Circuit City Stores Inc., the nation’s second-biggest consumer electronics retailer, said Friday it had run out of options and will be forced to liquidate its 567 U.S. stores. The closures could send another 30,000 people into the ranks of the unemployed. “This is the only possible path for our company,” James Marcum, acting chief executive, said in a statement. “We are extremely disappointed by this outcome.” The company had been seeking a buyer or a deal to refinance its debt, but the hobbled credit market and consumer worries proved insurmountable. Bleak holiday sales results further weakened even the stronger retailers.
Charles Schwab matches earnings
Charles Schwab Corp. said Friday that its fourth-Âquarter profit matched what it earned in the same period a year ago even as its revenue fell. The San Francisco-based brokerage and investment manager narrowly beat analysts’ earnings forecast, while its revenue was in line with Wall Street’s estimates. Schwab earned $308 million, or 27 cents per share, in the last three months of 2008. That’s equal to the $308 million, or 27 cents a share, it earned a year ago. Excluding discontinued operations, net income rose 1 percent.
December U.S. factory work falls
U.S. industrial production plunged by double the amount analysts expected in December, capping the worst year for manufacturers since 2001. The Federal Reserve reported Friday that production at the nation’s factories, mines and utilities fell by 2 percent last month. The dismal showing underscored the heavy toll the housing, credit and financial crises are taking on the nation’s manufacturers. Economists were forecasting a 1 percent drop. Last month’s drop came after a 1.3 percent decline in November, which was even sharper than initially reported.
Hertz to cut 4,000 more jobs globally
Rental car company Hertz Global Holdings Inc. said Friday it will slash its work force by an additional 4,000 jobs worldwide as it further cuts costs to contend with deteriorating demand and vehicle values. The company expects to save $150 million to $170 million this year and take a related fourth-quarter charge of $20 million to $25 million. This is only the latest round of job cuts for the rental car company, which eliminated 1,400 employees this fall.
Sears continues layaway program
Sears Holdings Corp. will keep providing a layaway option at its namesake stores as shoppers dealing with the recession look for more options to help pay for their purchases. The retailer relaunched the layaway program at its Sears stores over the holidays, nearly two decades after it was scrapped.
From Herald news services
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