Spirito, Bourey defend People Express loan to Newport News City Council

Spirito said the the leadership of People Express and its proposed destinations seemed strong enough to help fill the gap that AirTran left when it stopped flying out of Newport News in 2012.

The airport commission decided in a closed meeting in 2014 to guarantee a line of credit for People Express, which already was more than $1 million in debt. At the time, the airline also was being sued in Newport News Circuit Court for $50,000 of unpaid credit card bills. The airlines founder, Michael Morisi, had filed for personal bankruptcy five years earlier.

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GEODEX Provides Update on Restructuring, Non-Brokered Unit Financing and Goldway SRL Acquisition

TORONTO, ON / ACCESSWIRE / January 6, 2017 / Geodex Minerals Ltd. (GXM.V) (the Company or Geodex) is pleased to provide the following update on its previously announced initiative to become a Next Generation Metals and Mining Company. Each aspect of the Companys restructuring, financing and acquisition and growth strategy is discussed below.

Restructuring – Debt Settlement and Share Consolidation

At the Companys special meeting of shareholders held on January 29, 2016, the shareholders approved: a) the consolidation of the common shares of the Company on the basis of one (1) post-consolidation common share for every ten (10) pre-consolidation common shares (the Consolidation); b) $386,059.30 in debt settlements to arms length and non-arms length parties through the issuance of 3,860,593 post-consolidation common shares of the Company at a deemed price of $0.10 per post-consolidation common share (the Debt Settlement); and c) the conversion of special warrants (converted into 670,000 common shares) issued in connection with a private placement in July 2015. The Consolidation and conversion of special warrants received final approval from the TSX Venture Exchange on February 9, 2016 resulting in 2,779,827 common shares issued and outstanding. Completion of the Debt Settlement will result in the issuance of an additional 3,860,593 common shares (or 6,640,420 pro forma shares) issued and outstanding prior to completion of the proposed non-brokered unit financing (the Offering) and Goldway SRL acquisition. The Debt Settlement is expected to close concurrently with the first tranche of the proposed Offering, subject to final approval of the TSX Venture Exchange.

Financing – Non-brokered Private Placement of Units

The previously announced private placement offering of up to an aggregate of up to 2,000 Units (the Units) of the Company for gross proceeds of $1,800,000 (the Offering) has been revised. Each Unit is now comprised of: (i) a note in the principal amount of C$1,000, bearing a coupon of 10.0%, payable semi-annually (the Note); (ii) 1,500 common shares (the Unit Shares); and (iii) 1,500 common share purchase warrants (the Warrants), with each Warrant exercisable into one common share of the Company (a Warrant Share) at an exercise price of $0.10 per Warrant Share, provided that the Warrant is exercised on or before the date that is 5 years from the date of closing.

The Notes will have a 5-year term and are being sold at a 10% discount to their par value for a deemed offering price of $900.00 per Unit for gross proceeds of $1,800,000.

The Offering may close in multiple tranches with proceeds of the Units sold under the Offering to be used for metal trading activities, project development capital for the Companys operations in Bolivia and for general working capital purposes.

Goldway SRL Acquisition

Key to the Companys growth strategy is the acquisition of Goldway SRL. (Goldway), a privately owned gold and metals trading company with operations in Bolivia. The original Letter of Intent (LOI) entered into on July 22, 2015 has been amended pursuant to a share exchange agreement dated August 12, 2016, and it is intended that the shareholders of Goldway will receive: (i) $100,000 on closing of the acquisition; (ii) 5,000,000 of common shares in the capital of the Company (Geodex Shares), to be issued in tranches of one-third (1/3) on each of the closing of the acquisition, and the dates that are six (6) months and twelve (12) months following completion of the acquisition; and (iii) future cash payments equal to 10% of the operating earnings (EBITDA) for the first year following the acquisition, 9.5% of EBITDA for the second year, and 9.0% of EBITDA for the third year. In the event that Goldway has minimum EBITDA of $1,000,000 for the 12 month period following completion of the acquisition the sellers may elect to receive a one-time payment of $500,000 in lieu of the annual payments.

The transaction will be completed by way of cash and equity payments as described above, a considerable portion of which will be deferred and aligned to the profitability of Goldway. No finders fee will be paid by Goldway pursuant to this transaction, and the transaction does not involve any non-arms length parties.

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How Helpful Are Oakland’s First-Time Homebuyer Assistance Programs?

Because Bay Area residents pay more for housing than almost anyone else in the nation, buying a new home is a distinctly competitive exercise. Oakland residents seeking to become homeowners face a particular challenge — new arrivals with deep pockets.

Oakland’s median household income is $52,962, but the median home price in Alameda County is $795,400. According to the California Association of Realtors, new buyers need a minimum income of $154,610 to afford the median $3,870/month for a mortgage and taxes.

Even though Oakland’s median home price is $650,000, many local buyers are still frozen out of the market, even though several programs give low- and moderate-income buyers a boost.

Photo: mk30/Flickr

Under Oakland’sMortgage Assistance Program(MAP), residents who earn up to $42,369 can get a loan for up to 30% of a home’s purchase price (not to exceed $75,000.) Residents who earn between $42,369 and $63,554 can apply for a maximum loan of 20% of the purchase price, with a top limit of $50,000.

Although MAP loans are available, funds forCalHome, a separate program that only helps low-income, first-time buyers ($42K and below) are not available at this time. CalHome applicants may apply for loans up to 30% of a home’s purchase price, not to exceed $60,000.

We contacted a CalHome representative earlier this week to find out when these funds would be restored, but did not receive a reply. On the federal side, some Oakland residents may also qualify forFederal Housing Administration loans(FHA) or home loans guaranteed by theVeterans Administration.

“Most of my clients are moving from out of state or they’re coming from San Francisco,” said Robert Parker, an Oakland-based sales associate. About 10 percent or less of his active clients are Oakland natives, he estimated.

35th amp; Adeline. | Photo: Radio Nicole/Flickr

Via email, realtor Christine Cheng told Hoodline that about half of her clients are Oakland renters buying their first home, most of whom “submit offers that are conventional loans or cash offers.”

Separately, Cheng and Parker agreed that buyers who use assistance programs are at a disadvantage. “At the end of the day, cash is king,” said Parker. “If you have more than 20 percent, you’re doing well. If you have all cash, you’re sitting great.”

Parker said he’s skeptical about assistance programs’ ability to give first-timers a leg up in a hot real estate market. “In a competition scenario where there’s five or six offers, the listing agent would be leery about them as a buyer and whether they could perform, he said.

Sellers generally prefer offers “with little to no contingencies,” said Cheng, “as they provide for shorter closing periods and fewer conditions are required by the lender to close.” As a result, buyers who have a 20 percent down payment or cash above and beyond the asking price have an edge.

“It’s not to say you can’t find a house in Oakland with these programs, but perhaps be flexible with your search criteria,” Cheng said. “Be patient and know that you are likely to write at least a few offers before one is accepted.”

With interest rates expected to rise this year, Parker said many of his clients are liquidating IRAs, 401(k) accounts, and other savings. “People are going to be a little more frantic to get into a home, especially if they have tech money,” he said.

Ultimately, Cheng said first-time buyers should set aside emotion when it comes making one of life’s largest financial commitments. “It’s a numbers game, so don’t get too attached when submitting an offer,” she said, adding that buyers should ask agents to search for homes that have been on the market for over 21 days.

An Oakland homeowner who preferred to remain anonymous told Hoodline that first-time buyers should make a point of visiting open houses in their neighborhoods. “I know I’d rather sell to someone who already lives here,” she said, because “that promotes neighborhood character.”

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Traffic, parking tips for Nova Home Loans Arizona Bowl

TUCSON, AZ (Tucson News Now) –

Tucson drivers should plan for some congestion around Arizona Stadium as the kickoff of the 2016 Nova Home Loans Arizona Bowl approaches.

The Air Force takes on South Alabama at 3:30 pm on Friday, Dec. 30.

The four roads closest to the stadium will be clogged with cars, especially closer to kickoff time.

These include Speedway Boulevard, Sixth Street, Euclid Avenue and Campbell Avenue.Midtown driversshould expect more time as they drive through this area.

Anyone heading to the football game should plan to arrive very early, as parking is first come, first serve.

Here are a few parking tips for bowl game-goers:

  • Most UA garages are $10
  • The Cherry Ave Garage near McKale Center is $15
  • Most UA surface lots are $5-10. Bring cash for these lots.
  • $15 RV parking is available near Speedway Boulevard and Vine Street.

For more information on Bowl Game Parking visithttp://www.novaarizonabowl.com/for-fans/parking/.

Fans can also use the Sun Link streetcar to get to Arizona Stadium. For a closer look at routes visithttp://www.sunlinkstreetcar.com/.

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MoneyTips: Pay down debt with your tax refund

The tax refund you receive in 2017 could be just what you need to pay down any credit card debt you rang up over the festive season. It may help you to clear your balances and enjoy the rest of the year with fewer struggles.

The holiday season is a wonderful time of year for families, but many Americans spend more than they can afford, leading to acredit hangoverafter Christmas. Mark DiGiovanni, a Certified Financial Planner, says that due to a lack of budgeting and restraint over the festive season, many people spend themselves into a hole by the beginning of the next year, and they spend the better part of the year trying to dig themselves out.

A recent study found that credit card debt in the US variesfrom state to state. DiGiovanni suggests the rising number of loans are due to the improving economy, with many households becoming more optimistic about taking on extra debt. For those in states like Georgia, which ranks third in the country for average credit card debt, and where the average income is lower, this has led to more spending on plastic.

To tackle these debts, DiGiovanni suggests households try to cut their expenses during the first few months of the year and put any savings towards credit card bills. If yourbalancehas not been cleared by April, he recommends using yourtax refundto reduce the remaining debt.

If you want to settle outstanding debts for less than what you owe, try ourdebt settlement tool.

Originally Posted at:http://www.moneytips.com/pay-down-debt-with-your-tax-refund

Many Do Not Claim Their Tax Refunds Each Year

Tax Day Last Minute Filing

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Do You Know How to Escape Credit Card Debt?

By Andrew Housser

It’s January – a month that represents a fresh start for everything from diets to getting finances in shape. If your household is like many in the United States, you may be greeting 2017 with a resolution to get out of debt.

Approximately 38 percent of US households carry credit card debt from month to month. The financial industry calls these people debt “revolvers,” because they allow their debt to turn over each month, instead of paying it off. As the new year arrives, households that carry debt have reached a new high: Each owes an average of more than $16,000 on credit cards.

For debt revolvers, now is the time to become a “transactor” – someone who repays any credit card charges in full every month. This not only eliminates the burden of debt. It will save even more in interest charges. The Federal Reserve raised interest rates last month, for only the second time since 2006. As interest rates increase, so does the cost of interest on revolving debt, including credit card debt.

The average household currently pays nearly $1,300 each year in interest. Can you think of a few things you could do with $1,300, other than give it to your credit card company? Read on for options to eliminate your debt in 2017.

  1. Profit from decluttering. Look around your house and decide if you have items you no longer need. Determine if you can sell unwanted and unused belongings through a yard sale, online site or to friends. Use the money to make debt payments, even if it is only a few dollars at a time.
  2. Reconsider your vehicle. Millions of people have purchased new vehicles this year, motivated by redesigned models and low interest rates. If you fall into this group, carefully evaluate if you really need that car or truck, or if you could get by with something less expensive. A high car payment might be better put toward getting out of debt. Do not sacrifice reliable transportation to work – after all, your income is the way to get out of debt – but consider whether you could trade in your car for a less expensive but still dependable model. Alternatively, you might be able to travel by public transit, bike or carpool.
  3. Use a bonus wisely. If you are among the fortunate people who receive a holiday bonus or monetary gifts, you may be tempted to buy something special for yourself or a loved one. The best gift you might buy, though, is freedom from debt. Put your bonus toward your credit card bill and celebrate your reduced balance.
  4. Ask for a raise. Are you getting the most from the work you do? If you have not had an increase in your wages in quite a few years, perhaps now is the time to thoroughly review your work and consider asking for a new performance review. Prepare a list of what you have done for your company.
  5. Transfer a balance – carefully. People with excellent credit histories may have access to low promotional interest rates on new credit cards. Transferring a balance from one card to another can be a useful way to pay off a high-interest rate account at lower cost for some people. Carefully check the fee and the new rate. The new rate should be significantly lower than the interest rate, or you will not save money with the transfer. And before transferring, make sure you can pay off the balance before the promotional rate expires. If you cannot, you may well end up paying interest on the entire amount, in addition to the transfer fee.
  6. Think about debt consolidation. If the problem is many accounts with high interest rates, consolidating debts may help. This simply means combining debts to have one interest rate and one payment to focus your efforts. Some people borrow from a friend or a bank. Others consider consolidating debt with a personal loan from an online lender. These loans usually offer somewhat lower interest rates than credit cards do. They can be beneficial for individuals whose credit scores do not reflect repayment capabilities, as they use different criteria than a traditional bank or credit union to evaluate how likely a person is to repay a loan. Some companies, such as FreedomPlus, even offer a discounted interest rate if you use the loan proceeds to repay credit card lenders directly.
  7. Call creditors to ask for hardship status. If you have fallen behind on payments because of a temporary hardship, such as losing your job, you can call creditors and ask for temporary hardship status. Some creditors may work out payment plans with you. For student loans, you might qualify for a deferment, forbearance or an income-based repayment schedule, all of which can ease your monthly burden and free up money to repay credit cards.
  8. Consult a credit counselor. Credit counselors help consumers repay their debt on a set schedule. When you sign on with a credit counseling agency, the agency typically arranges a debt management plan (DMP) to reduce the monthly payment obligation. Credit card companies agree to accept a lower interest rate on existing debt, called a “concession rate.” Choose a credit counselor very carefully. Some credit counseling agencies are nonprofit, but some earn a profit. The fees can be high, at $10-15 each month per enrolled debt, and the plan may take up to five years to complete.
  9. Seek debt negotiation help. Firms that provide debt negotiation (also known as debt settlement) negotiate directly with creditors to resolve unsecured debt balances, generally in 24 to 48 months. Often, debt negotiation firms can reduce your debt load by 50 percent (not including fees). The process is best suited to people who are struggling to make even minimum payments and would otherwise need to consider credit counseling or bankruptcy. .
  10. File bankruptcy as a last resort. Many people see bankruptcy as a last resort – with good reason. Bankruptcy harms credit ratings for many years, the legal fees can be expensive and it can be difficult to qualify for a Chapter 7 filing, which eliminates most consumer debt. (With a Chapter 13 bankruptcy filing, consumers are required to repay debt if they have income to do so.) Before filing bankruptcy, speak to a bankruptcy attorney licensed in your state.

It’s difficult to stay the course until you become debt-free. The challenge is worth it, though. When you succeed, you will gain financial security, the freedom to save your money or spend it on things you choose – instead of things you owe – and most of all, your peace of mind. Is 2017 your year to get out of debt? Start working toward your goal now, and you will reap the rewards.

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Foreclosure charges for fixed rate home loans

A borrower who pre-closes a home loan taken on fixed interest rate is liable to pay pre-closure charges, a consumer court here has observed.

Dismissing a complaint against the Ernakulam District Cooperative Bank’s refusal to refund pre-closure charges to a consumer, the Ernakulam District Consumer Disputes Redressal Forum headed by president Cherian K. Kuriakose pointed out that an RBI circular issued on June 5, 2012, insisted on banks not to charge foreclosure charges under pre-payment penalties on home loans on floating interest rate basis only.

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Jeff Knight joins Foundation Home Loans

Foundation Home Loans has appointed Jeff Knight to the newly-created role of director of marketing.

Knight has worked for a number of specialist lenders over the past 19 years, most recently Pepper Homeloans, and has also had his own marketing consultancy.

He willbe responsible for all the specialist buy-to-let lender’s marketing activities and will be based in itsBracknell offices.

FHL chief executive Hans Geberbauer says: “We have ambitious plans for growth in 2017 and Jeff’s expertise and experience will be invaluable to our overall strategy, so we are delighted to welcome him on board.”

Knight says: “I am absolutely thrilled to have joined Foundation Home Loans. They have a very strong leadership team, with a shared vision to grow Foundation Home Loans as a formidable intermediary brand.

“I am very much looking forward to working with the team in developing and delivering the strategy.”

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Podcast: Start the New Year Motivated for Success

Podcast Transcript

JESSICA LOVE: Welcome to 2017. Two Januaries ago, we asked a number of Kellogg professors what advice they had for listeners looking to make changes to their lives. And it turns out, their advice is as relevant today as it was in 2015. So please enjoy this podcast from our archives. And at the very end, you’ll learn something that may forever alter the way you think about the ever-lengthening holiday shopping season.

[music prelude]

JESSICA LOVE: Welcome to 2015. The new year is a good time to return that ill-fitting sweater and reckon with the damage youve done to your bank account over the holidays. Its also a time for resolutions. Giving yourself goals is a great way to ring in the new, but a year is a long time. How do you stay motivated?

Speaker 1: When I have a long-term goal, what I do to stay motivated is to make sure that I have a core group of people that I can discuss these problems with to help me reflect and move forward.

Speaker 2: For me, when you have a goal, I just keep going and thats it.

Speaker 3: Small daily goals, because for me, the big picture is kind of really overwhelming, like with New Years resolutions, stuff like that. Just tiny little goals that I cant necessarily procrastinate on, because I will if I can.

[music interlude]

LOVE: Hello and welcome to Insight in Person, Kellogg Insights monthly podcast, produced by the Kellogg School of Management at Northwestern University. Im your host, Jessica Love.

This month, we look at what it takes to start off 2015 right. Whether youre trying to save money, become healthier, or make your company more efficient, weve got insights to help you, so stay tuned.

[music interlude]

BLAKE McSHANE: You know, like most things in life, when we
find ourselves with a task to complete, whether its being mired in debt
or anything else, a strategy to help us get out of that hole can really

LOVE: Thats Blake McShane, an associate professor of
marketing at the Kellogg School. When McShane and his research
colleagues started to delve into what makes people more likely to
complete a task, a lot of strategies presented themselves.

McSHANE: One could proceed linearly, right? Just think about
the beginning, the middle, and the end, and proceed in that direction,
and lots of tasks lend themselves to that. Alternatively, you might
think about tackling your toughest task first or, for that matter, your
easiest task first.

LOVE: One common goal is to get out of debt, but juggling
multiple accounts with varying principles, interest rates, and payment
schedules can make coming up with a strategy a daunting task. The advice
we hear time and time again is to pay off your highest interest debts
first. This ensures that you pay the least amount of interest in the
long run, but it turns out this perfectly logical advice may not always
be the best. Heres McShane again.

McSHANE: Theres another strategy, which has been called the
snowball strategy, or the snowball approach to debt, which takes the
idea of starting with your easiest task first. It says you should find
your smallest debt, and first pay that one off.

LOVE: Along with colleague David Gall, McShane studied people
who enrolled in programs with debt settlement firms. These firms
negotiate with creditors on debtors behalf, often getting them to
accept a much smaller lump sum than the amount they originally owed.
Since the debt settlement firms handle the haggling, participants in
this study had no control over the order in which their debts were paid
off. Still, order mattered when it came to motivation. Regardless of
interest rates, people whose smaller debts were paid off first were much
more likely to finish the program and eliminate all their debt. So
should people disregard interest rates when paying off debts and stick
to a smallest-to-largest strategy?

McSHANE: We wouldnt say that you should absolutely disregard the interest rate on your debt.

LOVE: But, McShane says, within a specific class of debt, like
credit card debt or car loans, your interest rates are likely pretty
similar, so going after the smallest debt first within a specific class
of debt could be motivating.

McSHANE: Also, quite nicely, is that when you think of
different classes of debt, usually its the very, very big ones that
comes with smaller interest rates. So, for instance, your mortgage is
typically your biggest debt that you have, and usually those have much
smaller interest rates than something like a credit card.

LOVE: Why exactly is starting small a good choice for getting out of debt?

McSHANE: First of all, its the idea of getting a quick win.
It makes you motivated, it makes you feel pumped, and youre ready to
continue doing what youve just successfully done. It also sort of
instills confidence. You think that, you know, maybe when you start the
task, you have no idea whether you can complete it, but the fact that
you got a win made you say to yourself, Hey, I can do this now. I
think in any long-term goal you might have, particularly one where
partial progress is not so important, then this idea of focusing on
checking items off the list can be really helpful.

[music interlude]

LOVE: Many of us enlist the support of those around us when
tackling long-term goals. If we set out to lose 10 pounds in 2015, we
might make sure our family and friends know not to tempt us with sweets
and French fries. It turns out this strategy can backfire.

Eli Finkel is a professor of management and organizations at the
Kellogg School. His research points to a phenomenon he calls
self-regulatory outsourcing. This means that when we work on reaching a
goal with the help of another person, there is a risk that we come to
depend on that persons help so much that we let our own efforts flag.

ELI FINKEL: When people help us in a way that makes it clear
that we dont have to work as hard, we take that as a signal that in
fact we dont have to work as hard.

LOVE: In one study, Finkel looked at women in romantic
relationships who wanted to lose weight. One group of women was asked to
think about how their partners help them with their weight-loss goals.
Another group was asked to think about how their partners helped with
their career goals. Afterwards, both groups were asked how much time
they plan to spend working out the following week. It turns out that the
women who thought about their partners help with weight loss planned
to work out less than the women who thought about their partners help
with their careers.

FINKEL: Because you can think about how somebody else might
help you achieve that goal, it frees you up to think about or to use
your resources, your goal-pursuit resources, on other goals rather than
that goal. Then, consequentially, it has this ironic undermining effect,
such that thinking about how somebody else helps you achieve a
weight-loss goal actually makes you lazy.

LOVE: That doesnt mean you shouldnt enlist people to help
you achieve your goal. Its all about how they approach their role as

FINKEL: The crucial distinction is the way we offer help, and
in particular, when we offer help to other people, do we offer it in a
way that promises to substitute for their own effort versus promises to
support their own effort? A husband might make sure he does all the
healthy cooking to help his wife lose weight, for example, but the
better way to provide social support, and to help people achieve their
goals, is to mention, Im here, Im hanging back, and you can count on
me if you need it, but Im not going to be intrusive. Im not going to
get in the way or take over the pursuit of the goal. Im just going to
be here to support you and encourage you.

[music interlude]

LOVE: If youre someone who sets incremental goals to help you
achieve big ones, youll be pleased to hear how you can trick yourself
into taking that next step. Kellogg School associate professor of
marketing Miguel Brendl has found that how we measure our progress
toward a goal can impact motivation.

MIGUEL BRENDL: We need to take a step back and ask, What
motivates people? One thing they do is they constantly ask themselves,
maybe not consciously, but in the background somehow, How valuable is
it to take the next step?

LOVE: He finds that, while pursuing a goal, we make continual
calculations. How much is the next step going to accomplish compared to
how far Ive already come or how far I have left to go?

Lets say you have a goal to run ten miles. After you run the first
mile, you calculate what that second mile is worth. One mile to run
versus the one mile youve already finished. That ratio is 1:1, meaning
that second mile is pretty valuable. At mile nine, you make the same
calculation, but this time you focus on how close you are to finishing.
Since you only have one mile to go, the value of that last mile is very
high. This knowledge pushes you to the end.

BRENDL: This is just perception. You know, we normally think
of in motivation is, How much willpower do I have to force myself to
move on? Its not about willpower; its just perception of the sizes of

LOVE: Switching your perception of your progress from how much
you have completed to how much you have left works well at the
beginning and the end of a task. But in the middle, youre far from both
ends and that next step doesnt seem so valuable anymore.

BRENDL: We call it, “stuck in the middle.”

LOVE: The way to get unstuck, Brendl says, is to set sub-goals
for yourself. Lets say your 2015 resolution is to save $8000, so you
need to squirrel away about $650 a month. In January, no problem. Youre
super motivated. February is probably pretty easy too, but what about
when you get to July? By then, youve saved nearly $4000. That next $650
doesnt feel as valuable compared to either the $4000 youve saved or
the $4000 you have left to go, so you set yourself a sub-goal to get
past that $4000 hump.

BRENDL: Maybe they could reward themselves and say, okay, if I
hit $5000, Im allowed to go out and have a nice dinner. Then they
will be focused on that and they may save a little less because they
spent the money on the dinner, but then are more likely to save the
entire goal.

[music interlude]

LOVE: Weve been talking about ways you personally can
accomplish your goals in the new year. But how about retailers that have
their own goals, like selling out all of the holiday merchandise they
stocked? If you walk into the mall this week to use up those gift
certificates you got for the holidays, youll probably notice some
stores packed with 50 percent off signs, return-seeking customers, and
scrambling employees, while others appear almost completely dead. The
dead stores probably did a much better job of managing the holiday rush:
they better predicted total customer demand and, more importantly, just
what customers were demanding. Heres Sunil Chopra, a professor of
Managerial Economics and Decision Sciences at the Kellogg School.

CHOPRA: Its relatively–relatively speaking–easier to prepare
for a total demand that will arise and the total need for staff, because
total sales become much more predictable. What is much harder to do is
figure out which are going to be the winners and losers because you have
so little time to react if you guessed wrong.

LOVE: Thats right. Retailers biggest challenge isnt volume
but timing. People like to lament how the holiday shopping season seems
to stretch longer and longer each year. We generally chalk this trend up
to retailers wanting people to spend more. This is undoubtedly true.
But the biggest benefit to a longer holiday shopping season for
retailers may be that they have more time to get the right products into
the store. Heres Professor Chopra again.

CHOPRA: What youd like to do is, as early as possible, get a
sense of where the market is going. Waiting till Black Friday to have
your first taste of what Christmas shopping is going to look like is too
late, because youll have less than four weeks to react and arrange for
supply if you guessed wrong. Its impossible. On the other hand, you
run in early November, late October–so the earlier things move, I get a
second chance to react, which corrects my predictions quite
significantly. Because from a retailers perspective, the best possible
outcome after the holiday rush is that they have nothing to do.

[music interlude]

LOVE: This program was produced by Jessica Love, Fred
Schmalz, Emily Stone, and Michael Spikes. Special thanks to Kellogg
School of Management faculty Miguel Brendl, Sunil Chopra, Eli Finkel,
and Blake McShane, as well as Northwestern students including Jose
Martinez and Elizabeth Frieda, who shared how they stayed motivated. You
can stream or download our monthly podcast from iTunes or from our
website, where you can find articles on debt consolidation, motivation,
and supply chain management, in addition to plenty of other business
insights. Visit us at insight.kellogg.northwestern.edu. Well be back
next month with another Kellogg Insight podcast.

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Spice Modern Steakhouse files for bankruptcy — for the fourth time

Spice Modern Steakhouse and parent company Level 1 Inc. claimed $419,865 in liabilities and $76,464 in assets.

But much of the debts are tied up with owner Manuel and Brea Tato, who filed a personal bankruptcy claim Tuesday with $6.4 million in debts.

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