How?Greg wrote:Big Magilla wrote:Obama needs to get off this bi-partisan kick he's on. Congressional Republicans are not going to support him no matter how much he placates them.
How about getting rid of the Senate filibuster?
New Developments III
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Big Magilla
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OscarGuy
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Part of the reason for choosing Gregg was a chance at the 2010 midterms to get a Dem into his vacated seat.
I'm glad he's not going to be in charge the census...need to get a count-everyone Democrat in there.
I'm glad he's not going to be in charge the census...need to get a count-everyone Democrat in there.
Wesley Lovell
"Any society that would give up a little liberty to gain a little security will deserve neither and lose both." - Benjamin Franklin
"Any society that would give up a little liberty to gain a little security will deserve neither and lose both." - Benjamin Franklin
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Big Magilla
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Judd Gregg withdraws from Commerce
Obama administration in turmoil!
Pundits wonder if he is one of the worst or THE worst president of all time.
:p
Obama administration in turmoil!
Pundits wonder if he is one of the worst or THE worst president of all time.
:p
In Ford’s Theater, Obama invokes forbidden word
Posted: 02:51 PM ET
WASHINGTON (CNN) — It’s a word so fraught with superstition, its very mention can send grown men ducking for cover — and President Obama used it Wednesday night.
Macbeth.
On a trip to Ford’s Theater, site of President Lincoln’s assassination, Obama paid tribute to the 16th president’s ability to recall passages of Shakespeare’s Hamlet and Macbeth. And with that reference, he unwittingly ventured into what many theater hands believe to be dangerous territory: any mention of the name of the doomed Scottish king in a theater outside of a performance is considered verboten by many actors, who believe it will result in a cursed production — including a greater possibility of injury, bankruptcy, even death.
So does Obama have anything to fear from uttering the unluckiest word in what may be the unluckiest theater in American history? Theater-goers can relax: Many stage afficianados believe that the prohibition only applies to performers or theater hands, and non-actors have nothing to worry about.
But in the near future, the president might want to stick to movies. Just to be on the safe side.
Posted: 02:51 PM ET
WASHINGTON (CNN) — It’s a word so fraught with superstition, its very mention can send grown men ducking for cover — and President Obama used it Wednesday night.
Macbeth.
On a trip to Ford’s Theater, site of President Lincoln’s assassination, Obama paid tribute to the 16th president’s ability to recall passages of Shakespeare’s Hamlet and Macbeth. And with that reference, he unwittingly ventured into what many theater hands believe to be dangerous territory: any mention of the name of the doomed Scottish king in a theater outside of a performance is considered verboten by many actors, who believe it will result in a cursed production — including a greater possibility of injury, bankruptcy, even death.
So does Obama have anything to fear from uttering the unluckiest word in what may be the unluckiest theater in American history? Theater-goers can relax: Many stage afficianados believe that the prohibition only applies to performers or theater hands, and non-actors have nothing to worry about.
But in the near future, the president might want to stick to movies. Just to be on the safe side.
"The mantle of spinsterhood was definitely in her shoulders. She was twenty five and looked it."
-Gone With the Wind by Margaret Mitchell
-Gone With the Wind by Margaret Mitchell
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Big Magilla
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From Chris Jones in the Chicago Tribune:
In the recent debate over the Barack Obama administration's economic recovery bill, proposals to spend government money on the arts have become poster children for pork.
"The National Endowment for the Arts," wrote sarcastic editorialists at the National Review last week, "is in line for $50 million, increasing its total budget by a third. The unemployed can fill their days attending abstract-film festivals and sitar concerts."
In the Senate, an amendment sponsored by Sen. Tom Coburn (R-Okla.) lumped museums, theaters and arts centers (a terrifyingly vague term) with such frippery as casinos, golf courses and swimming pools as recipients who must be stopped from getting any of this funding. The amendment passed 73-24 on Friday, with many Democrats voting in the majority.
It is time for the American arts community to confront its stunning political ineptitude. It has arrived at a place where there seems to be no one to make its case; no one, at least, free from the taint of self-interest.
After all, the argument that the labor-intensive arts are not job-creation engines is patently absurd; they just fuel different kinds of struggling workers, workers unaccustomed to bonuses. Their role in generating billions of dollars in ancillary economic activity for stores, restaurants and the travel business has been proven in bucketloads of surveys and analyses.
The contrast in priority with the last comparable American stimulus package is simply breathtaking. Funded by the Emergency Relief Appropriation Act of 1935, Franklin Delano Roosevelt's Works Progress Administration made the arts a priority. Federal Project Number One -- home of the Federal Writers Project, the Federal Theater Project, the Federal Music Project and the Federal Art Project -- was, believe it or not, the largest of the WPA's endeavors.
Its mission was to give more Americans the chance to experience what Roosevelt called "a fuller life." Its legacy -- from invigorating murals to landscape paintings to the careers of Arthur Miller or Orson Welles -- is everywhere you look.
In less than 75 years, the arts have gone from the single largest priority in a government stimulus package to a toxic joke, with a popular special amendment keeping them out. It is a stunning turnaround.
In the recent debate over the Barack Obama administration's economic recovery bill, proposals to spend government money on the arts have become poster children for pork.
"The National Endowment for the Arts," wrote sarcastic editorialists at the National Review last week, "is in line for $50 million, increasing its total budget by a third. The unemployed can fill their days attending abstract-film festivals and sitar concerts."
In the Senate, an amendment sponsored by Sen. Tom Coburn (R-Okla.) lumped museums, theaters and arts centers (a terrifyingly vague term) with such frippery as casinos, golf courses and swimming pools as recipients who must be stopped from getting any of this funding. The amendment passed 73-24 on Friday, with many Democrats voting in the majority.
It is time for the American arts community to confront its stunning political ineptitude. It has arrived at a place where there seems to be no one to make its case; no one, at least, free from the taint of self-interest.
After all, the argument that the labor-intensive arts are not job-creation engines is patently absurd; they just fuel different kinds of struggling workers, workers unaccustomed to bonuses. Their role in generating billions of dollars in ancillary economic activity for stores, restaurants and the travel business has been proven in bucketloads of surveys and analyses.
The contrast in priority with the last comparable American stimulus package is simply breathtaking. Funded by the Emergency Relief Appropriation Act of 1935, Franklin Delano Roosevelt's Works Progress Administration made the arts a priority. Federal Project Number One -- home of the Federal Writers Project, the Federal Theater Project, the Federal Music Project and the Federal Art Project -- was, believe it or not, the largest of the WPA's endeavors.
Its mission was to give more Americans the chance to experience what Roosevelt called "a fuller life." Its legacy -- from invigorating murals to landscape paintings to the careers of Arthur Miller or Orson Welles -- is everywhere you look.
In less than 75 years, the arts have gone from the single largest priority in a government stimulus package to a toxic joke, with a popular special amendment keeping them out. It is a stunning turnaround.
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OscarGuy
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They expanded the one local store here to include groceries (I love their Archer Farms products) as well. They don't have an actual produce or fresh foods section, but they have a good amount of groceries.
Wesley Lovell
"Any society that would give up a little liberty to gain a little security will deserve neither and lose both." - Benjamin Franklin
"Any society that would give up a little liberty to gain a little security will deserve neither and lose both." - Benjamin Franklin
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Eric
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Sonic Youth wrote:I've read nothing but one piece of bad news after another. Layoffs, closing distribution centers, credit delinquencies on the rise, etc.
You live near their headquarters. Maybe you know something?
I work across the street from HQ. They recently contracted, laying off some 600 employees I think, but there's nothing to indicate they're on the verge of a Circuit City.
One of the smartest things they've done as a company (and this might not have extended nationwide but is sure true in almost every one of their stores in the Twin Cities) is to branch out into the realm of groceries (not just snacks but honest-to-goodness groceries) so if, hey, everything else becomes a luxury item in the next few years, they still have that.
Edited By Eric on 1234208143
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Sonic Youth
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OscarGuy
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I would be very upset if either Borders or Target went out of business. I like both stores far more than their counterparts (Barnes & Noble and Wal-Mart).
Wesley Lovell
"Any society that would give up a little liberty to gain a little security will deserve neither and lose both." - Benjamin Franklin
"Any society that would give up a little liberty to gain a little security will deserve neither and lose both." - Benjamin Franklin
I hadn't heard that Target was in trouble, but I had heard rumblings about Border's. One of the few great things about Dallas is Half Price Books, a used-book store (also music, etc.) chain where I've been able to find almost-new and out-of-print books for dirt cheap. They're always crowded when I go in.
Edited By Penelope on 1234200182
Edited By Penelope on 1234200182
"...it is the weak who are cruel, and...gentleness is only to be expected from the strong." - Leo Reston
"Cruelty might be very human, and it might be cultural, but it's not acceptable." - Jodie Foster
"Cruelty might be very human, and it might be cultural, but it's not acceptable." - Jodie Foster
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Sonic Youth
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15 Companies That Might Not Survive 2009
Rick Newman
Friday February 6, 2009, 11:53 am EST
Who's next?
With consumers shutting their wallets and corporate revenues plunging, the business landscape may start to resemble a graveyard in 2009. Household names like Circuit City and Linens 'n Things have already perished. And chances are, those bankruptcies were just an early warning sign of a much broader epidemic.
Moody's Investors Service, for instance, predicts that the default rate on corporate bonds - which foretells bankruptcies - will be three times higher in 2009 than in 2008, and 15 times higher than in 2007. That could equate to 25 significant bankruptcies per month.
We examined ratings from Moody's and data from other sources to develop a short list of potential victims that ought to be familiar to most consumers. Many of these firms are in industries directly hit by the slowdown in consumer spending, such as retail, automotive, housing and entertainment.
But there are other common threads. Most of these firms have limited cash for a rainy day, and a lot of debt, with large interest payments due over the next year. In ordinary times, it might not be so hard to refinance loans, or get new ones, to help keep the cash flowing. But in an acute credit crunch it's a different story, and at companies where sales are down and going lower, skittish lenders may refuse to grant any more credit. It's a terrible time to be cash-poor.
That's why Moody's assigns most of these firms its lowest rating for short-term liquidity. And all the firms on this list have long-term debt that Moody's rates Caa or lower, which means the borrower is considered at least a "very high" credit risk.
Once a company defaults on its debt, or fails to make a payment, the next step is usually a Chapter 11 bankruptcy filing. Some firms continue to operate while in Chapter 11, retaining many of their employees. Those firms often shed debt, restructure, and emerge from bankruptcy as healthier companies.
But it takes fresh financing to do that, and with money scarce, more bankrupt firms than usual are likely to liquidate - like Circuit City. That's why corporate failures are likely to be a major drag on the economy in 2009: In a liquidation, the entire workforce often gets axed, with little or no severance. That will only add to unemployment, which could hit 9 or even 10 percent by the end of the year.
It's possible that none of the firms on this list will liquidate, or even declare Chapter 11. Some may come up with unexpected revenue or creative financing that helps avert bankruptcy, while others could be purchased in whole or in part by creditors or other investors. But one way or another, the following 15 firms will probably look a lot different a year from now than they do today:
Rite Aid. (Ticker symbol: RAD; about 100,000 employees; 1-year stock-price decline: 92%). This drugstore chain tried to boost its performance by acquiring competitors Brooks and Eckerd in 2007. But there have been some nasty side effects, like a huge debt load that makes it the most leveraged drugstore chain in the U.S., according to Zacks Equity Research. That big retail investment came just as megadiscounter Wal-Mart was starting to sell prescription drugs, and consumers were starting to cut bank on spending. Management has twice lowered its outlook for 2009. Prognosis: Mounting losses, with no turnaround in sight.
Claire's Stores. (Privately owned; about 18,000 employees.) Leon Black's once-renowned private-equity firm, the Apollo Group, paid $3.1 billion for this trendy teen-focused accessory store in 2007, when buyout funds were bulging. But cash flow has been negative for much of the past year and analysts believe Claire's is close to defaulting on its debt. A horrible retail outlook for 2009 offers no relief, suggesting Claire's could follow Linens 'n Things - another Apollo purchase - and declare Chapter 11, possibly shuttering all of its 3,000-plus stores.
Chrysler. (Privately owned; about 55,000 employees). It's never a good sign when management insists the company is not going out of business, which is what CEO Bob Nardelli has been doing lately. Of the three Detroit automakers, Chrysler is the most endangered, with a product portfolio that's overreliant on gas-guzzling trucks and SUVs and almost totally devoid of compelling small cars. A recent deal with Fiat seems dubious, since the Italian automaker doesn't have to pony up any money, and Chrysler desperately needs cash. The company is quickly burning through $4 billion in government bailout money, and with car sales down 40 percent from recent peaks, Chrysler may be the weakling that can't cut it in tough times.
Dollar Thrifty Automotive Group. (DTG; about 7,000 employees; stock down 95%). This car-rental company is a small player compared to Enterprise, Hertz, and Avis Budget. It's also more reliant on leisure travelers, and therefore more susceptible to a downturn as consumers cut spending. Dollar Thrifty is also closely tied to Chrysler, which supplies 80 percent of its fleet. Moody's predicts that if Chrysler declares Chapter 11, Dollar Thrifty would suffer deeply as well.
Realogy Corp. (Privately owned; about 13,000 employees). It's the biggest real-estate brokerage firm in the country, but that's a bad thing when there are double-digit declines in both sales and prices, as there were in 2009. Realogy, which includes the Coldwell Banker, ERA, and Sotheby's franchises, also carries a high debt load, dating to its purchase by the Apollo Group in 2007 - the very moment when the housing market was starting to invert from a soaring ride into a sickening nosedive. Realogy has been trying to refinance much of its debt, prompting lawsuits. One deal was denied by a judge in December, reducing the firm's already tight wiggle room.
Station Casinos. (Privately owned, about 14,000 employees). Las Vegas has already been creamed by a biblical real-estate bust, and now it may face the loss of its home-grown gambling joints, too. Station - which runs 15 casinos off the strip that cater to locals - recently failed to make a key interest payment, which is often one of the last steps before a Chapter 11 filing. For once, the house seems likely to lose.
Loehmann's Capital Corp. (Privately owned; about 1,500 employees). This clothing chain has the right formula for lean times, offering women's clothing at discount prices. But the consumer pullback is hitting just about every retailer, and Loehmann's has a lot less cash to ride out a drought than competitors like Nordstrom Rack and TJ Maxx. If Loehmann's doesn't get additional financing in 2009 - a dicey proposition, given skyrocketing unemployment and plunging spending - the chain could run out of cash.
Sbarro. (Privately owned; about 5,500 employees). It's not the pizza that's the problem. Many of this chain's 1,100 storefronts are in malls, which is a double whammy: Traffic is down, since consumers have put away their wallets. Sbarro can't really boost revenue by adding a breakfast or late-night menu, like other chains have done. And competitors like Domino's and Pizza Hut have less debt and stronger cash flow, which could intensify pressure on Sbarro as key debt payments come due in 2009.
Six Flags. (SIX; about 30,000 employees; stock down 84%). This theme-park operator has been losing money for several years, and selling off properties to try to pay down debt and get back into the black. But the ride may end prematurely. Moody's expects cash flow to be negative in 2009, and if consumers aren't spending during the peak summer season, that could imperil the company's ability to pay debts coming due later this year and in 2010.
Blockbuster. (BBI; about 60,000 employees; stock down 57%). The video-rental chain has burned cash while trying to figure out how to maximize fees without alienating customers. Its operating income has started to improve just as consumers are cutting back, even on movies. Video stores in general are under pressure as they compete with cable and Internet operators offering the same titles. A key test of Blockbuster's viability will come when two credit lines expire in August. One possible outcome, according to Valueline, is that investors take the company private and then go public again when market conditions are better.
Krispy Kreme. (KKD; about 4,000 employees; stock down 50%). The donuts might be good, but Krispy Kreme overestimated Americans' appetite - and that's saying something. This chain overexpanded during the donut heyday of the 1990s - taking on a lot of debt - and now requires high volumes to meet expenses and interest payments. The company has cut costs and closed underperforming stores, but still hasn't earned an operating profit in three years. And now that consumers are cutting back on everything, such improvements may fail to offset top-line declines, leading Krispy Kreme to seek some kind of relief from lenders over the next year.
Landry's Restaurants. (LNY; about 17,000 employees; stock down 66%). This restaurant chain, which operates Chart House, Rainforest Café, and other eateries, needs $400 million in new financing to finalize a buyout deal dating to last June. If lenders come through, the company should have enough cash to ride out the recession. But at least two banks have already balked, leading to downgrades of the company's debt and the prospect of a cash-flow crunch.
Sirius Satellite Radio. (SIRI - parent company; about 1,000 employees; stock down 96%). The music rocks, but satellite radio has yet to be profitable, and huge contracts for performers like Howard Stern are looking unsustainable. Sirius is one of two satellite-radio services owned by parent company Sirius XM, which was formed when Sirius and XM merged last year. So far, the merger hasn't generated the savings needed to make the company profitable, and Moody's thinks there's a "high likelihood" that Sirius will fail to repay or refinance its debt in 2009. One outcome could be a takeover, at distressed prices, by other firms active in the satellite business.
Trump Entertainment Resorts Holdings. (TRMP; about 9,500 employees; stock down 94%). The casino company made famous by The Donald has received several extensions on interest payments, while it tries to sell at least one of its Atlantic City properties and pay down a stack of debt. But with casino buyers scarce, competition circling, and gamblers nursing their losses from the recession, Trump Entertainment may face long odds of skirting bankruptcy.
BearingPoint. (BGPT; about 16,000 employees; stock down 21%). This Virginia-based consulting firm, spun out of KPMG in 2001, is struggling to solve its own operating problems. The firm has consistently lost money, revenue has been falling, and management stopped issuing earnings guidance in 2008. Stable government contracts generate about 30 percent of the firm's business, but the firm may sell other divisions to help pay off debt. With a key interest payment due in April, management needs to hustle - or devise its own exit strategy.
Edited By Penelope on 1234197501
Rick Newman
Friday February 6, 2009, 11:53 am EST
Who's next?
With consumers shutting their wallets and corporate revenues plunging, the business landscape may start to resemble a graveyard in 2009. Household names like Circuit City and Linens 'n Things have already perished. And chances are, those bankruptcies were just an early warning sign of a much broader epidemic.
Moody's Investors Service, for instance, predicts that the default rate on corporate bonds - which foretells bankruptcies - will be three times higher in 2009 than in 2008, and 15 times higher than in 2007. That could equate to 25 significant bankruptcies per month.
We examined ratings from Moody's and data from other sources to develop a short list of potential victims that ought to be familiar to most consumers. Many of these firms are in industries directly hit by the slowdown in consumer spending, such as retail, automotive, housing and entertainment.
But there are other common threads. Most of these firms have limited cash for a rainy day, and a lot of debt, with large interest payments due over the next year. In ordinary times, it might not be so hard to refinance loans, or get new ones, to help keep the cash flowing. But in an acute credit crunch it's a different story, and at companies where sales are down and going lower, skittish lenders may refuse to grant any more credit. It's a terrible time to be cash-poor.
That's why Moody's assigns most of these firms its lowest rating for short-term liquidity. And all the firms on this list have long-term debt that Moody's rates Caa or lower, which means the borrower is considered at least a "very high" credit risk.
Once a company defaults on its debt, or fails to make a payment, the next step is usually a Chapter 11 bankruptcy filing. Some firms continue to operate while in Chapter 11, retaining many of their employees. Those firms often shed debt, restructure, and emerge from bankruptcy as healthier companies.
But it takes fresh financing to do that, and with money scarce, more bankrupt firms than usual are likely to liquidate - like Circuit City. That's why corporate failures are likely to be a major drag on the economy in 2009: In a liquidation, the entire workforce often gets axed, with little or no severance. That will only add to unemployment, which could hit 9 or even 10 percent by the end of the year.
It's possible that none of the firms on this list will liquidate, or even declare Chapter 11. Some may come up with unexpected revenue or creative financing that helps avert bankruptcy, while others could be purchased in whole or in part by creditors or other investors. But one way or another, the following 15 firms will probably look a lot different a year from now than they do today:
Rite Aid. (Ticker symbol: RAD; about 100,000 employees; 1-year stock-price decline: 92%). This drugstore chain tried to boost its performance by acquiring competitors Brooks and Eckerd in 2007. But there have been some nasty side effects, like a huge debt load that makes it the most leveraged drugstore chain in the U.S., according to Zacks Equity Research. That big retail investment came just as megadiscounter Wal-Mart was starting to sell prescription drugs, and consumers were starting to cut bank on spending. Management has twice lowered its outlook for 2009. Prognosis: Mounting losses, with no turnaround in sight.
Claire's Stores. (Privately owned; about 18,000 employees.) Leon Black's once-renowned private-equity firm, the Apollo Group, paid $3.1 billion for this trendy teen-focused accessory store in 2007, when buyout funds were bulging. But cash flow has been negative for much of the past year and analysts believe Claire's is close to defaulting on its debt. A horrible retail outlook for 2009 offers no relief, suggesting Claire's could follow Linens 'n Things - another Apollo purchase - and declare Chapter 11, possibly shuttering all of its 3,000-plus stores.
Chrysler. (Privately owned; about 55,000 employees). It's never a good sign when management insists the company is not going out of business, which is what CEO Bob Nardelli has been doing lately. Of the three Detroit automakers, Chrysler is the most endangered, with a product portfolio that's overreliant on gas-guzzling trucks and SUVs and almost totally devoid of compelling small cars. A recent deal with Fiat seems dubious, since the Italian automaker doesn't have to pony up any money, and Chrysler desperately needs cash. The company is quickly burning through $4 billion in government bailout money, and with car sales down 40 percent from recent peaks, Chrysler may be the weakling that can't cut it in tough times.
Dollar Thrifty Automotive Group. (DTG; about 7,000 employees; stock down 95%). This car-rental company is a small player compared to Enterprise, Hertz, and Avis Budget. It's also more reliant on leisure travelers, and therefore more susceptible to a downturn as consumers cut spending. Dollar Thrifty is also closely tied to Chrysler, which supplies 80 percent of its fleet. Moody's predicts that if Chrysler declares Chapter 11, Dollar Thrifty would suffer deeply as well.
Realogy Corp. (Privately owned; about 13,000 employees). It's the biggest real-estate brokerage firm in the country, but that's a bad thing when there are double-digit declines in both sales and prices, as there were in 2009. Realogy, which includes the Coldwell Banker, ERA, and Sotheby's franchises, also carries a high debt load, dating to its purchase by the Apollo Group in 2007 - the very moment when the housing market was starting to invert from a soaring ride into a sickening nosedive. Realogy has been trying to refinance much of its debt, prompting lawsuits. One deal was denied by a judge in December, reducing the firm's already tight wiggle room.
Station Casinos. (Privately owned, about 14,000 employees). Las Vegas has already been creamed by a biblical real-estate bust, and now it may face the loss of its home-grown gambling joints, too. Station - which runs 15 casinos off the strip that cater to locals - recently failed to make a key interest payment, which is often one of the last steps before a Chapter 11 filing. For once, the house seems likely to lose.
Loehmann's Capital Corp. (Privately owned; about 1,500 employees). This clothing chain has the right formula for lean times, offering women's clothing at discount prices. But the consumer pullback is hitting just about every retailer, and Loehmann's has a lot less cash to ride out a drought than competitors like Nordstrom Rack and TJ Maxx. If Loehmann's doesn't get additional financing in 2009 - a dicey proposition, given skyrocketing unemployment and plunging spending - the chain could run out of cash.
Sbarro. (Privately owned; about 5,500 employees). It's not the pizza that's the problem. Many of this chain's 1,100 storefronts are in malls, which is a double whammy: Traffic is down, since consumers have put away their wallets. Sbarro can't really boost revenue by adding a breakfast or late-night menu, like other chains have done. And competitors like Domino's and Pizza Hut have less debt and stronger cash flow, which could intensify pressure on Sbarro as key debt payments come due in 2009.
Six Flags. (SIX; about 30,000 employees; stock down 84%). This theme-park operator has been losing money for several years, and selling off properties to try to pay down debt and get back into the black. But the ride may end prematurely. Moody's expects cash flow to be negative in 2009, and if consumers aren't spending during the peak summer season, that could imperil the company's ability to pay debts coming due later this year and in 2010.
Blockbuster. (BBI; about 60,000 employees; stock down 57%). The video-rental chain has burned cash while trying to figure out how to maximize fees without alienating customers. Its operating income has started to improve just as consumers are cutting back, even on movies. Video stores in general are under pressure as they compete with cable and Internet operators offering the same titles. A key test of Blockbuster's viability will come when two credit lines expire in August. One possible outcome, according to Valueline, is that investors take the company private and then go public again when market conditions are better.
Krispy Kreme. (KKD; about 4,000 employees; stock down 50%). The donuts might be good, but Krispy Kreme overestimated Americans' appetite - and that's saying something. This chain overexpanded during the donut heyday of the 1990s - taking on a lot of debt - and now requires high volumes to meet expenses and interest payments. The company has cut costs and closed underperforming stores, but still hasn't earned an operating profit in three years. And now that consumers are cutting back on everything, such improvements may fail to offset top-line declines, leading Krispy Kreme to seek some kind of relief from lenders over the next year.
Landry's Restaurants. (LNY; about 17,000 employees; stock down 66%). This restaurant chain, which operates Chart House, Rainforest Café, and other eateries, needs $400 million in new financing to finalize a buyout deal dating to last June. If lenders come through, the company should have enough cash to ride out the recession. But at least two banks have already balked, leading to downgrades of the company's debt and the prospect of a cash-flow crunch.
Sirius Satellite Radio. (SIRI - parent company; about 1,000 employees; stock down 96%). The music rocks, but satellite radio has yet to be profitable, and huge contracts for performers like Howard Stern are looking unsustainable. Sirius is one of two satellite-radio services owned by parent company Sirius XM, which was formed when Sirius and XM merged last year. So far, the merger hasn't generated the savings needed to make the company profitable, and Moody's thinks there's a "high likelihood" that Sirius will fail to repay or refinance its debt in 2009. One outcome could be a takeover, at distressed prices, by other firms active in the satellite business.
Trump Entertainment Resorts Holdings. (TRMP; about 9,500 employees; stock down 94%). The casino company made famous by The Donald has received several extensions on interest payments, while it tries to sell at least one of its Atlantic City properties and pay down a stack of debt. But with casino buyers scarce, competition circling, and gamblers nursing their losses from the recession, Trump Entertainment may face long odds of skirting bankruptcy.
BearingPoint. (BGPT; about 16,000 employees; stock down 21%). This Virginia-based consulting firm, spun out of KPMG in 2001, is struggling to solve its own operating problems. The firm has consistently lost money, revenue has been falling, and management stopped issuing earnings guidance in 2008. Stable government contracts generate about 30 percent of the firm's business, but the firm may sell other divisions to help pay off debt. With a key interest payment due in April, management needs to hustle - or devise its own exit strategy.
Edited By Penelope on 1234197501
"...it is the weak who are cruel, and...gentleness is only to be expected from the strong." - Leo Reston
"Cruelty might be very human, and it might be cultural, but it's not acceptable." - Jodie Foster
"Cruelty might be very human, and it might be cultural, but it's not acceptable." - Jodie Foster