Looks like Spiegel got burned on sub-prime and has put up their credit card operation for sale. "The Spiegel Group confirmed Thursday afternoon it is looking to unload its credit card business following rapid deterioration and a significant earnings shortfall in its credit card portfolio. Spiegel's card business, which includes its OR-based First Consumers National Bank subsidiary, was particularly hard hit in its private-label credit card programs as charge-offs escalated last year. "
Re: Another one (FCNB/Spiegel) 4 Sa Does this mean that I should hold on to my FCNB ? I was going to cancel next month but if someone reputable buys FCNB then maybe just maybe Iwe may get lucky .. But what are the chances of that happening ?
Re: Another one (FCNB/Spiegel) 4 Sa Keep it, the market is up, summer coming peolpe will be buying,traveling. This will be a good thing for banks.
Re: Another one (FCNB/Spiegel) 4 Sa I have used my FCNB unsecured MC, paid it off, used it again, left a balance over several months, etc. I have received increases, but my APR has been going up instead of down. I have gone from 18.9 to 20.5 and now 22.5. I am paying it off and unless something good happens or the APR goes down, I will close it when it a couple of months after it hits the 2 year mark in November! I have other cards with lower APR's than this one I can use, though I am not near prime yet. I cannot get a 9.9, but I can get better than 22.5.
Re: Another one (FCNB/Spiegel) 4 Sa SPIEGEL TO SELL CARD BUSINESS Struggling retailer The Spiegel Group this afternoon reported that it will sell its credit card business. Spiegel said the card operation, which consists of private-label and bank cards issued by Spiegel-owned First Consumers National Bank, lost $85.7 million in the fourth quarter ending Dec. 29 compared with a profit of $42.9 million in the year-earlier quarter. The loss came from operations and a charge to reduce net gains on the sale of receivables. In addition, Spiegel has recorded an estimated net loss of $310.5 million on the sale of its card business. Martin Zaepfel, Spiegel's vice chairman, president and CEO, said in a statement that in 1999 and 2000, the company aggressively grew its card program through a campaign that included offering cards to high-risk consumers. In late 2000, in response to rising delinquencies and chargeoffs in its private-label credit card portfolio, Spiegel started tightening credit quality, re-pricing certain cardholders, and enhancing its collections efforts. But the recent economic downturn, combined with the high growth of the riskier accounts, "resulted in a rapid deterioration in our credit portfolio and a significant earnings shortfall," Zaepfel said. Spiegel executives were unavailable for further comment. Downers Grove, IL-based Spiegel will continue to offer cards to its customers through a third-party arrangement with the portfolio's buyer. The company, whose brands include Eddie Bauer, Newport News, and Spiegel Catalog, reported a loss from its continuing retailing operations of $17.8 million in all of 2001. Spiegel says it is not in compliance with some of its loan covenants, but is working with its lenders and majority shareholder to restructure its credit facility. Ron.
Re: Another one (FCNB/Spiegel) 4 Sa I wonder who is going to buy FCNB/SPIEGEL ? I have a FCNB Mastercard with a 5k limit. Hopefully a good reputable bank will buy them. Maybe one day we will be able to pay our bill online.
Re: Another one (FCNB/Spiegel) 4 Sa I closed my account a few days before the news broke. It wasn't closed because of their ill-fated portfolio though. I wanted to reduce my credit exposure. CardKid
HI MJ...all.... I noticed - about one or two months back - I could get a CASH ADVANCE off Spiegel for the huge amount of $350. Gosh, I have never used it, but have slept very comfortably every night - knowing that in an emergency, my Spiegel card could charge furniture or give me $350.00! I never was exactly clear HOW one gets cash off Spiegel - I was clear it was a ridiculous interest rate. aarrfffff - dogman
Re: HI MJ...all.... Dogman....you are in rare form(as usual...LOL). I called those biscuit eaters & asked them why the cash advance feature is on my account & HOW is it accessed. Their idiotic answer was "We will send you balance transfer checks from time to time & it is at our discretion when you can do it". Like your account,I can access $350 to my $1500 C/L. The "ONLY" reason I have ever used these clowns is because they discount Coach/Kenneth Cole products unlike other stores(i.e....if they say 30% off everything in catalog,it applies to those products when other finer stores say "NO"). I cleaned up this past Xmas(HA HA). Sister Girl
Morning Sister Girl They will send checks occasionally huh? Geez, I better PLAN my big $350 EMERGENCY. ARRFFF - BEST AS ALWAYS - DOGMAN arrrfffff...arrrffff!
Re: Another one (FCNB/Spiegel) 4 Sa Quarterly Earnings | Monthly Sales | Other News Search Releases | News by E-Mail THE SPIEGEL GROUP REPORTS FOURTH QUARTER AND FULL-YEAR 2001 RESULTS ANNOUNCES PLAN TO SELL CREDIT CARD BUSINESS DOWNERS GROVE, Ill. - February 21, 2002 - The Spiegel Group today reported results for its fourth quarter and fiscal year ended December 29, 2001. The company also announced that it has implemented a plan to sell its credit card business, including its First Consumers National Bank subsidiary (FCNB), as part of a broader strategy to focus increased resources to its retail business and to foster consistent earnings growth. "We have made a strategic decision to remove the credit card operations from our business mix to intensify our focus on our core retail business and strengthen our financial position," said Martin Zaepfel, vice chairman, president and chief executive officer of The Spiegel Group. "Offering credit to our customers will continue to be an important service. As part of this transaction, we will form a relationship with a third-party to provide private-label credit card programs to our customers." For the fourth quarter 2001, the company reported earnings from continuing operations of $18.1 million, or $0.14 per share, compared to earnings from continuing operations before the cumulative effect of an accounting change of $22.4 million, or $0.17 per share, in last year's fourth quarter. In addition, the company reported a total loss from discontinued operations of $396.3 million, or $3.00 per share, in the fourth quarter of 2001, compared to earnings from discontinued operations of $42.9 million, or $0.33 per share, last year. The loss from discontinued operations in 2001 primarily consists of an estimated loss on the sale of the credit card business. The amount of this charge is based on current expected market valuations and could vary significantly (up or down) based upon the market for the credit card business and other factors surrounding the transaction. For the year ended December 29, 2001, the company reported a loss from continuing operations of $17.8 million, or $0.13 per share, compared to earnings from continuing operations before the cumulative effect of an accounting change of $8.9 million, or $0.07 per share, for fiscal year 2000. The company also reported a loss from discontinued operations for the year of $379.8 million, or $2.88 per share, compared to earnings from discontinued operations of $116.0 million or $0.88 per share, last year. The loss for the 2001 fourth quarter and year was primarily attributable to the estimated loss recognized on the anticipated sale of the credit card business and a reduction in the gains on the sale of accounts receivables. For the year ended December 29, 2001, revenue from continuing operations decreased 8 percent to $3.079 billion from $3.346 billion for the comparable period last year. The revenue decline was driven by a 9 percent drop in net sales, which includes a 15 percent decline in comparable-store sales at Eddie Bauer. The company reported fourth quarter EBITDA from continuing operations of $71.7 million compared to $80.5 million in the fourth quarter of 2000. For the 2001 fiscal year, EBITDA was $93.9 million compared to $136.3 million for last year's comparable period. As a result of its 2001 financial performance, including the estimated loss recorded in the fourth quarter for the disposition of its credit card business, the company is not in compliance with certain of its 2001 loan covenants. The company stated that it is currently working closely with its bank group and its majority shareholder to restructure its credit facilities. Zaepfel stated, "We have strong support from our majority shareholder and are confident that we will be able to secure the necessary financial support. Our goal is to have new financing arrangements in place by mid-April. In the interim, with the support of our majority shareholder, we have adequate liquidity and cash flows to fund our day-to-day operations. Additionally, the anticipated sale of the credit card business will reduce our debt and capital requirements." Results From Continuing Operations Earnings from continuing operations include results of the company's retail brands - Eddie Bauer, Newport News and Spiegel Catalog - as well as related support operations. The company's earnings from continuing operations for the fourth quarter 2001 were $18.1 million, or $0.14 per share, compared to earnings from continuing operations before the cumulative effect of an accounting change of $22.4 million, or $0.17 per share, for the fourth quarter of 2000. Total revenue from continuing operations for the quarter declined 13 percent to $1.012 billion, from $1.164 billion for the fourth quarter of 2000, as lower customer response in each of the company's merchant companies negatively impacted net sales. The decrease in net sales for the quarter reflects a 15 percent decline in direct sales and a 14 percent drop in retail store sales. E-commerce sales continued to show positive growth, achieving a 22 percent sales increase, offset by a 22 percent decrease in catalog sales. The retail store sales include a 20 percent decline in Eddie Bauer's comparable-store sales, offset somewhat by sales growth in its outlet stores. Zaepfel said, "Our fourth quarter results were extremely disappointing and although the economic downturn clearly impacted our ability to stimulate sales, weaknesses in our merchandise offer and marketing programs also contributed to the lackluster sales performance, particularly in our Eddie Bauer division. During the fourth quarter, we planned for Eddie Bauer's new brand positioning and revamped product offer to deliver higher sales productivity. While expectations were lowered based on the difficult economic conditions, customer acceptance was obviously lower than expected." The company noted that despite lower than expected sales, Spiegel Catalog achieved higher earnings in the fourth quarter while earnings from Eddie Bauer and Newport News declined compared with the fourth quarter of 2000. The gross profit margin as a percent of net sales decreased in the fourth quarter to 38.9 percent from 39.6 percent in the year-earlier period. Strong margin growth achieved by Spiegel Catalog during the quarter was more than offset by lower margins at Eddie Bauer and to a lesser degree Newport News. Higher markdowns and incremental marketing promotions negatively affected Eddie Bauer's margins. Selling, general and administrative expenses as a percent to total revenue increased by 80 basis points to 40.2 percent for the quarter. While expenses were reduced by 11 percent compared to last year's fourth quarter, lower sales productivity across the merchant divisions negatively affected the company's ability to leverage operating expenses.
