Also: AMD Cutting Staff, Consolidating Locations; Hartmarx Parent Goes into Chapter 11 Alteration; Back Yard Burgers Closes 19 Locations; Will Seek Lease Concessions on Others; and 43 more Downsizings
Apollo Group Inc., the Phoenix-based owner of the for-profit University of Phoenix chain of colleges, plans to shutter115 locations as part of its plan to "re-engineer business processes and refine its delivery structure."
The closures will consist of 90 learning and student resource centers, which are generally smaller satellite locations, and 25 of its campuses.
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The company has also begun implementing a workforce reduction and expects to decrease total headcount, excluding faculty, by 800 employees during fiscal year 2013.
The changes will directly impact 13,000 students. These students will be offered support to continue their education at the University of Phoenix either online, through alternative on-ground arrangements or, in limited cases, at other University of Phoenix locations.
The plan will preserve a national coast-to-coast network of 112 locations in 36 states, the District of Columbia and Puerto Rico.
AMD Cutting Staff, Consolidating Locations
AMD (Advanced Micro Devices) has launched a restructuring plan designed to reduce operating expenses. A significant portion of Sunnyvale, CA-based AMD's restructuring plan that will be implemented in next two months will include a 15% global workforce reduction and site consolidations. At February 2012 employment levels, a 15% reduction would entail about 1,665 workers.
Rory Read, AMD president and CEO, said the changes were needed because of the significant changes roiling the PC industry. "It is clear that the trends we knew would re-shape the industry are happening at a much faster pace than we anticipated," Read said. "As a result, we must accelerate our strategic initiatives to position AMD to take advantage of these shifts and put in place a lower cost business model. Our restructuring efforts are designed to simplify our product development cycles, reduce our breakeven point and enable us to fund differentiated product roadmaps and strategic breakaway opportunities."
Hartmarx Parent Goes into Chapter 11 Alteration
The buyer of the retailer / apparel firm formerly known as Hart Schaffner & Marx and then Hartmarx Corp. itself filed for bankruptcy protection this week, which means now both the buyer and the bought are operating under Chapter 11 reorganization.
Privately-held HMX Acquisition Corp., and four affiliates including Quartet Real Estate LLC, filed for Chapter 11 protection with the U.S. Bankruptcy Court in the Southern District of New York. In its filing, HMX is seeking a sale of the business.
The company designs, manufactures and retails men's and women's business and leisure apparel and claims to be the largest manufacturer of men's tailored clothing.
In January 2009, Hartmarx Corp., HMX's predecessor in interest, filed for chapter 11 bankruptcy protection. In the summer of 2009, HMX acquired its existing equity ownership against the backdrop of a U.S. recession, a difficult retail environment, and a need to improve Hartmarx's operations.
New senior management was recruited and immediately began implementing a comprehensive operational turnaround focused on: a reconfigured growth strategy; brand revitalization and new product initiatives; streamlined operations; and centralized non-manufacturing operations.
In the first half of this year, HMX implemented additional cost savings, including headcount reductions and curtailment of marketing expenditures and sought a debt restructuring. When debt talks fell through in July, HMX curtailed all inventory purchases.
As talks broke down, debt holders began shopping the business. And as part of its bankruptcy reorganization, HMX has entered into a 'stalking horse' asset purchase agreement with Authentic Brands Group for a going concern sale.
Back Yard Burgers Closes 19 Locations; Will Seek Lease Concessions on Others
Back Yard Burgers Inc., a Nashville-based regional quick service restaurant chain, plans to reduce operating expenses and restructure debt. Part of the plan calls for addressing underperforming locations.
The company filed a pre-negotiated Chapter 11 reorganization plan with the U.S. Bankruptcy Court for the District of Delaware. The filing does not include franchise-owned locations. Having already obtained the consent of its secured lender, the company anticipates the restructuring process will be completed in early 2013.
Back Yard Burgers previously closed 19 company-owned locations due to underperformance and prohibitive costs, and it has hired GA Keen Realty to review its locations and initiate discussions with landlords regarding rent reductions, lease term modifications and other leasehold concessions.
Closures & Layoffs
Sheet1 | | | | | | | |
. | Company | Address | City | State | Closure or Layoff | Layoff Number | Impact Date |
. | Curesearch for Children's Cancer | 440 E. Huntington Drive, Suite 40 | Arcadia | CA | Closure | 85 | 10/31/2012 |
. | Lovin Oven | 16100 Foothill Blvd. | Azusa | CA | Layoff | 571 | 10/31/2012 |
. | Seven Oaks Country Club | 2000 Grand Lakes Ave. | Bakersfield | CA | Layoff | 73 | 10/31/2012 |
. | Pacific Steel Casting Co. | 1333 Second St. | Berkeley | CA | Layoff | 135 | 11/15/2012 |
. | VWR International | 3745 Bayshore Blvd. | Brisbane | CA | Closure | 30 | 11/9/2012 |
. | Albertsons | 1000 N. Azusa Ave. | Covina | CA | Closure | 61 | 11/4/2012 |
. | River Ranch Fresh Foods | 175 N First St. | El Centro | CA | Closure | 459 | 11/24/2012 |
. | San Diego Union-Tribune | 207 E.Pennsylvania Ave. | Escondido | CA | Layoff | 46 | 11/30/2012 |
. | Ameron International Wind Towers Division | 13032 Slover Ave. | Fontana | CA | Closure | 180 | 11/24/2012 |
. | Albertsons | 13220 Harbor Blvd. | Garden Grove | CA | Closure | 61 | 11/4/2012 |
. | Albertsons | 1000 S. Central Ave. | Glendale | CA | Closure | 54 | 11/4/2012 |
. | Albertsons | 17120 Colima Road | Hacienda Heights | CA | Closure | 57 | 11/4/2012 |
. | Teva Pharmaceuticals | 19 Hughes | Irvine | CA | Layoff | 65 | 10/29/2012 |
. | World Marketing | 14407 Alondra Blvd. | La Mirada | CA | Closure | 80 | 11/26/2012 |
. | Comcast | 3055 Comcast Place (Bldgs A & B | Livermore | CA | Closure | 435 | 11/30/2012 |
. | Lawrence Livermore National Laboratory | 7000 East Ave. | Livermore | CA | Layoff | 205 | 11/15/2012 |
. | Abeo Management Corp. | 11999 San Vicente Blvd. | Los Angeles | CA | Closure | 42 | 11/28/2012 |
. | Albertsons | 11875-A Pigeon Pass Road | Moreno Valley | CA | Closure | 57 | 11/4/2012 |
. | Comcast | 18665 Madrone Parkway | Morgan Hill | CA | Closure | 220 | 11/30/2012 |
. | Paragon Studios | 2189 Leghorn St. | Mountain View | CA | Closure | 79 | 10/31/2012 |
. | Savi Technology | 351 & 381 East Evelyn Ave. | Mountain View | CA | Layoff | 54 | 11/17/2012 |
. | Albertsons | 1100 N. Hammer Ave. | Norco | CA | Closure | 55 | 11/4/2012 |
. | Disney Interactive | 5161 Lankershim Blvd. | North Hollywood | CA | Layoff | 99 | 11/5/2012 |
. | San Diego Union-Tribune | 1722 South Coast Hwy | Oceanside | CA | Layoff | 19 | 11/30/2012 |
. | Albertsons | 2522 S. Grove Ave. | Ontario | CA | Closure | 52 | 11/4/2012 |
. | Codexis | 200 Penobscot Drive | Redwood City | CA | Layoff | 133 | 10/30/2012 |
. | Albertsons | 8310 Limonite Ave. | Riverside | CA | Closure | 59 | 11/4/2012 |
. | Albertsons | 19725 E. Colima Road | Rowland Heights | CA | Closure | 61 | 11/4/2012 |
. | Comcast | 4450 East Commerce Way | Sacramento | CA | Closure | 410 | 11/30/2012 |
. | La Hacienda Farms | 1119 Rogge Road | Salinas | CA | Closure | 96 | 11/30/2012 |
. | SVTC Technologies | 3901 North First St. | San Jose | CA | Layoff | 106 | 11/17/2012 |
. | Carey Limousine | 441 Voctory Ave., Unit C, 2nd Flr | South San Francisco | CA | Layoff | 54 | 11/16/2012 |
. | Elan Pharmaceuticals | 180 Oyster Point Blvd. | South San Francisco | CA | Layoff | 202 | 11/20/2012 |
. | Rambus | 1050 Enterprise Way, Suite 700 | Sunnyvale | CA | Layoff | 68 | 10/30/2012 |
. | Aero-Electric | 568 Amapola Ave. | Torrance | CA | Closure | 23 | 11/23/2012 |
. | Ricoh | 1123 & 1132 Warner Ave. | Tustin | CA | Closure | 95 | 11/30/2012 |
. | Albertsons | 7227 Van Nuys Blvd. | Van Nuys | CA | Closure | 69 | 11/4/2012 |
. | First American Home Buyers Protection Corp. | 7833 Haskell Ave. | Van Nuys | CA | Layoff | 62 | 11/9/2012 |
. | Albertsons | 13650-A Bear Valley Road | Victorville | CA | Closure | 62 | 11/4/2012 |
. | Albertsons | 18730 E. Amar Road | Walnut | CA | Closure | 55 | 11/4/2012 |
. | Medpoint Management | 6400 Canoga Ave. | Woodland Hills | CA | Closure | 65 | 11/30/2012 |
. | Rideout Home Health | 939 Live Oak Blvd. | Yuba City | CA | Layoff | 44 | 11/11/2012 |
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