Category Archives: Jobs

Introducing The Sichuan Tengzhong Hummer H1

This week’s bankruptcy filing by General Motors, and indeed the current critical condition of the entire U.S. economy can be traced directly to the wholesale loss of decent paying American manufacturing jobs, primarily to China.  Retailers like Walmart, whose stores are stocked predominantly with cheap Chinese-made goods are thriving, because financially desperate American families can’t afford to shop anywhere else (Walmart employs almost 1.5 million workers in the United States, and will be adding 22,000 more U.S. workers to its payroll in 2009; while this may sound like good news, it is anything but.)  It is a vicious cycle of cheap imports, resulting in job losses and low wages for those still lucky enough to find work, that creates an even greater demand for cheap imports that are destroying the American economy even more.  Probably the only thing that is limiting imports from China right now is the lack of available space on cargo ships.  The U.S. government does not seem to be the least bit inclined to limit imports, despite the damage they are doing to our country.

Now, it appears that General Motor’s Hummer division is being sold to China’s Sichuan Tengzhong Heavy Industrial Machinery Company.  We feel that dismantling what was one of the largest and oldest American corporations, and selling a portion of it to China is nothing short of treason.  It’s also ludicrous.  Friends, what you are witnessing is an acceleration of the destruction of the U.S. economy.

On a purely practical level, it won’t work.  The type of American buyers who are attracted to a vehicle like a Hummer won’t want a Chinese vehicle.  And as the U.S. economy continues to disintegrate because of exactly this sort of exportation of American brands and jobs, few if any Americans will be able to afford to buy a Hummer, or any vehicle, for that matter.

From a national security standpoint, selling yet another major American manufacturing company to China places America in grave danger. And remember… Hummer is basically a military vehicle, even if it has morphed into a family vehicle for soccer moms on American highways. We’ve said it before on this blog, and we’ll say it again…  Anytime it desires, China will be able to bring America to its knees without firing a single shot.  If China cuts off the supply lines that America has become dependent on, the United States will starve to death.   And we won’t be able to defend ourselves either, because unlike during World War II, America’s manufacturing capacity has all but disappeared.  If you think that melamine-laced pet food, lead-tainted toys, or toxic sheetrock from China are a problem, you ain’t seen nothing yet.

How bad are things getting for U.S. manufacturers?  We went to the Home Depot recently to buy a few sheets of sandpaper, and everything they had was made in China.  It appears that America can’t even manufacture sandpaper any more.

So stop worrying about North Korea or Iran or al-Qaeda or the Taliban.  What you should really be worrying about are those shiny new Sichuan Tengzhong Hummers that will soon be rolling down America’s highways.

We wonder if they sell portraits of Chairman Mao at Walmart.  There’s a bare wall in our living room where we could hang it.

– Routing By Rumor

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The Death Spiral At The New York Times

Extra, Extra… Read All About It !

The New York Times hikes its cover price yet again.

Another New York Times price increase.

Get ready to shell out more for your copy of The New York Times.

Extra, Extra !

Executives at The New York Times must be taking business strategy lessons from the same experts that have guided the once mighty General Motors to the brink of bankruptcy and needing to take federal bailout money to stay alive.  Shares of GM, once considered a “blue chip” stock that was among the most highly regarded of all investments, and which were trading at close to  $90 a share ten years ago, are now virtually worthless.

The New York Times has announced yet another round of price increases, the third in less than two years , that will hike the newsstand price of their Sunday edition to $5.00 or $6.00, depending on the geographic edition.  The weekday New York Times increases to $2.00 !  And you still don’t get any comics.  The price increases are effective June 1st.

$6.00 for a newspaper?  Are they joking ?  Perhaps New York Times publisher Arthur Ochs Sulzberger, Jr. hasn’t yet taken notice of the new kid on the block.   Mr. Sulzberger, we would like to introduce you to Mr. Internet.  He’s big, he’s getting bigger all the time, and he’s eating your lunch.

The Internet is eating everybody’s lunch.  This Time Magazine article names the ten most endangered newspapers in America.  And according to this CNN article, at least 120 U.S. newspapers have folded since January, 2008.

Faced with a sharp drop in advertising revenue and falling circulation, the price increases at The Times are likely to just exacerbate the problems facing the newspaper.  Price increases will inevitably produce a further errosion in circulation, which is sure to further weaken advertising income.  A decision to increase prices at a time like this, for many businesses, is tantamount to committing suicide.  We believe that the New York Times has made the worst possible decision at the worst possible time.

Our readers will note that we have not raised the cover price here at Routing By Rumor;  reading our blog is still free!

Understandably, the bean counters at The Times are desperate.  They’re being squeezed from all directions.  But you have to wonder who made the strategic decision that may very well seal their fate.  Perhaps a price decrease, coupled with an agressive advertising campaign would have been the right course to follow.  We believe that with the increasing competition for readers that the Internet has created, along with belt tightening by consumers in the depths of this economic recession, and the drastically shrinking size (the number of pages) of newspapers over the last few years, including the Times, newspapers are increasingly becoming  irrelevant to more and more readers.  It’s not unlike a phone company that keeps increasing it’s rates, in an attempt to offset the loss of revenue from customers who are dropping their traditional phone service, and using cellphones exclusively.  Price increases will only serve to accelerate the trend.

Will the New York Times disappear completely? We fully expect to see a copy of the New York Times on the newsstand in the near future, with a headline of “THE END”.  The fact that you are reading this blog, when you could be reading The New York Times instead, isn’t helping the Gray Lady one bit.  We believe that their print editions are in mortal danger,with The Times becoming an online-only newspaper.

Better buy your Amazon Kindle now !

– Routing By Rumor

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Circuit City Finally Bites The Dust

The news shouldn’t surprise anybody, certainly not readers of this blog.

Richmond, Virginia based Circuit City stores announced today their intention to close their 567 remaining stores and liquidate their inventory.  We predicted that they wouldn’t last much past the end of the 2008 Christmas season.

That means another 34,000 American workers joining the unemployment line.

See our previous posts…

Circuit City Stores Files For Chapter 11 Bankruptcy Protection

One Foot In The Grave At Circuit City

Philip Schoonover Learns That What Goes Around Comes Around

– Routing By Rumor

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Companies In Mirror Are Closer To Bankruptcy Than They Appear !

Objects In Mirror Are Closer Than They Appear

OBJECTS IN MIRROR ARE CLOSER THAN THEY APPEAR

This article will be of interest to anyone replacing the rear view mirror in their General Motors (GM) or other vehicle, whether you are purchasing a replacement mirror from GM SPO, Gentex, Donnelly, or another manufacturer.

Installation information is included for Do-It-Yourselfers (DIY), including wiring harness connector pinout data.

Perhaps the most valuable tip we can give to a vehicle owner planning to purchase a replacement mirror is COMPARE PRICES !

The U.S. government can throw as many billions of dollars at General Motors as they wish, but they’re unlikely to change the fundamental problems at the automaker. Problems that have brought what was once a cornerstone of the American economy to the brink of extinction, dependent on a government bailout for it’s survival.

GM is not competitive for many reasons. They are hobbled by high labor costs. They lag in innovation, particularly in the area of electric and hybrid vehicles. In our opinion, they can’t compete with Japanese auto manufacturers on quality (or perceived quality) or customer loyalty. They’re certainly not competitive on pricing when compared to aftermarket parts suppliers. For most vehicle repairs, we think you’ll spend a lot less, and get a better job done at a private garage, then you would at a GM dealership. This might come as a shock, but in our opinion, Mr. Goodwrench isn’t.

As we’ve stated previously, we believe that their new vehicle warranty isn’t worth the paper its printed on. And GM seems to follow pricing policies usually associated with companies that sell hammers and toilet seats to the Pentagon.

Case in point…

Our GM vehicle was built with an auto-dimming electrochromic rear view mirror. Some rear view mirrors in late-model vehicles are marvels of modern technology, containing On-Star controls, handsfree cellphones, compasses, thermometers, back-up camera displays, garage door openers and other gadgets. But our mirror is just an auto-dimming mirror, with none of these other bells and whistles (see this NY Times article on these “bells & whistles”). On most of the auto dimming mirrors that we’ve seen in GM vehicles, after a few years of service, the magic liquid inside tends to leak out of the mirror. This either renders the dimming feature inoperative, fogs the mirror, or leaves it with an uneven or blotchy reflective surface.

For the past few years, the liquid crystal stuff (or whatever the chemical is) in our mirror has been leaking out, increasingly producing areas on the mirror’s surface that are either always clear or always dark. We finally decided to replace the mirror.

We checked with our friendly GM dealership’s parts department. They quoted us a price of $284.00 for a replacement rear view mirror, excluding the cost of installation.

Almost $300.00 for a rear view mirror ? Sounded awfully expensive to us, so we started to look at aftermarket mirrors. Virtually all American cars use a standard “wedge” type glass mount. The mirror attaches to a glass-mounted “button”, which hopefully stays attached to the windshield when you remove your old mirror from the vehicle.

Our search for a replacement mirror lead us to products manufactured by two predominant manufacturers of automotive mirrors, Donnelly (now called Magna Donnelly?) and Gentex (see company info). It seems that Donnelly sells exclusively to automotive manufacturers (OEMs), and not to the automotive aftermarket. Gentex sells to OEMs (probably the vast majority of their business), but they also sell their products to aftermarket suppliers (in our case, through a distributor named Mito Corporation).

We ended up purchasing a brand new, in the box, Gentex electrochromic rear view mirror that is virtually identical to our vehicle’s original mirror, for under $70.00, including shipping ! That’s less than a quarter of what General Motors wanted for a replacement mirror.

When you consider the fact that GM certainly pays much less for mirrors than the RoutingByRumor Corporation does, that probably equates to a markup of 400%, 500% or more.   What word best describes that sort of profit margin ?  “Criminal”  might be a bit too strong.  How about egregious.  How about unconscionable.  How about stupid ?  How many businesses that try to fleece their customers are able to stay in business ?  It certainly seems to indicate that GM doesn’t make their money selling cars.  They make their money (or at least they did) by selling parts and service;  Service that we’ve never been very impressed with in the first place.

The only caveat is that we had to replace the wiring harness connector that powers the mirror, because the Gentex mirror uses a 7-pin connector, while our original equipment Donnelly mirror used a 3-pin connector (our vehicle does not have auto-dimming external mirrors, and the Gentex mirror we installed does not have a temperature or compass display). But replacing the connector was a quick and easy procedure. The hardest part was getting the old mirror off of the windshield. Maybe it helped that we popped our Stevie Nicks album “The Other Side Of The Mirror” into the CD player while we installed our new mirror. To quote Stevie, “This is me talking to you. This is me talking to ya”.

The Gentex mirror we purchased came with very limited hookup information. We found the following pinout data on the Web, and we’re guessing that this information will apply to all Gentex mirrors that use a 7-pin connector.

JST "VH" Series Housing (8-pin version shown)

JST "VH" Series Connector Housing (8-pin version shown)

If you’re trying to figure out what type of connector Gentex (and Donnelly) use on their mirrors, our research indicates that the 7-pin Gentex harness connector (as well as the 3-pin harness connector on our original Donnelly mirror) are “VH” series connectors, from JST Manufacturing. Their U.S. website is at www.jst.com. View JST’s data sheet for the VH series connectors here. These connectors (and the necessary crimp terminals) are available from Digi-Key.

We’re not sure if the wiring color coding is standard on all vehicles, so we would be more concerned with the function associated with each pin on the connector (pin numbers are molded into the connector housing on the wire-side of the connector, but you might need a magnifying glass to read them).

WARNING: Before you begin working on your mirror’s wiring harness, we strongly suggest that you either pull the fuse(s) that protect your accessories (ACC, RAP, ACC1, ACC2, etc., depending on your vehicle), as well as the fuse that protects your backup lamps. In lieu of pulling the accessory fuse(s), remove your key from the ignition and open a door to deactivate the Retained Accessory Power (RAP) circuit, if present and utilized by the mirror. If you really want to play it safe, disconnect your vehicle’s battery, following your vehicle manufacturer’s recommended procedure (for your safety). This will prevent you from blowing a fuse, should you inadvertently short or ground a lead while working on your mirror’s wiring harness.


PIN # …. HARNESS WIRE COLOR …………. FUNCTION

. 1 …………….. WHITE …………………………. +12v (SWITCHED B+)

. 2 ……………. BLACK …………………………. CHASSIS GROUND

. 3 ……………. LIGHT GREEN ………………… FROM BACKUP LIGHT CIRCUIT

. 4 …………….. GRAY …………………………… TO AUTO DIM OUTSIDE MIRROR

. 5 …………….. PINK …………………………….. TO AUTO DIM OUTSIDE MIRROR

. 6 …………….. DARK GREEN/WHITE ……… TEMPERATURE PROBE

. 7 …………….. BLACK/WHITE ……………….. TEMPERATURE PROBE

Notes:

At a minimum, you must connect pins 1 & 2 (+12V & ground) for your auto dimming Gentex mirror to operate.

Not all Gentex mirrors or all vehicles will utilize all pins, but we believe pins 1 – 5 should be functional on all Gentex mirrors. If your experience differs, please let us know by posting a comment to this article.

Pin 3 is used to clear the mirror when the vehicle is placed in reverse. (DO NOT connect pin 3 to ground, since this will blow a fuse (or possibly damage your mirror) when you put the vehicle into reverse gear.)

Pins 4 & 5 are used to control outside mirrors on vehicles equipped with auto-dimming outside mirrors.

Pins 6 & 7 are used on mirrors that incorporate a temperature display. If a temperature probe is connected, either lead from the temperature probe can be connected to either pin.

Of course, your best source of information is your vehicle manufacturer, or the manufacturer of your new mirror. The above information is believed to be correct, but we take no responsibility for its accuracy.

A Volt-Ohm meter is an indispensable tool for any installer, and we recommend that you use one whenever working on your vehicle’s electrical system.


In our opinion, the auto-dimming feature of the Gentex mirror performs as well as, or better than, our original equipment Donnelly rear view mirror, even taking into account how it operated when our vehicle was brand new. We saved more than $200.00 by not buying the mirror from GM, and probably much more than that, if the dealership would have installed the new mirror for us. The Gentex mirror we purchased appears to be manufactured in the U.S.A. (see this article about their Zeeland, Michigan plant & headquarters buildings), and came with a three-year warranty. We said the Gentex mirror “appears” to be made in the USA, because the only indication we were able to find was the letters “U.S.A.” on the carton label in 2-point type. Not “Made In U.S.A.” or “Assembled In U.S.A.”. Just “U.S.A.”. We’re left to guess that Gentex may be embarrased to admit where the mirror is manufactured. If their products are indeed made in the USA, why don’t they state that fact prominently on the carton, with “MADE IN U.S.A.” clearly visible, like they are proud of it !

We always welcome the opportunity to buy products made in America. We think that buying American made goods, and supporting American workers, is the best way to repair the failing U.S. economy. The U.S. Government’s economic stimulus plans certainly won’t do that.

Let’s hope that if we should ever have to file a warranty claim with Gentex or Mito (their aftermarket distributor), that they honor their warranty better than General Motors has, on the numerous occasions that we’ve had problems with GM products.

As an aside, here’s an article we stumbled upon about another Gentex product, designed to solve one of nighttime driving’s most annoying and dangerous problems.

So the question we are left to ponder is this… Why does General Motors think it can gouge consumers for replacement parts ? If you said “because they’re General Motors”, think again. In our case, they couldn’t. And when you consider the fact that they are teetering on the verge of bankruptcy, begging for federal bailout money, it’s clear to us that their policies, including their pricing policies, are a failure. All of the GM dealerships that have gone belly-up, and those who continue to struggle to survive, in an American new car market that has all but evaporated, are testament to their failed business model. And of course, the decrepit U.S. economy doesn’t help either.

Ya know, our mention of Stevie Nicks’ album “The Other Side Of The Mirror” is quite appropos, because when our GM dealer gave us their price for a new mirror, we suddenly recalled the advice that Alice received from the Mad Hatter… “Better run for your life”.

– Routing By Rumor Continue reading

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Bloomberg Hits The Nail On The Head Regarding Economic Stimulus Plan

NYC mayor Michael R. Bloomberg

NYC mayor Michael R. Bloomberg

There was a piece on the radio this morning which discussed New York City Mayor Michael Bloomberg‘s comments about any future economic stimulus plans. Unfortunately, our searches for his comments have come up empty, but we’re guessing that he made these remarks yesterday. If we’ve misquoted Mr. Bloomberg, our apologies. We are going on our recollection of what we heard on the radio this morning.

Mr. Bloomberg (his middle name is “Rubens” – how many of you knew that?) said that the first round of economic stimulus checks the government mailed out amounted to a program that allowed Americans to go buy Chinese-made widescreen TVs at Circuit City. We couldn’t agree more. In fact, if you’ve followed RoutingByRumor, you know that we have said that the first round of economic stimulus checks amounted to little more than a subsidy for Middle East Oil producing countries, big oil and China, Inc. (You can rest assured that no matter how low the price of oil goes, no matter how much demand drops, that ExxonMobil will continue to post record profits in the quarters and years ahead.)

Franklin Delano Roosevelt

Franklin Delano Roosevelt

Mr. Bloomberg said that any future economic stimulus program should fund infrastructure projects, which would be similar to what the United States undertook to help lift the country out of The Great Depression. President Franklin Delano Roosevelt‘s Works Progress Administration (WPA) created almost eight million jobs between 1935 and 1943. Just as importantly, this New Deal agency built highways, bridges, schools and other public works projects across America that still serve our nation today. New York City has more than it’s share of crumbling infrastructure, and like other American cities, would benefit greatly from a modern-day WPA.

Mr. Bloomberg has been critical of the Federal government’s economic stimulus plan in the past. In fact, he’s been against it all along. Last February, he said the then-proposed first round of economic stimulus checks were “like giving a drink to an alcoholic”.

Athough not in relation to the current debate on future economic stimulus spending, Mr. Bloomberg appeared before lawmakers on Capitol Hill this past June, in his capacity as co-chair of Building America’s Future.   He gave this testimony about the need to invest in infrastructure projects.

At a time when there’s more layoffs in the news every day, and the scope of those job cuts are getting wider and wider (today’s news brought word of Citibank planning 10,000 job cuts worldwide), we desperately need a government program that will give American families more than fleeting relief. We need a program that will keep the economic stimulus money the government spends here at home, instead of it being an indirect subsidy for China, which doesn’t benefit American families one bit. Walmart is doing very well, thanks to American families desperate to stretch their income. There is no need to provide Americans with stimulus checks they can take to Walmart, to buy more Chinese made goods. We’ve read that something on the order of 80% of the goods on the shelves at Walmart are made in China.

There’s slim chance that outgoing President George W. Bush will try to implement a program that will put Americans to work while also rebuilding America’s infrastructure. Our hope is that President-elect Barack Obama will seize the opportunity to lift America out of hard times by proposing a program styled on Roosevelt’s WPA. If Washington is going to spend billions of more dollars in an attempt to prevent an economic collapse, doesn’t it make sense to spend it on projects that will benefit America for generations to come, while keeping our money here at home ?

– Routing By Rumor

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Circuit City Stores Files For Chapter 11 Bankruptcy Protection

This morning, Circuit City filed a bankruptcy petition (see bloomberg.com article), In Re Circuit City Stores Inc., 08-35653, with the U.S. Bankruptcy Court for the Eastern District of Virginia. If you’ve been following this blog, you won’t be surprised by today’s filing. Circuit City has had one foot in the grave for a while now (see our article from last week). See additional coverage of this story by Forbes, The Associated Press, The New York Times, Barron’s and Reuters.

The Richmond Times-Dispatch reported that last Friday, up to 800 employees at Circuit City’s corporate headquarters (more than a third of the workers there) received pink slips.

Circuit City owes well over half a billion dollars to suppliers including Hewlett-Packard, Samsung, Sony, Zenith, Toshiba, Garmin and Nikon. With bankruptcy looming, more and more vendors have refused to extend credit to Circuit City. With today’s filing, we’re pretty sure their ability to obtain terms from vendors is now pretty much non-existent. It probably also ensures that the New York Stock Exchange will de-list Circuit City, as they have already warned, if their share price doesn’t make a sustained recovery to above $1.00 a share. In early trading today, Circuit City shares have lost more than 90% of their value, falling from a lofty $0.12 per share when the market opened, and now sitting at an embarrassing two pennies a share (but that’s at least twice as much as we think its worth, so you could say its overvalued).

11/11/2008 Update…

Well, that didn’t take long. The latest milestone on the devolution of Circuit City has occured. Circuit City shares have been delisted from the New York Stock Exchange (NYSE), and are now trading on the Pink Sheets.  With all these pink slips and pink sheets, maybe pink is Circuit City’s new color.  Circuit City is now what is referred to as a “penny stock”. That light you see at the end of the tunnel just may be the oncoming Best Buy Express. Click here to get a quote on Circuit City shares (CCTYQ.PK)

Things have gone steadily downhill for Circuit City since they made the absolutely brilliant business decision in March of last year, to fire 3,400 of their most experienced employees. Consumerist.com has posted
this excellent timeline of Circuit City’s decline, titled “How Circuit City Came Undone”, which shows their declining stock price in relation to various events in their demise. The graph looks a lot like a ski slope. It’s the sort of thing they’ll probably use in business schools, when teaching a course in how to destroy a successful company.

Perhaps the saddest part of this modern day Greek tragedy is the fact that the executives who were the architects of this debacle earned millions of dollars for their role in the company’s failure. Perhaps the new scrutiny that the country’s economic meltdown is focusing on executive compensation will cause the directors of corporations to hold their executives responsible for the bad decisions they make. Here’s a suggestion… Instead of simply lavishing millions of dollars in company stock on executives, how about adding the condition that they won’t be vested unless there is a certain number of quarters of future growth. For instance, Mr. CEO, that five or ten million dollars worth of company stock won’t be yours unless the company makes money over the next two years. No more “take the money and run”. For too many corporate executives, it has been a game of “heads I win, tails I win”.

Given Circuit City’s history and reputation, the decrepit state of the U.S. economy, and the competition that exists in the consumer electronics space (especially from competitors Best Buy and Walmart), we think it’s a safe bet that Circuit City will never emerge from bankruptcy, and that’s, as Martha Stewart would say, “a good thing”. Last week, they announced the closing of many of their stores, and we wouldn’t bee surprised if more closings follow before the end of the year.

Coming at the beginning of the holiday shopping season, the closings and the bankruptcy filing might attract some bargain hunters, but let’s be honest… Who wants to make a major purchase from a retailer who may very well not be around, should you need to return an unwanted or defective purchase. It pretty much goes without saying that anything purchased at a going-out-of-business sale is sold as-is, no returns, no refunds. Caveat emptor.

We’re going to go out on a limb here, and make the following prediction; Circuit City’s Chapter 11 bankruptcy will become a Chapter 7 filing (liquidation) within six months, perhaps much sooner. Check back here to see how our prediction fares.

– Routing By Rumor

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One Foot In The Grave At Circuit City

With just three weeks to go before most of the nation’s retailers enter their busiest time of the year, Circuit City stores have announced their latest brilliant plan. They are closing 155 of their locations, spread across 28 states (Reuters and Associated Press, 11/03/2008). The going-out-of-business sales at these locations will reportedly start tomorrow, November 5th. This is the latest bit of bad news from the nation’s #2 electronics retailer, which has had mass layoffs, sales declines, and received a lot of negative publicity in the last few years (see our previous articles about Circuit City’s problems, here, here, here and here).  With the closing of these Circuit City locations, thousands more Circuit City employees will join the ranks of the unemployed.

This should be viewed as an emergency amputation, as opposed to a pruning. When you have a healthy core, but too much growth in the branches, you prune, to keep the rest healthy. When there is systemic disease that causes necrosis at the periphery, you amputate. Other large retailers that have been proactive in difficult times tend to close just a handful of their worst performing locations, and they’ll do it after their peak selling season. Retailers that make ill-timed cuts, and who do it with an ax instead of a scalpel, tend to suffer from poor management or a lack of management. They usually don’t act until it’s too late. We believe the current debridement occuring at Circuit City falls into this category.

The fact that Circuit City could not wait until after the holiday selling season to close these stores speaks volumes about just how bad things are at the Richmond, Virginia-based electronics retailer. Indeed, with a stock price that has traded as low as 17 cents a share in recent days, and notification last week from the New York Stock Exchange that their stock is subject to de-listing, things can’t get much worse. Some of their suppliers, fearing that Circuit City is on the verge of bankruptcy, are refusing to ship merchandise to Circuit City unless they are paid cash up front. Consumers, hard hit by the recession, and disgusted with Circuit City, are spending any money they may have, elsewhere. Even with the announced closings, some analysts are predicting that Circuit City will be forced to liquidate or file for bankruptcy by January.

As bleak as things are at Circuit City, you still hear people saying that they are exploring “strategic alternatives” (see Business Week, 11/03/2008). We will submit to you that when you’re on the verge of bankruptcy, sales have dried up, vendors are demanding cash, your stock price is measured in pennies rather than dollars, you’re forced to close hundreds of stores, and the nation is in the grip of a deepening recession, you don’t have any “strategic” alternatives. The choices seem to be declaring bankruptcy now, or trying to hang on a little longer and declaring bankruptcy a few months from now. If Circuit City is pinning their hopes for survival on having a banner Christmas season, they’re in for a terrible shock. Even relatively healthy retailers are bracing for a dismal end to a dismal year, and the U.S. economy doesn’t seem poised to roar back to life anytime soon.

Circuit City’s woes spell opportunity for it’s competitors. It appears that the nation’s largest electronics retailer, Best Buy, will likely snap up some of the locations being vacated by rival Circuit City.

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