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Tuesday, November 13, 2012

The Obama Economy: Layoffs, Business Closings And Bankruptcy- November 12-13, 2012

By Susan Duclos

More layoff mania, business closures and bankruptcy for November 12-13, 2012:


Dana warns employees of layoffs

 TOLEDO, Ohio - Dana Corporation is warning its employees that there could be a large number of layoffs on the way.

The Washington Times reports that Dana will likely pay $24 million over the next six years in healthcare expenses and that cost is driving the layoffs.

A Dana spokesman says cutting costs is not necessarily because of Obamacare, but because of declining production volumes.

Since June, the company cut its global workforce by 1200 people, but not all through layoffs.
The company spokesman said additional cost cutting could mean downsizing, but that Dana always looks at other costs before looking at people.

Carrollton-based company issues layoff warning for 459 Dallas employees

 Wingspan Portfolio Advisors, a Carrollton-based loan servicing company, will layoff more than a quarter of its workforce at the end of the year.

Wingspan issued a Workers Adjustment and Retraining Notification Act (WARN) letter on Nov. 5 to the Texas Workforce Commission informing them all 459 employees at the Dallas location will be terminated effective December 31, 2012.

The business is "an award-winning diversified servicing company" and "offers a wide-range of services to assist the mortgage industry in virtually every aspect of delinquent loan servicing," according to the company's website. The site says the company has nearly 1,700 employees.

The layoffs are the direct result of the cancellation of a client contract, according to the WARN letter. The company said the terminations are permanent, but they will do their best to place employees who wish to remain with the company in other positions for which they are qualified.

The Dallas office is located in the 18000 block of Dallas Parkway.

NBCUniversal cuts about 500 employees 

In a round of year-end belt tightening, NBCUniversal is cutting about 500 employees, or about 1.5%  of its total workforce.

The cuts are distributed throughout the media company, which boasts nearly 30,000 employees, according to a person close to the situation who asked not to be identified discussing the sensitive topic.

Minnesota nonprofit plans staff cuts

 Layoffs are pending at an Iron Range nonprofit that helps battered individuals and their children.

Virginia-based Range Women’s Advocates has to lay off four of its eight workers after it failed to win a five-year, $500,000 state grant. In addition, one employee is retiring, meaning the group will have three paid workers.

The money would have paid general operating expenses.

Mississippi County Cuts $1.5 Million, Triggers Layoffs

The Finance Committee of the Mississippi County Quorum Court slashed $1.5 million from the county’s 2013 budget, which will trigger layoffs of about a dozen employees.

Finance Committee Chairman Michael White said nearly all of the elected officials saw their budgets cut 16.3 percent as a result of decreased revenue for the county.

The departments that took the biggest hits were the county’s landfill department, which will have its budget cut by more than $600,000, and the Mississippi County Sheriff’s Office, which will have $553,000 less in 2013 than it did in 2012, White said.

Mississippi County’s general fund budget in 2013 will be $9.75 million.

White said he wasn’t sure how many county employees would lose their jobs. He said the county first would eliminate open positions. The county has about 200 employees.

Fire study: Close 2 fire houses, cut 17.5 jobs

Recommendations — including losing 17.5 positions from the city’s fire department and closing two fire stations — will be presented today at a special meeting of City Council.

A study by public safety consultants Berkshire Advisors Inc. recommended a number of changes to improve efficiency in the Hamilton Fire Department, including increasing the workweek from 48 to 52 hours. This would reduce staff by nine firefighters and save the city $825,000 in overtime costs, according to the study. The city is projected to spend $1.1 million in overtime costs in 2012.

The study also recommends closing two of Hamilton’s oldest fire stations, located on Laurel Avenue and on Shuler Avenue.

If all of the recommendations are followed, the city could reduce the number of firefighters by a total 17.5 positions, the report said.

More layoffs at The Commercial Appeal


Hostess Closing Three Plants, 627 jobs lost:

The world of Twinkies and Wonder Bread threatened to crumble Monday, as a nationwide strike continued and Hostess Brands Inc., the bankrupt owner of the historic products, said it would close three bakeries, eliminating 627 jobs.

The closures in Seattle, St. Louis, and Cincinnati spared Hostess' Northeast Philadelphia bakery, where 330 members of Local 6 of the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union stopped working at 12:01 a.m. Saturday to protest wage and benefit cuts approved last month by a bankruptcy judge.

Sears at Quail Springs Mall in Oklahoma City will close in January; sales are on

Sears had owned the 182,000-square-foot store at Quail Springs Mall, even though it is attached to the main building, since the mall was built in the early 1980s.

Sears said Monday the store officially will close in late January; liquidation sales started last week. Last month, Sears notified the store's 98 workers of the impending closure. Those that are eligible will receive severance pay and were invited to apply for open positions at other Sears or Kmart stores, Sears said.

Sears to close Kmart store in Oak Hill in January

Barhwaite says the company decided not to renew the lease for the store due to its performance. The store opened in 1993.

A majority of the store's 59 workers are part time and hourly. Barthwaite says eligible employees will receive a severance and can apply for open jobs at area Sears or Kmart stores.

Richmond store to close after 75 years in business

RICHMOND, Ky. (WKYT) - After 75 years in business, a well-known Madison County store will soon be closing its doors for good.

Jett and Hall men's clothing store has been a main-stay in downtown Richmond, on Main Street.

Florida- Holly Hill Dunkin Donuts closes

An empty storefront greeted people looking for their donut and coffee fix at the Dunkin' Donuts in Holly Hill on Monday.

Philips Electronics subsidiary Lightolier plant closing creates uncertain future for 250 Wilmington jobs

Philips Electronics subsidiary Lightolier will close its local fluorescent light fixture manufacturing plant within the next six to nine months, company officials announced.

The announcement was made to employees on Friday, said Philips Lighting Communications Manager Silvie Casanova.

Casnova attributed the closure to "changes taking place in the global lighting industry."
The Wilmington plant employs just under 250 workers, but it has not been determined what will happen with those jobs, Casanova said.

Casanova said it was "difficult to say at this point" if other closures would follow.

Two SunTrust Va. branches will close

Two of the five SunTrust Bank branches on the Eastern Shore of Virginia will close in December.
Bank officials began notifying customers at the Accomac and Nassawadox SunTrust branches of the closings in September, spokesman Michael McCoy said.

Both branches will close at 2 p.m. on Friday, Dec. 21.

Dena's Hallmark closes store near Schnucks 

Dena's Hallmark has closed its store west of the Schnucks supermarket in Champaign Commons Plaza.

That followed the closing of Dena's stores in Danville's Village Mall, Urbana's Lincoln Square and downtown Rantoul.

O'Fallon Fashion Bug to Close in 2013 

D.C. schools closing list to be released Tuesday, report says

D.C. school officials are set release a new list Tuesday of schools slated to be closed.
D.C. Public Schools Chancellor Kaya Henderson will unveil the list this afternoon.
The Washington Post reports she is targeting schools that are underperforming or under enrolled.
“A DCPS-commissioned study released in January identified neighborhood clusters in wards 4, 5, 7 and 8 high in underenrolled, underperforming “Tier 4″ schools thought to be a particularly high risk for closure, the Post reports.


AMF Bowling files for bankruptcy

AMF Bowling Worldwide Inc., the world's largest bowling operator, filed for Chapter 11 bankruptcy protection to restructure its mounting debt.

The Hanover County-based company said this morning that it filed a pre-arranged petition with the U.S. Bankruptcy Court in Richmond.

Layoff Mania  pieces at the link.

Business Closings pieces at the link.