Incomplete list of economic shenanigans in The Gem State, Gregorian year 2013
January: In Chubbuck, both Eddie’s Bakery and car cruise gathering spot Johnny B Goode’s restaurant shutdown. Eddie’s was killed off by the sudden collapse of parent company Hostess (the original Hostess, the Hostess snacks you see in the grocery stores now are phony).
Johnny B Goode’s had been declining in food quality, cleanliness and popularity (I know, I had been eating there since 1997).
With almost no notice, Boise based Honk’s $1.00 filed chapter 11 bankruptcy around 16 January 2013.
However, and despite what Boise media reported, they started closing down stores weeks earlier, like the one in Pocatello (the pic was actually taken a week before the Boise news media reported the bankruptcy). It’s reported that the dollar store corporation just can’t sell enough of the crap they have, and in Utah they owe tens of thousands of dollars in unpaid sales taxes and rent!
The Ann Taylor women’s clothing store in the Boise Towne Square mall, gone for good. 14 employees out-o-work. And California based See Jane Run women’s sports wear closed their only store outside of The Golden State, in Boise.
Famous Rhodes Bake-N-Serv shutdown its Caldwell bread factory and moved to Wisconsin, leaving 49 Idahoans out-o-work. The Caldwell factory had been in operation since 1962.
February: In Emmett, the Emerald Forest Products lumber mill shutdown without notice, and some reports said without paying employees final paychecks (I experienced that back in September 2012, when Metro Couriers went bust without notice, and no help from Idaho Job Service). According to signs on the company’s gate Emerald Forest Products was getting money from U.S. taxpayers ($4 million from the American Recovery and Reinvestment Act). Media reports did not explain why the mill closed, but gave the impression lumber mills in Idaho could only operate profitably with tax payer subsidies. (so much for Idaho being a Republican Right Wing Conservative state)
Wholesale Sports shutdown its Coeur d’Alene store. Blame it on California based real estate investment company Alamo Group.
As I’ve reported before, the Heinz frozen food factory in Pocatello ending production of T.G.I. Friday’s frozen entrees, 80 jobs lost. Shortly afterwards Presbyterian/Agnostic Warren Buffett announced he was investing big into Heinz. Investors from Brazil, known as 3G Capital, joined Buffett in the Heinz take over because they also own Burger King, which uses a lot of Heinz ketchup. 3G Capital is known for “cutting up” companies (typical Romneyite vulture capitalists) so it’s expected Heinz will layoff more people. Also, there are now reports of an inside trader investigation.
Also in Pocatello, the Wesco Paint store shutdown. A note was on the door instructing loyal customers to drive about 112.7km (70 miles) to the nearest Wesco store!
Simplot shutdown its Heyburn potato processing factory. 56 employees affected. The company spent big bucks building a new more efficient potato factory in Caldwell. What’s interesting is that the Heyburn employees say the news was a surprise to them, however I’ve been reading about the planned move since November 2011!!! According to Capital Press, the November 2011 announcement said the new Caldwell factory would be so efficient that J.R. Simplot would shut down three older factories in Idaho (including Heyburn), resulting in 8-hundred Idahoans losing their jobs! (in fact I warned about it in a 10 November 2011 posting)
March: The Idaho National Laboratory laid off 101 people in eastern Idaho, that’s after 114 employees voluntarily quit and 60 positions were eliminated! As many as 450 layoffs are planned: “We will be watching the budget situation closely in the coming months and hope to have a clearer picture of any additional actions that will be necessary.”-Mark Holubar, INL human resources
May: Regence Blue Cross/Blue Shield health insurance laid off 55 people across Idaho, Washington, Oregon, and Utah (some reports said 56). Regence is outsourcing claims processing to a company in New Jersey.
In Pocatello, after five years of delays the now failed local taxpayer funded polysilicon project Hoku Materials sits idle and unfinished, no thanks to Obama regime’s anti-China sanctions and commodity markets.
June: Utility company Idaho Power blames its rate increases on the failure of Hoku Materials’ $700-million USD polysilicon factory. It turns out that Idaho Power invested $23-million into the failed factory, but not only that Hoku Materials repeatedly refused to pay their massive electric bill!
The Cactus Grill, in Twin Falls, closed despite seven years of booming business. The eatery operation located on the property of Home Depot was shutdown by the very same Home Depot corporation (the Home Depot manager was unaware of the corporate decision). It was part of Home Depot’s plan to end eatery operations just outside their store exits. Cactus Grill owner, Billy Elser said “It was a blow, cut us off at the knees. That’s how I make a living!”
In Caldwell, Caldwell Pawn shutdown. The owner said he dealt in micro-loans years before they were called micro-loans (some as small as $20) to help people out, but after 22 years of business he wants to retire. He also stated that sales dropped since 2009.
July: The Galena silver mine laid off 126 employees! Company officials are taking a 10% to 20% pay cut. They blame declining silver prices: “The ongoing decline in the price of silver required us to look for further cost savings in order to be profitable and protect our balance sheet going forward.”-Darren Blasutti, CEO
August: In Boise, Micron Technologies (the World’s 2nd largest DRAM maker) announced it will fire 1-thousand 5-hundred employees! It’s the result of Micron taking over Japanese competitor Elpida. Micron officials say the layoffs will be spread around the World, but a Boise financial consultant, Dave Pesto, said “It appears to be pretty heavy here.” Micron laid off 2-thousand people in Boise back in 2009!
In Pocatello, the Computer Medical Center died, and Discount Cosmetic Boutique, with its “Amazing Makeup” and “Amazing Prices”, began an ‘amazing‘ going out of business sale.
In Caldwell, the Canyon County Animal Shelter warned of layoffs due to county budget concerns and crashing donations!
September: In Boise, Affinion Group kills 226 jobs!
In Wallace, U.S. Silver & Gold mine laid off 130 people! The company calls itself “…the second largest primary silver producer in the United States.” Company officials blamed the layoffs on falling silver prices.
October: Sandpoint based women’s clothing retailer, Coldwater Creek, warned it will layoff at least 20% of its employees in 2014.
In Nampa, Farm and City Supply shutdown. “There’s not enough sales to make it work right now. It’s been a struggle the whole time!”-Carl Woodburn, owner
November: It’s official, Heinz is shutting down their long time Pocatello food factory, 410 Heinz employees to become unemployed in 2014! That’s another huge impact on the Chubbuck/Pocatello area. The Idaho Department of Labor estimates the shutdown will also kill 2-hundred additional local jobs! The city of Pocatello currently has the highest unemployment rate in the Gem State.
Also in Pocatello, in what would be the first of two auctions, Hoku Materials was bought by the unpaid contractor that did most of the construction on the polysilicon factory. JH Kelly submitted the winning bid of $5.273-million USD, for a factory worth $700-million! But like I said, this would turn out to be the first of two auctions. Just a couple of weeks later a federal court blocked JH Kelly’s winning bid and ordered another auction!
In Chubbuck, the GGP owned (and dying) Pine Ridge Mall sells for a paltry $9-million USD.
In Idaho Falls, Mattress Country “Calls it Quits!”, and shutdown.
December: In Pocatello, Hallmark Coach House Gifts shutdown with little notice, and no explanation. Employees were told just four days before the shutdown. At least 11 jobs lost. Coach House Gifts is a Iowa based franchise, the shutdown could be part of Hallmark’s ongoing restructuring because of the bad economy.
And in the second auction for Pocatello’s failed Hoku Materials factory, unpaid contractor JH Kelly won again with a bid of $8.3-million. Optimism was so high in eastern Idaho that local TV news reports claimed 1-thousand jobs were on their way! However, as I reported, attorneys for JH Kelly said they knew nothing about any deal to bring jobs and they were going to chop it up and sell it off.
In Meridian, tax-sucking pistol holster maker ATK/Blackhawk! laid off 75 employees. Their biggest customers were the U.S. military and law enforcement.
In Caldwell, food company Simplot shutdown, 262 jobs lost!
“We’re going to go down.” : Idaho’s Economic Decline 2015
More Economic Decline: Who is the new owner of Chubbuck’s Pine Ridge Mall? It’s not the “family” company you think it is! GGP connection?
A History Lesson in Economic Decline: Pocatello’s Old Fred Meyer & Albertsons on Yellowstone Ave, did not close down in the 1990s
Occupy America: Some facts about Revolutions the leaderless Wall Street occupiers, and Tea Partiers, need to know
Mormon Mitt Romney co-founded Bain Capital destroyed jobs in Chubbuck, Idaho.