A thread to keep up with the major bankruptcy stories for 2009.

Stories this week:

Charter Communications is expected to file shortly - they have a debt load of $8,000 per customer.

http://www.tradingmarkets.com/.site/news/Stock%20News/2139804/

Williams-Sonoma (Pottery Barn, etc) laying off 18% of staff and is under pressure to close stores.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aWse8Jzy8hsc&refer=home

1/23/2009 10:04:35 AM

From this morning:
A Germany company, Qimonda, is filing for bankrupcy. It has bounced between the 2nd and 4th largest DRAM (computer memory) maker in the world for several years. Normally, not really relevant to the area, but they had an office in Cary with ~300 engineers that they closed last month, and now this month the whole company might shutter
http://blogs.barrons.com/techtraderdaily/2009/01/23/qimonda-files-for-insolvency-stock-craters/

1/23/2009 10:15:20 AM

Quote :

"Auto parts manufacturer AW N.C. furloughs quarter of Durham work force Posted: Jan. 22 2:24 p.m. Updated: Today at 8:29 a.m. The auto industry slump caught up with AW North Carolina on Thursday. The firm, which manufactures transmissions and other equipment for Toyota at a huge complex in the Treyburn Business Park, said it would temporarily idle 280 workers. That represents more than a quarter of the work force at the plant, which is owned by a Japanese company. AW also offered “voluntary severance” to its salaried work force. “We told team members that because of the continued economic downturn in the automotive business world, beginning Friday, Jan. 23, the salaried work force is being offered an opportunity to take a voluntary severance package should they so desire,” Will Collins, vice president of human resources for AW, said. “AW North Carolina also announced that approximately 280 of our 1,100 team members here will be placed on temporary time off for several weeks and will be eligible for unemployment insurance benefits and will continue to receive company-paid medical benefits during that time,” he added. AW’s facilities covers 820,000 square feet. The firm occupies 123 acres in Treyburn. Opened in 1998, AW North Carolina increased its employee headcount from 950 as of Jaunary 2006 to some 1,200 in 2008. According to the company’s Web site, it manufactures torque converters, oil pumps, clutch assemblies, stamped parts and fully assembled transmissions. AW lists Toyota of North America as its customer. “Over the past several months, we have evaluated a number of options and scenarios as we determine what is in the best, long-term interest of AW-NC and our team members,” Collins said. “We have periodically suspended daily production of transmissions and assigned production team members to other projects, special training, and skills improvement in many areas. We hope these past and current actions demonstrate how much we value AW-NC team members.” Given the current state of the economy, Collins said the company would have to evaluate future production demand. “We don’t know precisely what the production needs will be in coming months for transmissions and components we manufacture here,” he said. “We will continue to evaluate developments in the automotive marketplace as well as our anticipated production needs. No specific timetables to complete this evaluation have been set at this time.” AW North Carolina is part of Aisin AW Co Ltd., a global transmission manufacturer is based in Anjo City, Japan. The company’s first Treyburn facility, built at a cost of $100 million, employed some 250 people and covered 316,000 square feet. In 2002, AW North Carolina expanded with an additional 430,000-square-foot building that cost $150 million. AW’s work force grew by another 450 people when that plant opened. Last fall, as the auto industry began to feel the impact of the slowing economy, AW applied for and received a $50,000 grant from the Incumbent Worker Training Fund through the N.C. Department of Commerce. The company worked with Durham Technical Community College to provide additional training for employees that otherwise might have been laid off. Reporter: Rick Smith Copyright 2009 by Capitol Broadcasting Company. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. "

1/23/2009 11:12:45 AM

Someone told me Nortel over in RTP was pretty much shutting down (again?)

1/23/2009 11:31:11 AM

Nortel is practically defunct.

1/23/2009 11:39:06 AM

Where you won't shop in 2009

http://finance.yahoo.com/family-home/article/106466/Where-You-Won

Stores listed in the article the author thinks are likely candidates for not making it through the year:

1) Eddie Bauer
2) Zales
3) Pacific Sunwear
4) Charming Shoppes/Lane Bryant
5) Sears Holdings

Interesting tidbit from the article:

Quote :

"More pain is on the way. One-third of U.S. women recently surveyed by America's Research Group said they plan no clothing purchases--none--in 2009. Normally, it's just 4%. That means the market is still far too saturated with stores."

1/23/2009 11:52:53 AM

damnit I like Eddie Bauer

1/23/2009 11:58:02 AM

wal-mart's clever plan is coming to fruition

1/23/2009 12:13:23 PM

What is Wal-Mart's plan and why is it clever (besides being cheap--or is that the plan)?

1/23/2009 12:20:53 PM

Not being a specialty store, I guess

1/23/2009 12:24:20 PM

^^^^^Sterling should buy up Zales. They already own Jared and Kay, there would be no competition left on the American jewelry market.

1/23/2009 12:35:45 PM

Restaurants with debt trading at distressed levels:

http://tinyurl.com/bb3n3y

1. Brinker International (Chili's, On the Border, Maggiano's, Romano's Macaroni Grill)
2. Buffets Inc (Country Buffet, HomeTown Buffet, Ryan's)
3. Dave & Buster's
4. Denny's
5. El Pollo Loco
6. Friendly's
7. O'Charley's
8. OSI Restaurant Partners (Outback, Bonefish Grill, Carrabba's, Flemings, Roy's, Cheeseburger in Paradise, Blue Coral)
9. Perkins
10. Marie Callender's
11. Real Mex (El Torito, Chevys, Acapulco, El Torito Grill, Sinigual, Real Mex, Las Brisas, Casa Gallardo, Who Song & Larry's El Paso Cantina)
12. Sbarro
13. Uno's
14. Vicorp Restaurants (Bakers Square, Village Inn)

Also: One of the largest Burger King fanchisees, the world's largest Pizza Hut franchisee, world's largest KFC franchisee

2/9/2009 9:24:59 AM

so pretty much we will be living in the 20's in about 3 years.

2/9/2009 1:05:14 PM

Zales (and every other company selling ornamental diamonds) can get buried in the ash-heap of economic history for all I care. In fact, if someone would lend me a shovel, I'd be glad to help bury it/them.

2/10/2009 3:22:55 AM

Agreed.

But I'm gonna need a bailout for Lane Bryant and Sbarro, please.

On my 35th birthday, I intend to finally accept myself as a fat woman. Sbarro and Lane Bryant figure prominently into that part of my life plan.

2/10/2009 3:30:07 AM

I'm surprised to see Sears on that list, they are doing all sorts of hiring around the US. What's the deal?

2/10/2009 4:32:37 AM

maybe they're firing people and hiring lower paid people.

2/10/2009 9:50:32 AM

Sirus preparing possible bankruptcy filing...

http://tinyurl.com/ce492b

2/10/2009 11:36:39 PM

Trump Entertainment is facing involuntary bankruptcy....

The Donald quit the board of directors on the 13th - this will be the third time he has been through bankruptcy, having just emerged most recently 3 1/2 years ago.

Trump himself apparently offered to buy out the bondholders, but the offer was rejected (not clear for how much, but the companies 8 1/2% notes due 2015 are trading for 14 cents on the dollar, per the article).

Trump Entertainment skipped a $53 million interest payment in December to conserve cash, and the bondholders 4 times extended a grace period, which expired this morning.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aPdB1t9zUEUA&refer=home

2/17/2009 9:15:28 AM