LASD "TV"

Again another classic Sheriff Baca management blunder. I guess all he was looking for was some quick private cash for some new sheriff toys or the hole in the CALPERS fund. Either way bad move. All the LASD TV show has done is lower morale even more among recruits and showcase how poorly they are trained. Great management decision right? All the show will be is Exhibit 1 in the upcoming taser trials.

So do you think there is any connection between the poor training and poor quality recruits they are getting and the taser incidents and shootings and all the other problems? Hmmm. I guess all they are interested in doing is hiring incompetents as fast as possible and giving them a gun and Taser. (FYI thats over $70,000.00 a year to start and that does not include the best healthcare and pension in CA)

Who is running the Sheriff's department? We can only hope when Baca finally calls its quits that who ever replaces him is not more incompetent.


Baca urged to cancel ‘Academy’
http://articles.latimes.com/2008/dec/06/local/me-academy6

Fox reality show humiliates recruits and violates their privacy, report finds. Sheriff’s spokesman defends show, which has provided $250,000 from licensee fees and profits from the first two seasons.

By Richard Winton
December 06, 2008

When Sheriff Lee Baca agreed to let Fox showcase the Los Angeles County Sheriff’s Academy in a reality TV show, he won praise for generating more revenue for the county and raising the department’s profile.

But after two seasons, the department’s Office of Independent Review is calling on Baca to cancel “The Academy” because it subjects young recruits to on-air humiliation, invasion of their personal privacy, harassment and threats to their safety.

“The show worked to the detriment of the trainees,” Michael Gennaco, who serves as the department’s independent monitor, told The Times. “They didn’t have a real chance to say no to being televised. The show featured some of their personal lives and then people called them out as they worked in the jails because they recognize them from TV. It ended up being a real problem.”

Gennaco said in his report that most of recruits who took part in the show said they would have preferred not to have been involved. Some recruits interviewed by Gennaco said they felt the show was a source of humiliation, with its tendency to focus on those struggling to meet the demands of the 18-week training.

“The show was dominated by scenes of drill instructors screaming at recruits” for such infractions as not polishing shoes, not tucking in their shirts or being careless with equipment, Gennaco said in the report.

The show also showed embarrassing moments when recruits were kicked out of the academy.

Gennaco also expressed concern that criminals were identifying deputies after watching the show. “Some of the recruits who were recognized by inmates reported having a sick feeling at the moment of this recognition because they believed the inmate saw them as vulnerable,” he said in the report.

A spokesman for Baca defended the show, saying that the sheriff disagrees with Gennaco and would like to see a third season filmed.

“The sheriff thinks it is worthwhile because of the transparency that the show provides. It is vital for the public to see the rigors a trainee goes through to become a deputy sheriff,” said Steve Whitmore, Baca’s spokesman. [LAAG; oh it shows transparency alright...like walking outside without your pants on; not what we had in mind when we speak of transparency]

“In this day and age, law enforcement needs to get used to it, when they do their job it is going to be television. As the sheriff likes to tell deputies, ‘When you are out on the street you’re doing your job on CNN.’ ” [ LAAG: too bad the "taser" deputies did not remember that]

The sheriff, he said, believes the issues raised by Gennaco can be addressed.

The report found the show also brought benefits, including boosting the department’s profile nationally, giving the public insight into policing and generating $250,000 from licensee fees and profits from the first two seasons. [LAAG: that barely covers the junket to the Obama inauguration]

County supervisors asked Gennaco to examine the TV show as well as a series of dire state inspections that led Baca to close the academy to new trainees in May for 30 days while problems were addressed.

Roxane Marquez, spokeswoman for county Supervisor Gloria Molina, said Gennaco’s audit “mirrors the supervisor’s concerns from the moment she heard about the show… . It’s sad that the supervisor’s concerns are now a reality.”

State inspectors had dubbed the show an inappropriate and unnecessary distraction that disrupted the learning environment and forced the Sheriff’s Department to change the one scenario of one test after it was broadcast.

Far from the gold standard training program featured on the Fox reality television show, the academy was nearly decertified as a state accredited facility to train police officers earlier this year because it was so poorly run, according to Gennaco’s report.

He found serious deficiencies in training and testing methods that were the result of attempts to fulfill the sheriff’s goal to train 1,000 new recruits, and an arrogant academy management that failed to listen to concerns raised by state inspectors since the fall 2007.

At the heart of the issues was management’s sloppiness with record keeping, and instructors who gave recruits answers to tests, allowed trainees to graduate without taking the required physical conditioning classes and allowing recruits to retake tests until they passed.

“The department’s hiring pushed in the past two years undoubtedly placed pressure on the academy – explicit or implied – to graduate recruits. The testing violations noted in the [state] report are partially explained by this atmosphere of accelerated hiring,” Gennaco wrote.

Although improvements have been made across the board in recent months, problems remained.

In an October 2008 class, Gennaco noted, 41 recruits had to undergo remedial training for failing the initial weapons test. All but five passed the retesting and became deputies, he stated.

Winton is a times staff writer

Lakewood Accountability Action Group™ LAAG | www.LAAG.us | Lakewood, CA
A California Non Profit Association | Demanding action and accountability from local government™

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Another serious taser incident (death) in Lakewood

click here for our story update posted 10:30 am 2/17/09

Here is what we want to know after reading the very sketchy details from below. It seems pretty obvious that a naked guy does not have any concealed weapons of any kind. Also safe to assume he has some mental issues or drug or intoxication issues going on. So how does he end up dead? Had to use both pepper spray and taser and handcuffs? Why would two or more Taser guns be needed? Why ask for another taser? Too bad it was dark and no video was taken. We highly recommend videoing any LASD "unusual events" or arrests. Rest assured we will get no useful details from LASD on this. We will start the countdown for when the deceased's heirs file a wrongful death lawsuit against the county (taxpayers). They will have to get in line however as there are quite a few ahead of them. This seems to us to be standard operating procedure over at LASD. When in doubt do as much harm as you like to innocent people if there is a chance that the officer could end up in a non lethal scuffle. At LASD when you kill a guy for no reason the officers usually get put on "administrative leave" which means a paid vacation for three-6 months for those of you that cont speak "LASD speak". Oh by the way what ever happened to that February 27, 2008 taser incident (involving victim Blake Dupree)in LASD custody? Hmm never heard another thing about it. I guess the LASD needs to read where the Orange County Grand Jury recommended in June 2008 that deputies no longer use the weapon if other means to control inmates are available. Its all in its annual report, "The State of the Orange County Jails". So do we assume there was a quiet settlement of million with no wrongdoing admitted by LASD? Comments LASD?



Nude man in Lakewood dies after LA Sheriff's Deputies use Taser
Posted: 02/15/2009 01:13:44 PM PST
http://www.presstelegram.com/news/ci_11711712
By Kelly Puente

Staff Writer

LAKEWOOD - A man running naked on a quiet Lakewood street died after sheriff's deputies shocked him with a Taser gun, authorities said Sunday.

Los Angeles County Sheriff's Deputy Art Spencer said Lakewood deputies responded to a disturbance call in the 5700 block of Silva Street at 10:15 p.m. Saturday.

Spencer said deputies found a "very large" man running naked in the street and acting irrationally.

Deputies tied to calm the man but he remained belligerent, Spencer said. When he advanced at them in a threatening manner, Spencer said deputies used pepper spray and at least one Taser stun gun to subdue him.

Shortly after the man was handcuffed, deputies realized he was not breathing and began to administer CPR, Spencer said. The man, whose identify has not been released, was pronounced dead at a hospital.

No deputies were injured, Spencer said, adding that the incident is under investigation. Deputies have not said how many Taser guns were used. No further information was available Sunday.

Residents in the suburban neighborhood said the silence was suddenly broken Saturday night when a nude man began wandering down the street, banging on doors and cars.

Neighbors Norma Ramirez and Nancy Wright were both in their homes when they heard police sirens and a helicopter.

Wright said she opened her door to a flood of more than two dozen sheriff's deputies on her
street. Neighbors gathered outside while authorities set up yellow crime scene tape in front of three houses, Wright said.

"(Deputies) told us to go back inside our homes, but we just kind of stepped back a little," Wright said.

The women said they heard from other neighbors that a man had been wandering down the street and darted through a gate into someone's backyard after police arrived.

Ramirez said she heard a deputy shout, "Get me another Taser!" followed by another deputy shouting, "We need CPR!"

Paramedics arrived shortly after, she said.

Wright and Ramirez said they did not know if the man was a neighbor, or someone who had wandered into the area.

"It's scary," Wright said. "You don't see things like this in our neighborhood."


Lakewood Accountability Action Group™ LAAG | www.LAAG.us | Lakewood, CA
A California Non Profit Association | Demanding action and accountability from local government™

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(the few) Retail Bright Spots

Well the day is finally approaching. Costco will be opening in Lakewood Center on February 26, 2009 (thurs) at 8am according to fliers mailed out this week. I guess in this bad retail climate they don't want to wait for a weekend opening. They have been handing out 10.00 discounts for membership signups in the Mall. We will report further on the opening. We were noticing how vacant the mall was the other night in the area of the all but closed Circuit City, the long ago closed Lakewood Center South Theaters and the construction zone of the Costco. It is rather ironic that 8 months ago people were complaining about all the increased traffic Costco would bring. What a difference a little recession makes!

Bellflower and South St. is still trying to improve. The old Vons parking lot repaving is underway but quite frankly it is moving at a snails pace. Still no word on new tenants.

The Denny's opening in the old Bakers Square looks finished. Once we got city hall to speed up the permits the workers were working weekends and until 9pm at night to finish up. Opening is supposed to be February 15, 2009. They also resurfaced the parking lot. This intersection can use a bright spot and we hope this helps draw in more businesses. Ironically Denny's had its start in Lakewood in 1953 under the name Danny's Donuts.

Lakewood Accountability Action Group™ LAAG | www.LAAG.us | Lakewood, CA
A California Non Profit Association | Demanding action and accountability from local government™

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Macy's and Home Depot, flagships of Lakewood Mall, cut further

Its no secret that retail sales are cratering and that the two lead tenants in the Lakewood Center Mall are not doing well.

Macy's Inc. said this week that it's cutting 7,000 jobs - including 5,100 in its stores - and centralizing some of its corporate operations in an effort to reduce costs amid an increasingly difficult retail environment. The company also projected earnings for the fiscal year just beginning that are well below analysts' estimates. The company does not plan to close any additional Macy's or Bloomingdale's locations other than 11 Macy's stores whose shutdown was previously announced. Looking at the rest of the year, the department store operator expects to see "a very challenging environment" through 2009. As such, the retailer forecast same-store sales, or sales at its stores open at least a year, to fall between 6% to 8% for the year.

Home Depot, the No. 1 home improvement retailer, announced Monday that it is shutting down its high-end decor EXPO business and shrinking its support staff, with both moves resulting in a reduction of 7,000 jobs. Additionally, the retailer said it will reduce support staff, impacting about 2,000 employees and resulting in a 10% reduction in the company's officer ranks. Home Depot currently operates 2,274 stores. Home Depot expects sales for the year ending this month to drop by 8% and earnings per share from continuing operations to decline by 24%, excluding charges associated with the latest job cuts and store closings

Lakewood Accountability Action Group™ LAAG | www.LAAG.us | Lakewood, CA
A California Non Profit Association | Demanding action and accountability from local government™

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LASD just collects eveidence, they dont solve crimes

How anybody could have any faith in the Sheriff's department is beyond me. What is even sadder is Lakewood taxpayers shell out 9 million a year for all this incompetence. They even have the gall to tell us that part of the 9 million is for the "benefit" of their crime lab and accompanying expertise. As was pointed out in an earlier story "CSI" is PURE fantasy. The actors in those shows actually care about solving crimes and solve 100% of them. If I didn't know better I would think CSI was paid for by the Sheriff's department as a PR campaign. but then again they are not smart enough to do that and don't need to bother anyway as they have most Lakwoodians believing they are "effective and efficient" crime fighters/deterrents. Here is an example of a case that will NOT be solved with DNA. Quite frankly if I know of anyone who has suffered from a serious crime I tell them to hire private labs and investigators. Forget relying on the Sheriff's department. All the train wrecks at LASD make metro rail trains look good. If you are a criminal what message is this sending? That you will likely get away with your crime (well unless you hurt a cop) then they spare no expense.

Update 4-24-09: PBS "Now" show did a really good expose on this issue called "Justice Delayed". Mostly dealt with LAPD but they also mentioned the problem with LASD. It really makes you realize the scope of the problem on a human scale. Basically billions has been spent on the problem with very little to show for it. I guess we need more criminalists than cops on the street as the cops on the street are not the ones that solve crimes. Just ask the CSI TV folks.

From the Los Angeles Times
Wider scope of backlog in L.A. County sheriff's DNA testing is revealed
815 sexual assault cases with untested DNA and no suspects have been tallied so far; statute has expired on 51 of them.
By Joel Rubin

January 28, 2009

DNA evidence has gone untested in more than 800 rape and sexual assault cases even though detectives from the Los Angeles County Sheriff's Department and other smaller agencies have no suspects in those crimes, authorities acknowledged Tuesday.

The number is far larger than officials had anticipated and revealed a breakdown in the way the Sheriff's Department went about testing genetic evidence until recent reforms were enacted. For months, sheriff's officials sought to downplay concerns over a massive backlog of untested DNA evidence by suggesting that the crimes had been resolved by other means.

Compounding the problem was the revelation that in 51 of the 815 cases tallied so far, the genetic evidence has sat untested in county storage freezers for more than a decade -- so long that state laws now prohibit officials from arresting anyone even if belated genetic testing were to definitively identify a suspect.

"You've got a bunch of evidence sitting there that is potentially a smoking gun," said L.A. County Supervisor Zev Yaroslavsky to a contrite Cmdr. Earl M. Shields, who oversees the department's Technical Services division. "It could be the silver bullet to getting a suspect in a sexual assault case, and it's just sitting there."

Shields reported the troubling figures as part of a presentation to county supervisors on the sheriff's ongoing attempt to work through a backlog of untested samples of semen, saliva, blood and other genetic evidence collected from victims after an alleged sexual attack. Currently 4,738 of the so-called sexual assault kits in county storage facilities remain untested -- about 20% of them from other police agencies in the county that rely on the sheriff's crime laboratory for DNA analysis.

Sheriff's officials have managed to gather information on only about two-thirds of the backlogged cases so far, meaning that the number of investigations without any suspects or those that have fallen out of statute is likely to rise.

Until late last year, the Sheriff's Department had followed a policy of testing DNA evidence only when investigators in the case requested it. After coming under pressure from advocacy groups and the Board of Supervisors about the growing backlog, Sheriff Lee Baca announced in November that the department's lab would test DNA evidence in all cases regardless of whether the analysis was requested.

At the time, the Sheriff's Department -- as well as the Los Angeles Police Department, which came under similar scrutiny -- tried to minimize the significance of the size of the backlog. Both agencies indicated that the vast majority of untested kits were from cases in which investigators had determined the genetic evidence was not needed.

In November, Shields told supervisors that he expected an inventory of the sheriff's backlog would uncover very few, if any, examples in which investigators had no leads on suspects and had not asked for DNA testing. "There should not be any [such] cases," he said. "We're hoping that that number will be zero."

On Tuesday he conceded under questioning from Yaroslavsky that "we were hoping the number would be much smaller." Without detailed information on each investigation, Shields was at a loss to explain why so many investigators had not asked for the evidence to be tested. He speculated they might have decided they "didn't have a valid, prosecutable case" because the accuser recanted or other fundamental problems arose.

"It was a judgment call on the part of the investigator," he said.

Sarah Tofte, a researcher with Human Rights Watch who has been pressing local law enforcement agencies around the country to address backlogs, questioned that logic. "Investigators may think that a victim's account lacks some veracity," she said, "but when someone reports to police that she's been raped, the default should always be, 'Let's test this kit and see what we find.' "

Unexamined evidence kits hold potentially crucial information. Through a complex scientific process, DNA analysts can extract a person's genetic code from the collected samples and compare it to those of known felons that are kept in federal and state databases. When the DNA sample collected at a crime scene or from a victim's body matches a DNA profile of someone in the database, it can offer prosecutors nearly irrefutable proof of the person's guilt. The evidence can also be used to confirm that someone has not falsely confessed to a crime or link someone to other unsolved cases.

LAPD Deputy Chief Charlie Beck declined to reveal how many cases for which LAPD detectives have no suspects and have not pursued DNA testing. A recent inventory of the LAPD's untested kits has been completed, but the results are not yet final, he said.

Like the LAPD, the Sheriff's Department has struggled to devise a financially feasible plan to eliminate its DNA backlog. Both agencies are currently increasing the number of in-house lab analysts to handle the constant influx of new cases, while also plotting out ways to outsource the backlogged cases to private labs. Each kit costs about $1,000 to process.

Shields told L.A. County supervisors that he would soon present Baca with a proposed plan and said it would take "years" to clear the backlog. In an interview, he declined to provide specifics.

Time is a major factor: More than 100 sheriff's cases are within six months of reaching the state's 10-year statute of limitations, Shields reported.

joel.rubin@latimes.com
http://www.latimes.com/news/nationworld/nation/la-me-dna-missed28-2009jan28,0,6848082.story

Lakewood Accountability Action Group™ LAAG | www.LAAG.us | Lakewood, CA
A California Non Profit Association | Demanding action and accountability from local government™

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Suspect impersonating Sherriffs?

This is a bad start to the new year, just yesterday there was a horrible home invasion robbery. And today was the state of the city address. (No doubt there were a number of Sheriff's over there for a free lunch as opposed to patrolling) Hopefully this offender is not a repeat offender. This story as written below also does not make sense as they noted that he presented himself as a police officer (Sheriff maybe?) but then below they note "He was wearing a gray sweat shirt with red writing and black sweat pants with white stripes down the sides." How do you pull off being an officer dressed like that. Something is not right here. Also lets hope that this is not a real cop. Finally there is not much hope of catching this guy if we leave it up to "CSI" Lakewood Sheriffs.

Fake Cop Rapes, Kidnaps Girl, 14, In Lakewood

Sheriff's deputies Tuesday asked for the public's help in finding a man dressed up as a police officer before raping and kidnapping a 14-year-old girl in Lakewood.

The man shined a flashlight at two girls and presented himself as a police officer as he got out of a sport utility vehicle Friday at about 8:45 p.m. in the 12000 block of Gradwell Street, near Hawaiian Gardens, according to Los Angeles County sheriff's Lt. Al Garcia.

The suspect then punched one girl, who fell to the ground, as the man grabbed the other girl, forcing her into his vehicle, Garcia said.

He drove north on Claretta Avenue, then raped the girl before dropping her off near where he first grabbed her, Garcia said.

The man was described as white, 20 to 30 years old, bald, about 5 feet 10 inches tall and weighing 200 pounds. He was wearing a gray sweat shirt with red writing and black sweat pants with white stripes down the sides.

He was driving a white, four-door older sport utility vehicle with tinted rear windows.

Investigators asked anyone with information on the case to call the Special Victims Bureau at (866) 247-5877.

Lakewood Accountability Action Group™ LAAG | www.LAAG.us | Lakewood, CA
A California Non Profit Association | Demanding action and accountability from local government™

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Another home invasion robbery

If more than a few of these occur we are going to be concerned. We also suspect many of these are not reported in the media. This is a story we did last year on another one. We will see if this shows up on the new crime reports page This home invasion is near Norwalk Blvd and Del Amo.

From wire services
Posted: 01/27/2009 06:44:16 AM PST

LAKEWOOD - Four armed bandits staged a home invasion robbery in Lakewood today, reportedly taking some $5,000 in cash and several other items.

The robbery occurred in the 20800 block of Belshire Avenue near 207th Street about 1:30 a.m., said Lt. Minh Dinh of the Los Angeles County Sheriff Department's Lakewood Station.

Armed with handguns, the four bandits tied up the home's occupants before fleeing with four I-phones, $5,000 in cash, some wallets and keys, and other miscellaneous items, deputies told an On Scene Video camera crew at the robbery scene.

Dinh said the holdup was under investigation and that detectives were interviewing the victims.

Lakewood Accountability Action Group™ LAAG | www.LAAG.us | Lakewood, CA
A California Non Profit Association | Demanding action and accountability from local government™

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I guess its not a fluke

Hmmm. Is there a deeper message here about fireworks? I guess the last post on the absence of fireworks from the Nov. 4, 2008 election day "celebration" was not a fluke. Either way we like it here at LAAG. Maybe the City Council will take notice.

January 18, 2009
In break with last 7 inaugurals, no fireworks planned

By RICHARD LEIBY
The Washington Post

WASHINGTON -- For the first time in 28 years, there will be no fireworks on the Mall during inaugural festivities.

"We never discussed having fireworks as part of the events. It just didn't come up," Linda Douglass, a spokeswoman for the incoming president's inaugural committee, said last week.

In repeated public announcements, the committee has promised that Barack Obama's inauguration will be "the most open and accessible inauguration in American history." But the lack of fireworks represents a departure from one of the most accessible traditions that accompany the celebration of a new presidency. A fireworks display has been a feature of the past seven consecutive inaugurations, starting with Ronald Reagan's in 1981.

***[snip]***

Free public events on the weekend before Reagan's second inauguration included all-day concerts, according to published reports. The parade itself was canceled because of bitter cold, but a fireworks display went on as scheduled.

Some participants in past inaugurations say the lack of fireworks this year undermines a populist message. [LAAG editor: what message here will be "enhanced" with fireworks?]

"The symbolism is all wrong not to do it," said Craig Shirley, who worked on Reagan's second inauguration and has written two books on the former president. "There's no preferred seating for fireworks." [LAAG editor: Actually Craig you really don't get it...the symbolism is perfect: "Change" from the past; the environmentally conscious President etc.]


Lakewood Accountability Action Group™ LAAG | www.LAAG.us | Lakewood, CA
A California Non Profit Association | Demanding action and accountability from local government™

click here to receive LAAG posts by email

Pain at the Mall likely to last all of 2009

As can be seen from the article blow these are going to be trying times for shopping malls. 2009 will be the true test of just how strong your towns mall is and it will depend greatly on which mall has the highest percentage of stores that go bankrupt. MACERICH CO (NYSE: MAC) the owner of Cerritos, Lakewood, and Stonewood (Downey) malls was trading at over $75.00 a share in May 2008 and now hovers around $15.00 a share, up from $10.00 in the 2008 Christmas season. The problem for Lakewood is that they already have loads of cheaper retail space for lease in other parts of the city OUTSIDE the mall. This has been the case for a number of years as the city has focused all its muscle on the mall, abandoning other areas of the city. Now it will take a Herculean effort just to keep the mall fully leased, especially with Long Beach competing for what's left of surviving retailers. Forget about leasing the other areas of the city (which may become retail wastelands). And "economists" say no recovery until 2010. It already feels like March (with so much bad news coming so fast) and its still January. This is going to be a long and painful year. Oh and don't forget about California's budget (yes the MSM "main stream media" reminds you about it now and again). I am officially designating the California Legislature a "Weapon of Mass Destruction" (WMD) This WMD is on Washingtons radar..this time arround. If the budget mess is not fixed by February 1, 2009, the Governator and all legislators should be fired. Then we hold a special election March 1, and no one that has run or been in office up there in Sacramento in the last 5 years should be eligible to run. I'll bet we would get some results then. Bush has his legacy. What will Arnie's be?

Foreclosure at the Mall
The Recession's Latest Victim Might Just Be That Shopping Center Down the Road
By SCOTT MAYEROWITZ
ABC NEWS Business Unit
http://abcnews.go.com/print?id=6544358

Dec. 30, 2008—

Forget those 50-percent-off signs. This winter you are likely to see a new sign at your local mall: "Going Out of Business." And that means big trouble for mall owners already struggling to survive.

The nation's shopping center owners are facing a recessionary double whammy: consumers who are spending less and real estate investors who are holding back money used to finance their operations.

And some analysts say that, in the next two months, those forces will collide, sending some mall owners into bankruptcy. Don't expect your local mall to necessarily close its doors -- although some of the 3,500 across the country might -- but it could very likely be owned by somebody else by the spring.

"They have significant problems by and large," said George Whalin, president and CEO of Retail Management Consultants.

In just six to eight weeks, Whalin said, "there are going to be a significant number of retailers that will go bankrupt. There's no doubt about that. ... We've just never seen anything as bad as this."

Michael P. Niemira, chief economist at the International Council of Shopping Centers, said the industry has "really been battered by every part" of this recession.

First, housing stores saw problems. Then apparel. Now every store, including the once-immune luxury retailer.

"Clearly, there are lots of problems in the retail industry and they range from the weakness in consumer demand to the debt issues that some companies are facing," Niemira said.

Back in August, Niemira predicted that sales would grow as much as 1.7 percent this holiday season. Now, he estimates a decline of 1.5 percent to 2 percent. Sales during the final week of shopping were down 1.8 percent from last year. That makes this year "the weakest holiday season since at least 1970," Niemira said in a statement this morning.

He said stores are doing everything from slashing prices to laying off workers to try to stay afloat. Retailers, he said, account for 9 percent of the nation's jobs but represent 25 percent of the recent employment declines.

Stores Go Bankrupt

Big chains, including Linens 'N Things, Circuit City, Whitehall Jewelers, Mervyn's and Steve and Barry's have already filed for bankruptcy. Other big retailers, including Talbots, Fashion Bug, Ann Taylor, J. Crew and Liz Claiborne have either announced store closings or scaled back or delayed expansion plans.

Retailers may close 73,000 stores in the first half of 2009, according to the shopping center council.

None of that is good news for mall owners who rely on those retailers for rent, which they use to pay off the massive loans to build or buy the malls in the first place. As mall owners try to refinance existing loans, they find themselves struggling to get investors to give them money and -- like many homeowners -- they find their real estate is worth less than it was just a few years ago.

Whalin said the first major blow to malls came in August 2005, when Macy's bought out rival May Department Stores. In one giant move, retailers, such as Marshall Field's, Filene's, Hecht's, Foley's, Robinsons-May and Kaufmann's all fell under the Macy's flag.

A mall that once had Macy's anchoring one end and Filene's at the other suddenly had two Macy's. The company quickly moved to close its redundant stores and the malls lost large tenants.

"The value of their real estate has diminished for a variety of reasons, certainly not the least of which was Macy's gobbling all the regional department stores and essentially closing some of those stores and struggling with others," Whalin said.

But it's not just big chains that are shutting their doors as we fall deeper into a recession.

At the beginning of 2006, just 7.3 percent of retail spaces -- from malls to strip malls to stand-alone stores -- were empty, according to the National Association of Realtors. That figure now hovers just below 10 percent and for next year, the group forecasts a 12.4 percent vacancy rate.

And after a disappointing Christmas shopping season, those numbers could climb ever higher.

The amount of money spent at the nation's retailers from Nov. 1 through Christmas Eve was down 5.5 percent to 8 percent compared with last year, according to MasterCard SpendingPulse, which tracks retail sales for all forms of payment, including check, cash and credit card.

Falling Rents

Lawrence Yun, chief economist for the National Association of Realtors, said that in the coming year he anticipates a 7 percent drop in retail rents as a larger supply of vacant stores comes on the market.

"The property owners will be competing, trying to draw the tenants by offering much lower rents," Yun said. "A combination of a rising vacancy rate and falling rents will naturally mean that the property prices will be coming down."

Some big chains are already asking for leases to be renegotiated and others are likely to when their leases expire in the next year or two, Whalin added.

But that's only half of the picture.

Most malls are owned through large real estate investment trusts or REITs. The two biggest are Simon Property Group and General Growth Properties.

These real estate companies -- and especially General Growth -- are now being hurt by the credit crunch.

In 2004, General Growth spent $12 billion to acquire mall owner Rouse. The deal including assuming $5.4 billion in Rouse debt.

To pay for the deal, the company borrowed heavily. But then the credit markets froze and now General Growth -- which owns more than 200 shopping centers -- has roughly $27 billion in debt and no way to refinance.

Just last week, the company got a reprieve on a debt-payment deadline. The forbearance gives it a bit of breathing room and keeps the company out of bankruptcy, for now. Many analysts are watching Jan. 30 and Feb. 12 -- dates when the company might be forced to make two large debt payments.

Mounting Debt

To help raise cash, General Growth -- the country's second largest mall owner -- announced in October it would try to sell its retail properties in Las Vegas, which include the Fashion Show Mall, Grand Canal Shoppes at the Venetian, and the Shoppes at the Palazzo.

"I don't see that they're through the woods here yet," Whalin said. "A lot of smaller mall companies are suffering in the same way."

Niemira said General Growth is "the poster child" for the credit troubles facing the industry.

"Those owners that took on too much debt have ultimately paid the price. At this point it's not clear how that will all play out," he said, noting that "the stock prices of some of these firms have really taken a huge hit."

Just a year ago, shares of General Growth traded at 38.73. They closed Monday at 1.21 -- that's a fall of nearly 97 percent this year.

But don't expect the malls themselves to close. Both Whalin and Niemira said the properties are profitable; it's just that some mall owners have too much debt to ride out the recession.

"The regional mall is here to stay as part of the retail environment," Whalin said. "It isn't going to go away anytime soon."

Lakewood Accountability Action Group™ LAAG | www.LAAG.us | Lakewood, CA
A California Non Profit Association | Demanding action and accountability from local government™

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We can't keep up with all the bankruptcies

The owner of the Black Angus Steakhouse chain filed for Chapter 11 bankruptcy protection Thursday. Another tenant in the "prized" Lakewood Restaurant Row. It looks like its going to be carnage at the Mall in the next 6 months. Lakewood may end up looking like Bellflower before this is over. The owner, Los Altos-based Pecus ARG Holding Inc. owes between $100 million and $500 million and has assets between $100 million and $500 million, according to the filing. There are 69 restaurants in seven states, mainly on the West Coast. Black Angus Steakhouse chain employs about 3,600 people.Today, Each of the locations has approximately 75 employees and serves an average of 3,000 customers per week. ARG previously filed for Chapter 11 bankruptcy protection in 2004. Revenue has dropped from about $244 million in 2006 to $181 million in 2008.

No word yet on which Black Angus Steakhouse restaurant locations may close, if any. Normally this is determined on which locations are "poor or underperforming" So stay tuned.

Lakewood Accountability Action Group™ LAAG | www.LAAG.us | Lakewood, CA
A California Non Profit Association | Demanding action and accountability from local government™

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