Category Archives: Business/Economics

Business/Economics, International, U.S.

Norovirus update, 13 February 2013: Spike in cases! School budgets getting hammered! More hospitals in U.K. shutting down! Avoid Oysters! Blame no paid sick leave, again!

13 February 2013

In United Kingdom, the Arrowe Park Hospital has lifted visitor restrictions.  Hospital officials said they imposed the restrictions to keep patients from catching the vomiting bug.

12 February 2013

Two nursing homes in Sacramento County, California, are reporting outbreaks.  At least 34 people sick.

Also in Sacramento County, school officials say there are so many students out sick that the school districts are losing state funding.  Officials report losing between $28 and $39 USD per day for every student out sick.

A New Jersey TV station reporting that hospitals in Bronx, New York, are reporting spikes in the number of people coming in with the stomach bug.

In United Kingdom, four wards of the York Teaching Hospital were shut down:  “It’s really tough in the hospital. We have had to open extra beds wherever we can in areas which have previously been empty. Staff is also thin on the ground because some of them have also come down with the bug.”-Libby McManus, National Health Service (NHS)

In Arkansas, health officials believe the norovirus (aka Norwalk virus) has hit their state, but, because it isn’t really tracked they’re not sure how bad it is this year.  One doctor said that norovirus is under-reported.

In Belgium, the grocery store chain Carrefour is recalling Normandy oysters. The company is worried because of the growing number of people who ate them are now showing signs of norovirus infection.

11 February 2013

In Canada, visitor restrictions have been lifted at a Prince Albert Hospital. 16 patients and eight hospital staff became sick back in January.

08 February 2013

In Pennsylvania, a Catholic prep school, Villa Joseph Marie, closed because too many students were out sick.

In Tennessee,  doctors say norovirus is now at epidemic levels: “For other people who have chronic illnesses like diabetes and heart disease, it can be deadly.  A lot of these people have to get put in the hospital because they get so severely dehydrated.”-Mark Castellaw, Baptist Memorial Hospital

In Wyoming, state inspectors have determined the source of what caused a norovirus outbreak at a Golden Corral buffet back in December.  A 15 page report blames 31 employees, who kept working even though they were all sick. A total of 344 cases were reported. Blame no paid sick leave!

In Contra Costa County, California, it was revealed that a steak restaurant was closed because of the vomiting bug. County officials closed Fleming’s Steakhouse after several employees and at least two customers became sick.  It’s now open after being cleaned.

In South Dakota, the entire Bridgewater-Emery school district closed down because so many students and teachers were out sick.

07 February 2013

In North Carolina, the Mecklenburg County Health Department has confirmed many cases at local nursing homes.  At least 45 residents and 12 nursing home staff are sick.

In Missouri, the Saint Louis County Health Department reports at least eight outbreaks in the county. Officials with Barnes Jewish Hospital say cases are spiking.

06 February 2013

In California, Charity Thoman, with the Santa Barbara County Public Health Department, wrote of her experiences with norovirus, and tried to explain why this year’s version is so bad: “What’s different about the virus in this 2012-2013 season involves one of my favorite topics: evolutionary genetics. Norovirus is a single-stranded RNA virus which can evolve rapidly by inserting small mutations into its genome. In March 2012, the virus mutated again, resulting in the GII.4 Sydney strain (named after its origin in Sydney, Australia). This mutant strain is spreading rapidly across the world and across California. Santa Barbara County is now sending all positive stool specimens to the California Department of Public Health (CDPH) for further subtyping to determine which strain we are dealing with. So far all of our positive specimens have been the new Sydney strain.”

In Ohio, the Columbus Public Health Department reports 100 confirmed cases.

Business/Economics, Idaho, U.S.

What Economic Recovery? List of U.S. job losses & store closings for 22 January 2013. Dish Network to close 300 Blockbuster stores, 3,000 people unemployed!

Dish Network announced they will shut down 300 Blockbuster video stores across the country.  3,000 people out-o-work!!!  Dish Network bought Blockbuster in 2011.

AT&T eliminating 66 jobs at their Greensboro, North Carolina, call center.  They call it “business reduction”.

The Food Lion grocery store chain announced it will shut down eight stores in North Carolina.

Amy’s Hallmark closing down in Shelby, North Carolina.  It’s a corporate owned store, and Hallmark blames the bad economy: “…I can confirm that it is scheduled to close on February 24, due to declining sales.”-Toni Ferro, spokeswoman for Hallmark

International Paper announced it will end operations of their number 2 paper machine at their Augusta, Georgia, factory.  75 jobs lost.  The number 2 paper machine had been in operation since 1965.

The independent owner of a Pella women’s clothing store out-o-business in Buckhead, Georgia.  The owner said the bad economy was more than her 37 years old business could handle: “The economy is not the same….Independents are struggling.”-unnamed owner

In Texas a relatively new state toll road agency is already in trouble.  The Alamo Regional Mobile Authority (ARMA) says it has to layoff staff just to make it to 2016.  There have been many problems with the new agency, including projects getting way behind schedule (ARMA blames it on federal environmental impact studies). However, county officials would like to see the ARMA disappear:  “What we’ve asked them to do is downsize their staff to zero. Why would you spend hundreds of thousands of dollars to do nothing?”-Kevin Wolff, Bexar County

After 54 years in business, Texas HVAC company Avery Air now bankrupt and liquidated.  More than 45 people out-o-work. Investors claim they tried to save the company, but previously unknown expresses and debts forced them to shut the company down.

Southern Air is moving its HQ from Connecticut to Kentucky.  It means 120 out-o-work in Connecticut: “…it has become apparent that a relocation of our headquarters is warranted for both strategic and financial reasons.”-Dan McHugh, CEO

A controversial brain injury treatment center now bankrupt. The Florida Institute for Neurologic Rehabilitation is wracked with problems, from investigations over patient abuse (one claim says caregivers forced patients to fight each other, just like in those for profit corporate prisons) to tens of millions of U.S. dollars in unpaid debt.

The Grant Family Farms out-o-business.  The Colorado family blamed crop damage and the bad economy, but swore to come back: “We have farmed here in Colorado for 61 years; we will figure out a way.”-Andy Grant

Envi, a specialty re-sale store in Old Colorado City, Colorado, giving up the ghost because of the bad economy: “It’s just been a roller coaster ride and it’s time to get off. I don’t feel like it was great when I started, and I don’t feel like it’s getting any better, to be honest.”-Marci Austin, owner

The owner of several women’s clothing store chains, Big M, now bankrupt.  The New Jersey based corporation owns 150 stores in the United States.  The company says it has $50 million in assets, but owes more than $100 million in debt.

In Idaho, the Ann Taylor women’s clothing store in the GGP owned Boise Towne Square mall, gone for good. 14 employees out-o-work.

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As I’ve stated in my updated reports on Kmart & Sears closings, the Milwaukie Kmart in Oregon being shut down.  At least 61 people out-o-work.

In California, the 50 years old restaurant, Hof’s Marina, shutting down in Long Beach.  No info about the other five Hof’s restaurants.

In Minnesota, a Work Out World in Rochester shut down with little notice: “There was a semi-truck hauling out equipment and a terse sign about it closing on the door. I couldn’t believe it.”-Victoria Nyari, customer

In Queensbury, New York, the Sokol’s Market closed down after 40 years of operation.  “Everybody has been affected by the economy. We could have held on and made the best of it, but we have an opportunity to end on a good note.”-Matt Sokol

In Pearl River, New York, Hadeler Hardware up for sale. The owner of the store first started in 1905, wants to retire.

Business/Economics, International, U.S.

What Economic Recovery? FedEx radical changes, buys out 10% of executives! More changes to come!

The world’s second largest shipping provider, FedEx, is buying out 10% of its U.S. executives!

Company officials refused to give exact numbers.  Don’t feel too bad for those officers and directors, they’ll get anywhere from four weeks to two years worth of pay (depending on how long they worked for FedEx) as part of the buyout.

But this is just the beginning of employee cuts. Fedex officials said they have to radically change up their operations in order to hit a profit target of $1.7 billion USD: “The goal is to explain, at a high level, the most significant organizational realignments we plan to make in the months following the voluntary buyout process. A series of cross-functional teams continue to work on plans for our future structure below the director level. Those details cannot be finalized until after the voluntary buyout process is complete.”-recent FedEx memo to employees

 

Business/Economics, U.S.

What Economic Recovery? List of U.S. job losses & store closings for 21 January 2013. Bad economy hits commercial truck tire factory! Another Romney wonderkind Staples goin’ down! No more AAFES movie theaters?

Goodyear tire maker recently bought out the contracts of 200 employees at its Fayetteville, North Carolina factory. Now Goodyear wants to layoff 41 people at its Danville, Virginia factory.  The Danville factory makes commercial truck tires, and company officials say the bad economy has reduced demand for the big truck tires.

In Ohio, one of Mitt Romney’s claim to fame, a Staples office supply store will shut down in Bellefontaine.  It’s part of the company’s plans to downsize its operations.

Fairview Clinics-Chaska, in Minnesota, closing down and moving to a new location.  They blame it on a drastic reduction in customers seeking health care.

As part of their plans to cut back worldwide, Canada’s Cirque du Soleil ended its Iris show in Los Angeles, California.  100 people out-o-work!

The U.S. Army and Air Force Exchange Service (AAFES) is shutting down half of its movie theaters at U.S. military bases around the world.  The reason is that the AAFES movie theaters never upgraded to the latest projection technologies, and now the cost to upgrade is not justified by amount of business the theaters get.  100s of jobs will be lost. AAFES is upgrading the other half of its theaters (about 60).

Just a few days after announcing the closing of two Pennsylvania, Bottom Dollar food stores, three more closings were announced.  One each in North Wales, Chalfont and near Reading.

Computer repair shop in Burlington, North Carolina, out-o-business. No reason was given for the TechVets demise.

Another Christian school goin’ down! The Our Lady of Fatima School in New Castle, Delaware, being consolidated with All Saints Catholic School in Millcreek.  School officials blame declining enrollment.

South Dakota’s LodgeNet Interactive (hotel movie service provider) now bankrupt after making deal with California’s Colony Capital.

Nonprofit Baltimore Behavioral Health goes bankrupt because of $5 million in debt.  However, in 2010 an investigative reporter discovered that the nonprofit was overcharging Medicaid, with the excess payments going to the family that controlled the mental health service (you see it’s not the people who need the help that’re ripping off social programs, it’s the service providers).  By the middle of 2012 all the family members were removed from the board of directors. Also, in 2011 Bank of America sued saying the clinic was not making the payments (default) on a $2.5 million worth of loans.  The result is that the people who need the help are not going to get it.

In Iowa, the G&R Feed and Grain went bankrupt.

The maker of a new blood test that identifies anti-biotic resistant staph now bankrupt. Colorado’s MicroPhage claims to have too much debt, yet SEC filings show the company just made a deal with the biggest medical distributor in the country, to distribute its new staph test. Also, the filings revealed a $6 million investment from a single investor.

 

Business/Economics, U.S.

What Economic Recovery? List of U.S. job losses & store closings for 20 January 2013. Another Christian school goin’ down!

Operators of the Troy Mine in Montana say they might have to lay off employees, if they can’t stop repeated cave ins. So far the 205 employees have been kept busy on other projects, but company officials say if the silver and copper mines remain closed for any longer then they’ll have to layoff employees.  The Troy Mine has been shut down since December 2012.

Schuler Books & Music shutting down Grand Rapids, Michigan, store.  Owners say they can not renew the lease because sales have always been “marginal”.

First Niagara Bank closing down Greenport, New York, branch.  Bank officials say they have to consolidate branches.

Indiana’s John Paul II Catholic High School will closed down.   A press release given to local media did not explain why.

Oak Ridge Market in Oak Ridge, Missouri, closing for good.  Owners say it’s the bad economy, not only are their employees now out-o-work, but so are they.

U.S. division of video game maker Atari, now bankrupt.  Some reports say it’s a way for the U.S. division to protect itself from the bad finances of the French parent company.

Sky High Sports arcade in Bellevue, Washington, now bankrupt.

Arizona trucking company, Cooley Industries, now bankrupt.

In Texas, Handy Hardware Wholesale group now bankrupt.

Financial services company, Pension Worldwide, now bankrupt in Delaware.

Wisconsin’s Golden Guernsey milk bottler now bankrupt.  The new California based owners said, in a round-a-bout way, that they were not going to get their investment back because of “seemingly nonnegotiable operating expenses.”

Business/Economics, Idaho, International, U.S.

What Economic Recovery? Idaho Heinz operation cutting 80 jobs! Par for the course for the city of Pocatello! T.G.I. Fridays going down?

“Following the discontinuation of its T.G.I. Friday’s frozen meals, Heinz conducted a thorough evaluation of the production needs at its Pocatello, Idaho factory. To ensure the number of employees is in line with production needs, Heinz has made the difficult but necessary decision to lay off 80 full-time, hourly team members, effective March 4, 2013.”-Heinz Frozen Food statement

On 05 February 2013, Heinz Frozen Food (a division of H.J. Heinz) announced that 80 of their Pocatello, Idaho, employees will be out-o-work by March.

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Heinz finally decided to put the T.G.I. Friday’s frozen food brand meals out of its misery. The company famous for ketchup will focus on T.G.I. Friday’s frozen snacks, as opposed to full meals.

Frozen foods have not been selling well in the United States. A report last month said that frozen meal (aka entree) sales have been falling for the past five years.  It’s not just Heinz that’s struggling, but other frozen entree makers like Con-Agra and Nestle.  These companies are coming up with new plans for their frozen food operations, including laying employees off.

It’s these plans that might have prompted Warren Buffet to buy into Heinz.  That’s right, investors like when companies layoff employees.  Heinz began shutting down T.G.I. Friday’s frozen single serve entree lines, as well as multi-serve entrees, in February 2012, so, this shutting down of the Pocatello, Idaho, production line is just par for the course.

What about the T.G.I. Friday’s restaurant chain? In 2011 sales were down, by only 1.5%, and company officials say 2012 sales are looking to be even better.  And the restaurant is doing fantastic in the United Kingdom.

Reports out of Britain say that business is so good that TGI Friday’s (they don’t use periods after the TGI in Merry Olde England) is about to hire 600 new employees by opening six new restaurants!

Despite the upbeat attitude of company officials, just last month a T.G.I. Friday’s was closed in Oakley Hyde Park Plaza, Cincinnati, Ohio.  The reason was that the owners were not going to renew the lease. (this has become the new official reason for unAmerican Corporate America to close down stores)

 

 

Business/Economics, Idaho, U.S.

What Economic Recovery? Another Kmart going down, nearly 100 people out-o-work! Idaho Kmart for sale? New York Kmart gone! Sears being forced out of Colorado?

06 February 2013, a just released Illinois Worker Adjustment and Retraining Notification (WARN) report revealed that 98 people working at a Kmart in Naperville will soon be unemployed.

Ever since the Kmart bankruptcy, this pad site for sale sign has been seen in the Pocatello, Idaho, Big Kmart parking lot. The Kmart is the only building on the lot.

Also, in New York, a Kmart in Depew will cease to exist by April. 68 people out-o-work.  The reason is the new mantra for shutting down retail businesses: “This store is being closed because the lease was not renewed.”-Howard Riefs,  Kmart spokesman

In Fort Collins, Colorado, the new mall owner wants everyone out, including Sears.  Sears Holdings owns the building and land where their store is, and they’ve said they want that store to remain in business.  However, Alberta Development Partners say the store has to go, as part of their plans to tear everything down and build a new shopping plaza.  Stay tuned.

Here’s my updated list of store closings since the end of 2011:

Arizona: Scottsdale Sears/Great Indoors, Chandler Sears/Great Indoors.

Alabama: Gadsden Kmart (50 jobs lost), Mobile Sears (at least 40 jobs lost), Auburn Kmart (at least 40 jobs lost), Anniston Kmart (no word yet on how many jobs lost).

California:   El Monte Sears (at least 40 jobs lost. Damien Arrula, El Monte’s economic development director, said the store manager had lied about what was going on: “The general manager of the store had just indicated to me that they were remodeling.”), two San Diego Sears (at least 80 jobs lost), Pleasant Hill Kmart (more than 50 jobs lost).

Colorado:  Broomfield Kmart (at least 40 jobs lost), Glenwood Springs Kmart (at least 40 jobs lost), Lone Tree Sears/Great Indoors, Longmont Sears (at least 40 jobs lost), Pueblos’ South Side Kmart (52 jobs lost),  Denver Kmart (number of jobs lost have not been made public at this time, but could be at least 40).

Georgia: Macon Sears (at least 40 jobs lost), Buford Kmart (at least 40 jobs lost), Douglasville Kmart (at least 40 jobs lost), Atlanta Kmart (at least 40 jobs lost), Columbus Kmart (at least 40 jobs lost), Jonesboro Kmart (at least 40 jobs lost), Cartersville Kmart (74 jobs lost).

Guam:  Sears Hometown Store.

Florida: Fernandina Beach Kmart (at least 40 jobs lost), Callaway Kmart (at least 40 jobs lost), Orange City Kmart (at least 40 jobs lost),  Deland Sears (at least 40 jobs lost), Stuart Sears (at least 40 jobs lost), West Palm Beach Sears (at least 40 jobs lost), Port St. Lucie Sears (at least 40 jobs lost), Crystal River Sears (at least 40 jobs lost), New Smyrna Beach Kmart (at least 40 jobs lost), Saint Augustine Kmart (at least 40 jobs lost), Pompano Beach Kmart (at least 40 jobs lost),  Jacksonville Kmart on 5751 Beach Boulevard (71 jobs lost), second Kmart in Jacksonville on 4645 Blanding Boulevard (83 jobs lost), Ocoee Sears (102 jobs lost), Pensacola Kmart on Airport Boulevard closed in 2011, Pensacola Kmart on Mobile Highway closed on 03 February 2013 (69 jobs lost), Hialeah Kmart (67 jobs lost).


Hawaii: Honolulu Sears (owned by GGP).

Idaho: Lewiston Sears (at least 60 jobs lost).

Indiana:  Anderson Sears (at least 40 jobs lost), Saint John Kmart (at least 40 jobs lost), Indianapolis Kmart (at least 40 jobs lost).

Illinois:  Alton Sears (at least 40 jobs lost), Melrose Park Sears parts and repair center (50 jobs lost), Zion Kmart (at least 40 jobs lost), Oak Lawn Kmart (at least 40 jobs lost), McHenry Kmart (at least 40 jobs lost), Peru Kmart (at least 40 jobs lost), Lombard Sears/Great Indoors (at least 40 jobs lost), Fairview Heights Kmart (81 jobs lost), Freeport Kmart (45 jobs lost), Pontiac Kmart (more than 47 jobs lost), Homer Glen Kmart (82 jobs lost), Streator Kmart (45 jobs lost), Lombard Kmart (70 jobs lost).  Recently revealed Naperville Kmart (98 jobs lost). By the way, Illinois elected officials gave Sears Holdings/Hoffman Estates a $150 million USD tax break to keep their headquarters in the state.  The tax break was not tied to any promise not to close stores.

Iowa:  Cedar Rapids Kmart (at least 40 jobs lost), Davenport Kmart (at least 40 jobs lost), Burlington Kmart (50 jobs lost), Coralville Sears (94 jobs lost, this is a store sold to GGP earlier in the year).

Kansas: Lawrence Sears (at least 40 jobs lost).

Kentucky: Middlesboro Sears (in September 2012 the Sears store re-opened under independent ownership, official grand re-opening scheduled for November), Winchester Kmart (back in May, Rankin Paynter bought out what was left of the inventory and gave it to charity), Hazard Kmart (at least 40 jobs lost).

Maine: Lewiston Sears (60 to 70 jobs lost).

Maryland: Ellicott Sears (at least 40 jobs lost), Gaithersburg Sears/Great Indoors.

Michigan: Novi Sears/Great Indoors, Brighton Sears Grand/Essentials,  Harper Woods Sears Full line, Monroe Sears Full line, Adrian Sears Full line, Washington Township Kmart, Chesterfield Kmart, Woodhaven Kmart, Flint Kmart (46 jobs lost).

Minnesota: Willmar Kmart, Duluth Kmart, New Hope Kmart, White Bear Lake Kmart.

Mississippi: Jackson Sears Full line, McComb Sears Full line, Columbus Sears Full line.

Missouri: Lee’s Summit Sears Grand/Essentials, Saint Louis Sears Full line.

Montana: Missoula Kmart (50 jobs lost).

New Hampshire: Nashau Sears Grand/Essentials, Keene Sears Grand/Essentials.

North Carolina: High Point Sears, Moorehead Sears, Rocky Mount Sears, Statesville Sears, Durham Kmart (79 jobs lost), Asheville Kmart (53 jobs lost),  West Smithfield Kmart (59 jobs lost), Winston-Salem Kmart (69 jobs lost).

New Jersey:  Lawnside Kmart (about 80 jobs lost).

New Mexico: Las Cruces Kmart (58 jobs lost).

New York: Recently revealed Depew Kmart (68 jobs lost).

Ohio: Chagrin Falls Kmart, Springfield Kmart, two Toledo Kmarts, Medina Kmart, Columbus Kmart, Columbus Sears/Great Indoors, Zanesville Sears (67 jobs lost), Trotwood Kmart (71 jobs lost).   Also, Van Wert Sears franchise bought out by Kirk Berryman, owner of Computer & Networking Technologies (CNT), who plans on moving the store to a new location.

Oklahoma: Oklahoma City Sears (98 jobs lost, GGP owned).

Oregon: Roseburg Sears (at least 40 jobs lost), Tualatin Kmart Center (new property owner from California is tearing everything down for new shopping center, so far no indication the Kmart will be part of the new shopping center), Milwaukie Kmart (61 jobs lost).

Pennsylvania: Upper Darby Sears Full line, Pottstown Sears Full line, Pittsburgh Kmart, Wilkins Sears, Warminster Kmart (85 jobs lost).

South Carolina: Sumter Sears (at least 40 jobs lost), Orangeburg Sears (57 jobs lost), Columbia Kmart on Fort Jackson Boulevard in 2012, Columbia Kmart on Bush River Road in 2009, Irmo Kmart (no info on how many jobs lost).

Tennessee: Antioch Sears (at least 40 jobs lost), Cleveland Sears (at least 40 jobs lost), Oak Ridge Sears (at least 40 jobs lost), Hendersonville Kmart (at least 40 jobs lost), Morristown Sears (about 70 jobs lost).

Texas: Two Sears parts and repair centers closing in The Woodlands (117 jobs lost), rebuild center in Garland (58 jobs lost), Farmers Branch Sears/Great Indoors, Houston Sears Great/Indoors.

Virginia: Norfolk Sears (at least 40 jobs lost),  Midlothian Kmart (at least 40 jobs lost), Richmond Kmart (at least 40 jobs lost), Lynchburg Sears (84 jobs lost).

Washington: Walla Walla Sears Full line (in August 2012, it was reported that an independent owner of Sears Hometown stores will open a store in Walla Walla), Lacey Kmart (at least 40 jobs lost), Kelso Sears (47 jobs lost), Lakewood Kmart (59 jobs lost), Bellingham Sears (92 jobs lost),  Seattle Kmart (85 jobs lost).

West Virginia: Oak Hill Kmart (59 jobs lost).

Wisconsin: West Baraboo Sears (at least 40 jobs lost, local village officials say the store generated 3% of local tax collections), Rice Lake Kmart (about 71 jobs lost).

On top of that, Sears Holdings sold stores to General Growth Properties (GGP), of which it has been reported that most of those stores will be closed.

Here’s the list of 11 Sears stores now owned by GGP:

Iowa: Coral Ridge Mall (it’s official the Sears is closing, see above), and Mall of the Bluffs

Texas: The Woodlands Mall (this does not involve the two repair centers being closed by Sears)

Florida: West Oaks Mall

Utah: Fashion Place, and Provo Towne Centre (note the evil British empire way of spelling town & center. Due to a favorable lease agreement the GGP owned Provo Sears will continue to stay open under Sears Holdings management)

Oklahoma: Quail Springs Mall (it’s official, the Sears will be closed, see above)

Hawaii: Ala Moana Center (will be closed, see above)

Washington: Bellis Fair Mall (Bellingham store, see above)

Minnesota: Apache Mall

Illinois: Market Place Shopping Center

Business/Economics, U.S.

What Economic Recovery? Illinois to see another 1,200 people out-o-work!

06 February 2013, nine companies in the Prairie State are about to layoff a combined 1,200 employees.  That’s according to a January WARN report.

Lyon Workspace Products: Bankrupt.

Sun-Times Media, major newspaper publisher: Consolidating operations.

Walgreen pharmacy: Laying off warehouse workers.

Naperville Kmart: Lease expired.

Georgia-Pacific Corrugated: Reducing number of manufacturing employees.

Kroger gorcery store: Closing DuQuoin store.  (as I warned a few days a ago)

Cardinal Health: Selling off wholesale operation.

Best Buy electronics retailer: Closing down a store in Skokie.  (as I warned a few days ago)

Business/Economics, International

What Economic Recovery? Sears & Best Buy taking out more than one thousand jobs in Canada! Blame Right Sizing!

Canucks might have thought things were getting better, since Target announced plans to open 135 stores across the Great White North, but here comes Sears and Best Buy to shoot down that hope.

Sears Canada announced they will destroy 700 jobs this year! Company officials say they have to “right size” their struggling operations.

Best Buy announced plans to destroy 900 jobs!  It’s part of the same plan that’s destroying Best Buy jobs in Yankee Land; they are transitioning to much smaller stores and internet operations.

Total Sears Canada and Best Buy jobs to be destroyed this year is 1,600!

Business/Economics, U.S.

What Economic Recovery? East vs West? Gas & Diesel prices shooting up! It ain’t the oil prices! Supply is up, demand is down or are they? California refineries going down, again!

Reports out of Los Angeles, California, gasoline prices more than $4.00 USD per gallon (more than $1.00 per liter).   A 23 cents jump in one week!

In the southeastern Idaho city of Pocatello, gasoline prices have gone up about 25 cents in the past two weeks.  Prices for the more efficient Diesel fuel are about to break the $4.00 mark, but are actually unchanged for the past two weeks.

Once again we can’t blame U.S. oil prices, they’re still under $100 per barrel.

The last time I looked into seemingly unexplained fuel price increases it turned out it was a matter of fuel refined in the western half of the country being shipped off to the more populous eastern half to take up the slack caused by their fuel shortage.

The result was fuel prices stayed lower in the eastern half of the country, but went up for us westerners because our supplies went down! (in the case of California, they had too many refineries down, and their fuel laws make it almost impossible to import refined fuels from out of state)

According to the latest data from the U.S. Energy Information Agency (USEIA) total weekly refined gasoline (Total Motor Gasoline) stockpiles, for the whole country, are up from December, by about ten thousand barrels!  As well, total weekly stockpiles of DSO (Diesel) are up from December, by more than 10,000 barrels!

Aw, let’s break it down into the separate Petroleum Administration for Defense Districts (PADD).

I checked PADD 4 (aka Rocky Mountain PADD, serves my area) and discovered that Total Motor Gasoline weekly stockpiles are down from December by 570 barrels.  Distillate Fuel Oil (DSO/Diesel) stockpiles down by 143 barrels.  So supply has gone down for the Rocky Mountain area.

PADD 5 (West Coast) shows an increase in weekly stockpiles for both gasoline and Diesel.

PADD 3 (Gulf [of Mexico] Coast) also shows an increase in stockpiles of gas and Diesel.  The same for PADD 2 (Midwest), as well as PADD 1 (East Coast).

Is a decrease in stockpiles in PADD 4 the cause of price increases across the country, while all other PADDs show increases in stockpiles?

Is it demand?  According to a recent report out of California, demand for fuel was down (again) for the third quarter of 2012. That claim is based on California fuel tax collections.

However, the USEIA says overall demand for gasoline, across the country, is up from the same time last year.  For 27 January 2012 demand was at 8.018 million barrels per day (MBpD).  As of 25 January 2013 demand was at 8.501 MBpD.  When you’re talking about MBpD that nearly 0.5 increase is a lot.

Now lets look at demand for Diesel.  There should be no reason for Diesel prices to be going up, because the USEIA data shows a slight drop in demand from the same time last year.  On 27 January 2012 demand was at 3.73 MBpD, while data for 25 January 2013 shows demand was at 3.72 MBpD.

So far I can’t find a reason for increasing gas and Diesel prices.  Overall demand is up for gas, but so is overall supply! Diesel prices should be going down, because overall demand is almost unchanged from last year, and overall supply is up from the month prior!  (PADD 4 supply is down, and I couldn’t find any USEIA demand data by PADD)

Regarding PADD 4 area.  Although prices are going up, they’re still considered the lowest on average for the whole United States.

Here’s another possibility for fuel prices going up:  In mid January a lot of U.S. refineries announced they were closing down for maintenance.  Perhaps the price increase is the result of fuel suppliers anticipating the reduced output from shut down refineries?

The following refinery shutdowns were reported back in January by Dow Jones Newswire: Texas City, Texas. Port Arthur, Texas. Borger, Texas. Martinez, California.  Wilmington, California. Los Angeles, California. Carson, California. El Segundo, California. Richmond, California. (remember what I said about California fuel regulations? so many refineries down without being able to ship in more fuel from out-o-state)  Kapolei, Hawaii. Trainer, Pennsylvania.

Warning for Californians: Phillips 66 is considering selling off its two California refineries! They blame increasing regulation by the Golden State, which is driving up the costs of operations. Currently Phillips 66 is the only U.S. oil company with refineries in all 5 PADD areas.  British Petroleum (BP) is also selling off a California refinery, along with the ARCO brand and a refinery in Texas.