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alstry (36.32)

Shhhhhh!!!!!! We are shutting down quietly

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January 25, 2009 – Comments (3)

IBM has been quietly laying off workers in its North American offices since Wednesday, according to numerous reports online.

IBM has not made any formal announcements yet, but IBM Director of Corporate Media Relations Doug Shelton confirmed to CNET News on Saturday that some employees were notified on January 21 that their jobs were being cut. The company would not say how many people had been laid off or in what facilities or departments those cuts were made.

....

The layoffs come despite the fact that IBM gave Wall Street something to smile about, with a strong earnings report earlier this week. The company said Tuesday that it beat analysts' expectations with a 12 percent increase in fourth-quarter earnings, and gave a positive outlook for 2009.

http://news.cnet.com/8301-1001_3-10149661-92.html?part=rss&subj=news&tag=2547-1_3-0-20

Alstrynomics has notified you on numerous occasions that retail vacancies are now reaching epidemic contagion.  It is my projection that at least half the enclosed shopping malls around the nation will be bankrupt in the next few years.  We should be reading about many more like the following in the upcoming weeks and months:

Oklahoma City mall is at a crossroads
In foreclosure, anchorless shopping hub may go up for bids as soon as spring

Crossroads Mall is in foreclosure, and could be put up for bid as early as this spring.

The mall at Interstate 240 and Interstate 35, which lost its remaining two anchor stores this month, is being managed by Price Edwards & Co. while the bank forecloses on the property. Foreclosure will be complete in about 60 days and then the property can be put up for sale, said Jim Parrack, senior vice president for Price Edwards.

Economic conditions, which have forced many retailers into bankruptcy, may make it difficult to sell Crossroads Mall.

"With the economy the way it is, it will be more difficult to market than normal,” Parrack said. Ideally, the buyer would be someone who wants to keep the property as a mall and rejuvenate it, he said.

A new owner could change the purpose of the property after honoring the leases of remaining tenants. Louis Almaraz, a retail specialist with Grubb & Ellis-Levy Beffort, said it is unlikely the property will remain a retail mall.

"I think the future as a traditional mall — it’s going to be very challenging for them,” he said.

A government agency, a school or a medical organization all could potentially utilize the property, he said.

Rick Lahodny, owner of Bonnie’s Popcorn in the mall, said many of the mall’s current tenants have opted not to renew their leases, and instead are leasing month-to-month as they wait to see what happens.

http://www.newsok.com/oklahoma-city-mall-is-at-a-crossroads/article/3340103

Note:  Please don't confuse my earlier post about the strength of the US Dollar versus the Alstrynomics perspective about the weakness of general economic conditions for US private businesses, individuals, and municipal governments.

3 Comments – Post Your Own

#1) On January 25, 2009 at 7:06 PM, TheGarcipian (32.94) wrote:

Yessirree, it does not look good at all. I wonder how much of that 12% increase in 4Q earnings is not really COGS relief in the form of laid off employees...

Scary times, indeed.
--Gar

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#2) On January 25, 2009 at 7:15 PM, alstry (36.32) wrote:

It survived WWl.....

It survivied The Great Depression

It survived WWll

It survived the hippie years

It survived inflation of the seventies

It survived outsourcing to Asia

It survived the Bush presidencies

But it got hit in the Greatest Depression of all time.....

Hartmarx, century-old clothier, files to reorganize in Chapter 11

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#3) On January 25, 2009 at 7:35 PM, alstry (36.32) wrote:

Think of 2008 as the appetizer for the 2009 main course....

GM, Ford, Chrysler Lost About 988 Auto Dealers During 2008
 

National Automobile Dealers Association Chairwoman Annette Sykora said around 900 dealerships went out of business last year at a speech yesterday at the conference, giving a lower estimate than the U.S.-based automakers combined.

About 2,500 U.S. auto dealers may close in 2009, or more than 10 percent of the nation's car and light-truck retailers, consulting firm Grant Thornton LLP wrote in a report Jan. 21.

http://www.bloomberg.com/apps/news?pid=20601103&sid=aW53g9MEvevc&refer=us

At a hundred employees per dealership, that alone would have been about 100K job losses from closed auto dealers alone.

What we are experiencing is a necessary pain from deleveraging an overleveraged economy.  Although not pleasant, it is a lot better than the consequences from hyperinflation.

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