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Terrific: Pennsylvania bails out Boscov’s!; Update: NJ, too

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BlueStateSaint:
From Michelle Malkin's excellent blog.


--- Quote ---Terrific: Pennsylvania bails out Boscov’s!; Update: NJ, too

By Michelle Malkin  •  November 20, 2008 02:52 PM

Democrat Gov. Ed Rendell is going to prop up bankrupt Boscov’s department stores — with your money. $35 million smackeroos, to be exact. How long before California Pizza Kitchen and the Cheesecake Factory and Spencer’s Gifts and Chuck E. Cheese get theirs? (Oh, and don’t worry. I’m still keeping tabs on the Newspaper Bailout Countdown Clock.)

Triple-ugh:


--- Quote ---Gov. Ed Rendell announced today that the state will direct $35 million of federal Housing and Urban Development money to Al Boscov and his family to help them purchase the bankrupt department store chain.

Rendell said the money will help Boscov secure the funds to complete the purchase in bankruptcy court.

Without the money, the department store chain may not be able to survive, he said. It has 39 stores and 9,000 employees in the mid-Atlantic region. Rendell said there are 25 stores and 5,000 employees in the state. Boscov’s is based in Reading.
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--- End quote ---

There's one of these in Albany, at Crossgates Mall, about 15 miles down I-87 from me.  And, one in Clifton Park, not more than 500 yards from me.  (That one is supposedly remaining open.)  Oh well--who knew they were doing this bad, and going into the Christmas shopping season? ::) :whatever: :banghead:

The link is:

http://michellemalkin.com/2008/11/20/terrific-pennsylvania-bails-out-boscovs/

NHSparky:
Cheesecake Factory has a useful product that people want, a decent business model, and therefore doesn't NEED a bailout.

Hey, if the government is going to bail out private businesses for little more than nostalgic reasons, why don't they resurrect Naugle's Tacos?  Hell, let's bring back Pup-N-Taco!

NHSparky:

--- Quote from: Vonne on November 21, 2008, 06:40:06 PM ---Actually, a whole chain of them or there franchises, just went under!  :thatsright:  :bawl:


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Link, please?

Not that I don't believe you, but while their stock HAS taken a hit, that's because of several factors--not the least of which is sector-wide decline in people eating meals out.  When folks have less money, they eat out less, doubly so when a majority of these places are centered in shopping malls, etc.

Even the Motley Fool thinks they took an unfair hit:

LINK


--- Quote ---Quality casual dining: This isn't a stock. It's a niche. Load up on the battered stars of casual dining, such as Cheesecake Factory (Nasdaq: CAKE), P.F. Chang's (Nasdaq: PFCB), and California Pizza Kitchen (Nasdaq: CPKI). If the concepts had wait times to get seated on weekend evenings before the economy tanked, they will be the first to bounce back. This won't happen overnight, of course. That's not necessarily a bad thing, because it will give the industry time to shake out more of the weaker casual-dining players. By the time the rubble settles, the popular chains will be able to score great lease terms on vacant units and hit the market with fewer competitors nearby. This is only a suggestion for patient investors, since the downdraft may last for some time.
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So really, before you go dishing out BS's for something of which you know little to nothing, and knowing what I do of you, I'd venture to guess you don't eat there much.  If it goes under, it goes under, and shouldn't get a bailout from ANY government entity.  Did the government give bailouts to buggy makers when the automobile came along?  To folks who made only 8-track players when the cassette was invented, or ditto when Sony developed the CD?

Government is NOT, repeat NOT, in the business of business.  At least not the last time I looked.  And every time it has tried in our history, it has been a miserable failure.  That fact isn't going to change.

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