Business
GMAC closing retail offices with 5,000 getting laid off
LOS ANGELES — Lender GMAC Financial Services said Wednesday it will close all its 200 retail offices and lay off about 5,000 employees as part of plan to reduce its mortgage lending and servicing operations because of the housing market downturn.
The majority of the layoffs are slated for GMAC’s mortgage lending division, Residential Capital LLC, or ResCap, and will reduce work force at the unit by 60 percent, the company said.
“While these actions are extremely difficult, they are necessary to position ResCap to withstand this challenging environment,” Tom Marano, ResCap’s chairman and CEO, said in a statement. “Conditions in the mortgage and credit markets have not abated and, therefore, we need to respond aggressively by further reducing both operating costs and business risk.”
Some 3,000 employees may receive word of the cutbacks this month. Other cutbacks are expected to take place by the end of the year, the company said.
The Fort Washington, Pa.-based company also said it would stop making mortgage loans through external, wholesale brokers.
ResCap will continue servicing loans and lending through brands such as Ditech or GMAC Mortgage Direct, which customers can reach online or through call centers, said spokeswoman Jeannine Bruin.
“We’re not going to have a retail presence where customers walk in the door,” Bruin said. (But) “we are very much still originating loans and servicing the customer.”
Some of the job cuts will also come from the company’s Business Capital Group, which originates loans for homebuilders, reflecting a slowing homebuilding market.
To cover severance costs, ResCap will take a charge of $90 million to $120 million against earnings.
In July, GMAC said ResCap’s second-quarter losses widened to $1.86 billion from $254 million in the prior-year period as a result of losses from asset sales.
GMAC is majority owned by private equity firm Cerberus Capital Management, but Detroit-based General Motors Corp. still holds 49 percent stake of the business.
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Business incubator’s focus is narrow for good reason
Although it is a business incubator, the Technology Collaborative of Pittsburgh doesn’t take just any start-up company.
“We have a very narrow focus, possibly the most narrow focus of any incubator in the state,” said President and Chief Executive Officer David B. Ruppersberger.
TTC only works with companies that are interested in circuit boards, the chips that go on them, robotics and the software imbedded in chips or robots.
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Latest jobless data puts county at 4th highest in Pa.
While Mercer County’s jobless rate nudged down in July the county continues to be among the state’s highest unemployment areas.
The county’s unemployment rate in July was a preliminary 11.5 percent, down slightly from the revised 11.6 percent in June, according to the state Department of Labor and Industry which released results on Monday. A year ago the jobless rate was 11.8 percent.
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Construction started for new Dollar General
The walls have gone up for the new Dollar General store being built on Greenville’s west side.
Construction started this summer and a grand opening date for the store, 28 W. Main St., has yet to be determined, said Emily Weiss, the company’s media relations manager.
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Cattron settles suit filed over another suit
Cattron-Theimeg Inc. of Sharpsville and an insurance company have settled a lawsuit the insurer filed claiming Cattron settled another suit without the insurance company’s consent.
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Obama: Gulf is open for business
PANAMA CITY BEACH, Fla. — President Barack Obama declared Gulf Coast beaches clean, safe and open for business Saturday as he brought his family to the Florida Panhandle and promised residents that the government wouldn’t forget them once efforts to stop the leak are finished.
Obama is in the region for a brief weekend trip with first lady Michelle Obama, daughter Sasha (her sister Malia is at summer camp) and the family dog, Bo. Their 27-hour stop in the Sunshine State is as much a family vacation as it is an attempt by the president to convince Americans that this region, so dependent on tourism revenue, is safe for travel — and that its surf is clean.
The president’s trip came as the government’s point man on the Gulf spill said he wants additional testing before he orders BP to finish drilling a relief well that will allow the oil giant to plug the well for good.
Retired Coast Guard Adm. Thad Allen told reporters on Saturday that it could be late Monday or early Tuesday before officials know the results of those tests. -
Officials ponder incubator structure
It’s unusual for a municipal government to take the lead role in developing a business incubator, and Hermitage city officials still must determine just how the incubator in the LindenPointe technology center will be run.
“Is the (Hermitage Community and Economic Development Commission) the right structure?” said Assistant City Manager Gary M. Gulla, repeating a question city officials are exploring from its legal and practical aspects.
“Is there another agency that we could partner with?” Gulla said. “Should we change the legislative structure of the EDC?”
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Pat Catan’s expanding
The Hermitage store of Pat Catan’s, the leading local supplier of materials for crafters, artists, scrapbookers and do-it-yourself home interior decorators, is expanding.
The store in Hermitage Square Plaza, 3380 E. State St., is removing the wall that separated it from the former Office Depot, and spreading out to take over that space.
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Court: No benefits to worker who damaged equipment
Commonwealth Court has supported the findings in an unemployment compensation case, and the conclusion that a former employee of a local company was not entitled to benefits.
Bruce R. Taylor was fired May 8, 2009, from G.W. Becker Inc., Hermitage, after a lathe he was moving from a truck to the company’s Grove City plant fell off a forklift and was destroyed.
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Under new management — Ill. company takes over SV mall
The Shenango Valley Mall in Hermitage is under new management.
Chicago-based Urban Retail Properties LLC has been awarded the contract for management and leasing services effective immediately, according to a news release issued Tuesday.
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FNB earns 16 cents a share in 2nd Q
FNB Corp. had a “solid” second quarter, the Hermitage-based financial company’s president and chief executive officer said Monday.
“I’ve very pleased with the quarter. We made 16 cents (per share),” Stephen J. Gurgovits said. “It just turned out to be a very good quarter.”
Loans and deposits are up and expenses are stable, he said.
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Business incubator’s focus is narrow for good reason
