Financial News

[BigSqwert]

Sears considers leaving Illinois

[Balta1701]

Sears considers leaving Illinois

If you read the article, it's more like "renew the tax breaks that expire in 2012 or we'll find someone else to give us tax breaks".

[BigSqwert]

If you read the article, it's more like "renew the tax breaks that expire in 2012 or we'll find someone else to give us tax breaks".

I did read the article and then called some contacts I have that still work at their HQ. They confirmed this has legs. But thanks for condescending.

Edited May 9, 2011 by BigSqwert

[Jenksismyhero]

If i'm an employer in Illinois that has say, 500+ employees, i'd be throwing this out there to make headlines. Quinn has already brokered a deal to give a "financial package" for another company to stay here, maybe I could get a good deal too. That's how bad it's gotten - we're no longer making businesses attracted to the state/area, we're having to compete to get them to stay. All because the state's so f***ing corrupt it has to tax the piss out of everything to keep it's doors open.

 

I can't wait until I can move to a different state. I'm seriously debating Indiana and adding the 20-25 min to my commute.

[BigSqwert]

I'd imagine that moving an organization of 6K people will be quite costly for Sears. I'd imagine a healthy amount of people will not make the move, causing them to rehire a large part of their workforce. That's a ton of lost institutional knowledge and experience plus costs for training and getting back to speed with new staff. The IT move itself will probably have lots of hiccups too. If they think it's worth it to leave then fine. Sayonara! You'll probably be bankrupt within 10 years anyway with the trajectory the company has taken in the past 20 years.

Edited May 9, 2011 by BigSqwert

[Balta1701]

I'd imagine that moving an organization of 6K people will be quite costly for Sears. I'd imagine a healthy amount of people will not make the move, causing them to rehire a large part of their workforce. That's a ton of lost institutional knowledge and experience plus costs for training and getting back to speed with new staff. The IT move itself will probably have lots of hiccups too. If they think it's worth it to leave then fine. Sayonara! You'll probably be bankrupt within 10 years anyway with the trajectory the company has taken in the past 20 years.

Didn't they already go bankrupt once?

[BigSqwert]

Didn't they already go bankrupt once?

They might have. I meant "closing it's doors for good".

[greg775]

I read an article on yahoo that our economy may be f***ed forever.

The middle class jobs are disappearing.

It is all upper upper class or low paying jobs. The middle paying jobs are all turning into

low paying jobs because of company cuts and people "lucky to just have a job."

 

Concerns?

 

Do you all know of any families that have had to move out of their houses into tiny apartments?

How are people with 3-4 kids paying the bills?

Edited May 9, 2011 by greg775

[NorthSideSox72]

I read an article on yahoo that our economy may be f***ed forever.

The middle class jobs are disappearing.

It is all upper upper class or low paying jobs. The middle paying jobs are all turning into

low paying jobs because of company cuts and people "lucky to just have a job."

 

Concerns?

 

Do you all know of any families that have had to move out of their houses into tiny apartments?

How are people with 3-4 kids paying the bills?

There are certainly some serious fundamental problems in the US economy that are unique to right now, which have either not been addressed or only partially addressed. That should indeed instill some fear.

 

On the other hand, in every major recession or depression in this country's history, it was thought the economy was "f***ed forever", so I wouldn't go buying any missile silos to ride out the apocolypse or anything.

 

[Jenksismyhero]

That didn't take long:

 

http://www.chicagobreakingbusiness.com/bus...0,6910739.story

 

Sears Holdings Corp. is considering moving its Hoffman Estates headquarters out of Illinois in a bid to cut costs, according to a source familiar with negotiations.

 

The retailer is in early talks with officials from several states, including New Jersey, Ohio, North Carolina, South Carolina, Texas and Georgia, the source said.

 

Gov. Pat Quinn said Monday that his office is working with Sears to keep the company in Illinois, saying he has a good relationship with company officials and has met with them on other issues.

 

Quinn said the company is benefiting from a tax deal with the state, which expires next year, and he's willing to consider a similar arrangement as long as they "do something for the people. They have to make investments in Illinois."

[Balta1701]

That didn't take long:

I assume you're referring to the amount of effort you put into reading the thread?

[southsider2k5]

I'd imagine that moving an organization of 6K people will be quite costly for Sears. I'd imagine a healthy amount of people will not make the move, causing them to rehire a large part of their workforce. That's a ton of lost institutional knowledge and experience plus costs for training and getting back to speed with new staff. The IT move itself will probably have lots of hiccups too. If they think it's worth it to leave then fine. Sayonara! You'll probably be bankrupt within 10 years anyway with the trajectory the company has taken in the past 20 years.

 

It also would be a huge cost cutting move as they would get to hire back all of those employees for much cheaper in the current work environment. They can come to Indiana, I'd give them my tax money to put down roots, buy houses, pay our property taxes, pay our sales taxes, reduce our unemployment etc. The move would pay off in spades.

[Jenksismyhero]

I assume you're referring to the amount of effort you put into reading the thread?

 

Ha, I skimmed the first few paragraphs of BS' link and didn't see Quinn was quoted in it. My bad.

[BigSqwert]

It also would be a huge cost cutting move as they would get to hire back all of those employees for much cheaper in the current work environment. They can come to Indiana, I'd give them my tax money to put down roots, buy houses, pay our property taxes, pay our sales taxes, reduce our unemployment etc. The move would pay off in spades.

Not sure how you got Indiana.

 

New Jersey, Ohio, North Carolina, South Carolina, Texas and Georgia

...were mentioned in the article. You're telling me they'd get everyone to move to those states on their own dime and take a pay cut? I don't buy that.

[southsider2k5]

Not sure how you got Indiana.

 

...were mentioned in the article. You're telling me they'd get everyone to move to those states on their own dime and take a pay cut? I don't buy that.

 

Either people move on their own, or they hire someone new at a paycut. It happens all of the time in corporate america. And I was just saying I would take them in Indiana. I didn't see the list.

[mr_genius]

Sears considers leaving Illinois

 

Quinn is an idiot. of course, after raising taxes, he'll give out a s*** load of tax cuts to select companies. crony capitalism.

[Balta1701]

Quinn is an idiot. of course, after raising taxes, he'll give out a s*** load of tax cuts to select companies. crony capitalism.

Is it crony capitalism when Sears is only there in the first place because of a tax break? Or if they flee to another state for that state's tax break?

[mr_genius]

Is it crony capitalism when Sears is only there in the first place because of a tax break? Or if they flee to another state for that state's tax break?

 

even more of a reason not to raise taxes.

[Balta1701]

even more of a reason not to raise taxes.

The solution of course is to have no business taxes and triple what you pay

[mr_genius]

The solution of course is to have no business taxes and triple what you pay

 

don't forget to increase spending too.

[Balta1701]

don't forget to increase spending too.

Somebody has to pay for Sears's new headquarters. Who's going to do that, Sears?

[mr_genius]

Somebody has to pay for Sears's new headquarters. Who's going to do that, Sears?

 

well, just as long as it's totally overpriced then i'm fine with paying for it. maybe start a special bonus fund for the executives too.

[Balta1701]

well, just as long as it's totally overpriced then i'm fine with paying for it. maybe start a special bonus fund for the executives too.

Now you're getting it.

[NorthSideSox72]

Companies threaten moves a lot. But they actually move out of state only very rarely, in terms of HQ's. The executives have the say, and they'd rather not move in a lot of cases. They make noise about it to get tax breaks, and it often works.

 

[Texsox]

Almost every town here in the Rio Grande Valley has an Economic Development group that works like crazy to lure your businesses down here to the sunny south where there are no state income taxes. I believe high earning execs like that perk. They also like the low housing costs, access to household staff at reasonable prices. They can buy a condo on South Padre, country club membership, and move most of their operations into Mexico to save on labor costs.

 

We enjoy flying owners and top execs down for a few days, maybe have their families join them for the weekend. So yeah, stop your state from offering incentives for businesses to stay there, please.