The fallout from the horrific holiday season for retailers has begun, with the operator of an online toy seller filing for bankruptcy protection and more stores are expected to do the same — meaning more empty storefronts and fewer brands on store shelves. Parent Co., the operator of etoys.com, filed for Chapter 11 bankruptcy protection and said it will consider selling some or all of its operations. Chris Byrne, a New York-based toy consultant, said that etoys.com couldn’t compete with the aggressive tactics embraced by Toys “R” Us and Wal-Mart Stores Inc., the nation’s top two toy sellers.
Government sees less borrowing
Commercial banks and investment firms borrowed less from the Federal Reserve’s emergency lending program last week, the government said Monday, although demand for the loans remains high amid a global credit crunch. The Fed reported that commercial banks averaged $86.3 billion in daily borrowing over the week that ended Wednesday, down from $88.4 billion for the week that ended Dec. 17. Investment firms, meanwhile, drew $45.7 billion in the week that ended Dec. 24, compared to $50.5 billion the previous week.
Mavericks owner buys cinema stake
Mark Cuban, the billionaire owner of the Dallas Mavericks basketball team and co-owner of the Landmark Theaters cinema chain, has acquired a 9.4 percent stake in Carmike Cinemas Inc., according to a regulatory filing on Monday. In the Securities and Exchange Commission filing, Cuban reported buying 1.2 million Carmike shares on the open market for roughly $2.8 million of his own funds. According to the filing, Cuban has been acquiring the shares through his personal investment account since mid-October.
Kirk Kerkorian sells his shares in Ford
Billionaire investor Kirk Kerkorian has sold his remaining shares in Ford Motor Co., according to a spokeswoman for his investment company Tracinda Corp. Kerkorian’s jettisoning of Ford comes just six months after Tracinda boosted its stake in the Dearborn, Mich.-based automaker to 6.49 percent. The move was announced shortly after Kerkorian met with Ford’s key executives to discuss the company’s turnaround plan.
Six-month T-bills hit record low
The interest rate on six-month U.S. Treasury bills dropped to its lowest level on record at the weekly Treasury auction, the government said Monday. The Treasury Department sold six-month bills at a yield of 0.25 percent, an all-time low. That’s down from a rate of 0.285 percent last week. Treasury rates have fallen to historic lows as the worst financial crisis in 70 years has triggered a rush by investors to the safety of government securities. The department also auctioned three-month bills at a yield of 0.05 percent, up slightly from last week’s 0.04 percent. For a $10,000 bill, the three-month price was $9,998.75 while a six-month bill sold for $9,987.43. That equals an annualized rate of 0.051 percent for three-month bills and 0.254 percent for the six-month securities.
From Herald news services
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