14 Bankruptcies

Here are 14 companies that filed bankruptcy…

1. Phoenix Coyotes – They started as the Winnipeg Jets before moving to Phoenix in 1996.  At filing, the company had $500 million in debts and less than $100 million in assets.  That’ll teach the business people that a hockey team might not belong in the desert.  Source

2. Hartmarx – The maker of President Obama’s suits, has filed for bankruptcy in January.  The company lists between $100 million and $500 million in assets and liabilities.  There is currently a bid for Hartmarx from Emerisque.  Source

3. Six Flags – The amusement company filed for bankruptcy after failing to refinance $2.4 billion in debt.  A company spokesman has said this is strictly a financial restructuring and will not affect any park operations.  Source

4. Crabtree & Evelyn – A high priced soap maker has listed between $10 million and $50 million in assets and at least as much in debts.  The company founded in 1973 has built it’s brands on natural products that use herbs, fruits and fresh flowers.  For now their stores will remain open and the website will remain in operation.  Source

5. Filene’s Basement – The chain filed for bankruptcy with assets of $100 million and liabilities as high as 5 times that amount.  Syms, a competing retailer has agreed to pay $65 million for the chain.  Included in the purchase are 23 or 25 stores as well as inventory.  The chain will continue to operate under the Filene’s Basement name.  Source

6. Extended Stay – The hotel chain filed in June with total debt of $7.6 billion and assets of $7.1 billion.  Room revenue plummeted by 23.2% during the first 5 months of 2009 compared to a year earlier.  The hotel chain will continue operations under it’s existing brands of Extended Stay America, Homestead Studio Suites, Studio Plus and Crossland.  Source

7. Eddie Bauer – The clothing retailer based in Washington filed in June.  It’s latest filing was in 2003 and emerged in 2005 and was spun off into it’s own company.  The chain, formerly known as Spiegal listed between $100 million and $500 million in assets.  CCMP Capital has bid $202 million for the chain and plans to keep all 371 stores open as well as catalog and web site operations.  Gift cards will be honored until September 1, 2009 or until the sale of it’s assets go through.  Source

8. Crunch Gym – The chain began in 1989 as a basement aerobics studio and over the last 20 years has grown to 28 locations around the country.  In may it’s leases became unmanageable as it listed at least $500 assets and liabilities.  New Evolution Fitness Co has entered into a purchase agreement.  Most locations will remain open, but may be relocated to get a cheaper lease.  Source

9. Pilgrim’s Pride – Rising raw material prices compounded by lower demand led the company to file for bankruptcy in December 2008.  The company listed $3.75 billion in assets and $2.72 billion in debts.  Operations will continue and no further layoffs are planned.  Source

10. The Daily Blossom – The floral arrangement design company lists just under $50,000 and liabilities between $100,000 and $500,000.  Source

11. Debt Relief USA – The debt consolidation company lists $5 million in liabilities and $4.65 million in assets.  The company has shut down and left it’s customers without services they paid for.  Source

12. The Tribune Co – The owner of the Chicago Tribune and LA Times filed at the end of 2008.  The company will operate normally while in bankruptcy which was designed to lighten the debt load.  Source

13. Vallejo, California – The town in California filed bankruptcy as property taxes plunged.  The town is home to one of Six Flags most successful theme parks, which has also entered bankruptcy protection.  Source

14. Lear corp – The company manufactures seats and electronics for cars lists $1.3 billion in assets and $4.5 billion in debt.  The company has already found financing and is expected to exit bankruptcy within 60 days.  Source

Michigan to close 8 prisions

Michigan will close 3 prisions and 5 prision camps in effort to plug the state budget gap of $1.4 billion.  The move is expected to save around $120 million.  No prisioners will be released early and will be transferred to other prisions.  About 1,000 workers will lose their job as part of the closings.

Source

Chrysler Won’t Repay Feds

Chrysler won’t be repaying the federal bailout money in the amount of $7 billion.  Taxpayers will however be receiving something for their money in the form of Chrysler stock, which will be sold at a later date once the company recovers.  This has the potential to actually make money for taxpayers if the company can complete the turn around and start making money again.

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NJ wants workers to take off 2 days without pay

New Jersey, along with many other states, is facing a huge budget deficit and is looking for creative ways to close the gap. The governor of New Jersey said more furloughs and possibly lay offs will be necessary if the states unions do not agree to a wage freeze for the 2010 fiscal year.  

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20,000 California Workers Facing Layoffs

California’s budget has an $11.2 billion hole in it still for the fiscal year ending in June, with a huge $42 billion hole through the end of next fiscal year ending in June 2010.  As a measure to save $750 million. 

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Government deficit swells

The United States treasury department announced the budget deficit swelled to $569 billion so far this fiscal year.  $83.8 billion alone is from January.

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NYC has a huge budget shortfall

If any one city or state would be hard hit by wall street’s woes, it would be New York City.  Look at it this way, all the money those wall street employees make, is taxed by the city and state of New York.  With all the declining profits and other problems on Wall Street, there is less income, therefore less taxes being collected.

Now to the main story.  New York City is facing a massive $4 billion shortfall in it’s current budget, and expects it to be worse next fiscal year.  Steps being looked at to close the gap include layoffs in the 10’s of thousands range and an increased sales tax.  Either way, it doesn’t look good for the big apple.

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Government Bad Bank?

The US Government is rolling the idea of a government run bad bank to alleviate all the bad debt that’s in the financial system right now.  The idea is to take the bad debt off the books so the banks will be more likely to lend to you and me.

My question is:

If this happens and all these mortgages go into this program, what happens when people don’t pay?  Will they just be allowed to continue living there, or will the government evict them?

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Senate vote fails to block remaining $350 billion

The senate failed to block the release of the remaining $350 billion of the bailout package that passed late last year.  Does this mean more free money for banks that are still not lending after receiving the first half of the bailout money?

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Editors Note: When will the American taxpayers get a bailout or tax relief or anything to help them out?  Maybe stop lending money to all those countries that don’t like the US.  If they can’t survive on their own, then let them figure out their own problems…   We have our own issues to worry about.

NJ has highest unemployment rate in 12 years

Not really news to anyone, but New Jersey now has it’s highest unemployment rate it’s seen in 12 years.  Anyone want to take bets how high it’ll end up going?  The overall percentage now sits at 6.1%.

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