And they are known for selling higher end merchandise....hmmm.
Cache Inc. (CACH), an almost 40-year-old clothing chain known for helping popularize Armani and Versace designs in the U.S., is preparing to file for bankruptcy, said people with knowledge of the situation.
The move is expected as soon as next week, said the people, who didn’t want to be identified because the matter isn’t public. Cache said last month that it was exploring options and had received an inquiry from a potential buyer. The company hasn’t provided an update on the process since then.
The company would join Delia’s Inc., Deb Stores and Wet Seal Inc. (WTSL) in seeking protection from creditors in recent weeks. The chains have suffered from slower foot traffic at shopping malls, as well as growing competition from overseas competitors and e-commerce sites. Another chain, Body Central Corp., said this month it will liquidate under state-court supervision.
Cache’s chief marketing officer resigned in December, and the company reiterated this month that it has fallen below the Nasdaq’s listing requirements.
The shares tumbled 49 percent to less than 10 cents at the close today in New York, reducing its market value to $3 million.
Marilyn Rubinson, a Brooklyn-born housewife, opened the first Cache store in Miami in 1976. The chain now operates 237 boutiques in what it describes as “high-traffic upscale” malls in 43 states. According to the New York-based company, Rubinson was the first to bring the Mugler, Armani and Versace brands to the U.S.
Cache Inc. operates 237 boutiques in what it describes as “high-traffic upscale” malls in 43 states.
This would be Cache’s second trip to bankruptcy court. It filed a Chapter 11 petition in 1986 and emerged in 1988.
Cache didn’t immediately respond to requests for comment.
At the end of the year, there were 7.052 million U.S. residential properties seriously underwater — where the combined loan amount secured by the property is at least 25% higher than the property's estimated market value — representing 13% of all properties with a mortgage.
Good piece from Gary Shilling.....
U.S. housing activity remains weak despite six years of federal government aid, strong interest from overseas buyers, rock-bottom interest rates and massive purchases of mortgage bonds by the Federal Reserve. Does this mean housing may never spring back to its pre-recession levels? Many signs point to yes.
The last time they did this most people took the bait.
This time not so many.
Maybe we can learn from our mistakes?
Wow....we are upwards of 50,000 announced job cuts and the new year is only three weeks old.
American Express said it plans to cut more than 4,000 jobs over the next year.
A representative for the company told CNBC that it is planning to cut the jobs, but that this is only a gross figure, and that the firm will also continue to hire selectively in parts of the organization.
While Crude Oil and Dr. Copper are often cited as economic indicators, as @Not_Jim_Cramer notes, in fact Lumber prices are the most correlated with ISM and GDP of all industrial commodities. That is a problem. Lumber prices are tumbling and are breaking the 6-year up-trend that has 'proved' the recovery. With no CCFD manipulation and less financialization than crude, perhaps Lumber is the real canary in the economic collapse coalmine...
Lumber is the most correlated to ISM and GDP of all the industrial commodities... and that is not good for the US economy.
SAN FRANCISCO (Reuters) - EBay Inc plans to cut its workforce by 7 percent, or 2,400 jobs, in the current quarter and is exploring a sale or public offering of its enterprise unit as the e-commerce company prepares to split from its payments division, PayPal, this year.
The jobs will be cut across the marketplace, payments and enterprise divisions, eBay said on Wednesday in its fourth-quarter earnings report.
It was over two years ago when, as everyone was praising the US housing recovery which has since stalled dramatically in the latest dead cat bounce for everyone but the very richest, that we exposed the biggest component of demand for the ultra-luxury segment: money laundering.
Specifically, in August 2012, when isolating one of the various reasons for the latest housing bubble, we suggested that a primary catalyst for the price surge in the ultra-luxury housing segment and the seemingly endless supply of "all cash" buyers (then standing at an unprecedented 60% of all buyers lately as reported by Goldman) is a very simple one: crime. Or rather, the use of US real estate as a means to launder illegal offshore-procured money. We also identified the one key permissive feature which allowed this: the National Association of Realtors' exemption from Anti-Money Laundering provisions. In other words, all a foreign oligarch - who may or may not have used chemical weapons in their past: all depends on how recently they took their picture with the Secretary of State - had to do to buy a $47 million Florida house, was to get the actual cash to the US. Well good thing there are private jets whose cargo is never checked.
As we further showed, the bulk of foreign demand for New York's most expensive properties, originated in China, Russia and various other oligarch-controlled nations, where the impetus to launder illegally obtained hot money meant an impulse to buy US real estate sight unseen and virtually at any price. And all of it, of course, all cash. No mortgages.
That onslaught of foreign oligarch demand is ending, and with it so is the bubble that luxurious New York real estate found itself in on the back of some $12 trillion in central bank liquidity created out of thin air in the past 6 years. Business Week cites Manhattan real estate agent Lisa Gustin who listed a four-bedroom Tribeca loft for $7.45 million in October, expecting a quick sale. Instead, she cut the price this month by $550,000.
“I thought for sure a foreign buyer would come in,” said Gustin, a broker at Brown Harris Stevens who is still marketing the 3,800-square-foot (353-square-meter) apartment at 195 Hudson St. That's ok: the foreign buyers thought the Swiss National Bank would never end the CHF floor either. And now they can no longer afford to flip four-bedrooms going for the paltry sum of just $8 million.
“So many new condos are coming up right now. They’ve been building them for the past few years and now they’re really hurting the resales.”
So....these 16,000 jobs equal 160,000 waiter/bartender jobs. Oops.
Another day, another unambiguously bad announcement from America's bettered energy sector which are bolting down ahead of the crude storm, and firing thousands. Last week it was Schlumberger which announced it would fire 9000, today it is Baker Hughes which just warned it too will hand out about 7000 pink slips in the first quarter. And as a reminder, when it comes to comp: each Baker Hughes job is equivalent to about 10 waiter and bartender jobs, which have been the basis of this "recovery."
I heard this statistic long ago.....
There are app. 1,000 enclosed shopping malls in the U. S..
1/3 of them are profitable.
1/3 of them are at break-even.
1/3 of them are losing money.
This is what they referred to in business school as a clue.
Feel free to Google the subject line for proper documentation.
Wouldn't want any unsubstantiated rumors flying around this board.
So.....what does this say about the overall health of the housing market?
Mortgage REITs across the board have taken losses this week due in part to Wells Fargo downgrading Annaly Capital Management (NYSE: NLY ) , American Capital Agency (NASDAQ: AGNC ) , and a slew of other mortgage REITs on Monday.
WICHITA, Kan. -
Bombardier says 1,000 layoffs announced Thursday morning will begin immediately.
The layoffs will affect 620 employees in Wichita and 380 in Mexico. About 1850 employees will be retained in Wichita and 1800 in Mexico. Most of the layoffs in Wichita are related to the development of the LJ85 program, not production. Employees affected include engineers, some assembly and the flight departments.
The company said the layoffs were due to a downward trend in the market. After evaluating the market over several years, and not seeing it bounce back, Bombardier officials said it decided to "pause" the Learjet 85 and write-off the $1.4 billion program.
It only took eight years to get 3/4's of the way back, and some think we are getting ready for another leg down.
The U.S. housing market continues to improve, but it's not quite there yet.
In fact, it's about three-quarters of the way back to, "normal." That is the conclusion of a new report from Trulia, a real estate sales and analytics company. The dispatch weighs existing home sales and prices, new construction, mortgage delinquencies and the millennial employment rate.
133 stores closing and 18,000 employees pink slipped.
Happy New Year.
MINNEAPOLIS (AP) — Target is giving up on Canada.
More than 17,600 employees will eventually lose their jobs when the U.S. discount retailer closes its 133 Canadian stores after only about two years to cut losses that went as high as a billion dollars a year.
The company didn't see how to stop the losses before at least 2021, Target Corp. Chairman and CEO Brian Cornell said Thursday. Cornell said on Target's corporate blog that its Canadian arm was losing money every day.
The closing is Cornell's first major move since becoming CEO. His predecessor, Gregg Steinhafel, was pushed out last May after a string of problems, from a massive data breach to woes in the U.S. to Canada.
Washington (AFP) - US retail sales fell sharply in December, the prime holiday shopping month of the year, according to Commerce Department data published Wednesday.
Sales of retail and food services dropped 0.9 percent from November, and the prior two months' gains were revised lower, suggesting weakness in consumer spending that accounts for about 70 percent of the country's economic output.
The December drop in sales surprised analysts, who on average had penciled in a modest 0.1 percent increase.
HARRISBURG — Carrying more than $7.7 billion in total debt, municipal pensions could lead to bankruptcies of cities, boroughs and townships across Pennsylvania, state officials warned..
A rising stock market alone can't fix the debt, because many of the debt-laden municipal plans also have more retirees receiving benefits than active workers paying into the systems, state Auditor General Eugene DePasquale said Wednesday.
The debt, coupled with smaller workforces, means Pennsylvania, starting with Scranton, could see a wave of Detroit-like bankruptcy cases in which guaranteed pensions are reduced. That's if the Legislature and Gov.-elect Tom Wolf don't work together to fix the municipal pension crisis, DePasquale said.
"The problem is too big to ignore," the Democratic auditor general said at a Capitol news conference. "We saw what happened in Detroit: Retirees got 10 cents on the dollar. Basically, they got screwed."
Or rather the lack of them.
Well....there's always the Chinese....oops.
For uber-wealthy Russians, "an apartment in Miami, even the most glorious beachfront apartment, is not a priority right now," warns one real estate attorney, as The New York Observer reports Russian buyers no longer felt they had the liquid assets to carry on with the transaction and were looking to break closed real estate contracts. "Your average Russian buyer tends to be someone who works in the $5, $10, $15 million range. Obviously very wealthy people, but also people who are much more likely to feel a pinch given the economic situation and the exchange rate," and with maintenance costs sky-high, the trophy apartments have shifted from 'safe-deposit-boxes' out of reach of sanctions to burdensome drains.