Pier 1 Imports will close up to 80 stores after $29.4 million dollar loss in the 4th Quarter 2008. The company originally planned to close 125 stores, but worked out deals with a number of landlords to reduce store rents.
IBM to cut 5,000 in the US
March 26, 2009 — ColioneIBM has announced plans to cut 5,000 jobs mosting in its global services business. This cut would equal about 4% of it’s US workforce. The company has been growing in emerging countries such as Brazil, Russia, India and China in recent history. Most of the cuts will be directed to it’s consulting and outsourcing business units.
Caterpillar Cut’s Jobs
March 26, 2009 — Colione
Caterpillar is set to cut just over 2,400 more jobs in Illinois, Georgia and Indiana bringing this years cuts to over 24,000. In January, the company offered early retirement packages for 2,000 workers.
Six Flags in Trouble
March 26, 2009 — Colione
Six Flags may be in serious trouble. The company has a $300 million debt payment due this summer and has indicated it may not be able to make the payment unless it’s able to restructure it’s debt. Restructuring the debt may be troublesome since the financial markets are still in turmoil due to the recession. This could mean discounts for companies that actually have enough money to buy some of Six Flag’s parks.
AT&T adding jobs, spending money
March 12, 2009 — Colione
We’re not all doom and gloom around here, but these kinds of stories are rare.
AT&T will be adding around 3,000 jobs across the country (mostly in it’s wireless, broadband and video divisions) while spending $17-18 billion this year on capital improvement projects. The majority of the money will be used to bolster it’s wireless and broadband coverage.
On the other hand, AT&T is still planning on cutting the 12,000 jobs (mostly from the landline division), as well as keeping a freeze in place on all manager raises.
Another Bank Failure
March 12, 2009 — Colione
The FDIC has taken over Freedom Bank of Georgia, the 17th bank failure this year. The take over will cost the FDIC about $36 million. The bank had $173 million in assets and $161 million in deposits as of March 4, 2009. Northeast Bank of Georgia based in Lavonia, GA will assume all of the deposits and acquire about $167 million in assets. Freedom Bank had 4 branches that will be converted to Northeast Bank branches.
Customers of Freedom Bank as usual will be able to access their accounts as normal through the transition.
Virgin Megastores Closing in US
March 12, 2009 — Colione
The six Virgin MegaStores will close by this summer. While still profitable, the real estate the stores sit on are far more valuable than the stores themselves and will be closed to make way for new renters or owners depending on the location. The first store to go will be the flagship NY Times Square location which will close by mid April. The rest will go by June. The company is known for it’s splashy promotions and is planning a send off for the Times Square location the last week of March. The rest of the 150 Megastores will remain open around the world.
It’s 1060 staff across the country will be laid off.
HSBC cutting positions and branches
March 3, 2009 — ColioneHSBC has announced it will close hundreds of US branches and lay off over 6,000 in an effort to cut costs and reduce it’s exposure to the US mortgage market. The financial firm will shutter all of it’s HFC and Beneficial bank branches that specialize in consumer and mortgage lending. As of Monday, the branches will no longer be making loans, and employees are beginning to receive notice of layoffs.
The closures will not affect existing loans and loans will continue to be made at HSBC locations.
The Source (Circuit City Canada) Sold
March 3, 2009 — ColioneBCE Inc, Canada’s largest telecom, has agreed to purchase The Source which was previously owned by Circuit City. Circuit City has been looking for a buyer for it’s chain in Canada since filing for bankruptcy in November 2008.
BCE will use the retail locations to expand it’s vast retail presence and to push it’s products accross the 750 stores in this acquisition. BCE also stated this move will allow it to expand its retail foot print faster and cheaper than building out the chain. It was also stated the chain had nearly $500 million in revenue for 2008.
The purchase price will not be released until the acquisition is completed.
2 More Banks Closed
March 3, 2009 — ColioneThe FDIC took over 2 more banks and will be taken over by other banks. The combined total loss to the FDIC is just about $100 million.
Security Savings Bank of Henderson Nevada will be taken over by The Bank of Nevada. The bank had $238.3 million in assets and $175.2 million in deposits as of Dec 31, 2008.
Heritage Community Bank of Glenwood, Illinois had assets of $232.9 million in assets and $218.6 million in deposits as of Dec 5, 2008. MB Financial Bank N.A. agreed to acquire off of Heritage’s deposits and $230.5 million of the banks assets.
As usual, all account access, debit cards, bank accounts and checks can be used as normal.
