progree

progree's Journal

May 5, 2020

Can't lay off for next 6 months because of terms of bailout, but then, look out

https://www.cnn.com/2020/05/05/investing/premarket-stocks-trading/index.html

These coronavirus job losses will be permanent, CNN Business, 5/5/20

... The airline (United Air Lines) is precluded from laying off staff for the next six months under terms of a US bailout that will provide it with about $5 billion, but it's preparing to cut staff as soon as October, according to a letter sent to staff in April by CEO Oscar Munoz and President Scott Kirby.

(I don't know if this applies just to United Air Lines, or several air lines, or many companies in many industries, so maybe I'm making too much of this paragraph on second thought. )

This too is interesting: why we may be seeing relatively few bankruptcies so far (heck, I haven't seen that much more than we typically see in normal times. Same too as far as local restaurants -- Twin Cities -- closing permanently, yeah we've had a few, but we're always seeing a few closings in a 3 million population metro area).

Some retailers may be too broke to file for bankruptcy

Some retailers can't afford to file until stores reopen because they need money from liquidation sales, my CNN Business colleague Chris Isidore reports. The "everything must go" blowouts help get products off shelves and fund operations through bankruptcy proceedings.

"We probably would have seen more file by now if stores were open," Reshmi Basu, an expert in retail bankruptcies at Debtwire, told Chris. "We're clearly seeing a lot of companies engage [bankruptcy] advisors. But it's not a great time."

The article goes on to mention some retailers opening -- but I don't think liquidation sales under current condtions -- curbside pickup / delivery only, people still wary of going anywhere they need to go -- will work out well. So they might have to wait a few months, if they can.

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Gender: Male
Hometown: Minnesota
Member since: Sat Jan 1, 2005, 04:45 AM
Number of posts: 11,463

About progree

I'm a long-time resident of the Twin Cities area: S.E. Minneapolis 1977-1980 and Golden Valley 1980-present. I'm over 70. Still recovering from a serious year-long illness (multiple issues) that began July 2023 and continuing. . . Lately I'm best known here for my inflation graphs - scroll down my journal a short ways until graphs appear. I'm a frequent contributor to the latest economic reports on LBN and Economy Group. . . Update 9/26/24 - I'm 3/4 recovered and have 1/4 to go - that 1/4 may be permanent though since its been more than a year, but still some very slow improvement. *** I'm taking some time off from DU to deal with the piles on the floor (all kinds of mail and paper clutter) that accumulated while I was sick, and things that have long before that needed de-cluttering and organizing.