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"More Companies at Risk of Failing", your prospects?

"Companies exposed to consumer spending have it toughest. The industries most represented on the list are media, automotive, retail and manufacturing. Companies in the most acute danger are those with reduced cash flow and a high debt load. A lot of big, well-known companies are in danger. On the list: Advanced Micro Devices; AirTran; AMR (parent of American Airlines); Chrysler; Duane Reade; Eastman-Kodak; Ford; General Motors; JetBlue; Krispy Kreme; Palm; R.H. Donnelly; Reader's Digest Association; Rite-Aid; UAL (parent of United Airlines); Unisys; and US Airways." U.S. News & World Report- Yahoo Finance

What are your prospects of this?

Answer Question
 
BlueSaphire

Asked by BlueSaphire at 12:38 PM on Mar. 12, 2009 in Politics & Current Events

Level 21 (11,698 Credits)
Answers (11)
  • I work in Pharmaceutical Development. Most funding depends on the stock market doing well. Our industry is not as impacted as those mentioned in the article, but the company I work for has laid off 5% of our workforce. Plus has not hired anyone to replace people who were quit or fired.

    Scary times.
    Anonymous

    Answer by Anonymous at 12:43 PM on Mar. 12, 2009

  • I know my family is feeling the impact of this.. we own a furniture repair business.. and if people aren't buying furniture.. we aren't fixing them. So it's been a struggle.
    xxhazeldovexx

    Answer by xxhazeldovexx at 1:47 PM on Mar. 12, 2009

  • There are 4 employees, myself, my mother, my father, and another woman. However we have been lucky enough to still be able to pay all the above.. we are really hoping we don't have to lay off our friend.
    xxhazeldovexx

    Answer by xxhazeldovexx at 1:49 PM on Mar. 12, 2009

  • The companies that didn't manage their assets and product well need to find their own way out. Simple enough. We always support the local places first.

    As long as we keep slapping band aids on an infected wound, it's not going to heal, we've got to clean it out and let it air out.
    lovinangels

    Answer by lovinangels at 1:57 PM on Mar. 12, 2009

  • Let capitalism play itself out instead of like the above stated keep putting band aids on a heart attack victim. It is just a stupid move to spend your way out of debt. and until the govy sees that we will never get out of this mess. They said they cut all unnneccessaries frolm the budget to save money and would have to cut other programs but they did not cut a 5 million dollar statue.(in my state). I guess once thereare no workers to pay htere wages they will see maybe they need to get rid of unnneccessary earmarks.
    Ibelongtojesus

    Answer by Ibelongtojesus at 2:20 PM on Mar. 12, 2009

  • I could care less if those companies go down. Except for Krispie Kreme. That is a national emergency all of it's own and must be stopped!!!
    Anonymous

    Answer by Anonymous at 2:20 PM on Mar. 12, 2009

  • I'm in a small manufacturing company and our customers' purchases have pretty much decreased by 75%. We've been cut to 4 day work weeks, raise freezes, lay-offs, etc., etc. We do a lot of work that services automotive, aerospace and medical manufacturers.
    TeensMom07

    Answer by TeensMom07 at 2:46 PM on Mar. 12, 2009

  • Ibelongtojesus Your example of putting band aids on a heart attack victim is just not right. Do you not know that doctors are saving patients with heart attack.

    Anonymous

    Answer by Anonymous at 3:02 PM on Mar. 12, 2009

  • Whats new. Obama is going to tax them so in so many ways that they have no way to upgrade or even stay in business so no it's not surprising and I would expect it.
    itsmesteph11

    Answer by itsmesteph11 at 3:19 PM on Mar. 12, 2009

  • It is capitalism. The strong survive and the weak fail. A business has a responsiblity to run itself well, keep the debt non-existent or low and don't overreach and overspend. Sadly, when some businesses fail through mismanagement others will too.

    I am a small business owner. I started with $200.00. My business has ZERO debt. I have been in business for more than three years now. I have made a profit every single month. Last year my profits tripled over the year before. I must be doing something right. If my business fails it is my fault. I wouldn't expect my fellow taxpayers to bail me out.

    As a business owner with degrees in political science and finance I can tell you that you CANNOT spend your way out of debt.
    yourspecialkid

    Answer by yourspecialkid at 3:20 PM on Mar. 12, 2009

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