Big Businesses At Risk Of Closing

  • metta

    Posts: 39090

    Jun 08, 2009 4:19 AM GMT
    A friend keeps telling me that we are going to see a more large business closings in September. One compnay he mentioned was Sears:
    http://www.dailyfinance.com/2009/06/07/on-the-brink-sears-keeps-closing-stores/
    Sears operates 3,900 full-line and specialty retail stores in the U.S. and Canada, and employs 291,000.


    American Icons on the Brink List


    •1. General Motors
    •2. Playboy
    •3. Kodak
    •4. Blockbuster
    •5. Six Flags
    •6. New York Times
    •7. MGM Mirage
    •8. Sears
    •9. Sirius
    •10. Sbarro
    •11. Citigroup
    •12. Saks
    •13. Clear Channel Communications

    http://money.aol.com/investing/american-icons-on-the-brink


    Are there any companies that you would like to add or take off from the list?
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    Jun 08, 2009 4:29 AM GMT
    I don't know much about some of the companies on the list, but I think Sears will go the way of J.C.Penny and become more of an online store than an in the field store. GM will emerge as a smaller company, humbled and with a new direction. Kodak is going the way of the printer/ink business now and I think they will survive. Alot of amusement parks are feeling it and it seems they change hands like we change underwear practically.

    Sidenote-Saturn is being sold to the Penske Racing Group, so it is staying American. But the downside is the group is going to outsource production, saying that is the only way they can stay profitable. They may change their minds once the fines for outsourcing kick in, as Obama said he planned to do.
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    Jun 08, 2009 5:39 AM GMT
    It seems like a lot of those you mentioned have been on the brink for a while. Business that cannot adapt needs to die.

    For example:

    Kodak: Digital camera's probably put a hurting on film .. unable to cut expense, compete, and find diverse market

    New York times (and lots of news papers): Internet and Internet news (I.E. Huffington post and the like)

    Sears: Seems to me like it has been failing over the past few decades anyway. Other stores have taken the place of the old fashioned department stores .. wal-mart, target, etc

    Blockbuster: Netflix is making a killing and also you can now get pay per view. An actual storefront is no longer necessary.

    So things like that tell me that something else has taken the place of the other businesses that perhaps used to have more of a market share .. the old businesses could not adapt.
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    Jun 08, 2009 5:40 AM GMT
    My brother just retired from Kodak. I hope his pension is secure, even if the company goes bust! ... icon_eek.gif
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    Jun 08, 2009 7:28 AM GMT
    My dad's old company is going bankrupt and he is losing his pension. My parents are in their mid 70's. My sister and mainly myself are going to have to help them. God help us if we have to live together.
  • captproton

    Posts: 316

    Jun 08, 2009 8:07 AM GMT
    I think the list is too long, by maybe three.

    Kodak a year ago looked like it might go the way of Polaroid, but it has invested heavily in digital imaging and is looking to be known for something other than its previous incarnation as the foremost purveyor of film and film cameras.

    MGM Mirage has restructured its debt so it can complete City Center, arguably the most ambitious mixed-use urban development project being built right now in the United States--kinda like the Rockefeller Center of the 21st century. I have a friend who is an analyst for the company and he says, despite the recession, right now the big Las Vegas hotels are, for the most part, 100% booked every night of the week.

    As for the Times, I don't think the media elite will allow the national "newspaper of record" to fold. There's always David Geffen waiting in the wings.
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    Jun 08, 2009 12:37 PM GMT

    Eddie Bauer

    Talbots

    Pottery Barn / Williams Sonoma

    Border's Books

    Outback Steakhouse

    Any airline, but esp US Air and American Airlines
  • GQjock

    Posts: 11649

    Jun 08, 2009 7:01 PM GMT
    Times isn't going anywhere ... they have too many subsidiary outlets
    Their smaller publications might go but not the Times
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    Jun 08, 2009 7:05 PM GMT
    Clear Channel Communications on your list is a homophobic, pro-Republican monopoly, that has destroyed local radio station ownership throughout the US and promoted right-wing hate talk shows. I welcome its failure.
  • rnch

    Posts: 11524

    Jun 08, 2009 7:18 PM GMT
    sears started their downhill plunge in the '80's when they "eliminated" most of their full time career personnel and replaced them with indifferent part time slackers.

    general motors brought their collapse on themselves by building nothing people wanted to buy but boxy, lousy gas mileage trucks and truck based SUV's.



    i was (and still am!) against ALL of these "buyouts" and "loans". they all shudda had to merge or reinvent themselves...sink or swim, bayy-bee!
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    Jun 08, 2009 7:51 PM GMT
    General Motors cut their own throat with over-paid high school graduates with no skills and a UNION behind them. Their cars suck, too.
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    Jun 08, 2009 8:12 PM GMT
    flieslikeabeagle said
    Eddie Bauer

    Talbots

    Pottery Barn / Williams Sonoma

    Border's Books

    Outback Steakhouse

    Any airline, but esp US Air and American Airlines


    I remember reading at Xmas of all the retails Eddie Bauer is in one of the best shape's financially. The limited, Ann taylor, A&F etc are in the worst. Williams-sonoma is still making money too...It has trade down customers any retailer without a significant customer base to trade down to them will lose. Hence why the one at the very bottom aka Walmart is winning

    Borders is a train wreck, and I'm kind of disappointing as i like to shop there and still do rather than online. But I can see it going too they just can't get their finances in order

    American Airlines is defiantly going the way of the dinosaurs, no other airline employees as many staff per passenger yet has a tragic record for customer service, a fleet they haven't bothered to upgrade which is now giving others an edge in attracting passengers and providing a crippling fuel bill. and to kill it all no cash/credit available and an aging legacy customer base that is dying.

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    Jun 08, 2009 8:30 PM GMT
    I really hope Sirius doesn't go under. If I have to go back to terrestial radio, I'll kill myself.
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    Jun 08, 2009 8:35 PM GMT
    What a great story about Borders
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    Jun 08, 2009 8:46 PM GMT




    Creative Destruction. If you refuse to change you become obsolete.

    For those of you who had pension questions: I am only writing this to those who mentioned someone "lost" a pension and including a resource for their potential benefit.

    Pensions rarely are a total loss. Why?

    Legally, pensions have to be funded annually, and yes there are those that are underfunded, but generally if the plan is really at risk (grossly underfunded) it will be (involuntarily) taken over by the Pension Benefit Guaranty Corporation http://www.pbgc.gov

    The PBGC then will make pension payments up to its statutory limit (currently $4,500 per month or $54,000) and there are reductions for certain reasons such as age.

    This is not meant to constitute advice, so a couple of resources you might want to consult for your individual circumstances are: your financial advisor, the plan administrator for the pension plan and the PBGC web site.

    So if the company you or someone you know of "went under" consider contacting the PBGC to determine if there is an entitlement.

    Hope this helps.