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Monday, February 9, 2009
Why the Sting of Layoffs Can Be Sharper for Men
Jonathan Steuer of New York has the familiar characteristics of an “evolved man.” He can speak fluently about the different waves of feminism, and he shares child care and household responsibilities with his wife.
But on the subject of job loss, he contends that the stakes are much higher for men.
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Mr. Steuer, 43, was recently laid off from his job at a small research business. “It’s hard not to imagine yourself as the breadwinner,” he said. “A lot of your ego eggs are in the job basket. I can’t shake the psychology that I’m supposed to provide.”
His wife, Marjorie Ingall, a columnist at The Jewish Daily Forward and a contributing writer at Self magazine, says she believes that it is impossible not to absorb the cultural message that the man is supposed to provide for his family.
As job losses reverberate across the economy, differences in “his” and “her” layoffs are beginning to take shape — revealing gender dynamics that may not have been as apparent when the Dow was at 14,000.
Dr. Louann Brizendine, author of “The Female Brain” and a psychiatrist at the University of California, San Francisco, says that women who lose their jobs “aren’t going to take as much of a self-esteem hit” as men. That is because the most potent form of positive social feedback for many men comes from within the hierarchy of the workplace. By contrast, she said, women may have “many sources of self-esteem — such as their relationships with other people — that are not exclusively embedded within their jobs.”
She said that over the past six months, her clinic has had an increase in the number of men seeking help for difficulties related to job loss.
Terrence Real, a family therapist and the founder of Real Relational Solutions in Arlington, Mass., said the difference in reactions could be explained by the idea of performance esteem.
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“Everyone who has written about male psychology has acknowledged that men base their sense of self on the maxim that ‘I have worth because of what I do,’ ” Mr. Real said. The feeling is that “you are only as good as your last game or your last job,” he said.
In his practice over the past 12 months, Mr. Real says, he has seen a roughly 20 percent uptick in the number of men seeking help because of the economic downturn.
Dr. Richard A. Friedman, a professor of psychiatry at Weill Medical College of Cornell University, says he has seen a sharp increase in distress among male patients who were already in treatment before to the economic crisis. In addition, he said he had evaluated 20 to 25 new male patients whose chief complaint was anxiety and depression because of the crisis.
“Considering that women tend to seek psychiatric help more often that men, what I’m seeing is striking,” he said.
While gender roles are malleable, and many people are adjusting the boundaries, the roles that have been templates for many generations still linger, particularly when it comes to employment. Certainly, a financial provider for a family is going to see a job loss through a much different lens than a single person with no dependents, and more men are primary breadwinners.
According to 2006 federal data, nearly three-quarters of men in two-earner families made more than their wives. And in families where only one person worked, nearly three-quarters of the sole breadwinners were men.
David Anderson of San Diego recently lost his job at an equipment financing company. He says his struggle in dealing with his layoff is colored by the gender roles that he and his wife have cultivated. They have two children, and he was the primary breadwinner. His wife currently continues to work part time.
“Gender has shaped the responsibilities my wife and I share,” said Mr. Anderson, 37. “I’d imagine, like a lot of men, I’m struggling with the shame aspect and the feeling that I have to go out and get another job immediately.”
Hilary Black, editor of a new anthology, “The Secret Currency of Love: The Unabashed Truth About Women, Money, and Relationships,” says remnants of those seemingly anachronistic gender roles emerged throughout the essays in the book.
“On one hand, you have the Cinderella syndrome where women want to be taken care of,” Ms. Black said, “but on the other, it’s not seen as socially acceptable to be a stay-at-home dad.”
YET while men may appear to reel more socially and psychologically from job loss, they fare far better when it comes to re-employment.
In a 2002 study, two sociology professors at Wichita State University, Charles S. Koeber and David W. Wright, found that women who were laid off and went on to look for another job were re-employed less often than men in the same position. This was especially the case if the women were married, had previously held a part-time job or had worked in something other than a highly skilled, white-collar job.
The implication, Professor Koeber says, is that women have more of a burden than men to show their commitment to a job after a layoff.
“It looks like employers systematically apply some criteria to women that they don’t to men who are looking for jobs after being laid off,” Professor Koeber said.
15 Companies That Might Not Survive 2009
Who's next?
With consumers shutting their wallets and corporate revenues plunging, the business landscape may start to resemble a graveyard in 2009. Household names like Circuit City and Linens 'n Things have already perished. And chances are, those bankruptcies were just an early warning sign of a much broader epidemic.
Moody's Investors Service, for instance, predicts that the default rate on corporate bonds - which foretells bankruptcies - will be three times higher in 2009 than in 2008, and 15 times higher than in 2007. That could equate to 25 significant bankruptcies per month.
We examined ratings from Moody's and data from other sources to develop a short list of potential victims that ought to be familiar to most consumers. Many of these firms are in industries directly hit by the slowdown in consumer spending, such as retail, automotive, housing and entertainment.
But there are other common threads. Most of these firms have limited cash for a rainy day, and a lot of debt, with large interest payments due over the next year. In ordinary times, it might not be so hard to refinance loans, or get new ones, to help keep the cash flowing. But in an acute credit crunch it's a different story, and at companies where sales are down and going lower, skittish lenders may refuse to grant any more credit. It's a terrible time to be cash-poor.
[See how Wall Street continues to doom itself.]
That's why Moody's assigns most of these firms its lowest rating for short-term liquidity. And all the firms on this list have long-term debt that Moody's rates Caa or lower, which means the borrower is considered at least a "very high" credit risk.
Once a company defaults on its debt, or fails to make a payment, the next step is usually a Chapter 11 bankruptcy filing. Some firms continue to operate while in Chapter 11, retaining many of their employees. Those firms often shed debt, restructure, and emerge from bankruptcy as healthier companies.
But it takes fresh financing to do that, and with money scarce, more bankrupt firms than usual are likely to liquidate - like Circuit City. That's why corporate failures are likely to be a major drag on the economy in 2009: In a liquidation, the entire workforce often gets axed, with little or no severance. That will only add to unemployment, which could hit 9 or even 10 percent by the end of the year.
[Want to land a plum job without paying taxes? Here's how.]
It's possible that none of the firms on this list will liquidate, or even declare Chapter 11. Some may come up with unexpected revenue or creative financing that helps avert bankruptcy, while others could be purchased in whole or in part by creditors or other investors. But one way or another, the following 15 firms will probably look a lot different a year from now than they do today:
Rite Aid. (Ticker symbol: RAD; about 100,000 employees; 1-year stock-price decline: 92%). This drugstore chain tried to boost its performance by acquiring competitors Brooks and Eckerd in 2007. But there have been some nasty side effects, like a huge debt load that makes it the most leveraged drugstore chain in the U.S., according to Zacks Equity Research. That big retail investment came just as megadiscounter Wal-Mart was starting to sell prescription drugs, and consumers were starting to cut bank on spending. Management has twice lowered its outlook for 2009. Prognosis: Mounting losses, with no turnaround in sight.
Claire's Stores. (Privately owned; about 18,000 employees.) Leon Black's once-renowned private-equity firm, the Apollo Group, paid $3.1 billion for this trendy teen-focused accessory store in 2007, when buyout funds were bulging. But cash flow has been negative for much of the past year and analysts believe Claire's is close to defaulting on its debt. A horrible retail outlook for 2009 offers no relief, suggesting Claire's could follow Linens 'n Things - another Apollo purchase - and declare Chapter 11, possibly shuttering all of its 3,000-plus stores.
[See 5 pieces missing from Obama's stimulus plan.]
Chrysler. (Privately owned; about 55,000 employees). It's never a good sign when management insists the company is not going out of business, which is what CEO Bob Nardelli has been doing lately. Of the three Detroit automakers, Chrysler is the most endangered, with a product portfolio that's overreliant on gas-guzzling trucks and SUVs and almost totally devoid of compelling small cars. A recent deal with Fiat seems dubious, since the Italian automaker doesn't have to pony up any money, and Chrysler desperately needs cash. The company is quickly burning through $4 billion in government bailout money, and with car sales down 40 percent from recent peaks, Chrysler may be the weakling that can't cut it in tough times.
Dollar Thrifty Automotive Group. (DTG; about 7,000 employees; stock down 95%). This car-rental company is a small player compared to Enterprise, Hertz, and Avis Budget. It's also more reliant on leisure travelers, and therefore more susceptible to a downturn as consumers cut spending. Dollar Thrifty is also closely tied to Chrysler, which supplies 80 percent of its fleet. Moody's predicts that if Chrysler declares Chapter 11, Dollar Thrifty would suffer deeply as well.
Realogy Corp. (Privately owned; about 13,000 employees). It's the biggest real-estate brokerage firm in the country, but that's a bad thing when there are double-digit declines in both sales and prices, as there were in 2009. Realogy, which includes the Coldwell Banker, ERA, and Sotheby's franchises, also carries a high debt load, dating to its purchase by the Apollo Group in 2007 - the very moment when the housing market was starting to invert from a soaring ride into a sickening nosedive. Realogy has been trying to refinance much of its debt, prompting lawsuits. One deal was denied by a judge in December, reducing the firm's already tight wiggle room.
[See why "Wall Street talent" is an oxymoron.]
Station Casinos. (Privately owned, about 14,000 employees). Las Vegas has already been creamed by a biblical real-estate bust, and now it may face the loss of its home-grown gambling joints, too. Station - which runs 15 casinos off the strip that cater to locals - recently failed to make a key interest payment, which is often one of the last steps before a Chapter 11 filing. For once, the house seems likely to lose.
Loehmann's Capital Corp. (Privately owned; about 1,500 employees). This clothing chain has the right formula for lean times, offering women's clothing at discount prices. But the consumer pullback is hitting just about every retailer, and Loehmann's has a lot less cash to ride out a drought than competitors like Nordstrom Rack and TJ Maxx. If Loehmann's doesn't get additional financing in 2009 - a dicey proposition, given skyrocketing unemployment and plunging spending - the chain could run out of cash.
Sbarro. (Privately owned; about 5,500 employees). It's not the pizza that's the problem. Many of this chain's 1,100 storefronts are in malls, which is a double whammy: Traffic is down, since consumers have put away their wallets. Sbarro can't really boost revenue by adding a breakfast or late-night menu, like other chains have done. And competitors like Domino's and Pizza Hut have less debt and stronger cash flow, which could intensify pressure on Sbarro as key debt payments come due in 2009.
Six Flags. (SIX; about 30,000 employees; stock down 84%). This theme-park operator has been losing money for several years, and selling off properties to try to pay down debt and get back into the black. But the ride may end prematurely. Moody's expects cash flow to be negative in 2009, and if consumers aren't spending during the peak summer season, that could imperil the company's ability to pay debts coming due later this year and in 2010.
Blockbuster. (BBI; about 60,000 employees; stock down 57%). The video-rental chain has burned cash while trying to figure out how to maximize fees without alienating customers. Its operating income has started to improve just as consumers are cutting back, even on movies. Video stores in general are under pressure as they compete with cable and Internet operators offering the same titles. A key test of Blockbuster's viability will come when two credit lines expire in August. One possible outcome, according to Valueline, is that investors take the company private and then go public again when market conditions are better.
Krispy Kreme. (KKD; about 4,000 employees; stock down 50%). The donuts might be good, but Krispy Kreme overestimated Americans' appetite - and that's saying something. This chain overexpanded during the donut heyday of the 1990s - taking on a lot of debt - and now requires high volumes to meet expenses and interest payments. The company has cut costs and closed underperforming stores, but still hasn't earned an operating profit in three years. And now that consumers are cutting back on everything, such improvements may fail to offset top-line declines, leading Krispy Kreme to seek some kind of relief from lenders over the next year.
Landry's Restaurants. (LNY; about 17,000 employees; stock down 66%). This restaurant chain, which operates Chart House, Rainforest Café, and other eateries, needs $400 million in new financing to finalize a buyout deal dating to last June. If lenders come through, the company should have enough cash to ride out the recession. But at least two banks have already balked, leading to downgrades of the company's debt and the prospect of a cash-flow crunch.
Sirius Satellite Radio. (SIRI - parent company; about 1,000 employees; stock down 96%). The music rocks, but satellite radio has yet to be profitable, and huge contracts for performers like Howard Stern are looking unsustainable. Sirius is one of two satellite-radio services owned by parent company Sirius XM, which was formed when Sirius and XM merged last year. So far, the merger hasn't generated the savings needed to make the company profitable, and Moody's thinks there's a "high likelihood" that Sirius will fail to repay or refinance its debt in 2009. One outcome could be a takeover, at distressed prices, by other firms active in the satellite business.
Trump Entertainment Resorts Holdings. (TRMP; about 9,500 employees; stock down 94%). The casino company made famous by The Donald has received several extensions on interest payments, while it tries to sell at least one of its Atlantic City properties and pay down a stack of debt. But with casino buyers scarce, competition circling, and gamblers nursing their losses from the recession, Trump Entertainment may face long odds of skirting bankruptcy.
BearingPoint. (BGPT; about 16,000 employees; stock down 21%). This Virginia-based consulting firm, spun out of KPMG in 2001, is struggling to solve its own operating problems. The firm has consistently lost money, revenue has been falling, and management stopped issuing earnings guidance in 2008. Stable government contracts generate about 30 percent of the firm's business, but the firm may sell other divisions to help pay off debt. With a key interest payment due in April, management needs to hustle - or devise its own exit strategy.
- With Carol Hook, Danielle Burton and Stephanie Salmon
New Orleans Online Bakeries Best King Cake Price and Packages www.CompareKingCakes.com
New Orleans Online Bakeries Best King Cake Price and Packages www.CompareKingCakes.com
If you like to order a cake at Wegman’s bakery, you can simply email them a personalized message that will be printed on the cake.
A lady in NY followed the same procedure and ordered a birthday cake over email but here’s what they delivered on her birthday - a cake with some HTML icing.
It turned out that she used Microsoft Outlook to send her email but Wegman’s email system failed to recognize the proprietary HTML tags of Outlook and hence this goof-up.
This is best explained by an employee of Wegman - "we just cut and paste from the email to the program we use for printing the edible images, we are usually in such a hurry that we really don’t have time to check. and if we do the customers yell at us for bothering them."
New Orleans Online Bakeries Best King Cake Price and Packages www.CompareKingCakes.com
New Orleans Online Bakeries Best King Cake Price and Packages www.CompareKingCakes.com
If you like to order a cake at Wegman’s bakery, you can simply email them a personalized message that will be printed on the cake.
A lady in NY followed the same procedure and ordered a birthday cake over email but here’s what they delivered on her birthday - a cake with some HTML icing.
It turned out that she used Microsoft Outlook to send her email but Wegman’s email system failed to recognize the proprietary HTML tags of Outlook and hence this goof-up.
This is best explained by an employee of Wegman - "we just cut and paste from the email to the program we use for printing the edible images, we are usually in such a hurry that we really don’t have time to check. and if we do the customers yell at us for bothering them."
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