Archive for December, 2008
Tuesday, December 30th, 2008
From Bloomberg news online:
“U.S. retailers face a wave of store closings, bankruptcies and takeovers starting next month as holiday sales are shaping up to be the worst in 40 years.
Retailers may close 73,000 stores in the first half of 2009, according to the International Council of Shopping Centers. Talbots Inc. and Sears Holding Corp. are among chains shuttering underperforming locations.
More than a dozen retailers, including Circuit City Stores Inc., Linens ‘n Things Inc., Sharper Image Corp. and Steve & Barry’s LLC, have sought bankruptcy protection this year as the credit squeeze and recession drained sales. Investors will start seeing a wide variety of chains seeking bankruptcy protection in February when they file financial reports, said Burt Flickinger.”
As previously posted on this blog, Riverside County has been affected by the filing of bankruptcies and closings of stores like Circuit City and Linens ‘n Things. From Corona to Temecula to Rancho Cucamonga, store closings have left little of Riverside County untouched. So far only bankruptcy lawyers seem to have benefited. But Flickinger says that retail bankruptcies may be good for the industry in the long run:
“We’ll be going from a Dickens-esque worst of times this December to the best of times in future Decembers because we’ll rationalize out all the redundant retailers and retail space in shopping centers,” Flickinger said.
We shall see…
For More Information: click here
Tags: bankruptcies, Bankruptcy, bankruptcy lawyers, bankruptcy protection, Circuit City, Corona, holiday, Linens 'n Things, rancho cucamonga, retailers, Riverside County, Sharper Image, temecula
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Monday, December 29th, 2008
Four cities in California and six other cities nationwide will be seeking for bankruptcy lawyers soon, according to a prediction by John Moorlach.
Moorlach, the accountant who predicted Orange County’s bankruptcy in 1994, said as many as 10 cities will look for court protection from creditors next year under Chapter 9 of the bankruptcy code, as public finances get worse.
Although he estimated these numbers based on general economic conditions, Moorlach, now chairman of the Orange County Board of Supervisors, didn’t mention the California cities that may file for bankruptcy. Will Corona be one of those municipalities? Is Temecula next? Let’s hope that this coming year, Riverside County cities escape the pain of bankruptcy, so that we can all have a happy new year!
Tags: Bankruptcy, Bankruptcy Code, bankruptcy lawyers, California, Corona, file for bankruptcy, protection from creditors, Riverside County, temecula
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Monday, December 22nd, 2008
Riverside County residents learned earlier this year of Circuit City’s bankruptcy and store closings; now it appears that the stores that remain open may have one less brand of merchandise to sell — Polaroid. Back in February, Polaroid stopped producing it’s signature instant film cameras, and switched gears to focus on LCD TV’s, digital cameras, and other such electronics products. Now, the bankruptcy attorneys for Polaroid have begun the Chapter 11 bankruptcy process because Polaroid’s parent company, Petters Group Worldwide, is embroiled in a fraud investigation. Polaroid said that the bankruptcy reorganization will not impact day-to-day operations, and that Polaroid will likely be sold at the end of the process.
So fear not, Riverside County and San Bernardino County residents. It seems that, for the time being at least, you can still shop for Polaroid products this holiday season, whether at the Ontario Mills Mall, Victoria Gardens in Rancho Cucamonga, the Crossings in Corona, the Tyler Mall in RIverside, or at any of the many other Inland Empire shopping centers.
Polaroid filed for Chapter 11 bankruptcy previously in 2001.
For More Information: click here
Tags: Bankruptcy, bankrutpcy attorneys, chapter 11, Circuit City, Corona, Inland Empire, ontario, Polaroid, rancho cucamonga, Riverside, Riverside County, San Bernardino County
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Friday, December 19th, 2008
From instantriverside.com:
“In a cost-cutting move, Chrysler announced Wednesday that it is halting production of vehicles at all of its factories. It is unclear if this will have any impact on dealerships at the Riverside Auto Center.
Moss Bros. Dodge and Riverside Chrysler Jeep sell Chrysler products at the Riverside Auto Center.
Here is the official statement issued by Chrysler LLC:
Due to the continued lack of consumer credit for the American car buyer and the resulting dramatic impact it has had on overall industry sales in the United States, Chrysler LLC announced that it will make significant adjustments to the production schedules of its manufacturing operations. In doing so, the Company will keep production and dealer inventory aligned with U.S. market demand.
In response, the Company confirmed that all Chrysler manufacturing operations will be idled at the end of the shift Friday, Dec. 19, and impacted employees will not return to work any sooner than Monday, Jan. 19, 2009.”
For Riverside County and San Bernardino County residents, this is another sign that the economic crisis is hitting main street as hard as wall street. Car companies like Chysler are surely being affected by the number of bankruptcy filings, as car loan debts are often high on the list of debt that is discharged when an individual files for Chapter 7 bankruptcy. From Temecula to Riverside, from Chino to Rancho Cucamonga, Inland Empire residents and businesses are feeling the pain. Whether it means discharging the debt in bankruptcy on a car loan that can’t be paid, or simply not being able to buy a new car, Christmas won’t be what it used to be for the customers or the employees of car dealerships this year.
Tags: bankruptcies, Bankruptcy, Bankruptcy Filings, Chapter 7 bankruptcy, chino, Chrysler, economic crisis, Inland Empire, rancho cucamonga, Riverside, Riverside Auto Center, Riverside County, San Bernardino County, temecula
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Wednesday, December 17th, 2008
Although the economic crisis is hitting California as hard as the rest of the country, it is hitting certain counties in California even harder, according to UCLA economists. Riverside County, San Bernardino County, Orange County, and a few other areas will feel the effects of the recession more than the rest of the state.
“The Inland Empire, Orange County, the East Bay and the Central Valley will be hit the hardest as the recession provides a double whammy with a generalized downturn in demand and a postponement of a recovery in residential construction,” says the UCLA quarterly economic forecast.
According to the forecast, the next year will only get worse for Riverside County residents, as unemployment will continue to rise. This, in turn, will lead to less consumer spending and more consumer and business bankruptcies. Bankruptcy attorneys in both Riverside and San Bernardino counties, from Temecula to Rancho Cucamonga, are reporting high volumes of new bankruptcy clients seeking to file Chapter 7 and Chapter 13 bankruptcies. As far as business in California goes, bankruptcy attorneys are among the select few that are seeing an increase in clients from this crisis.
For More Information: click here
Tags: bankruptcies, Bankruptcy, Bankruptcy Attorneys, chapter 13, Chapter 7, Inland Empire, rancho cucamonga, recession, Riverside, Riverside County, San Bernardino, San Bernardino County, temecula
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Wednesday, December 10th, 2008
Banks and consumer advocates recently requested changes that would permit forgiveness of as much as 40% of debt for borrowers who do not qualify for existing programs. The proposed changes would also have permitted borrowers to defer taxes on forgiveness of indebtedness until after the end of any repayment plan. Current law requires borrowers to recognize and pay taxes on the forgiveness of debt immediately. The plan would have benefited lenders by allowing them to recognize losses associated with charge offs of unpaid debt at the end – rather than the beginning – of repayment plans.
The change would have also helped borrowers – particularly those in Orange County and Riverside County where qualification for Chapter 7 may be difficult – who are attempting to avoid bankruptcy by negotiating credit card payoffs.
The Financial Services Roundtable and the Consumer Federation of America, who made the request, hoped such a pilot program would become permanent and that as many as 50,000 people struggling with credit card debt would be involved.
It is unfortunate that the Treasury Department rejected this proposal, as this would have helped residents from Riverside County get back on their feet, and avoid possibly needing a bankruptcy attorney. Until these and other measures are adopted, however, more and more Chapter 7 bankruptcies will be filed in Riverside County and San Bernardino County, from Corona to Murrieta to Rancho Cucamonga.
Tags: Bankruptcy Attorney, Chapter 7, Corona, credit cards, debt, murrieta, Orange County, rancho cucamonga, Riverside County, San Bernardino County, taxes
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Thursday, December 4th, 2008
As the Inland Empire has been one of the hardest hit by the economic recession, it’s not surprising that it is expected to experience an extremely high rate of unemployment — the highest rate in the area in 13 years, and the highest of any large metropolitan area in the country.
The unemployment rate in the Riverside, San Bernardino and Ontario areas reached 9.5% in October, 3% greater than the national rate, and 1.3% greater than the state rate of 8.2%. Other hard hit cities in Riverside County and San Bernardino County include Corona, which has seen a large number of foreclosures, as well as Temecula and Murrieta, which have had a high number of bankruptcy filings recently. Indeed, bankruptcy attorneys all over the Inland Empire are noticing increased bankruptcy filings, many of which involve recently unemployed clients.
The reason of these shocking numbers is mainly the local housing market collapse. Its effects immediately impacted the construction and lending industries, and eventually the effects crept to almost every industry, including retail, manufacturing and local government.
Unemployment has driven people to search for bankruptcy lawyers in order to solve their financial problems before it’s too late, or to find other alternatives such as debt negotiation, or a modification on their loan terms.
Read a related LA Times article here
Tags: Bankruptcy Attorneys, bankruptcy lawyers, Corona, debt negotiation, economic recession, Inland Empire, loan modification, murrieta, ontario, Riverside, Riverside County, San Bernardino, San Bernardino County, temecula, unemployment
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