Daily Archives: August 3, 2004

Stros edge Braves

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The Rocket bounced back from being thrown out of his kid’s youth league game and pitched the Stros to a 3-2 win over the Braves straight win in the first game of their three game set at the Juice Box. It was the Stros’ third straight win.
Clemens was magnificent, giving up one earned run on four hits in seven innings while walking three. The Braves’ Russ Ortiz was almost as good, giving up two runs in seven innings while torturing the Stros’ hitters with his array of drop balls and change-ups. The Stros finally pushed across runs in the sixth, seventh and eighth to take the lead, including Bidg‘s solo yak and a key pinch hit by Lamb to set up the go ahead run in the eighth. Lidge was overpowering in saving the win as he K’Oed the side in the top of the ninth.
Inexplicably, the Stros trot Tim Redding out again on Wednesday to provide the Braves with some extended batting practice in between walks. The Stros’ hitters better gut up because they will likely need to score a bunch of runs to have a chance to win this one.

Schlotzsky’s tanks

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Popular Austin-based delicatessen franchiser Schlotzky’s, Inc. filed a chapter 11 reorganization case (case no. 04-54504) today in San Antonio.
The case was assigned to U.S. Bankruptcy Judge Leif Clark, who is an able and experienced bankruptcy jurist. A team from Haynes & Boone, LLP — led by Dallas-based partner Robert Albergotti — is representing Schlotzky’s in the chapter 11 case. Judge Clark has set a hearing for 10:30 a.m. tomorrow in San Antonio to hear a slew of “first day” motions that Haynes & Boone filed on behalf of Schlotzky’s today.
The company has more than 500 outlets in 36 states and six countries. Upon filing, Schlotzsky’s issued a public statement saying that operations at its shops would continue normally during the reorganization, but it’s a safe bet that more than a few of those shops will close during the reorganization. Schlotzky’s owns 21 “company” shops and franchisees own the balance of the stores.
Schlotzsky’s has been reeling for some time in the intensely competitive deli business that Subway and Quizno’s dominates. Schlotzsky’s recently cut 20 percent of its corporate staff and closed 15 company-owned shops in July. The company reported a net loss of $11.7 million in 2003 in comparison to a loss of about $200,000 in 2002, and lost another $671,000 in the first quarter of 2004.

Placing terror threats in perspective

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Professor Gordon places the recent Al Qaeda threats against eastern United States financial institutions into the proper perspective:

Primitives and Targets
The only silver lining in the War on Terror is that our enemies are primitives who believe that striking the NYSE or Citibank headquarters or even the IMF or the World Bank would have major economic consequences. We will win because they don’t get it. We are economically (and spatially) decentralized. More than they can grasp. Terrible as the loss of life and the psychological hit would be, the economic consequences would be minor.
The World Trade Center Towers were tall and auspicious because of New York politics. They had no economic rhyme or reason. Losing them was a terrible loss of life but had little economic consequence. In fact, no major natural disaster in U.S. history (not Hurricane Andrew, not the Northridge Earthquake, nor any other that I can think of) had significant economic impact.
The primitives don’t get it. Indeed, they cannot grasp the essence or the durability of decentralized systems. They are, after all, primitives.