WASHINGTON - Hertz Global Holdings Inc., the second-largest US rental-car company, will eliminate more than 4,000 jobs to reduce costs as businesses and consumers slow travel because of the global recession....
--more--"And they ain't the only one:
"Circuit City pulls the plug; Chain to shut all US stores including 19 in Bay State" by Jenn Abelson, Globe Staff | January 17, 2009
Circuit City, the second-largest US consumer electronics chain, said yesterday it is going out of business, shuttering 567 stores nationwide, including 19 in Massachusetts, to help pay off creditors.
Oh no! Where am I going to get all my worthless electronic crap now?
The merchant, which filed for bankruptcy protection late last year, had hoped to reorganize but major challenges within the company and the bleak economic environment left it no choice, Circuit City said yesterday. The chain, based in Richmond, employs about 34,000 workers nationwide, including roughly 600 in Massachusetts....
The liquidation is being handled by four firms, Great American Group, SB Capital Group, and two local companies, Hudson Capital Partners of Newton and Tiger Capital Group of Boston....
The closure of Circuit City comes just more than a month after Canton-based electronics retailer Tweeter shuttered its 94 stores. Tweeter had filed for bankruptcy protection twice in the last three years, but the high-end merchant could not rebound amidst deteriorating economic conditions and stiffening competition. Tweeter and Circuit City have suffered from discounters, such as Wal-Mart, carrying high-end electronics, and Best Buy's intense focus on installation and customized home entertainment products.
The slowdown in consumer spending and the tight lending market has paralyzed retailers across many industries, with a string of struggling merchants filing for bankruptcy protection in the past few months, including Linens 'N Things, Steve & Barry's, and Sharper Image, along with massive layoffs at surviving retailers. During the past week, Goody's Family Clothing and Gottschalks Inc., a California department store, also filed for bankruptcy protection and many more are expected to follow in the coming weeks.
The liquidations are leaving gaping holes at malls and shopping centers across the country.... The loss of a major competitor in the consumer electronics industry may lead to higher prices and fewer choices for consumers....
Well ain't that last bit a KICK in the head, huh?
Looks like I won't be 'upgrading" this year!
--more--"
Hey, maybe the monopoly increase is a good thing, huh?
"The figures indicate a deepening threat to earnings at businesses from manufacturers to retailers. A survey of chief executives showed yesterday the lowest level of confidence in at least three decades. Further declines in prices would raise the danger of deflation, which would deepen the recession by making debts harder to pay off."
Then DON'T PAY THEM! Tell the banks to take a hike!
They are getting billions in your money already!
