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July 7, 2005
Retail Sales Surged in June
Retailers reported strong sales results for June, as consumer
confidence improved despite higher oil prices and spending on seasonal
items increased, the Wall Street Journal reported.
“From what we have seen so far, the numbers are looking
good,” said Ken Perkins, president of Retail Metrics LLC, a
research firm in Swampscott, Mass. “Consumers shrugged off higher
oil prices. And it didn’t seem to bother the low-income
consumers,” he said, the newspaper reported.
Salton Gets NYSE Delisting Warning Letter
Salton Inc., which makes the George Foreman grill, yesterday said it
received a warning from the New York Stock Exchange that its shares may
be delisted because of low market capitalization, Reuters reported.
Shares of the appliance maker have fallen sharply in recent months on
fears that it may file for bankruptcy. Last month the company missed an
interest payment, causing concern about its solvency.
Frontier Insurance Files for Bankruptcy
Specialty insurer Frontier Insurance Group filed for chapter 11
protection on Tuesday in U.S. Bankruptcy Court in Manhattan, Smart
Money reported. The company listed assets of $50 million to $100
million and debts of more than $100 million, according to court papers.
Frontier Insurance owes secured lender Insurance Management Group LLC
about $82 million. The insurance company also owes a group of
subordinated bondholders led by HSBC Bank USA about $176.8 million.
Market Pulse: Flower Foods Agrees to Buy Bankrupt Royal Cake
Flowers Foods said it entered into an agreement to buy bankrupt Royal
Cake company, MarketWatch.com reported. The agreement is under review by
the bankruptcy court. Financial terms were not disclosed. Cookie and
cereal bar maker Royal Cake filed for bankruptcy in North Carolina in
February. The company had 2004 sales of $24 million and employs about
190 people.
Former Casino CEO Tapped to Head Trump Resorts
James B. Perry, the former CEO of a riverboat casino company, was
appointed CEO of Trump Entertainment Resorts Inc., the Wall Street
Journal reported. Perry will remain a director of Trump
Entertainment, created in May when its predecessor, Trump Hotels &
Casino Resorts, emerged from bankruptcy, Chairman Donald Trump said.
Trump had been both chairman and CEO of the old company, but said he is
concentrating on Manhattan real-estate development.
Brite-Line, Parent File Chapter 11
Brite-Line Technologies Inc. yesterday announced that its owner,
Plymouth Rubber Company Inc., has filed for chapter 11 bankruptcy
protection for itself and Brite-Line, Boston Business
Journal reported. Plymouth also announced that it has
arranged—subject to court approval—a cash collateral funding
agreement with LaSalle Bank NA, which will immediately provide access to
approximately $2 million of funds for continuing operations of both
companies.
Northwest Rejects Offer by Mechanics
Mechanics at Northwest Airlines Corp. said they asked to be released
from negotiations on Tuesday after the nation’s fourth-largest
carrier rejected their pay-cut offer, the Start Telegram reported.
Release from the talks would start a 30-day clock running toward a
strike. Northwest shares sank further Tuesday, as CEO Doug Steenland
said the airline must get labor concessions by year’s end or face
the possibility of bankruptcy.