Circuit City files for bankruptcy, DHL goes bust

Circuit City

Circuit City Stores has filed for bankruptcy about a week after it said it would close 20 percent of its stores.

The Richmond, Virginia-based electronics retailer has been struggling as nervous consumers spend less and credit has become tighter. It filed for bankruptcy protection on Monday.

At least 7300 jobs gone. Circuit City shares are trading premarket at $.20. Yes, twenty cents.

DHL

DHL, the world’s number one international logistics and express service provider, today announced a repositioning of its U.S. Express business. Beginning January 30, 2009, DHL’s U.S. Express business will focus entirely on its international offerings and will discontinue its domestic-only air and ground services.

9500 jobs gone. No more domestic shipping in the US.


It looks like a news-filled Monday may be on tap for us. *sigh*
In positive news, McDonald's just released and they're doing EXTREMELY well - sales up 5.3%.

reply to post by anachryon

In positive news, McDonald's just released and they're doing EXTREMELY well - sales up 5.3%

Let them eat cake right? Or in this case, worthless empty calories in the form of a Big Mac.

The bad news just keeps on coming. Hard to believe that futures are up right now. It looks like the US markets are now following China's news.

This is only a problem for the average American. Those who were at the helm of the companies have secured their fortunes and will move on.

I am waiting for the day the group of old boys who have been selected to act as CEOs of large corporations start to fight over which of them get to continue to milk the system.

16800 people just like that out of work

And lets not for get about the flow on affect this will have for the rest of the population.

I don't think people really under stand how bad things are going to get in our world




Love and light out to every one and every thing

Originally posted by Karlhungis
Let them eat cake right? Or in this case, worthless empty calories in the form of a Big Mac.

Hey, that Dollar Menu is about the top limit of what a whole bunch of people can afford for a meal out...even moreso now that we just lost another 17,000 jobs.

Some more bad news breaking on Bloomberg TV:

Deutsche Bank cuts GM from "hold" to "sell" - says it considers GM stock worth ZERO DOLLARS.

Whoops, found a link:
]Marketwatch

Deutsche Bank downgraded General Motors Corp. to sell from hold, with a price target of $0, saying the car maker may not be able to fund its U.S. operations beyond December without government intervention.

That's 2.5 MILLION jobs on the line right there, and this news doesn't help.

reply to post by anachryon


I don't see how GM will make it. They have already approached the government for some of that bailout money and got denied. The government seems to be willing to let them fail and their business doesn't look like it has any way of staying afloat. I also will be surprised to see them make it to the end of the year. It will be a huge blow for the country to lose so many jobs.

I think that McDonalds doing so well is that they just did the monopoly game again.

I'm going to miss Circuit City if they close the one near me. I actually preferred shopping there instead of Best Buy. I've never used DHL so that doesn't really affect me. But 17,000 jobs lost on top of the current unemployment does worry me. My business relies on people's ability to spend their money.

As soon as I saw this headline, this is what went through my head . . .

Another one bites the dust
Another one bites the dust
And another one gone, and another one gone
Another one bites the dust
Hey, Im gonna get you too
Another one bites the dust

go figure

Fannie Mae reporting (this is more of our money, folks!!):
Breaking on Bloomberg TV - holy crap
Loss of $13/share or $29 BILLION for 3Q

Originally posted by Karlhungis
I don't see how GM will make it. They have already approached the government for some of that bailout money and got denied. The government seems to be willing to let them fail and their business doesn't look like it has any way of staying afloat. I also will be surprised to see them make it to the end of the year. It will be a huge blow for the country to lose so many jobs.

There is absolutely no way GM can make it without a(nother) massive bailout, and there's really only a small chance it can survive with a bailout. At this point I think a bailout would serve to honor its retirement obligations to employees and maybe keep the corpse of the company walking for an extra few months.

reply to post by GoalPoster


Great song but it's a shame it fits the current troubles

I wonder how much the stock market is going to fall on this news when it opens in the next 30 min

Dow down by 600 points ??? we will see

reply to post by anachryon


Didn't AIG also report a 29 billion dollar loss for Q3 today?

Originally posted by Karlhungis
Didn't AIG also report a 29 billion dollar loss for Q3 today?

Almost! $24.47 billion to be exact, but they also got Bailout II: Electric Boogaloo at the same time.

reply to post by anachryon


Oh, thanks for the correction. Here I was thinking that they had a bad quarter.... Only 24.5 billion lost, not too shabby. I am suuuure that this new and improved bailout will work though. Maybe we should just give AIG the entire 700billion and call it good?

I am soon opening Econimic Apocalypse USA diary from coming day 6... I will use your links there too.

Like I predicted mass employment is coming real, thats the real Apocalypse where USA is heading, and what comes after that. Riots, Strikes, Crime Waves, events never seen before in US.

I have tied my diary to Dow, even I know from past, that these cuttings only fuel Dow to rise up, and thats certainly wrong place to see the truth. But for keeping timeline in general, its important, and educative.

but whats most important, we keep our eyes focused on job cuts, and areas where those comes true in real life...

See you and thanks from post!

More Fannie info:

]Marketwatch

Fannie Mae also reported a decrease in the non-GAAP estimated fair value of its net assets, from a positive $35.8 billion on Dec. 31 to a negative $46.4 billion on Sept. 30.

$82.2B valuation loss on net assets in nine months - net assets that the American taxpayer owns by proxy now, you know.

www.marketwatch.com...

Circuit City's move came a week after the company, suffering from declining sales, traffic and cash, said that it planned to shut 155 U.S. underperforming stores and cut 7,300 jobs in a last-ditch effort to stay afloat. Despite its aggressive efforts to talk to its vendors, their loss of confidence and fear they won't be paid made it extremely difficult for the company to have the goods and support service it needed for the critical holiday season without a bankruptcy filing, Circuit City said in the filing.

I'm confused by something circulating around all the Circuit City news I've read this morning. They cite the need to get merchandise on the shelves this holiday season as the reason for the bankruptcy filing. They also say that vendors had flat refused to provide them with new inventory and this move will alleviate that problem somehow. There was also some mention of vendors being legally required to honor the Chapter 11 filing in another article I saw this morning which I can't seem to find right now.

I don't understand how this works. I know that after filing bankruptcy, the company's creditors are legally forbidden from continuing collection activities, but does the law demand that those same creditors also continue to provide merchandise to Circuit City even though they are not getting paid for it? Seems to me that CC is purely talking out their butts to try and keep some level of investor value with the company so they can try to sell their crap through the holidays, after which it's most likely time to say 'sayonara.' Or am I misunderstanding bankruptcy laws?

Originally posted by anachryon
$82.2B valuation loss on net assets in nine months - net assets that the American taxpayer owns by proxy now, you know.

That is obscene. Seriously, that is the equivalent of painting an image of Jesus on a canvas in elephant dung or committing a hardcore sex act on a public street corner. What in the hell is it going to take to get the average American to wake up and demand this bullcrap ends once and for all?

That number for DHL is very misleading. It doesn't take into consideration the owner-operators that are left holding the bag for lease purchase of the trucks and contracts they signed. That's easily another 4-5 thousand folks as well as the debt they are stuck with. I almost bought into that scam. Glad I didn't!!

Zindo