U.S. Postal Service: May Halt Deliveries Next Summer
As mail volume continues to drop, Postmaster General Patrick Donahoe told the Senate that the Post Office may lose $10 billion in the fiscal year ending Sept. 30 and is fast approaching its $15 billion borrowing limit. He said the business can’t meet a looming deadline to make a $5.5 billion payment for future retiree health-care costs. In May,Bloomberg Businessweek reported that the Post Office is dependent on the income of junk mail, which, like first-class mail, has been declining as people send messages over the Net. Postal systems in other countries, including Germany and Sweden, have reinvented themselves by offering banking and other services.
Groupon: An IPO delayed?
Turbulence in the stock market is causing daily-deal site Groupon to consider delaying its initial public offering, according to three people familiar with the matter. Groupon also needs time to address regulators’ concerns about an accounting method it used in marketing materials, two of the people say. Groupon and its bankers were set to start pitching investors in mid-September. In the past three months, U.S. listings have been shelved or scrapped at a rate faster than any comparable period since 2004.
Sony: Beefs Up Network Security
After being hit by one of the largest online data breaches in U.S. history, Sony is bringing in a former Under Secretary for the Homeland Security Dept. to be its top information security executive. Philip Reitinger, who worked at Microsoft before moving to Homeland Security, will oversee information and privacy safety across the company. In April hackers broke into Sony’s online networks, including its PlayStation Network, causing disruptions for more than five weeks and compromising more than 100 million user accounts.
Saab: Wants a Respite to Reorganize
Saab filed for court protection from creditors as it reorganizes. It needs to craft a plan to raise money to pay its August payroll, which is already late, and restart its production lines, which have been shut down since June. The cash-strapped carmaker plans to present its restructuring plan to creditors in the coming weeks and hopes the voluntary reorganization will last from three months to a year. Swedish Automobile, formerly called Spyker, bought Saab from General Motors in February 2010.
Sunoco: Exits Refining After 117 Years
After more than a century as a player in oil refining, Sunoco plans on getting out of the business altogether by selling or shutting its last two refineries, which represent nearly a third of the East Coast refining capacity. Refiners have struggled to find profits as the rising costs of imported crude have crimped demand. The Philadelphia-based company will instead focus on operating pipelines and gas stations. Separately, ConocoPhillips laid out plans to spin off its refining and pipelines business next year.