Seattle-based Starbucks Corp., which already plans to shut 600 stores, is also cutting almost 1,000 office jobs as part of its bid to re-energize the brand and boost its profit. Of the new cuts, 550 of the positions are layoffs and the rest are unfilled jobs. Today, Starbucks will report its third-quarter financial results, which analysts expect to show a substantial decline in profit because of slower traffic and a drop in sales at established stores.
First Heritage Bank reassures investors
First Heritage Bank of Snohomish is suffering from identity confusion after a similarly named bank in California was closed by federal regulators last week. Cathy Reines, chief executive of the locally based bank, emphasized her bank has no ties to First Heritage Bank NA of Newport Beach, Calif. The local bank is well funded and plans to report an increase in quarterly earnings in the coming weeks, Reines added.
AirTran again delays Boeing deliveries
In announcing its second quarter loss Tuesday, low-cost carrier AirTran said it recently reached an agreement with Boeing to defer four additional deliveries of 737-700 aircraft from 2009 to 2015. In May, AirTran announced that it would defer the delivery of 18 Boeing 737-700 aircraft originally scheduled for delivery between 2009 through 2011, to 2013 through 2014.
Cardiac Science sees profit slump
Cardiac Science Corp., the Bothell-based maker of heart defibrillators and related medical equipment, said its second-quarter revenue reached $52 million, up 16 percent from a year ago. The firm’s profit, however, fell from $4.5 million in the year-ago period to $2.3 million, or 10 cents per share, last quarter. The year-ago period included a one-time gain of $6 million.
Cities OK Verizon TV franchises
Two more local cities have approved franchise agreements with Verizon to offer its new FiOS TV service. Marysville and Kenmore authorized Verizon to offer FiOS TV in their cities, an action already taken recently by Everett and Lynnwood. Verizon hopes to offer FiOS TV locally later this year. Verizon’s fiber-optic Internet, video and phone network has spread in parts of Snohomish and King counties during the past two years.
Struggling Mervyns hopes to reorganize
Department store chain Mervyns LLC has filed for Chapter 11 bankruptcy protection, the latest in a series of merchants stumbling in the harsh retail environment. The California-based company, which has languished for years, said its 175 stores will stay open as it reorganizes. Mervyns shut all its Washington stores in 2007.
Confidence index remains low in July
The Conference Board said its Consumer Confidence Index stands at 51.9 for July. That’s about half of what it was a year ago and still the lowest since October 1992, when the economy was coming out of a recession. But the reading was slightly higher than 51.0 for June.
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