Radio Shack Files for Chapter 11 Bankruptcy

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Long struggling electronics retailer, Radio Shack, has finally succumbed, filing for Chapter 11 Bankruptcy.  Here is more from the Dallas-Fort Worth NBC Affiliate…

Struggling electronics retailer RadioShack has filed for Chapter 11 bankruptcy protection and says it will sell up to 2,400 stores.

General Wireless, a subsidiary of Standard General, RadioShack’s largest shareholder, has agreed to buy 1,500 to 2,400 of the company’s U.S. stores. As part of the bankruptcy plan, Sprint may open mini-shops in as many as 1,760 of the acquired RadioShack stores.

The company, which has not turned a profit since 2011, still operates nearly 5,500 stores and employs about 27,500 people worldwide, according to its last annual report filed with the U.S. Securities and Exchange Commission.

RadioShack, which was founded in Boston in 1921, started as a distributor of mail-order ship radios, ham radios and parts. In the 1950s, it entered the high-fidelity business, touting a device called the “Audio Comparator,” a then-novel switching system that allowed the customer to mix and match components and speakers in the listening room.

In 1977, the chain started selling the TRS-80, known affectionately by its users as the “Trash 80,” making the RadioShack as important in microcomputers as IBM or Apple.

Sadly, it seems that online suppliers and bog box competition finished off Radio Shack.  Hopefully, the workforce will find other employment.

H/T: IOwnTheWorld Report

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Santa Declares Bankruptcy

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I need capital!

I need capital!

Santa Claus, founder and CEO of Santa Claus Industries, has announced that he will be filing for chapter 11. With liabilities of over 300,000 million and assets of only $1,245 Santa says that he really has no choice.

“The business has changed” said Santa.

It used to be I was the only game in town.  And I was younger and had a good time delivering presents to all the boys and girls.  But lately?  The competition from Amazon is killing me.  And I’m older too. Last year I wasn’t able to finish Christmas until December 27th.  I have a lot of parents suing me over this.

Compounding Santa’s problems was the ticking time bomb of employee pensions. With the average age of elves at 52, and with half the elf workforce already in retirement Santa had to funnel money originally slated for research and development to paying his former employee’s pensions.

“I wish I was a tougher negotiator” declared the downtrodden Santa.

My instinct told me that having to fund my employee’s retirement was a bad idea.  I mean, they have private IRAs they can and should be investing in. But the union negotiator told me that funding the elves’ pension would be “compassionate.”  So like I sucker I agreed.  And here I am now.  Compassionate?  Let’s see how compassionate the elves feel when the factory shuts down.  Goodbye pension!

The final straw for Santa was his attempt to modernize the process of asking for presents with the Santacare.gov web site.  Under Santacare all boys and girls had to register with the web site and enter information about themselves such as where they live, what presents they wanted and whether they had been naughty or nice.

But Santacare was plagued with problems from the beginning.  Children who attempted to register were greeted with a message that the site was temporarily down.

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I don’t know how this happened.  I used the best and brightest web designers. These guys had worked with the government, for god’s sake.  They told me they could have the site up and running by October 1st.  So October 1st comes along and bam – the site crashes.  I had to take it down and promise to have it up and running by December 1st.  Well it’s after December 1st and it still isn’t running.  I have children calling and crying saying that they can’t register.  Many sadly will have no presents on December 25th. 

Experts who have examined Santacare.gov complain of the lack of security build into the web site.

“It’s a hacker’s paradise” said one.

Indeed the personal information that children entered is often used against them. Many children who declared themselves “naughty” had their personal information sold to Google.

“Now whenever my daughter goes online she’s bombarded with ads for vibrators” declared an irate parent.

With Santa bankrupt and his North Pole factory going into receivership many have called upon the government to take over Christmas.

Despite opposition from Republicans it is expected that a bill will be introduced to nationalize the holiday.

“I’m all for private industry” said Mitch McConnell.  “Except when the Democrats aren’t. Then I’m against it.”

Original Post:  Manhattan Infidel

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Parallel Universe Alert: Judge Rules That Detroit Bankruptcy Violates Michigan Constitution, Dishonors Obama

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Spock_(mirror)

It looks like Mr. Spock is going to have a busy week at the CH 2.0.

As it was covered extensively late last week, the city of Detroit finally succumbed to decades of liberal policies, and declared bankruptcy.  But, it seems that a judge has intervened with some curious commentary…

On Friday, a Michigan Circuit Judge Rosemarie Aquilina ruled Detroit bankruptcy is unconstitutional.

On Friday, a circuit court judge in Ingham County ruled that Detroit’s federal bankruptcy filing violated a part of Michigan’s constitution that protects union pensions. She ordered it withdrawn, a day after Detroit became the largest U.S. city in history to file for chapter nine bankruptcy.

Judge Rosemary Aquilina also said the filing did not honor President Barack Obama’s work for the city, who she said “took [Detroit’s auto companies] out of bankruptcy.” Aquilina said she would send a copy of her order to Obama.

“It’s cheating, sir, and it’s cheating good people who work,” the judge told assistant Attorney General Brian Devlin. “It’s also not honoring the (United States) president, who took (Detroit’s auto companies) out of bankruptcy.”

The Detroit News reported “attorneys representing the pension boards hurried into Aquilina’s court to ask for a restraining order” on July 18, but Michigan Gov. Rick Snyder (R) and Detroit’s emergency manager Kevin Orr “beat them by a few minutes” in filing for bankruptcy. The filing did not deter lawyers for union pension boards, who can use “court maneuvers to slow down federal bankruptcy proceedings.”

I get that the judge can rule on the state’s Constitution.  That would be a valid function,  however, what in the you know what does it have to do with the application of the law that the President might look bad?

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Democrats Take Decades, But Finally Bankrupts Detroit

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After decades of Democratic rule, and the taxes, corruption, unions and crime that comes with them, finally pushed Detroit into bankruptcy.  The Chicago Tribune has more…

The future of retiree pension and health benefits for thousands of city workers hangs in the balance.

Anticipating the filing, investors drove prices of Detroit bonds and notes lower, sending their yields to record highs on Thursday.

In a letter accompanying the filing, Michigan Governor Rick Snyder said he had approved a request from Orr to file for Chapter 9 bankruptcy protection noting, “Detroit simply cannot raise enough revenue to meet its current obligations, and that is a situation that is only projected to get worse absent a bankruptcy filing.”

Speaking on Channel 4 Detroit after the announcement, Snyder, a Republican, said, “Let’s stop the decline. Let’s get to stability. Let’s get things working in the right direction.”

Snyder named Orr in March to tackle the city’s spiraling long-term debt, which is estimated at $18.5 billion.

A White House spokeswoman said Democratic U.S. President Barack Obama and his senior team were monitoring the situation in Detroit closely.

Now the city’s name has become synonymous with decline, decay and crime. Detroit has seen its population fall to 700,000 from a peak of 1.8 million people in 1950. The city’s government has been beset by corruption cases over the years. Waning investment in street lights and emergency services has left it struggling to police the streets.

The city’s murder rate is at its highest in nearly 40 years; only a third of its ambulances were in service in the first quarter of 2013; and its nearly 78,000 abandoned buildings create “additional public safety problems and reduces the quality of life in the city,” the governor noted in his letter.

Here are some more facts Orr and Snyder cited for leading to the city’s bankruptcy filing:

-City tax rates are at legal limits and expenditures have exceeded revenue for six years. Property taxes were delinquent on 47 percent of the city’s taxable properties in 2011.

-The accumulated budget deficit, which totaled $326.6 million at the end of fiscal 2012, is projected to climb to more than $1.3 billion by fiscal 2017 absent structural changes.

-Detroit has long relied on borrowing and deferred payments to its pension funds to keep afloat.

-The city’s unemployment rate, which stood at 18.3 percent in June 2012, has nearly tripled since 2000.

-Negotiated settlements on city debt are not possible outside of bankruptcy “given the vast and fragmented pool of potential creditors,” Orr’s letter stated. That pool includes city retirees, labor unions, bondholders and bond insurers.

In reality, the city had been propped up for decades, delaying the inevitable.  Of course, Democrats will claim that it’s someone else’s fault, so they can go on doing the same thing.

Unfortunately, the Democrats are still doing all of this to the country as a whole.  I wonder what’s going to happen there?

 

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Reader’s Digest Parent Files for Bankruptcy

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An iconic American publication, Reader’s Digest, is bankrupt. 

RDA Holding Co., publisher of the 91-year-old Reader’s Digest magazine, filed for bankruptcy to cut $465 million in debt and focus on North American operations as consumers shift from print to electronic media.

The company is the latest in a line of iconic businesses to have recently sought court protection from creditors, after Hostess Brands Inc., maker of Twinkies and Wonder Bread, and Eastman Kodak Co., inventor of Kodachrome and the Instamatic camera.

Reader’s Digest, founded by DeWitt and Lila Wallace, went public in 1990. An investor group led by private-equity firm Ripplewood Holdings LLC bought it in 2007 for $1.6 billion and the assumption of about $800 million in debt. The company also filed for bankruptcy in August 2009, citing a drop in advertising spending and the debt load incurred in its acquisition.

The company listed assets and debt of more than $1 billion each in Chapter 11 documents filed yesterday in U.S. Bankruptcy Court in White Plains, New York. Under a restructuring agreement supported by Wells Fargo & Co., $465 million of remaining senior notes will all convert to equity. The company expects to have about $100 million in debt when it exits Chapter 11, about an 80 percent reduction.

For most of us, Reader’s Digest was a staple, either at home, or in a waiting room somewhere.  And, in fact, there were a great many anti-Soviet stories in the magazine in the 80’s contributing to my beliefs.  In a sense, my eventual awakening was partly due to what I head read as a child and teen-in Reader’s Digest.  I do hope they make it, and, the article does report that they are selling as many on-line issues as print, so maybe there is a chance for them.

I hope they make it.

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Hostess Dies Again, 18,500 out of Work: Bonus Twinkie Recipe!

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While I was at work yesterday, a court ordered mediation failed to produce an agreement that would save Hostess from the liquidation chopping block.   So, once again, Hostess is dead.  Michelle Malkin has more…

It didn’t happen:

Hostess Brands lived to die another day.

The maker of Twinkies and Ding Dongs said late Tuesday that it failed to reach an agreement with its second biggest union. As a result, Hostess plans to continue with a hearing on Wednesday in which a bankruptcy court judge will decide if the company can shutter its operations.

The renewed talks between Hostess and The Bakery, Confectionery, Tobacco Workers and Grain Millers International Union came after the company declared last week that it would move to wind down its business and start selling off its assets in bankruptcy court. The company cited a crippling strike that was started on Nov. 9 by the union, which represents 30 percent of Hostess workers.

Once again, Hostess has died.  And, to repeat, I hope that the people that buy the company, or the rights to the specific products move to a right-to-work state, and leave the union goons standing in the wreckage that they created.

Since a Thanksgiving is tomorrow, here is a Twinkie Recipe…

 

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The First Liar Does’t Have A Chance

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Assuming that there were some distortions of the truth that emanated from the Republican National Convention in Tampa, the Democratic National Convention in Charlotte has taken advantage of the truism that “the first liar doesn’t have a chance”. Not surprising, of course, because the Democrats have always been superior liars and probably would have out done the Republicans even if their convention had gone first.

I forced myself to watch a good bit of the DNC last night. Thanks to the Fox News live streaming of the conventions, I was able to watch and  listen without having to put up with any talking heads. I missed some of the earlier speeches. I missed, for example, Whatshername-Schultz and I was glad. Thankfully, I also missed Sandra “Pay For My Contraceptives” Fluke. Unfortunately, I did not miss the taped presentation of the second worst president in American history, Jimmy Carter. That was awful! One loser supporting another loser.

I didn’t try to keep track of the number of lies told last night. That would have been an awesome task. But, I was impressed with the sheer number of speakers who focused on three principle lies. Unlike the RNC, there were no musical entertainment breaks. There was just a steady stream of speaker after speaker. So, let me share what I saw as the three big lies that were repeated ad nauseam last night.

Republicans Hate Women

The Democrats had their femmenazis out in force last night. There was a steady stream of women claiming  that Romney and Ryan and the Republicans want to take away a women’s right over her health and deny them access to contraception and take away their right to terminate unwanted pregnancies. These women were very Pro Choice.  Well, I am pro choice too. I believe that women have the right to choose to have unprotected sex or not. And, if they choose not and they get pregnant, they should DAMN WELL CHOOSE TO TAKE RESPONSIBILITY FOR THAT LIFE GROWING INSIDE THEM! But, Democrats are not big on responsibility, are they?

Obama Saved The Auto Industry

How many times did we hear that last night? And, of course, the lie continues that Romney said “Let Detroit go bankrupt.” Well, of course, Detroit is bankrupt. And, in spite of Obama’s bailout of General Motors, they did in fact go bankrupt. However,  our Law Breaker-In-Chief, intervened the long standing bankruptcy laws in this country and purposely shafted the GM bondholders  and anybody who was not a union member so that he could reward his big union campaign contributors. All those speakers claimed that Obama saved a million jobs. He didn’t save squat! Companies, even big companies, do go bankrupt in this country but that   does not mean they disappear or go out of business. From this American Thinker article we learn:

The U.S. auto industry was not “saved.”  Going bankrupt does not have to mean going out of business.  See, for example, Delta Airlines.  It went bankrupt in the usual, lawful way and is operating today.  On the other hand, GM could be heading into bankruptcyagain, post-bailout.  Oh, and since the bailout, “GM has increased its manufacturing capacity in China by 55 percent.”

The government auto takeovers did not prevent bankruptcies.  What they prevented was the usual rule of bankruptcy law.  Instead of paying back creditors in a predictable and lawful way, the federal government simply robbed bondholders and non-UAW workers and retirees (especially at Delphi) and delivered sweet, sweet payback to the union bosses of the UAW.

The other big lie that was repeated and repeated last night was:

We can’t go back to the policies that got us into this mess in the first place.

In what universe do these people live? We are smack dab in the middle of the policies that got us into this mess. Well, they know better,of course. But, it is their job to repeat and repeat this big lie in the hope that the ignorant American voter will eventually fall for it. This is the biggest and most important lie that the Democrats must try to propagate. I asked the question yesterday here: When will Romney and Ryan and the Republicans start telling the true story of the role of Jimmy Carter, Bill Clinton , Barney Frank, and Maxine Waters and the role of Fanny and Freddy? This is the lie the Republicans absolutely must put to rest.

Well, that’s what I’m thinking. What are your thoughts?

Original Post:  Conservatives on Fire

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California Raises Taxes and Revenues Decrease: Who Saw That Coming?

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One of the greatest weaknesses of the statists is that their efforts at creating a fantasy world. more often than not, create the exact opposite of their stated intent.  They try to engineer unicorns that fart rainbows, and they create a stillborn jackalope.  You would think that they would learn from such infamous failures, but they seem to double-down instead.  The latest example of this comes from Califailure.   Knowing, and probably denying, the long history showing that tax increases  cause a decrease in revenues, they have stuck with the highest tax rates in the country.  Breitbart has the predictable results.  

State Controller John Chaing continues to uphold the California Great Seal Motto of “Eureka”, i.e., ‘I have found it’. But what Chaing is finding as Controller is that California’s economy as measured by tax revenues is still tanking. Compared to last year, State tax collections for February shriveled by $1.2 billion or 22%. The deterioration is more than double the shocking $535 million reported decline for last month. The cumulative fiscal year decline is $6.1 billion or down 11% versus this period in 2011.

While California Governor Brown promises strong economic growth is just around the corner, Chaing proves that the best way for Sacramento politicians to hurt the economy and thereby generate lower tax revenue, is to have the highest tax rates in the nation.

California politicians seem delusional in their continued delusion that high taxes have not savaged the State’s economy. Each month’s disappointment is written off as due to some one-time event.

During the last three years, how many times did we hear “unexpected” when confronted with negative economic news?  It got to the point where the message went out to stop using the word “unexpected.” Of course, the only people caught by surprise were government stooges and the MSM-we knew it was coming.  Just as it is with California.

But, the problems for Califailure continue.

Spectrum Locations Consultants recorded 254 California companies moved some or all of their work and jobs out of state in 2011, 26% more than in 2010 and five times as many as in 2009. According SLC President, Joe Vranich: the “top ten reasons companies are leaving California: 1) Poor rankings in surveys 2) More adversarial toward business 3) Uncontrollable public spending 4) Unfriendly business climate 5) Provable savings elsewhere 6) Most expensive business locations 7) Unfriendly legal environment for business 8) Worst regulatory burden 9) Severe tax treatment 10) Unprecedented energy costs.

Vranich considers California the worst state in the nation to locate a business and Los Angeles is considered the worst city to start a business. Leaving Los Angeles for another surrounding county can save businesses 20% of costs. Leaving the state for Texas can save up to 40% of costs. This probably explains why California lost 120,000 jobs last year and Texas gained 130,000 jobs.

So, part of the decrease is caused by people leaving…due to the causes  mentioned above.  Of course, even though this type of thing happens very consistently, do they learn?

Not so much.

California Governor Jerry Brown’s answer to the State’s failing economy and crumbling tax revenue is to place a $6 billion tax increase initiative on the ballot to support K-12 public schools. He promises to only “temporarily” raise personal income rates by 25% on any of the rich folk who haven’t already left.

Thereby chasing even more of them away.

Of course, for the moonbats that consistently induce failure, the downfall is always someone else’s fault.  Even though it’s predicted, and even when it comes to pass as predicted, there is always some other factor that caused the doom.  No matter what, it’s never their policies, and if you point out the truth, you’re a racist, or something like that.

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Dippin' Dots About to Melt for Good? Files for Bankruptcy Protection

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Dippin’ Dots, the ice cream frozen into bead form, is on the verge of going out of business, and has filed for Chapter 11 Bankruptcy, according to the Wall Street Journal.  

Dippin’ Dots Inc., the self-described “ice cream of the future,” filed for Chapter 11 bankruptcy protection Thursday in U.S. Bankruptcy Court in Paducah, Ky., near its headquarters, after fighting off foreclosure efforts from Regions Bank for more than a year, according to court documents. At the time of the filing, the company owed about $11.1 million to the bank.

Company executives immediately asked for court permission to spend some of the cash collateral that secures the Regions Bank loan—a move to enable it to continue operating throughout the case.

The company “has no alternative borrowing source and to remain in business, the [company] must be permitted to use the cash proceeds described herein to pay general operating overhead and administrative expenses,” its attorneys said in court documents.

Seriously folks, what does it say about our current economic condition when a familiar ice cream brand is filing for bankruptcy?  Dippin’ Dots is a very familiar institution at amusement parks, sporting events, and the like.  I hope they stay in business, as my kiddo likes them.

H/T:  Memeorandum

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"Green" Jobs Company Favored by Obama Closes, Questions of Corruption Arise

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Remember how “green” jobs were going to be the wave of the future, as well as a centerpiece of the the Obama “recovery?”  Well, it seems that we are learning, once again, that the government can fund a product but that doesn’t mean that people are going to want to buy them.  Also, it seems that adding some potential corruption into the mix makes for a rather interesting story-one that even the MSM will cover.

video platformvideo managementvideo solutionsvideo player

So, we the people get fleeced for half a billion dollars, and, as usual, nothing of value was created.

But, it doesn’t stop there, as there were two other solar panel manufacturers that went belly up, with government loan guarantees under their belt.  Here is more from Jeffrey Klein, of the West Palm Beach Republican Examiner…

The Boston Herald reported that on August 15, 2011, just one pay-period before, Evergreen Solar, Inc., located in Devens, Massachusetts, also closed, laying off 800 workers and filing a $485.6 million bankruptcy in Delaware. 

Evergreen was also visited and touted in the same fashion by Obama, as well as being taxpayer supported.

In an excellent article from August 24, 2011, by Andrew Herndon and Michael Bathon, of Bloomberg.com, they reported that SpectraWatt, Inc., located in Hopewell Junction, NY, which was also a PV solar panel manufacturer, closed and laid off 117 workers back in April.  Then, on August 19, 201 1 filed for bankruptcy protection, listing $38.7 million in liabilities against $33.9 million in assets. 

So, Obama said it was “money well spent?”  How many more clues will it take for people to get that the man has no idea what he is doing?

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A&P Declares Chapter 11: Unions Partially to Blame

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We’ve talked a great deal about the consequences of unionized labor. The intimidation, the thuggery, and the business killing practices are common knowledge. But, just in case there are people still on the fence, here is the latest example.

Among the issues it cited for its bankruptcy filing—industry competition, paying leases on “dark stores,” and problems associated with supplier and service contracts (with unionized companies)—was the cost of its own unionized workforce. As 95% of its workforce is covered by contracts with the United Food & Commercial Workers, as it explains in its filing with the Court, A&P’s liabilities were only going to increase:

In addition to their specific obligations under the GHI  contract, the Debtors are parties to approximately 39 separate collective bargaining agreements (covering approximately 95 percent of the Debtors’ workforce).

Among other things, these agreements require the Debtors to make significant pension, and health care-related contributions on their employees’ behalf.  The Debtors believe these legacy obligations will continue to increase over time. Certain of the Debtors’ multi-employer pension plans have already reached “red” or “yellow” status under existing regulatory requirements, and the Debtors have recorded for a liability $97 million from previous pension fund withdrawals, as of September 11, 2010. The Debtors may have a potential additional withdrawal obligation of up to $50 million payable over a period of up to 25 years in the future. The Debtors believe their collectively-bargained wage, pension, and health care obligations place them at a competitive disadvantage and are unsustainable at existing levels.

It would be hopeless naïve, as well as dishonest, to say that the unions are 100% to blame here. The economy is down, and there is increased competition from the big box stores. However, A&P, with it’s heavier costs due to it’s unions, was in a much compromised position to meet these challenges. In other words, the increased costs caused by the unions gave A&P little margin for error. And now, those chickens have come home to roost.

While A&P has secured loans to stay afloat, some, or a lot of those union jobs are going to be lost. While the union can blast management all they like, it isn’t going to change the fact that they are part of the problem.

Note: The source for this post is the Labor Union Report, which is a great site. I am adding them to the blogroll. Check them out; it’s well worth the time.

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The US is Bankrupt

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“The dirty little secret is: the world has no money and the emperor has no clothes.”

The United States is Insolvent. The United States is bankrupt. We are witnessing before our very eyes the death spiral of the modern day nation state. And an entire party in America, the engine that drives the world, keeps on insisting that we raise taxes, regulate businesses, spend more taxpayer money, and spend even more taxpayer money that it doesn’t even have.

The phrase “The Emperor has no clothes” comes from “The Emperor’s New Clothes“, a short tale by Hans Christian Andersen. In it, an Emperor who cares for nothing but his wardrobe hires two weavers who promise him the finest suit of clothes from a fabric invisible to anyone who is unfit for his position or “just hopelessly stupid”. The Emperor cannot see the cloth himself, but pretends that he can for fear of appearing unfit for his position or stupid; his ministers do the same. When the swindlers report that the suit is finished, they dress him in mime and the Emperor then marches in procession before his subjects. A child in the crowd calls out that the Emperor is wearing nothing at all and the cry is taken up by others. The Emperor cringes, suspecting the assertion is true, but holds himself up proudly and continues the procession.

In America, we have people (almost all Democrats, some moderate Republicans, and all the idiots who vote for them) who care for nothing but a larger and larger government. They have listened to fools like Keynes and Marx and Stalin and Mao who pushed largely discredited theories and adopted the policies that these people suggested. And things got worse. But they are unable to pull back- they are already intellectually committed to the charade, to the idea that massive government run everything will solve all the problems of the world, and as things get worse (the unemployment rate went UP last month again), all they can do is keep pretending. Everyone is invested in the great lie, the great charade, the great myth, and the as the deficits go up and the debt piles up, everyone simply pretends that it is invisible. But, it is a lie. Debt and deficits matter. Government borrowing and spending crowds out private spending and borrowing. Government charity crowds out private charity. And government is inefficient and uses force to do what it does.

The Democrats may keep shrilly shouting, and keep proudly marching, but they know- they know in their boots that that the United States has been driven to bankruptcy by their ideas, by their policies, by them. They are unable to go back, and are unable to reform- reform or pulling back will be like looking down and seeing how naked they really are. No, the only open is to march faster ahead, and pretend like debt and deficits don’t matter, that they aren’t bankrupting our nation and our children’s nation and our grandchildren’s nation, that they aren’t destroying the moral fabric of our society, that they aren’t making the quality of life less, that they aren’t making people feel less and less satisfied about the direction of our nation. There is no going back now, and they know it.

Do you?

Original Post: A Conservative Teacher

Image Credit: DavidPutmanLive

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