-fitting mini-dress and sunglasses, which she only briefly removed when her lawyer entered a plea of not guilty on all counts on her behalf. Municipal Court Commissioner Abraham Khan mispronounced the name that has become so familiar in Hollywood, repeatedly referring to her as “Miss Fleece.”

Aside from Fleiss, the Columbia retreat was largely focused on newly named production chief Henson. Henson’s appointment was planned for months, but may have been moved up in response to the controversy. As predicted, Nathanson was promoted to executive vice president, where he will mostly handle administrative rather than creative matters. Things were said to be in flux on the Columbia lot Monday, Henson’s first day on the job, as underlings adapted to the new regime.

But Hollywood ultimately expects a smooth transition between Nathanson and Henson, who worked under Columbia Chairman Mark Canton at Warner Bros. Sources said her biggest challenge may be dealing with a depleted development fund. One person close to Columbia said the “cash crunch” has already slowed activities at the studio.

Nathanson--who, like Henson, attended the weekend retreat--started a Hawaiian vacation this week. Some people close to Columbia maintain that he has been unfairly burned in the Fleiss scandal. “He’s not exactly a Hollywood glamour boy,” one source said, “and yet he’s been completely sacrificed.”

So far, Fleiss’ sudden celebrity is receiving only limited press play in Japan, where Sony is based. On Sunday, the English-language Japan Times ran a short story under the headline, “Call Girl’s Black Book Puts Studio on Edge.” A more prominent story appeared Monday.

A spokesman for Sony in Tokyo referred all questions directly to the Culver City-based entertainment division. He declined to say whether Sony Corp. had initiated its own investigation into the Fleiss case, but said Sony Pictures was forwarding more information to the head office following Monday’s arraignment proceedings.

Columbia has been battered by bad press all summer, starting with the “Last Action Hero” controversy. Some have even suggested that the studio has brought bad press upon itself through its own arrogance. While some at Columbia insisted that it’s business as usual, a number of agents who do business with the company paint a different picture.

“It’s a bad-vibe place, there are a lot of tortured people having a hard time,” one top agent said.

“They’re very distracted; everything’s going to have to be put back on track,” another said.

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Maverick Gal: Actress Jodie Foster will play Mel Gibson’s love interest in the big-screen version of “Maverick.” Sources say Foster, a two-time Academy Award winner, will be paid $5 million for co-starring in the Warner Bros. production, which starts filming in two weeks.

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Murphy Update: Box office analyst Art Murphy has landed at the Hollywood Reporter after nearly 30 years at rival trade paper Daily Variety. Murphy is credited with pioneering box office reporting. He will fulfill a similar role at the Reporter, the trade paper said.

Times staff writer Teresa Watanabe in Tokyo contributed to this report.

* MAIN STORY: A1