SavvySugar

What Do You Know About Reader's Digest?

SavvySugar — Tue, 25 Aug 2009 06:30:44 -0700

Heavy debt, an advertising slump, and decreased circulation pushed the publisher of Reader's Digest to file for Chapter 11 bankruptcy protection yesterday. Reader's Digest is considered an iconic general interest publication, so let's see how much you know about the classic magazine and its publisher, the Reader's Digest Association. Take the quiz!

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Filene's Basement Files For Bankruptcy

SavvySugar — Mon, 04 May 2009 14:00:35 -0700

Another retailer can be added to the growing list of recession victims. Filene's Basement filed for Chapter 11 bankruptcy protection today, citing slow sales and tough competition from other discount stores like T.J. Maxx. Filene’s is selling 17 of its 25 stores to Crown Acquisitions for $22 million, and filing for bankruptcy protection will give the chain a clean debt slate. Still, The New York Times points out that overcoming a Chapter 11 filing isn't easy in this economic climate, citing the fate of the liquidated Circuit City chain.

We can thank Filene's for developing a market for discounted goods. It's credited as being one of the first retailers to offer automatic markdowns, the idea to reduce prices on items that have been on the floor for a certain period of time. Hopefully, the 100-year-old chain will emerge from its second bankruptcy as a stronger competitor.

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Would You Be Bummed If Blockbuster Went Bankrupt?

SavvySugar — Wed, 04 Mar 2009 09:30:07 -0800

Rumor has it that Blockbuster is looking into bankruptcy as a possibility, which doesn't come as a huge surprise given the many other movie-renting options out there (not to mention the withering state of consumer confidence). Still, the blue and gold movie house has been around for some time. Would you miss it?

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Maxed Out: Third Bankruptcy Is Not a Charm

SavvySugar — Tue, 17 Feb 2009 07:15:45 -0800

This episode of Maxed Out is about Jessica and Greg, a couple who just can't grasp financial responsibility. They declared bankruptcy separately before they were married, and as parents of one-year old twins and a six-year old they are on the brink of declaring bankruptcy together. Their $55,000 of debt is overwhelming their relationship and dissolving their dreams of home ownership, and even though they earn a combined annual salary of $120,000, they are always one payment behind on all of their bills. Financial guru Allison Griffiths says the only way to avoid another bankruptcy is to overhaul their finances. To see what she found out when she took a deeper look into their spending habits, read more.

It quickly becomes obvious that Jessica and Greg have an unhealthy reliance on debt. They spend $420 a month on bank fees alone and have a $594 shortfall every month, mostly from bouncing checks and paying interest to the payday loan service. They have $6,000 in collections, owe $33,000 on their cars, and are about $15,000 in debt to their parents. Because of their bad credit history, the loan on one of their cars is at 22 percent interest- when it's paid off in five years, they'll have paid for the car twice.

The couple spends $450 a month on coffee and cigarettes alone, and when Allison points out that in five years they would have $32,000 (the equivalent of their car loans) they realize that it's time to make big changes. By following Allison's instructions to get rid of Jessica's SUV, Greg's hot rod hobby, quitting smoking, and making coffee at home, they are on their way to financial stability.

They are still at least five years away from being able to buy a house, but Greg says he's learned it's necessary to pay attention to the little things in order to get the bigger things you really want. They're finally able to pay their bills on time, which is a big step from living on the edge of bankruptcy that got them on the show in the first place.

Don't Expect Deals at Circuit City Liquidation

SavvySugar — Sun, 25 Jan 2009 07:00:06 -0800

If you weren't convinced the first time I mentioned that Circuit City's liquidation sales aren't offering unbeatable prices, take it from ABC Action 6 News. The news team investigated the prices at the going-out-of-business chain and discovered that the liquidators are doing a good job and making as much money as possible, so that Circuit City can pay back its creditors. Below are some of the discoveries the team made.

A Juno DVD at Circuit City was selling for $21.99 with a 10 percent discount, while the same DVD was selling for only $14.99 at Best Buy.
Out of 25 items, 10 were better buys at Best Buy.
They found cheaper prices online for all 25 items.

The ABC team gives a smart reminder that none of the items purchased at liquidation sales can be returned. They suggest checking to see that all parts and accessories are accounted for, ensuring that manuals are included, making sure warranties are good, and waiting for more markdowns as the sales continue.

Circuit City Liquidation: It's On

SavvySugar — Mon, 19 Jan 2009 04:30:00 -0800

The road has come to an end for Circuit City. The electronics chain filed for bankruptcy in November of 2008 and is now facing the same fate as Linens 'n Things - liquidation. All merchandise must go in the remaining 567 stores, and unfortunately that means more than 30,000 will likely lose their jobs.

While you may skip to your nearest Circuit City, confident that you'll walk out with the best deal in the world, slow down your step and take a minute to really scope out the prices. When the chain closed some of its stores after it filed for bankruptcy, Good Morning America ran a piece about the liquidation tricks they discovered in one of the closing stores. The show served as an eye-opener to why consumers need to be price aware: They found a Samsung HD TV for $1,799 only available from an opened box, while a still-in-business Circuit City was selling the same brand new TV for $1,599.

If you're planning on venturing to a Circuit City liquidation sale, try and shop with a purpose and research prices before you step into a store.

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Biggest News Story: Lehman Brothers Files For Bankruptcy

SavvySugar — Mon, 15 Dec 2008 13:30:40 -0800

Lehman Brothers was 158 years old when it declared bankruptcy, and the prestigious firm's collapse was one that shocked everyone inside the industry and out. The company was left with no other choice but to declare bankruptcy when it couldn't find a buyer and the government refused to bail it out. The New York Times called the fateful event one of the most dramatic days in Wall Street history.

The Lehman Brothers bankruptcy filing was the biggest in history, so it makes sense that the clearing of the company's Manhattan headquarters was made into quite a spectacle. Employees filed out with their packed boxes while police barricaded the area, and some asked what famous person was in the area. A cop told the crowd, "Go home. There is no one famous coming out. You are looking at a whole bunch of people who just lost their jobs."

Former Lehman employees were quick to post company memorabilia on eBay, and many items sold for a premium. Buyers figured owning a piece of Lehman was the same as owning a piece of history, and the historic collapse of the well-respected bank earns it a place as one of the biggest news stories of 2008.

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What Is the Most Shocking Bank Trouble of 2008?

SavvySugar — Wed, 10 Dec 2008 11:30:13 -0800

There's no way react to the banking trouble that occurred this past year without shaking our heads in disbelief. The crazy banking news just kept rolling in as one century-old firm after another collapsed, was bailed out by the government, or purchased by another existing bank. The bad news started with investment banks and found its way into commercial banks. Which one stands out as the most unbelievable circumstance?

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Linens 'n Things Tricky Liquidation Tactics Exposed

SavvySugar — Wed, 26 Nov 2008 04:30:40 -0800

Going out of business sales usually make shoppers' ears perk up, yet a recent sort of exposé by Good Morning America suggests that we shouldn't trust that sticker prices are actual discounts from the originals. With camcorder in hand, the show strolled the aisles of a soon-to-be extinct Linens 'n Things and visited a going-out-of business Circuit City store. What they found was nothing to be excited about, at least in terms of dirt-cheap deals.

A liquidator's goal is to make money, and they do so by capitalizing on the excitement surrounding going-out-of business sales. Store clerks admitted that liquidators raise prices and then gradually discount. At a Circuit City store taken over by liquidators, Good Morning America found a Samsung HD TV for $1,799 only available from an opened box, while a still-in-business Circuit City was selling the same brand new TV for $1,599. Protect yourself as a consumer by shopping around and not assuming that a so-called discounted price is the best available. Check out the video below for more insight into tricky liquidation tactics.

Maxed Out: On the Verge of Bankruptcy, Again

SavvySugar — Mon, 24 Nov 2008 13:00:24 -0800

This episode of Maxed Out is about Karen, a single mom of a 9-year-old girl named Bailey, and she's in danger of having to declare bankruptcy for the second time. She says she'll feel like a loser if it happens again, and everything she cares about - her daughter, financial stability, and her home - is at risk. Karen has no savings for herself or for Bailey's future. Even though she's always short on rent and lives on cash advances, Karen can't help herself from her favorite four-letter word: sale. Find out if financial guru Allison Griffiths can stop Karen from spending her way in to a second bankruptcy when you read more.

Karen's paperwork is the messiest Allison has ever seen, which is why Karen was clueless of her average $945 shortfall every month. A big part of her problem is that she spends $1,552 in cash each month and doesn't know where her money is going, and she's wasting about $470 a month on bank fees alone. Karen consistently gives her ex about $100 on a monthly basis, even though she can barely pay her rent.

Allison puts Karen on a strict budget that leaves no room for shopping and allows for $25 in cash each week. She doubles her debt payments from $200 to $400 each month and will be able to pay it down in four years. Allison tells Karen to stop giving money to her ex and put it into an educational savings account for Bailey instead, and she suggests giving Bailey a $15 allowance each week. Bailey has to track the way she spends her allowance so that she doesn't make the same mistakes her mom did.

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