Published Monday, October 20, 2008

Linens 'n Things closing all stores

The Times-Herald

Drivers this weekend on Bullsboro Drive and the bypass at Newnan Crossing noted that in addition to the usual dancing pizza slices, realty jockeys, and roadside preachers, there were also walking advertisements for a 30 percent liquidation sale at the Newnan Linens 'n Things.

The Newnan store survived the first round of Linens 'n Things closings. But the big plan to restructure Linens 'n Things failed, and a plan to auction Linens 'n Things to someone who could keep it going also has failed.

Wednesday a Delaware bankruptcy court approved a chain-wide going-out-of-business sale. The company, which had 589 stores when it filed bankruptcy in May, is closing the 371 it has left, including the Newnan location.

It may soon have company. Word came Monday that Circuit City may soon be joining the cascade of business failures in the slumping economy. Shares of beleaguered electronics retailer Circuit City Stores Inc. rose Monday after a report said the chain may close at least 20 percent of its stores to shore up its finances and avoid filing for bankruptcy protection. There was no information on which stores might close. Newnan has a Circuit City store just east of Interstate 85, on Bullsboro Drive.

While the ax has been falling for months in the financial, homebuilding and auto industries -- where the current economic downturn started -- makers of everything from soft drinks to water filtration systems have unveiled rounds of job cuts in recent weeks as they brace for what could become a long and deep recession.

The situation is poised to worsen as the holidays approach as many businesses scrutinize budgets for the coming year. Christmas layoffs are common in tough times.

In anticipation of a weak holiday season, consumer electronics retailer Best Buy, which normally bulks up staffing for Christmas shopping, has announced plans to cut seasonal hiring by as many as 10,000 workers this year. Best Buy has a Newnan location at Ashley Park.

Last Tuesday, PepsiCo said it would cut 3,300 jobs, almost two percent of its work force, in a bid to cut costs.

A four-week moving average of new U.S. government jobless claims last week hit its highest point in seven years.

Some 47 percent polled last month by Workplace Options said news of the financial crisis made them fearful about job security, and 25 percent said they had begun scanning help-wanted ads or updating their resumes.