Shut out by the economy

Remember Circuit City? Linens 'n Things? Sharper Image? KB Toys?

They're gone, all gone, and here are a few companies that might be next, according to Moody's Investors Service:

Claire's Stores. (Privately owned; about 18,000 employees.) Leon Black's once-renowned private-equity firm, the Apollo Group, paid $3.1 billion for this trendy teen-focused accessory store in 2007, when buyout funds were bulging. But cash flow has been negative for much of the past year and analysts believe Claire's is close to defaulting on its debt. A horrible retail outlook for 2009 offers no relief, suggesting Claire's could follow Linens 'n Things - another Apollo purchase - and declare Chapter 11, possibly shuttering all of its 3,000-plus stores.

Six Flags. (SIX; about 30,000 employees; stock down 84%). This theme-park operator has been losing money for several years, and selling off properties to try to pay down debt and get back into the black. But the ride may end prematurely. Moody's expects cash flow to be negative in 2009, and if consumers aren't spending during the peak summer season, that could imperil the company's ability to pay debts coming due later this year and in 2010.

Blockbuster. (BBI; about 60,000 employees; stock down 57%). The video-rental chain has burned cash while trying to figure out how to maximize fees without alienating customers. Its operating income has started to improve just as consumers are cutting back, even on movies. Video stores in general are under pressure as they compete with cable and Internet operators offering the same titles. A key test of Blockbuster's viability will come when two credit lines expire in August. One possible outcome, according to Valueline, is that investors take the company private and then go public again when market conditions are better.

Krispy Kreme. (KKD; about 4,000 employees; stock down 50%). The donuts might be good, but Krispy Kreme overestimated Americans' appetite - and that's saying something. This chain overexpanded during the donut heyday of the 1990s - taking on a lot of debt - and now requires high volumes to meet expenses and interest payments. The company has cut costs and closed underperforming stores, but still hasn't earned an operating profit in three years. And now that consumers are cutting back on everything, such improvements may fail to offset top-line declines, leading Krispy Kreme to seek some kind of relief from lenders over the next year.

Sirius Satellite Radio. (SIRI - parent company; about 1,000 employees; stock down 96%). The music rocks, but satellite radio has yet to be profitable, and huge contracts for performers like Howard Stern are looking unsustainable. Sirius is one of two satellite-radio services owned by parent company Sirius XM, which was formed when Sirius and XM merged last year. So far, the merger hasn't generated the savings needed to make the company profitable, and Moody's thinks there's a "high likelihood" that Sirius will fail to repay or refinance its debt in 2009. One outcome could be a takeover, at distressed prices, by other firms active in the satellite business.

For the complete list of companies, go to the article: "15 companies that might not survive 2009."

"Boys, girls, and the money divide"

I just finished reading an article about the differences between boys and girls when it comes to money, and with the teaser, "Young women are still falling behind when it comes to financial skills and savvy. Do they really still think that money is a guy thing?" ... it seriously appalled me. I'll tell you why.

The article focuses on kids 16 or younger and how they spend/save their money, and it basically implies that girls spend money on frivolous things while boys save up for more important purchases. Granted, it's not completely sexiest, because the article brings up the nature vs. nurture point, explaining that boys are more likely to be included in talks about money at a young age, while girls are led on to believe that a man will take care of them financially one day, so they don't have to worry about money. So all in all, it's not that girls are simply stupid with money, it's that society as a whole doesn't educate us about the importance of taking control of the economics in our lives.

The first reason I found the article appalling is because it chastises girls for wanting to buy "short-term" items, like purses and shoes, while it congratulates boys for saving up for a car stereo. Umm, can someone tell me what the difference is here? Aren't both items equally unnecessary? The article says girls will spend on lifestyle items, while boys spend on status items - if you ask me, both an expensive purse and an expensive stereo fall under both of these categories. I'd like someone to tell me exactly why one is better than the other.

The other reason I didn't like this article is because it didn't even include girls who might be good with money or boys who might suck at it.

As far as my own experience goes, my mom is a banker and my dad spends his free time investing, so my sister and I have been trained since the very beginning about how important money is. When my sister graduated from high school, she put all her graduation gift money into a CD. When I was just a kid babysitting and busing tables during the summers, my parents talked to me about starting a retirement account. Ever since then, I've invested in it with every job I've had.

Now when it comes to my dear boyfriend, he is nowhere as good as I am about budgeting, though he's not completely terrible. He saved up money to buy an Xbox 360, and now he's in the process of saving up money to buy a 37" flat screen TV. Granted, our TV is so old that the picture and sound cut out on occasion, which is really quite inconvenient when we play RockBand, but I still don't think it's a good idea.

I, on the other hand, am saving up money for when I want to move out of Kearney after college graduation. I'm determined to move no more than a month after I finish, and part me thinks that if my boyfriend doesn't have his part of the money saved up by then (as we agreed), I'm leaving him and his big, fancy TV behind. We've got more than a year before we have to worry about that, though.

Now, does that mean I never buy extra things? No, because I definitely buy things like bath salts, cappuccinos, striped knee-high socks, nail polishes, and other things I could probably live without. I'm also pretty bad at starting a new hobby, buying everything I need for it, then setting it aside for a new hobby not long after (which is why I have a huge box full of sewing machinery, fabrics, threads, etc., another huge box full of old books and cutting equipment for hollow books, and yet another huge box full of collage and scrap booking stuff).

In the end, I just hate reading these kinds of articles that pit gender differences against each other. A lot of it is, excuse the language, absolute bullshit.