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From the Rich Wire: Capital TechSearch to hold emergency workshop for out-of-work IT(BizSense)
Two identical workshops are scheduled on Wednesday that will include small group career counseling with a recruiter from Capital TechSearch. The topics: What are companies looking for right now, what skills should you highlight on your resume, and What are networking skills that will give you an edge? Genworth trims expenses, pays off debts, plans to buy Minnesota S&L (Times-Dispatch)
Genworth Financial Inc. is trying to ride out an economic storm that is battering its stock value and forcing it to take painful steps, including likely layoffs, to stay afloat. The storm has come from two directions, whipped into a fury by a housing-market collapse that has forced Genworth to make huge payouts on failed mortgages that it insures and a stock-market meltdown that has cut deeply into the company's investments while decimating its own stock price. Tallying the destruction (Times-Dispatch)
The Times-Dispatch's John Reid Blackwell provides a helpful summary of what's happening at the major publicly-owned companies. With two financial firms that insured parts of the housing market, and with a retailer that sells TV's, Richmond is suffering from the fallout from all those subprime loans. S-A-T-I-R-E Horrible Blogger Blames Lack Of Readers On Bad Economy (Tobacco Avenue)
“I can see that gas prices are heading down, which could be good for me,” said Irwin, who does not realize that her blog, which had two readers yesterday - her parents - has no relation to the financial crisis Penny-pinching buyers push local businesses to breaking (Virginian-Pilot)
The credit crunch and a deteriorating economy have mounted pressures on small businesses that already struggle to survive. Since July, several small businesses have closed in Hampton Roads, including Chesapeake Hardwood Products Inc., seven David Nygaard Fine Jewelers stores, Green Alternatives in Norfolk, Portsmouth’s Comfort restaurant and Bobby Huber’s Bobbywood restaurant in Norfolk. Tidewater Sports & Collecti bles Inc. also filed for bankruptcy. More Holiday Job Seekers, Fewer Spots on Sales Floor (Washington Post)
Faced with plummeting sales and spooked shoppers, retailers have cut back on holiday hiring at a time when their pool of applicants is swelling with those who have been laid off from other industries. About 272,000 retail jobs were open at the end of September, according to government data released last week, down 24 percent from the same month last year. Those numbers are expected to drop further as retailers cut back on opening new stores and close those that don't perform well. Small Firms Shiver as Health Premiums Rise (WSJ)
Already struggling in a tough economy, many small employers are about to face another big hit: markedly higher increases in health-insurance premiums as they head into 2009. For many of these companies, the steeper increases couldn't come at a worse time, when the economy is weakening and credit is harder to come by Credit crisis sends economic forecasters' views downhill fast (USA Today)
Forecasters' views of the economy are deteriorating rapidly, with economists now expecting job losses to be deeper and last longer and consumers to cut back spending at a far more rapid pace than earlier thought. The U.S. economy is contracting at a 2.6% annual rate in the last three months of the year and will fall at a 1.3% pace in the January-March quarter, according to a survey of 50 members of the National Association for Business Economics taken Oct. 28-Nov. 7 and released Monday. Alternative Places to Network (Entrepreneur)
Look beyond your standard groups and cocktail receptions for business connections that really work.
Chesterfield accountant gets prison in theft from firm (Times-Dispatch)
one-man embezzlement scheme that drained $757,000 from a Henrico County cleaning-supply firm put the firm's former accountant behind bars yesterday.Fifteen months after he was arrested and released on $75,000 bond, John N. Sacco received a 28-month prison sentence. Bank financing Landmark Hotel sees tough times (Daily Progress)
At the end of the third quarter of 2008, Silverton Bank disclosed that slightly more than half of its portfolio was invested in construction or real estate. Of these loans, 17 percent were in nonaccrual status — meaning they were 90 days or more in default. At the beginning of the year, only 4 percent of the bank’s loans were in nonaccrual status, according to an analysis by SNL Financial, a Charlottesville-based business analysis firm. Minor league baseball in Salem gets new identity (Roanoke Times)
A year after being bought by a sister company of the Boston Red Sox, Salem's minor league baseball franchise is changing its name to the Salem Red Sox. The new name and a new logo, with the iconic red socks dangling in front of a stylized background of the Blue Ridge Mountains, will be unveiled this afternoon at a news conference, general manager John Katz said. Lower Gas Prices Don’t Make Americans Feel Rich (NY Times)
But even as worry about gas prices fades, it is being replaced by fear about the broader economy. Each 10-cent drop in gasoline prices puts $12 billion a year back in consumers’ pockets. Instead of spending that cash, people are trying to save it or cut their debt, many said in interviews. Sellers Offer a Financial Hand to Their Buyers (WSJ)
For small companies looking to cash out, this may be an ideal time -- if they are willing to give sellers a financial hand. The reason is that fewer businesses are on the block these days as owners fret over the ability to live off their proceeds during the economic and market downturn. A smaller supply of sellers means those companies that show stability, profits and steady cash flow can command a premium price. But there's a catch: Buyers are generally finding greater difficulty getting commercial loans from banks. Loans backed by the Small Business Administration have dropped off precipitously in recent months. Even private equity firms -- long known for taking a chance on scrappy young companies with high growth potential -- are acting more conservative. Changes may make SBA lending profitable again (Baltimore Business Journal)
The Small Business Administration hopes to encourage lenders to resume making 7(a) business loans by letting them charge higher interest rates to borrowers. The big three are a national disgrace but we still need to save them (Slate)
Allowing the listing Big Three to keel over would be a triumph of free markets. It would punish failure and invite new managers and investors to enter the field. I'm a big fan of creative destruction and its wondrous benefits. (I wrote a book about it.) But I also think the no-bailout folks are being too cavalier. The Weekly Wind Down: The Stupidest Exercise Machine You'll Ever See
This week we've found a business that has produced perhaps the most ridiculous exercise device yet. And that's quite a feat considering some of the products out there. The music is just as good. Enjoy.
Luck Stone announces cuts (Times-Dispatch)
A housing slowdown, the financial crisis and cuts to state transportation funding have prompted Luck Stone Corp. to lay off or reassign nearly 17 percent of its work force. Of the 150 people affected, most were notified yesterday, the company said. Layoffs were immediate. Around 40 of those who were let go work in Goochland. Area homes losing value (Times-Dispatch)
Local home values fell 1.6 percent in the third quarter from the same period a year ago, compared with 9.7 percent nationally, the report stated. The median home valuation, meaning half were valued for more and half for less, was $222,306 in the third quarter, down from $225,863, according to the report. The peak was $228,608, in the second quarter of 2007. APM chooses Portsmouth as company headquarters (Virginian-Pilot)
APM Terminals Inc. is moving its Americas headquarters to Portsmouth and has already relocated 16 senior executives and support staff, spokeswoman Allison Enedy said Wednesday. Some Firms Suspend Their 401(k) Match (WSJ)
As the economy worsens, a growing number of small businesses are suspending their 401(k) match, and, in some instances, closing the retirement plans altogether. While only about 15% to 20% of small businesses offer a 401(k) plan, many added them in recent years to attract and retain workers and to help business owners save for retirement. But the economic downturn and higher health-insurance costs are forcing companies to cut back on retirement benefits. U.S. Shifts Focus in Credit Bailout to the Consumer (New York Times)
The Treasury Department on Wednesday officially abandoned the original strategy behind its $700 billion effort to rescue the financial system, as administration officials acknowledged that banks and financial institutions were as unwilling as ever to lend to consumers. But with a little more than two months left before President Bush leaves office, Treasury Secretary Henry M. Paulson Jr. is hoping to put in place a major new lending program that would be run by the Federal Reserve and aimed at unlocking the frozen consumer credit market. Five Tips for Managing After Lay-Offs (BNET)
Lay-offs are at their highest rate since the economic slump that followed 9/11 and the popping of the tech bubble, so one company is looking back at that time for five lessons on how to manage survivors after heavy job cuts. The Look of Despair (Slate)
It’s difficult to illustrate many business stories, especially an economic collapse. All of the action takes place nonvisually—stock prices dribble downward, mortgages go unpaid, and jobs go missing. Newspapers, Web sites, and television news crews are left searching for a way to offer a tangible face to a nebulous crisis. Left with no choice, they’re forced to turn to the same worn animal over and over again: The Broker With His Hands on His Face
Ten Va. firms listed as military-friendly (Times-Dispatch)
Henrico County-based security firm The Brink's Co. and Norfolk-based railroad company Norfolk Southern Corp. are among the nation's Top 50 military-friendly employers, according to G.I. Jobs magazine. The magazine chose the companies based on criteria such as how many of their new hires are veterans, what resources they devote to recruiting and training veterans, and whether they provide full salaries or pay differentials for employees serving in the Reserves and National Guard. Genworth Financial shares plunge on downgrade (AP)
Shares of Genworth Financial Inc. sank to the stock's all-time low Tuesday, a day after Moody's Investors Service cut one of the insurance company's credit ratings and downgraded the financial strength of its life insurance subsidiary. The latest slide in Genworth's stock also came after the former General Electric Co. unit disclosed in a regulatory filing Monday that it is no longer eligible to participate in a federal program to sell commercial paper, a source of short-term funding for companies. Recession primer: How to cut costs (Virginia Gazette)
Businesses and local governments have suddenly been forced to cut expenses. Consider the expertise of Gary Williams, managing director of Expense Reduction Analysts in Toano. Since 1992, his analysts have averaged savings of nearly 20%. Buying Binge Slams to Halt (New York Times)
Suddenly, our consumer society is doing a lot less consuming. The numbers are pretty incredible. Sales of new vehicles have dropped 32 percent in the third quarter. Consumer spending appears likely to fall next year for the first time since 1980 and perhaps by the largest amount since 1942. With Wall Street edging back from the brink, this crisis of consumer confidence has become the No. 1 short-term issue for the economy. Nobody doubts that families need to start saving more than they saved over the last two decades. But if they change their behavior too quickly, it could be very painful. Running On Empty: GM's Fate Is Debated (Washington Post)
As General Motors burns through cash, edging its way toward possible financial collapse, a growing number of analysts have said bankruptcy might be inevitable. GM insists such a move is out of the question, and as the debate roils, people on both sides point to two past scenarios for lessons. Street Smarts: What the Financial Crisis Means for You (Inc.)
This is the great explanation of how the credit crunch is affecting small biz: It seems pretty clear that we are heading back to the time when banks preferred to lend money to those who didn't need it and it took a good deal of ingenuity to get any loan at all. Listen, small-business banking goes in cycles. Even before the latest meltdown, it was clear that we had moved from one cycle to another. Laid off? No, you've been 'simplified'(Fortune)
When it's time to announce layoffs, executives embrace phony euphemisms to soften the blow.
Altria expects Va. headcount ‘to decline’ with buyouts (BizSense)
Altria, the parent company of Philip Morris USA, has started offering buyout packages to what might amount to 30 percent to 50 percent of the tobacco giant’s employees, including those in Virginia. Some Richmond employees were presented with offers on Monday. Others found out last week. A longtime plant worker said employees had two weeks to decide whether to take the packages. BizSense is still trying to obtain a copy of the severance packages. If you have one, please email it to
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. Gas prices are down, so what’s with the fuel surcharges? (BizSense)
Fuel surcharges stick to invoices like bugs to the windshield. As gas prices soared in the past year, contractors, livery cabs and other businesses tacked on fuel surcharges to offset the rising price of precious petrol. But now that the price of gasoline is at three-year low in the Richmond area, businesses are slow to remove such charges. Circuit City files for bankruptcy (Times-Dispatch)
Testimony during yesterday's hearing painted a bleaker picture of Circuit City's financial distress than even close observers had envisioned. Galardi also told the judge that as recently as Sunday, vendors ordered trucks delivering merchandise to Circuit City stores to turn around. An attorney for Panasonic said the company would request an injunction asking the chain to return its merchandise. Circuit City carried Panasonic products on a consignment basis. One lawyer asked Judge Kevin R. Huennekens to approve the $1.1 billion loan so it could be in place by tomorrow, in time for Circuit City to meet payroll. THE WSJ is reporting that CC's standing with suppliers "crumbled in a matter of days after it disclosed its worsening financial state and store closings on Monday." Some electronics makers stopped shipping or demanded payment in advance. Canadian envoy tours Richmond (Times-Dispatch)
an estimated 197,000 jobs in Virginia are a result of trade between the nations, which amounts to more than $5.2 billion each year. The ambassador from Virginia's biggest trade partner toured Richmond yesterday to keep the relationship strong. Employers value vets' skills, but many haven't hired them (Virginian-Pilot)
Employers overwhelmingly think well of veterans' skills, a national study says, but most haven't hired a veteran of the Iraq or Afghanistan wars in the past three years. Not a Bad Time for Small Businesses to Raise Prices (NY Times)
Some small-business experts are offering advice that may sound counterintuitive in this slowing economy. Now, they argue, may be the perfect time to increase your marketing budget — and even your prices. Small Firms Get Local Loans (WSJ)
Small businesses have been having increasing trouble getting loans as the credit markets have seized up. But some, such as Tio's Mexican, are finding that smaller community banks and credit unions are more open to offering financing. For one thing, many smaller lenders are in relatively strong financial shape because they didn't make the types of investments that got many of their larger brethren in trouble. In addition, private local lenders may be more familiar with a region's business climate, so they are better able to look beyond national trends to base their decisions on the more immediate factors affecting an individual business. Avoid Legal Time Bombs (Entrepreneur)
Learn whether your business is vulnerable to getting sued. Find the holes in your business, and stop lawsuits before they start.
Regrets as chain fights to survive (Times-Dispatch)
For all the superlatives, the story of Circuit City also is one of missteps and missed opportunities in a rapidly changing marketplace, according to former executives, board members and retail observers.Circuit City's problems largely stem from decisions in the 1990s and early this decade, including testing new ventures that distracted executives from the core business. Company executives believed in the 1990s that they were taking the right steps to plan for Circuit City's future, former executives and employees say. Great reporting and a must-read. Second-hand surge (Roanoke Times)
Looking to save a little extra, shoppers are increasingly turning to thrift and resale stores. But decreased donations have stores scrambling to maintain their inventories. A Retreat From Retail (Washington Post)
Retail, which represents almost a quarter of the 800-million-square-foot commercial real estate space in the Washington area, has been hit much harder than the office and warehouse segments of the industry because of the troubles national chain stores are facing, experts say. About 2,200 retail jobs were lost in the region this year Banks give more generous perks for new deposits (USA Today)
Banks, large and small, are rolling out ever more generous perks — airline tickets, cash and even donations to charity — to drum up business at a time when their balance sheets are groaning under the weight of bad loans. Goodbye Seduction, Hello Coupons (NY Times)
marketers are scrambling to remake their advertising so products seem affordable and sensible rather than indulgent and fabulous. For many big marketers, including automakers, retailers, consumer product companies and even financial services, a major shift in consumer psychology spells an end to the aspirational advertising that has dominated their campaigns for the last decade. Jim Cramer: Why Obama Should Hire Me To Save the Economy (Slate)
I say this in all serious, Obama must hire me as his SEC chairman, Fed chairman, and Treasury secretary, three in one—like the oil. Here's my job application: I promise I will work harder than anyone else because I have problems sleeping—I wake up at 4 a.m. every morning at the latest—and most importantly, I have an intense inferiority complex, and I at last want to live up to my father's expectations. That, and I know exactly what we need to do, much better than the current crowd of jokers who are partially responsible for the mess we're in. A Cold Call, a Blog, and a $20 Million Lawsuit (Inc.)
A North Carolina entrepreneur blogs a warning to her industry -- and gets sued for her troubles.
Genworth moves to 3Q loss, withdraws guidance (AP)
Genworth Financial Inc. on Thursday reported a third-quarter loss as the insurance company booked sizeable investment losses due to market turmoil. The company also withdrew its full-year guidance said it would suspend its quarterly dividend and stock buyback program. Genworth also said it will consider asset sales. Martin CEO to receive award (Times-Dispatch)
John Adams, the chairman and chief executive officer of Martin, will be presented with the George C. Marshall Award by the World Affairs Council of Greater Richmond at a dinner next week. He was chosen for the award because Martin has lifted "the standing of Richmond and Virginia in international commerce," said Randolph Bell, president of the World Affairs Council. The council is a nonprofit educational organization. Mountain Lake Hotel will trim winter staff (Roanoke Times)
Cash flow to Mountain Lake Hotel is slowly drying up, forcing managers to cut back on its off-season employees. The hotel will lay off about 10 people from its usual winter staff of about 15, effective Dec. 1. The hotel was the set for the 1987 hit movie "Dirty Dancing" Commonwealth Bankshares reports $9 million in losses (Virginian-Pilot)
Commonwealth Bankshares Inc. said Thursday that it lost more than $9 million in the July-through-September quarter after adding $20 million to its reserve for troubled loans. The Norfolk-based parent of Bank of the Commonwealth also reported that its nonperforming assets ballooned to $33.1 million at the end of September from $5 million one year earlier. Such assets now account for 3.2 percent of the bank's total assets. Retailers Report a Sales Collapse (NY Times)
Sales at the nation’s largest retailers fell off a cliff in October, casting fresh doubt on the survival of some chains and signaling that this will probably be the weakest Christmas shopping season in decades. What bailed-out banks spend on lobbying (USA Today)
Nineteen banks taking taxpayer money from the Treasury Department have spent $32.4 million lobbying the federal government during the first nine months of this year, their lobbying disclosure reports show. Combined, the Treasury is investing in the banks $159 billion from the $700 billion financial rescue package approved by Congress last month. None of the banks has indicated it plans to stop lobbying. 5 Innovative Ways to Boost Sales in a Down Economy (SmartMoney)
During the downturn that occurred between 1999 and 2003, nearly a quarter more companies made the leap from laggards to leaders (by boosting sales and net profit margins) than during the four-year period of economic calm that followed, according to an eight-year study conducted by Boston consulting firm Bain & Company. The study, which analyzes the profit and sales growth of more than 2,500 businesses, shows that a fair share of the gains made by companies during that time resulted from better cost management and more effectively tapping into new business opportunities.
Circuit City hires firms to liquidate inventory at 155 stores (Times-Dispatch)
Circuit City hired Gordon Brothers Group LLC and Hilco Merchant Resources LLC to handle the liquidation at 154 of the stores. Circuit City will handle the remaining store, but it did not disclose which one it is. From the proceeds, the liquidation companies will pay Circuit City 72 percent of the cost value of merchandise, the chain said in a Securities and Exchange Commission filing yesterday. Colonial Williamsburg cuts jobs in slowdown (Daily Press)
The Colonial Williamsburg Foundation said Wednesday that it will cut 140 workers and eliminate an additional 140 open positions as the weak economy strikes the tourism industry. The cut represents about 5 percent of the work force, dropping Colonial Williamsburg to a total of about 2,860 full-time workers. The layoffs are part of an effort to cut $20 million in spending in 2009. After a big pop from Jamestown 2007 last year, the Historic Triangle has suffered from a major slowdown. Small-Business Owners Lobby to Cut Credit Card Fees (NY Times)
Small merchants have long chafed at the fees they must pay banks every time a customer swipes a debit or credit card. But now, with business slowing and every dollar important to their bottom line, some merchants are pushing for changes. Seniors and retirees step up hunt for jobs in bad economy (LA Times)
It sounds like an oxymoron, but working in retirement is fast becoming the norm for many older Americans -- forced by dwindling financial resources and a recessionary economy to stay in or return to the job market.
Economy's Downdraft Is Blowing Through Commercial Real Estate (Washington Post)
With few lenders doling out money these days, commercial real estate sales -- including office, mall and warehouse properties -- are expected to be less than half of last year's record-setting $514 billion. More than $14.5 billion in deals have been canceled or pulled away from this year. n addition, growing layoffs and falling profits mean companies are giving up office space at rapid rates. Nationwide, more than 19 million square feet of space -- enough to fill more than 300 football fields -- has been emptied by office users this year, the most since the months after the Sept. 11, 2001, attacks. Firewood: Feeling the burn (Roanoke Times)
Many people see firewood as a cheaper source of heat, but obtaining it is more expensive now than in the past. In Era of Blog Sniping, Companies Shoot First (NY Times)
In the age of transparency, the layoff will be blogged. In the age of transparency, the layoff will be blogged. McCain Lost because he never got the economy right (Slate)
To commemorate McCain’s passing, we decided to relive his campaign’s 10 greatest economic moments—ranked here from mildly offensive to seriously damning. Barack Obama's Victory: Three Lessons for Business (Business Week)
The Illinois senator built his decisive win on three leadership principles: a clear vision, clean execution, and friends in high places
Free coffee and ice cream on Election Day (BizSense)
Starbucks is giving out free coffee to people who say they have voted. Ben & Jerry's is dishing out free ice cream from 5:00 p.m. to 8:00 p.m. Chesapeake gets time to restructure (Times-Dispatch)
The company said yesterday that it reached a forbearance agreement with its lenders under its $250 million senior secured-credit facility. An agreement enables a company to postpone loan payments while it works on a restructuring plan. Chesapeake, which has most of its operations overseas, makes paperboard packaging for pharmaceuticals and other products, and plastic packaging for specialty chemicals and beverages. Circuit City Shrinks In Bid to Save Cash (Washington Post)
The struggling Richmond-based electronics retailer said it hoped the moves would help cut costs and conserve cash. Several of its vendors have begun to limit credit, including requiring payment before the goods are shipped, the company said. Some vendors have also refused a traditional increase in Circuit City's credit to purchase holiday merchandise. Is today's economic crisis another Great Depression? (USA Today)
By any measure, our current economic suffering pales in comparison with what the nation endured from 1929 through 1939. Still, most economists are predicting a long, difficult period ahead. Could it eventually become a depression? It's possible — but not likely. CEOs Buck Obama (Slate)
Guess which group is mostly likely to “fear Barack Obama” by a 5-to-1 margin. Not Just Any Partner (Entrepreneur)
You like marketing; he likes accounting. You enjoy designing new products; she's a sales guru. Finding a business partner with complementary skills can be the best thing you do for your business--and yourself.
Ad Report Card: A strong dose of scary (BizSense)
Are ads for VCU Health System's new $184 million critical care center just be too darn depressing? A decent city for singles (BizSense)
Richmond is ranked 42nd among the 100 best metropolitan areas relocating singles, according to the yearly list compiled by relocation analysts Primacy Relocation and Worldwide ERC. Media General buys Richmond.com (BizSense)
Media General announced that it has acquired Richmond.com. Terms of the deal were not announced. One source familiar with Richmond.com said that company’s biggest revenue came from real estate advertising. Media General said it will close Richmond.com's Main Street (near VCU) offices and let go much of the staff. Circuit City to announce store closings (Times-Dispatch)
Employees at some stores were notified yesterday morning that their stores will close. A letter was distributed to employees at a Circuit City store in Douglasville, Ga., west of Atlanta, informing them that the store will permanently close by the end of the year and that they will lose their jobs. Luster off luxury market (Times-Dispatch)
Gary B. Baker, owner of Beverly Hills Jewelers on Staples Mills Road, said that since late summer, he has seen the biggest drop in business since 1980. In bankruptcy court, lives are turned upside down in minutes (Virginian-Pilot)
For some consumers, credit-card balances have grown out of control. For others, a sudden loss of income, maybe from a job layoff, or costly medical problems render them unable to pay their bills. Many are casualties of the housing crisis. In the courtroom, dark-suited lawyers stand up from the pew-like benches one by one and make their cases to the judge. Most represent lenders that want to collect their money or seize houses or vehicles from an individual who has failed to pay on time. Fund Managers learn to say "I'm sorry" (Washington Post)
Unlike other apologies, this is a special art form. When stock managers or strategists say they are sorry, their apologies are usually cloaked in a language all its own. They blame irrational market sentiment, hail the Patient Investor, invoke the folk wisdom of Warren Buffett and try to stop badly burned customers from heading to the exits by recalling how suddenly and unpredictably markets have, historically, recovered. Spending drops 0.3% in September, most in four years (USA Today)
Consumer spending dropped in September by the largest amount in four years while incomes suffered because of Hurricane Ike. The Commerce Department says personal spending fell 0.3% last month, biggest decline since June 2004. That followed flat readings in both July and August, contributing to the worst quarterly performance in 28 years. Procure your piece of the bailout (Fortune)
Lucrative government contracts are up for grabs as the Treasury Department scrambles for vendors to fulfill the provisions of the bailout bill passed earlier this month. Will small businesses get a piece of the action?
Circuit City warned stock may be delisted (Times-Dispatch)
The New York Stock Exchange has warned Circuit City Stores Inc. that it did not meet listing criteria and could be taken off the exchange as early as April. The company was notified last Friday. It was given 10 days to respond in writing to the exchange explaining its plans to turn its share prices around. HHHunt pulls the plug for now on Branner Station (Chesterfield Observer)
It could become a sign of the times - HHHunt has suspended its plans to build Branner Station on 1,614 acres southeast of Chester. Just approved last year, Branner Station called for 2,449 single-family homes, 1,331 condos and townhouses, 908 apartments, 300 assisted living units and 470,000 square feet of office and retail development. Halloween sales more treat than trick this season (Virginian-Pilot)
The economic goblins haven't scared most consumers away from Halloween shops and attractions this year, according to local businesses that target the holiday. A half-dozen Halloween, party and costume stores reported that sales were steady or up from last year. Advance Auto sees consumers struggle (Roanoke Times)
Comparable store sales dropped 0.1 percent in the latest three-month period from a year earlier, the company said in its third-quarter earnings report. Slow Payments Squeeze Small-Business Owners (WSJ)
The growing wave of late payers is hurting many companies that were already reeling from the economic crisis themselves. It's also damaging healthy companies. Small businesses are hugely dependent on their cash flow, so they must either cut costs or scramble to find alternative funding if they aren't being paid on time. With money tight and bank loans hard to get, a cash-strapped company can easily be pushed to the brink. Making matters worse, big companies typically delay payments to their smaller suppliers first -- in part because small businesses are unlikely to have teams of people devoted to chasing down their accounts receivables. Recession Watch: Starbucks Now Being Mean to Its Employees (Slate)
The coffee giant has recently responded to hard times with scheduling changes that are likely to inflict misery on its employees. These policies seem sharply at odds with Starbucks' reputation for social responsibility but make sense in the context of the company's record as an employer. Curiously, the coffee retailer's benevolent image seems most fragile at the moment that the company's best days seem to be receding into the past. Life as a modern-day pirate (LA Times)
Straddling a wooden crate filled with $1 million in cash ransom, a cranky old pirate bellows names from a notebook as his anxious, bleary-eyed minions lean against the stone walls of their cramped hide-out. The grizzled buccaneer, chain-smoking Marlboros as he taps into his calculator, checks the notebook again for outstanding loans or fines before counting out each man's share of the bounty in musty $100 bills paid to release a hijacked Thai ship off the Somali coast. Is the Office Bully Back? (BNET)
Volatile economic times bring out workplace volatility, too. If stress has your employees behaving badly, here's how to take back the office. The weekly wind-down: (S-A-T-I-R-E) Breast Cancer Launches WNBA Awareness Month (The Onion)
Leading representatives of the Susan G. Komen Breast Cancer Foundation announced Wednesday that the month of October would officially be known as WNBA Awareness Month, and commemorated the occasion by donating $80 million of their funds to promote the early detection and ultimate eradication of the all-female basketball league.
There's so many people I'd like to thank (BizSense)
Ten local start-ups were knighted "companies to watch" last night by the Venture Forum, a group that promotes entrepreneurship in Central Virginia. Around 300 people attended the event, which was held at Toad's Place. Former Wachovia gurus launch mutual fund (BizSense)
Riverfront Investment Group announced Tuesday that it has launched Riverfront Long-Term Growth Fund, which will invest in a variety of domestic and international stocks and bonds. The timing of a new mutual fund might seem less than ideal, what with stocks taking a pounding of late. But Michael Jones, the chief and chief operating officer, said he thinks the down market could be a blessing. "Given valuations in the market now, it's a great time to launch a fund. You can build a track record off some extremely distressed equity pricing," Jones said. Highwood's starting lineup (BizSense)
If Highwood Properties' proposal to redevelop the Boulevard and Shockoe goes forward, a handful of local firms stand to get their slice of the $785 million construction and hourly billing / fee-for-service pie. From the Rich Wire: RVA Construction to Move Headquarters to Hull Street Downtown (BizSense)
RVA Construction, a commercial Class-A general contractor serving the Richmond region, today announced the purchase of a new location for their corporate headquarters in the Manchester Heights section of Downtown Richmond, located at 515 Hull Street. RollsRoyce plans on track (Times-Dispatch)
Rolls-Royce PLC is maintaining its plans for an aircraft engine assembly and testing plant in Virginia, although a slowing economy means "belt tightening" for the company, an executive said yesterday. London-based Rolls-Royce, which has its North American headquarters in Reston, announced in November it would build a $100 million plant in Prince George County to manufacture jet engines. It is scheduled to open in phases in Crosspointe Center industrial park off Interstate 295. Tough economic climate prompts Landmark to halt sales (Roanoke Times)
The holdings of Landmark Media Enterprises LLC are being taken off the market, some 10 months after being offered for sale. Norfolk-based Landmark announced Wednesday it would stop actively marketing its businesses, largely made up of a group of newspapers and two television stations, because potential buyers can't get credit and values have declined with falling advertising volume. BizSense: That likely means Style Weekly is also off the auction block. It's a boom time for lawyers (LA Times)
In addition to attorneys suing lenders, there are others providing counsel for companies that are downsizing or have been pushed into bankruptcy. Others are representing clients in fraud lawsuits against banks and Wall Street investment firms. And there are lawyers guiding distressed banks and others seeking a piece of the $700-billion government bailout of the financial system. The country may be slipping into recession, but it's shaping up to be boom time for lawyers. Luxurious lifestyles take a hit (USA Today)
The merely wealthy worry more than the fabulously wealthy. Among families worth $1 million to $10 million, 76% planned to cut spending. Of those who are worth at least $30 million, only 29% planned to trim. Hey, Corporate Honchos, Democrats Aren't Bad for Business (Slate)
Why can't corporate America end its perverse love affair with Republican politicians? Entrepreneurs Turn Business Failure into Success (Business Week)
These entrepreneurs turned failure into triumph
Correction: Eagle Construction of Virginia builder not behind on payments to subcontractors
In yesterday’s e-mail and on the website, we erroneously stated that Eagle Construction of Virginia was behind on payments to sub-contractors. Charlottesville-based Church Hill Homes was behind on payments to contractors, as reported by The Hook, not Eagle Construction. BizSense regrets the error. Developers throw Richmond a meatball. Or is it a knuckle ball? (BizSense)
On Monday the City of Richmond finally announced its plans for Shockoe Bottom and North Boulevard: Tear down the Diamond, and build a new stadium downtown. Throw in an ample mix of retail, office and residential development at both sites. Just $765 million later, fans will have a new baseball team, the city will once again be a major shopping destination, and peace and prosperity will reign over the area for 1,000 years as a choir of heavenly angels sings. BizSense has five pros and five cons of the plan. Clock ticks on baseball funding (Times-Dispatch)
Highwoods Properties, chosen this week as the master developer of almost 20 acres in Shockoe Bottom and 65 acres on North Boulevard, will have until March 1 to convince the city and its financial advisers that the $785 million projects make economic sense for Richmond residents. BizSense's take: What remains unclear is how quickly the project could get financed -- given the current lockdown on credit and a lousy climate for issuing bonds on the bond market. Airport plan's tag: $1 billion (Times-Dispatch)
Richmond International Airport, which is just completing a $78 million makeover of its passenger terminal, yesterday outlined nearly $1 billion of additional improvements to handle anticipated growth. Shuttered Burger King eateries spark angry reactions (Virginian-Pilot)
One man "thought it was hilarious that we didn't have Whoppers," she said. "Other people want to cuss you out." One night, workers counted 79 people who drove off after learning their order was not available at the restaurant on Western Branch Boulevard, Cuyler said. Sometimes a manager sent someone to buy napkins or straws at a discount store, she said. Consumers Feel the Next Crisis: Credit Cards (NY Times)
Lenders wrote off an estimated $21 billion in bad credit card loans in the first half of 2008 as more borrowers defaulted on their payments. With companies laying off tens of thousands of workers, the industry stands to lose at least another $55 billion over the next year and a half, analysts say. Currently, the total losses amount to 5.5 percent of credit card debt outstanding, and could surpass the 7.9 percent level reached after the technology bubble burst in 2001. Capital One has aggressively shut down inactive accounts and reduced customer credit lines by 4.5 percent in the second quarter from the previous period, according to regulatory filings. Get Back to Business Planning Fundamentals (Entrepreneur)
In a recession, it's important to know what adjustments to make to your business plan. Here are three fundamentals to remember.
Bracing for the ad pullback (BizSense)
Chris Thurston, chief executive at the Richmond advertising firm RightMinds and a 20-year veteran of the industry, said he’s seeing some retraction in retail clients. “I’ve been through downturns and recessions,” Thurston said. “This is by far the worst.” RightMinds has cut eight positions since the summer, including two layoffs in the past two weeks.It comes as no surprise that local marketing firms and sole practitioners are bracing for a slowdown, and the outlook will probably get worse as state and local nonprofits slash 2009 budgets amid declining revenue. Survey results are in (BizSense)
There was a wide range of industries represented in the survey, with 75 percent saying your business was trying to expand. More than 60 percent of you think about starting a business.We received about 75 suggestions on what types of stories we should write, and some answers contradicted others. I guess that goes to show you can’t be all things to all people. Baseball Proposed in the Bottom, new look for Boulevard (Times-Dispatch)
A $60 million baseball stadium would be built in Shockoe Bottom as part of a $363 million development on almost 19 acres of public and privately owned land under a plan unveiled yesterday. The project would include a museum dedicated to black history in the Bottom, once a center of the slave trade. Meanwhile, along North Boulevard a $422 million town-center development would replace The Diamond, the Ashe Center, Sports Backers Stadium and a sprawling public-works complex on 65 acres owned by the city and other public institutions. Circulation declines at Times-Dispatch (Times-Dispatch)
The Times-Dispatch's average weekday circulation dropped 7.1 percent to 160,886 copies for the six months ending Sept. 30 when compared to the same period in 2007, according to figures released yesterday by the Audit Bureau of Circulations. Sunday circulation was down 5.6 percent to 196,271 copies. James River barge delayed (Inside Business)
Barge service was supposed to start Oct. 1. But the launch has been delayed until sometime in December. Host said he’ll spend the next 30 to 45 days drumming up support for his endeavor. That means knocking on the doors of potential users of the barge service. The one thing that has delayed the service for almost two years has been the lack of money to underwrite some of the costs. Chesapeake company fined for environmental offenses - again (Virginian-Pilot)
For the fourth time in eight years, a Chesapeake concrete company will pay a significant fine for state environmental violations at its plant near the Elizabeth River. Up and Down on Main Street (Washington Post)
Merchants on a Historic Road in Fairfax City Express Resilience and Show Pockets of Pessimism. The end of the road for U.S. carmakers? (LA Times)
Some analysts suggest failure may not be such a bad thing for Detroit's Big Three. Others, especially Michigan politicians, warn of calamity. Why the surge in home sales is bad news (Slate)
Buyers are back! Except that it's clear that this wave is driven by lenders trying to get anything they can get right now for the many thousand of houses they've foreclosed on, because as bad the housing market looks now, it'll get even worse. 16 Lies of Lawyers (Entrepreneur)
Listen for these all-too-common phrases--and then take them for what they really mean.
Recessionistas still shopping, used clothing a bright spot in local retail (BizSense)
Retailers are hurting, but Lori Collea isn’t shaking in her boots – sales at her two Plato's Closet stores are up 15% from last year. Office space getting cheaper (BizSense)
Richmond office vacancies continue to rise, which means prices are likely to fall. The vacancy rate in the central business district rose about 3.5% from the last quarter for a total rate of 13.5%, according to Thalhimer’s recently released third quarter reports. The good news for some tenants is that the surplus of available space is dropping prices; average rental rates for Class A space are down 5 % in the third quarter from the same time last year dropping from $20.68 per square foot to $19.54. In addition, landlords are making more concessions including a month of free rent or providing shorter term leases. Tech Review: GlassDoor sheds light on employees and salaries (BizSense)
With GlassDoor.com, you can find out what your employees are saying about your company -- at least at the big ones like Yahoo, Microsoft, AOL and Google. And because entries are anonymous, employees feel comfortable being completely honest about their jobs. (It might also turn into a whining session) The site also provides room for employees to make suggestions to management, working like an electronic version of the suggestion box. BizSense Grade: B+ Dealerships steer through challenging times (Times-Dispatch)
The Virginia Automobile Dealers Association said 13 new-vehicle dealerships in the state closed this year, including Mechanicsville Dodge. In the past 12 months, 18 dealerships closed. The state has 551 new-car and -truck dealerships. Spending Stalls and Businesses Slash U.S. Jobs (NY Times)
When October’s job losses are announced on Nov. 7, three days after the presidential election, many economists expect the number to exceed 200,000. The current unemployment rate of 6.1 percent is likely to rise, perhaps significantly. It's a hard time to be a charity (USA Today)
The economic crisis threatening the nation with the worst recession in decades has set off tremors among non-profits and charities large and small that rely on donations from Wall Street, industry and average Americans. The potential impact is just now taking shape, because 2009 grants from many philanthropic foundations are still being set and the end-of-year holiday giving season is opening. Although it's difficult to draw broad conclusions from reports by individual charities, many non-profits say they are feeling an economic pinch. Venture Capital Financing Slows Amid Economic Downturn (WSJ)
The change is being spurred by the souring economy and market gyrations, which have hit startups' main source of funding: venture capital. Prominent Silicon Valley venture capital firms Sequoia Capital and Benchmark Capital recently sounded the alarm, saying a downturn would be protracted. Venture capitalists are now slowing their investments, doing just 583 deals totaling $7.37 billion in the third quarter, down from 673 deals totaling $7.94 billion a year ago, according to research firm VentureSource.
Natural gas even sounds greener (BizSense)
Demand for compressed natural gas (CNG) vehicles is increasing, but availability in Richmond is limited.
Ever since Baker Equipment, a local trucking equipment company, began offering compressed natural gas vehicle conversions last month, the company has received anywhere from 10 to 50 conversion-related calls a day, tripling their overall call volume. Leave the punditry outside the office (BizSense)
There’s office politics, and then there’s talking politics in the office. As tempting as it might be to chime in about Sarah Palin's folksy accent, of Obama's suave speeches; Be wary. Be verrrrry wary. Click to read a Q&A with Rich Reineke, a recruiter with Career Quest. Baseball out in Boulevard plan (Times-Dispatch)
Richmond has chosen a single company to develop public property along North Boulevard and in Shockoe Bottom -- with plans for a new baseball stadium downtown. Joint venture will build nuclear reactors in Newport News (Daily Press)
Northrop Grumman Shipbuilding is partnering with Areva, a multinational energy company based in France, to construct a $363.4 million manufacturing facility for nuclear reactors in Newport News. Construction will begin early next year on the 300,000-square-foot plant that will eventually bring 540 engineering and production jobs to the region, including 340 initial hires when production begins in 2012. Greenspan Concedes Error on Regulation (New York Times)
For years, a Congressional hearing with Alan Greenspan was a marquee event. Lawmakers doted on him as an economic sage. Markets jumped up or down depending on what he said. Politicians in both parties wanted the maestro on their side. But on Thursday, almost three years after stepping down as chairman of the Federal Reserve, a humbled Mr. Greenspan admitted that he had put too much faith in the self-correcting power of free markets and had failed to anticipate the self-destructive power of wanton mortgage lending. Renewed Crackdown On Illegal Immigrants (Washington Post)
The Bush administration in its final weeks will revive a stalled crackdown on U.S. companies that hire illegal immigrants, issuing a new regulation and asking a federal judge to lift a ban on the measure, Homeland Security Secretary Michael Chertoff announced yesterday. For housing, no easy fix (Fortune)
Calls for a sweeping federal response to the housing mess are getting louder. But finding a solution isn't getting any easier. SBA at a Crossroads (Entrepreneur)
Sen. John Kerry and other critics are looking to turn things around for the little guy at the SBA. The Weekly Wind Down: A great ad from the 90s -- Boku
Granted, the product when belly up, but Richard Lewis nails the celebrity ad spot in a way few others have.
Welcome to Miami (Times-Dispatch)
Miami is the next destination for the Greater Richmond Chamber's intercity visit, a trip meant to generate ideas and conversation among business and community leaders and elected officials. Richmond-area home sales tick up (Times-Dispatch)
Total homes sales in the core area of Richmond -- the city and Chesterfield, Hanover and Henrico counties -- rose 1.6 percent in the third quarter from the same period a year ago. Hampton Roads ports' high point is falling short (Virginian-Pilot)
The port of Hampton roads already has seen a 2.3 percent decrease in container traffic in August and September compared with the same months last year. And the port's retail cargo probably will be down a total of 5.4 percent for the 2008 calendar year, said Paul Bingham, managing director of the global trade and transportation practice for the economic forecasting firm Global Insight. Job Losses Accelerate, Signaling Deeper Distress (Washington Post)
Anecdotal reports suggest that the hemorrhaging in the job market has only begun. Companies that announced plans this week to cut jobs include Internet company Yahoo (1,500 positions), pharmaceutical company Merck (7,200), National City bank (4,000) and Comcast, the cable company (300). An eroding model for health insurance (LA Times)
An amazing three-part series on the health care conundrum: The health insurance system has become increasingly expensive and inaccessible. It leaves patients responsible for bills they understood would be covered, squeezes doctors and hospitals, and tries to avoid even minuscule risks, such as providing coverage to a newborn with no serious illness. At the heart of the problem is the clash between the cost of medical care and insurers' need to turn a profit. Meanwhile, insurance premiums are becoming a heavier burden on employers, many of which say that rising healthcare costs cut into their ability to compete and, in some cases, to survive. Upgrade Your Attitude (Entrepreneur)
Your outlook affects not only how successful you'll be at managing your business, but also how inspired others will be in supporting your efforts.
Last call for the BizSense readership survey (BizSense)
If BizSense is helping you at work – even if just as a distraction from your actual work – please consider taking our survey. So far we’ve had more than 100 responses. We’d like to hit 200. We’ll be giving out several $50 Capital Ale house gift certificates. This is our last time hounding you. Think of it as last call. Discrimination complaints at Williams Mullen (Style Weekly)
Six former employees and one current worker at the Richmond law firm Williams Mullen have filed discrimination claims with the U.S. Equal Employment Opportunity Commission. In the filings, the employees cite demotions without prior discussion, forced work without compensation, hostile work environment and unequal terms and conditions of employment. Retail overload? (Style Weekly)
A massive retail expansion and a Christmas shopping belch could leave Richmond bloated with space. First Capital Bancorp names CEO (Times-Dispatch)
First Capital Bancorp Inc. has named John Presley, formerly with First Market Bank, as managing director and chief executive officer of the Glen Allen-based holding company. Va. economy still weakening (Times-Dispatch)
A report about the Virginia economy released yesterday paints a bleak picture: record mortgage delinquency rates and continued declines in manufacturing employment. Developer seeks larger investment in Town Center expansion (Virginian-Pilot)
The next phase of Town Center calls for a 22-story office building, a hotel, retail stores, apartments and greater city investment. City officials and representatives from Armada Hoffler are in talks about modifying the special tax district to add hotel tax revenue - on top of the real estate taxes - to help pay for the city's share of the project The Next Debt Explosion (Slate)
Will it come from credit cards, auto or student loans—or all of the above? Small company, big profit (Fortune)
How do lean businesses outperform rivals with fatter payrolls? A look at four entrepreneurs who cracked the code. 10 Traits Entrepreneurs and Einstein Share (Entrepreneur)
Throughout his long life, the creator of E=mc2 (and one of a handful of people to know what it really means) indicated what he saw as the path to success through his words and actions. Entrepreneurs have more in common with Einstein than they think. Many of the traits that led him to be named Time magazine's Person of the Century--kind of an elite club--drive people to create businesses. Do you see a little of Einstein in you?
Hotel opens after $3.5M face lift (Daily Press)
After more than a decade of problems with the former owners and extensive taxpayer involvement, the city of Hampton sold the hotel to MHI in April for $7.8 million. In the past week, the hotel officially became a Crowne Plaza as a $3.5 million renovation by MHI is nearing the home stretch. Economic Stimulus Gains Traction (Washington Post)
An effort to boost the economy with a massive injection of public funds gained momentum yesterday, as Federal Reserve Chairman Ben S. Bernanke tentatively endorsed the idea of a new stimulus package and the Bush administration softened its opposition. For car dealers, tight credit is fueling a 'catastrophe'(USA Today)
Many won't survive. Almost 600 of the about 20,000 U.S. new car dealers have shut their doors this year, and an additional 2,000 will close within 18 months, predicts Mark Johnson, president of a Seattle consulting firm that helps auto dealers buy, sell or merge operations. In September alone, 61 dealers — two a day — closed shop or downsized to used car lots, says the National Automobile Dealers Association (NADA). Wounded by gas prices that killed sales of their most profitable SUVs and trucks, dealers are being hammered as the economy depresses sales of all models. Alternative Energy Suddenly Faces Headwinds (NY Times)
For all the support that the presidential candidates are expressing for renewable energy, alternative energies like wind and solar are facing big new challenges because of the credit freeze and the plunge in oil and natural gas prices. Will Your Recession Be Tall, Grande, or Venti? (Slate)
The higher the concentration of expensive, nautically themed, faux-Italian-branded Frappuccino joints in a country's financial capital, the more likely the country is to have suffered catastrophic financial losses. Sarah the CEO? (Inc)
On the campaign trail, Republican vice presidential nominee Sarah Palin is quick to tout her "executive experience" -- including what she says is her background as a small-business owner. But an investigation finds a relatively thin entrepreneurial resume that includes a now-defunct carwash and her husband's modest fishing business. How to Lead in the Board Room (BNET)
Sitting on the board of a public company has never been more challenging than it is today. Here's what it takes to rise above the rancor.
Circuit City Weighs Broad Cuts (WSJ -- subscription required
Circuit City Stores Inc. is considering a plan to close at least 150 stores and cut thousands of jobs, as an alternative to filing for bankruptcy-court protection, said people familiar with the company. Earlier this month, the nation's No. 2 electronics retailer by sales hired Skadden, Arps, Slate, Meagher & Flom LLP -- the law firm that oversaw the Chapter 11 reorganization of Kmart -- as its bankruptcy counsel, according to several people familiar with the matter. Circuit City also retained FTI Consulting Inc. to develop a turnaround plan and investment bank Rothschild Inc. to guide talks with banks and ... Chesterield adding tons more retail (Richmond.com)
Westchester Commons (Route 288 and Midlothian Turnpike) and Hancock Village (on Hull Street Road across from Woodlake) will join Chesterfield Towne Center and the Commonwealth Centre to compete for high-income shoppers living in the Midlothian zip codes and beyond. Credit union group dismisses lobbyist (Daily Press)
Faced with pressure from its members, the Virginia Credit Union League told their lobbyist, Reggie Jones, before the 2008 Virginia General Assembly session that he could not work for them at the legislature and would need to make a key decision about his future. He could either choose the state's credit union group he had been representing for 27 years, or payday lenders. Jones, who was paid $9,250 for his work for the credit unions this year, brought in a $220,000 fee for his employer, Williams Mullen, to thwart a ban on payday lending, a business that has thrived in Hampton Roads. Fiscal storm rocking boats in North Carolina (Virginian-Pilot)
This small coastal town of 5,000 is home to big-name, big-ticket boat manufacturers. But walloped by a hemorrhaging national economy, Albemarle Boats, Carolina Classic Boats and Regulator Marine this year have cut personnel by at least half, leaving about 200 local employees without jobs. Rethinking Legal Fees for Lean Times (Washington Post)
Corporate legal department officials say fees to outside law firms have risen faster than energy costs, salaries and other expenditures. Some senior partners in the most prestigious firms charge up to $1,000 an hour and require their associates to bill up to 2,000 hours a year. Since becoming commonplace in the 1970s, hourly billing has been the subject of criticism by clients and debates by legal experts, who say they give lawyers incentive to work inefficiently. But law firms have been slow to embrace alternative billing. Middle-class Americans' retirement at risk (USA Today)
Of all the threats to the American middle-class standard of living, from stagnating incomes to piles of consumer debt, perhaps the least understood and among the most serious is the looming crisis in retirement. Several trends, each debilitating alone, are due to converge on the middle class over the next decade or so. When less means more (Fortune)
While most firms that employ fewer than 10 workers never crack $1 million in sales, there are exceptions - and they aren't just tech startups and hedge funds.
Haynes Jeep is for sale (BizSense)
As of 2:00 on Thursday, the dealership’s general manager, Richard Carter, and Owner Stuart Haynes were in meetings with Chrysler, according to a receptionist. One possible buyer might be Whitten Brothers. Check back later for a full story. Va. retirement fund shrinks (Times-Dispatch)
The downturn on Wall Street has erased $11 billion -- about 20 percent -- from the state worker pension fund, but Virginia still has plenty of money to back retirement checks for years. Media General 3Q profit up but ad sales are weak (AP)
A temporary boost from the Olympics and political advertising hardly masked Media General Inc.'s broader revenue troubles as the company reported sharp drops in ad sales Thursday that it blamed primarily on the worsening economy. Shares in Media General fell more than 4 percent even after the company said its third-quarter profit more than doubled compared with a year ago. Wall Street dismissed the temporary gains in earnings amid sustained declines in advertising overall. S-A-T-I-R-E: NBC12 Restaurant Report Finds Four Critical Violations In NBC12 Break Room
NBC12 reporter Ashley Swann has exposed four “critical violations” in the television station’s break room, the host of the popular “Restaurant Report” said last night. Indian tech companies expected to bring 75 jobs to Virginia (Virginian-Pilot)
Kaine made the announcement during his keynote address at the 60th annual Virginia Conference on World Trade at the Norfolk Marriott Waterside. He spoke on the importance of promoting trade between Virginia and India, in line with the conference's Indian focus. As Credit Tightens, Companies Curtail Spending, Expansion (Washington Post)
Hard-pressed to sell bonds or arrange new loans, companies are dipping into credit lines, cutting back on spending, making deals with cash-rich partners or postponing projects. What Would Joe Do? (Inc.)
Forget "Joe the Plumber," the Ohio pipelayer whose stance on taxes became a major talking point during the final presidential debate. We rounded up a panel of other entrepreneurial Joes across America, to get their take on the candidates' tax plans, the true definition of wealthy, and whether businesses should pay more to Uncle Sam. Why Loan Sharks Can't Make Money (Slate)
You'd think that somebody in the business of giving out payday loans-the closest thing to legal loan-sharking the financial world has invented-would be taking in money hand over fist. But you'd be wrong. While the interest rates are insane, the losses from loans that don't get repaid are huge, too. When less means more (Fortune)
How smart entrepreneurs wring outsized profits from tiny organizations. The Weekly Wind Down: And you thought you had a bad day
In this video, a singer forgets the words to the national anthem, and her outing it gets even worse.
Auto dealers battle nighttime thefts (Times-Dispatch)
Steve Cochrane wonders what it will take to keep thieves from raiding Priority Toyota for pricey car parts. Under the cover of darkness last month, intruders armed with battery-powered reciprocating saws removed 42 catalytic converters from 21 Toyota Tundra trucks in a matter of minutes. Carilion/Virginia Tech medical school moves forward with groundbreaking (Roanoke Times)
Gov. Tim Kaine said Wednesday that health care and education should anchor Southwest Virginia's economic development and that Roanoke's new medical school will lead the way. As Budgets Tighten, More People Decide Medical Care Can Wait (Washington Post)
From Park Avenue dental offices to the Arlington Free Clinic, the global economic crunch is forcing a growing number of Americans to scale back on medical care. Consumers are attempting their own form of triage, pushing off seemingly less-urgent services in the hope that their financial health will improve. But the danger, say physicians, is that the short-term savings may translate into more severe long-term health implications. As Consumers Keep Wallets Shut, Economic Outlook Dims (NY Times)
Retail sales fell sharply in September as consumers shunned department stores, auto showrooms and shopping malls, ratcheting back spending for a third month. Economic activity slowed, according to a report from the Federal Reserve. The impact of the crisis on Wall Street put a clear dent in consumer spending. Last month’s 1.2 percent decline in retail sales was the sharpest drop in years, and it came in the back-to-school shopping season, traditionally the busiest time of the year for retailers outside of the December holidays. Why will no American take responsibility for this mess? (Slate)
Americans don't trust them on the economy. Here's a hint: We want someone to blame. We want an explanation for why the systems in place failed miserably. We don't need public beheadings, but if neither Washington nor Wall Street will take responsibility for the greatest financial crisis in 70 years, how can anyone be assured that it won't happen again? Small Business Lines of Credit: Face Your Fears (Business Week)
Wondering if the credit crisis has affected your relationship with your bank? It's time to ask, says Business Week's Karen E. Klein. Looking for Cost Cuts in Lots of New Places (WSJ)
When it comes to cutting costs during tough economic times, many small businesses start out with a disadvantage: They don't have all that many costs to cut. Even during good times, small businesses tend to keep expenses pretty tight. The result is that small companies often have to get creative in their efforts to find waste in places where little exists. Here's a look at four companies that have cut their overhead expenses without sacrificing inventory, daily necessities or their employees.
Circuit City to offer same price in stores, on Web (AP)
Circuit City Stores Inc. has started offering the same prices in its stores as on its Web site in an effort to beef up its rapport with customers in hopes of increasing store traffic and sales, the company said Tuesday. Retailers sometimes offer different prices on Web sites and in stores, though some retail consultants say such practices can make customers less trusting when they find out about them. DuPont acquires Beach-based training company (Virginian-Pilot)
Coastal Training Technologies Corp., a Virginia Beach company that employs more than 650 people, was sold Tuesday to DuPont. Top Small Workplaces 2008 (WSJ)
For the second year in a row, The Wall Street Journal teamed up with Winning Workplaces, an Evanston, Ill., nonprofit that helps small and midsize companies create better work environments, to identify 15 small employers that have built exemplary workplaces. These companies tend to offer generous traditional and nontraditional benefits, share profits with employees and constantly hunt for new ways to make the employee experience better. Some Cities Will Be Safer in a Recession (Business Week)
Cities with a strong presence in health care, education, law, energy, and the government will feel the impact of a downturn less. If You Build It, They Will Shop (Inc.)
A good read with helpful tips on some websites that can help: Whether you have a team of programmers or are trying to do it yourself, these affordable tools can help you get an online store up and running. They will even help you sell your products on Facebook, publish customer reviews, suggest other products that suit your customers' tastes, and ship out orders quickly without having to manage a warehouse. Small biz: Here's the help we really need (Fortune)
New FDIC insurance limits reassure business owners, but fail to address what's really needed on Main Street.
Sandston Pharmacy stops filling (Times-Dispatch)
andston Pharmacy on Williamsburg Road in eastern Henrico County stopped filling prescriptions yesterday after nearly 60 years in business. Owner Jimmy Mehfoud said health problems, including a liver transplant this year, made managing the pharmacy side of the business too difficult. Market glut has many home sellers coming up short (Virginian-Pilot)
As the region's housing market struggles under an abundance of unsold homes and falling values, banks and homeowners seem to be turning in growing numbers to what is known as a "short sale" to avoid a foreclosure. At Indian Call Centers, Another View of U.S. (Washington Post)
Few places in India absorb and imitate American culture as much as call centers, where ambitious young Indians with fake American accents and American noms de phone spend hours calling people in Indiana or Maine to help navigate software glitches, plan vacations or sell products. But collection agents at this call center outside New Delhi are starting to see the flip side of that vision: a country hobbled by debt and filled with people scared of losing their jobs, their houses and their cars. Fear Factor (Slate)
How anxiety and terror are making the financial catastrophe worse than it needs to be. Federal Guarantee for New Debts and Business Deposits (NY Times)
The Treasury Department, in its boldest move yet, is expected to announce a plan on Tuesday to invest up to $250 billion in banks, according to officials. The United States is also expected to guarantee new debt issued by banks for three years — a measure meant to encourage the banks to resume lending to one another and to customers, officials said. Fearing a holiday letdown, retailers shifting strategies (USA Today)
tores are doing all the cost cutting they can to preserve profit margins. For shoppers, that will mean fewer choices of merchandise as retailers trim what they have in stock. It also will mean fewer salespeople available to help shoppers. Meanwhile, many retailers are likely to have more and earlier promotions to try to lure people into stores. Wal-Mart (WMT) beat its own early start last year when it started holiday price cutting on toys Oct. 1. Startups Feel the Squeeze (Business Week)
With the IPO market bleak and venture capital scarce, innovative new companies are running low on cash.
ColorTree makes envelopes that stand out (Times-Dispatch)
The company's expertise is making envelopes, and printing them with colorful images for customers who need quick turnarounds on customized orders. About 80 percent of its business is with nonprofit groups and issue-advocacy organizations. Recession will force budget cuts (Virginia Gazette)
The Historic Triangle’s perceived bubble of protection against the economic meltdown may have finally burst. The recession is coming, with a vengeance. In James City County,Code Compliance director Doug Murrow reported that September permits were down by 30% from 2007, while inspections were down 43%, according to a staff memo obtained by the Gazette. Gender gap in pay smaller in Richmond than Hampton Roads (Virginian-Pilot)
Women still are paid less than men, but the gap is wider in Hampton Roads than it is in Richmond, according to Old Dominion University's new State of the Region report. Carilion, in transition (Roanoke Times)
Well into its conversion to a clinic system, competing doctors, national health care experts and the Feds all have their eyes on Carilion. How did Iceland scald itself on overseas financial adventures? (Slate)
As previously reported on BizSense, Iceland gets some of its cars and RVs shipped direct from the Port of Richmond. Why are Iceland’s banks so big, and why are they, the currency, and the national economy in such trouble today? Quite simply, leverage. Like a light-swinging baseball player who’s just discovered Creatine, Iceland’s banks bulked up on foreign deposits and ventures to the point where they dwarfed the rest of the economy. As Larger Banks Crumble, Local Firms See Rush (Washington Post)
If anything, what the market meltdown has shown in sharp relief is that the global financial system runs as much on trust as on anything else. And now that that trust is shaken, the anxious and the nervous are draining bank and money market accounts by the millions from what they perceive to be unstable institutions and turning to something that feels more familiar. Analysis: Economy puts colleges' ambitions on hold (USA Today)
The financial meltdown is forcing institutions to tear up budget plans and prepare for a simultaneous hit to their three major revenue sources — government funding, donations and tuition. At the same time, they're having to find more money for one of their major budget items — financial aid — or risk seeing students drop out. MySpace Woos Small Business Ads (Business Week)
With MySpace's new MyAds service, anyone can launch an ad campaign on News Corp.'s social network for as little as $25. Profits for a Better World (Entrepreneur)
Socially responsible young entrepreneurs are creating for-profit businesses to enact social change.
Food-for-free-parking deals uncovered (Times-Dispatch)
Sidewalk vendors downtown have avoided tickets by offering parking-enforcement contractors free food and beverages, City Auditor Umesh V. Dalal said yesterday. "Lanier Parking Solutions is appalled by the unacceptable behavior of these rogue parking-enforcement officers," said Brennan Robison, a company spokesman. BizSense's take: rogue parking enforcers, really? Barge service will ease road traffic (Times-Dispatch)
Cargo containers traveling between Richmond and Hampton Roads will soon be moving off trucks and onto river barges. The new service will move cargo on the James River, initially shifting about 4,000 trucks worth of cargo a year off crowded Interstate 64 and onto the waterway. Real estate firm GVA Advantis wants more talk (Daily Press)
The commercial real estate firm — which had its roots in Hampton Roads before growing through a series of acquisitions — is poised to make some big changes after its acquisition in June by a private equity group headed by Neal. New Chief Executive Officer Rich Pogue and Neal came to the Newport News and Norfolk offices Wednesday to meet employees. The firm — which has moved its headquarters to Washington from Atlanta — also does leasing, construction and property management. Jennmar tripling its jobs in Giles (Roanoke Times)
Jennmar Corp. will spend $2.65 million and hire 50 people to expand its Giles County factory producing goods for industry. The project targets the former plant of Commonwealth Bolt, a producer of "roof control" equipment for the mining and construction industries that Jennmar bought last spring. The expansion of the plant near Rich Creek is likely to have a "huge" impact on the region's economy, one official said. The plant currently employs 23. Wells Fargo Wins the War for Wachovia (New York Times)
A deal with Wachovia would elevate Wells Fargo to a prime position in the American banking industry, with the largest nationwide deposit and branch franchise in the country. Together, Wells Fargo and Wachovia will have $1.42 trillion in assets, 48 million customers and 280,000 employees. Investors, bankers have lost their faith (USA Today)
With its alphabet soup of CDO and CDS and TAF and TARP, the current financial crisis can seem hopelessly complex. But it really boils down to one word: confidence. The global financial system is grinding its gears because, from big banks to small investors, the essential confidence required to buy, sell or invest has disappeared. Don't Watch the Dow Here’s the number that really captures the financial crisis (Slate)
Whereas the hourly fortunes of the Dow or any stock index are, at best, indirect reflections of this reluctance to lend, the TED Spread measures credit conditions directly.
State buys downtown office tower for $49 million (BizSense)
The state of Virginia has purchased Main Street Centre for $48.8 million The 420,575 square foot Main Street Centre, located on the corner of 6th and E. Main Streets downtown, has been sold by Brandywine Realty Trust. The building was built in 1986 and houses the Greater Richmond Chamber of Commerce among other tenants. Highest Paid Execs in Richmond (BizSense)
Thirteen out of the top 40 highest paid executives of publicly traded companies are based in Richmond, according to the most recent issue of Virginia Business magazine. Car sales hurting, but used car parts business booming (BizSense)
A momentary break from the bad news: It’s a good time to be selling used car parts. Joey Woodfin's company, EverDrive, sells used car parts to the masses by connecting salvage yards with auto parts dealers. It's also a green business of sorts, since it requires no new manufacturing. The company has around 50 employees and will likely hire another ten. Delayed raises part of Kaine budget plan (Times-Dispatch)
Kaine this morning announces plans, including an indeterminate number of layoffs, to erase a cash shortfall projected to grow by $2.5 billion. That's atop $2 billion that forced spending cuts earlier this year. Circuit City rebuts credit-rating downgrade (Times-Dispatch)
Circuit City Stores Inc. said yesterday that it has a good relationship with vendors and that it shouldn't be affected by a downgrade from a retail credit-rating service. Downturn Forces Cutbacks Big and Small (WSJ)
Two-Sided Copies, Fewer Car Rentals and Firing the Lawn Service -- Companies Trim as Business Slows Retailers’ Sales Fall Sharply at Both High End and Low (NY Times)
Sales at some of the nation’s best-known retailers fell by double digits in September, highlighting the rapid deterioration of the economy and raising fresh questions about how many of those chains can survive. Nightmare on Main Street? (Inc.)
While much of the focus has been on Wall Street lately, how are the nation's small businesses coping? A panel of entrepreneurs sounds off on the new challenges they're facing -- and how best to weather the storm. Five Reasons To Start a Business Now (Bnet)
1. Talented people were available; 2. Rent, etc. was cheap; 3. Private companies don’t suffer quarterly scrutiny; 4. Dislocation in the economy creates opportunity; 5. New companies aren’t expected to sell anything.
Body-shop owner convicted (Times-Dispatch)
What went into Mustang Mike's, a Sandston body shop, sometimes didn't emerge for years, customers testified. And what did emerge was often in pieces or rendered worse than the already disabled relics that were supposed to be restored there. The economy affects ability of teens to find part-time jobs (Virginian-Pilot)
Not just adults bear the yoke of the sagging economy. The teenage unemployment rate - the percentage of 16- to 19-year-olds looking for part- or full-time jobs who could not find one - rose to 19.1 percent in September from 18.9 percent in August, the federal government reported Friday. The nation's overall employment rate held steady, at less than one-third that level - 6.1 percent - the highest rate in five years. Retirement Savings Lose $2 Trillion in 15 Months (Washington Post)
For many Americans, pensions and 401(k) plans are their only form of savings. The dwindling of these assets -- about a 20 percent decline overall -- is another setback just as many people are grappling with higher gas and food prices, more credit card debt, declining home values and less access to loans. Forget Logic; Fear Appears to Have Edge (New York Times)
The technical term for it is “negative feedback loop.” The rest of us just call it a panic. How else to explain yet another plunge in the stock market Tuesday that sent the Standard & Poor’s 500-stock index to its lowest level in five years — particularly in the absence of another nasty surprise. Banks' Pain Spreads to Their Suppliers (WSJ)
The banking-industry crisis is having an immediate impact on at least one group of small and midsize businesses: those that were built to provide products and services to a booming financial sector. The effect on these companies "has been nothing short of devastating," says Charles Doyle, managing director at Business Capital, a San Francisco company that provides financing and restructuring services for distressed companies. "It is complete carnage." Don't Let Hard Times Derail Your Advertising (Business Week)
Advertising panics usually take one of three forms. The first is cutting back the budget—sometimes to zero. Smart companies are careful about how and where they cut back, so they don't sacrifice the future on the altar of the present (see "Five Don'ts for Marketing in Tough Times" (BusinessWeek.com, 7/11/08). The second is giving away the store, which is almost always a mistake (see "Low Prices Are Not Always Your Friend" (BusinessWeek.com, 4/14/08). The third? Following the politicians down the poisonous path, trying to build yourself up by taking your competition down. You Can Weather the Economic Storm (Entrepreneur)
Product price sensitivity and financial creativity can help you thrive in any economy.
Startup Journal: maker of trucking software trying to raise $250,000 (BizSense)
MassLogic's Pitch: There are more than 150,000 trucking operations in the U.S. “Conservatively, half are using underpowered software or none at all. There is a huge market for small fleets,” says Ben Evans, who developed software that helps trucking companies track their shipments, revenue, vehicles, and expenses. Evans discovered the need for the software when he was running his own trucking company and could not find a suitable product within his budget. Traditional server-based products can cost $15,000 - $50,000. These systems require users to invest that amount up front and install server equipment which adds to the cost and management responsibilities. A Masslogics account starts at $150/mo. The software and data are hosted on Masslogics servers offering more security and reliability than the user can provide with his own equipment. The SAAS model has margins that approach 80%. Click on the link to see more about the company and what two experts think of the business model. CarMax using gas card to encourage car reviews (BizSense)
CarMax is giving away a $250 gas card every week for eight weeks to people who review cars at CarMax.com. Spokesman Chris Wilmore said the reviews are a valuable resource to web users, and so CarMax is putting a little cash on the line to help get the website’s users interacting. BizSense reported earlier in the summer about a gas card promotion at area golf courses.The big question: do these sorts of promotions work? BizSense on the radio (BizSense)
BizSense is now on AM radio. So just don’t drive under a bridge when you hear the buttery voice of Nick Vidinsky, our radio/multimedia guru. ESPN Radio 950 runs a BizSense business news update on Thursdays and Fridays. We record it at the end of the day on Wednesdays, and they run it between 12 and 3 p.m. on Thursday and again at 5 p.m. and again on Fridays. The spots run about a minute, highlighting stories from our site and giving a preview of stories to come. We are still working on adding the podcast to the website. Please let us know if you hear it and what you think of it. Henrico among locales to postpone borrowing (Times-Dispatch)
Wall Street's panic is making it so difficult for cities, counties and states to raise money that even the most creditworthy, such as Henrico County, are delaying plans to borrow. In parts of the country, that could mean it will eventually take longer to pave roads and build schools and result in government workers being laid off, some bond market experts say. How Wachovia came crashing down (Virginian-Pilot)
Along with the newly acquired Golden West Financial came a hefty portfolio of home loans, including mortgages that allowed borrowers to choose their monthly payment. Instead of unloading these “Pick-A-Pay” mortgages, Wachovia promoted them, despite their risks. In July, Wachovia stopped offering the mortgages, but the damage had been done. In the first half of 2008, Wachovia reported a loss of almost $10 billion because of non-performing assets – mostly “Pick-A-Pay” mortgages. By Sept. 27, the FDIC was negotiating a hurried sale of Wachovia’s bank subsidiary at $1 a share. A Nightmare for Sales of Dream Cars (Washington Post)
Until just a few weeks ago, the crisis had been felt primarily in the boardrooms of Wall Street, that realm of derivatives, credit-default swaps and exotic mortgage-backed securities. Then major banks and investment houses failed, and surviving banks began to become skittish about lending to one another. Now the pain is being felt in the so-called "real economy," the land of jobs, goods, services -- and people buying and selling cars. Oil, gas prices fall with stocks (USA Today)
The U.S. average price for regular-grade gasoline was $3.484 a gallon, the U.S. Energy Information Administration's weekly survey showed Monday — 14.8 cents less than a week ago and the lowest since April 14, though 71.4 cents higher than a year ago.\ Small Business Owners React to the Bailout (Business Week)
The government's $700 | 
