Controversial T-shirt destroys business

The company behind an offensive t-shirt controversy earlier this year has shut down and let go its remaining employees.

NEW YORK (CNNMoney)

Fierce public backlash brought down Solid Gold Bomb, which made headlines in March for offering shirts that said "Keep Calm and Rape a Lot." The company closed its doors last week and let go its remaining three employees.

Company founder Michael Fowler is now swimming in debt and he says he's still getting death threats, including one caller who hounded him for months insisting on meeting him in person.

"It's my fault, and I paid dearly," Fowler said. "My life's work. Twenty years I've been building this up."

Related: The story behind the 'Carry On and Rape Her' shirts

The downfall is the result of an Internet uproar that occurred in March, when someone browsing Amazon's marketplace discovered shirts with messages of misogyny and murder. The shirts were parodies of the old British slogan "Keep Calm and Carry On."

Amazon (AMZN, Fortune 500) immediately pulled down all of Fowler's products, choking off his company's main avenue for sales.

At the time, Fowler issued an apology and explained that the shirts never really existed. The images of offensive shirts were the result of a computer program that automatically generated random phrases and images.

Fowler had used the program to expand his company catalog from 1,000 designs to more than 10 million, casual shirts with pithy one-liners like, "I mustache you a question." The vast number of shirts for sale rocketed him to the top of Amazon searches. By printing on demand, he reduced the risk of unsold inventory.

The apology fell short. Fowler was flooded with spiteful emails. Orders plummeted from 400 a day to 100. It didn't get much better when Amazon finally let him back online three weeks later, Fowler said, because it erased his online history, hurting his search rankings.

Fowler, an American who lives with his wife and three children in Melbourne, Australia, stopped paying himself a salary. He was forced to fire half of his employees -- an art director, print master and customer service representative. He injected $35,000 of his own money into the company.

"I certainly didn't give up. I didn't throw in the towel. I tried," Fowler said.

The company was so financially weak that when it ran into shipping problems this month, the entire operation collapsed. Fowler notified his operations manager and two employees by phone, thanking them for sticking around. He said he couldn't afford the $4,000 plane ticket to see them and deliver the news in person.

Related: Best places to launch

Cristy McCullough, his operations manager in Massachusetts, is helping sell off what's left of the company: computers, shipping equipment, phone systems and shirt printing machines. The idea is to split the proceeds between those who remained. So far they've raised a few thousand dollars. Fowler expects to owe $125,000 to his shipping partner and clothing supplier.

"I'll be paying this for a long time," he said.

But he isn't done running a small business. Fowler has already set up another dye house, and he's vowed to start printing T-shirts again -- this time with a friend in Melbourne.

"I've got to do something. I've got three kids and my wife isn't employed," he said. "Hey, I'm an entrepreneur. I'm already on the hustle trying to build it again."

First Published: June 24, 2013: 8:22 AM ET

22.03 | 0 komentar | Read More

Stocks slammed by China and Fed

Click the chart for more stock market data.

NEW YORK (CNNMoney)

The Dow Jones industrial average tumbled more than 200 points, or 1.7%, while the S&P 500 and Nasdaq sank more than 1.8%.

Fears about China pushed the CBOE Market Volatility Index (VIX) up above 21 to the highest level of the year. The CNNMoney Fear & Greed Index dropped further into Extreme Fear, clocking in at the lowest level since June 2012.

European markets were also deep in the red.

Click here for more on stocks, bond, commodities and currencies

Credit crunch in China? The People's Bank of China told the country's largest banks Monday to rein in risky loans and improve their balance sheets, a warning that sent a jolt through already unsettled equity markets.

The Shanghai Composite index was hardest hit by the announcement, registering a decline of 5.3%. The Hang Seng in Hong Kong lost nearly 3%. Japan's Nikkei index declined by 1.3%.

The sell-off comes after short-term borrowing costs skyrocketed last week in China, leading to a credit crunch. The rate at which Chinese banks lend to each other overnight hit, which serves as a measure of liquidity in the financial market, hit a record high above 13% last week before moderating. Another key measure of cash in the banking system -- the 7-day "repo rate" -- peaked at 25%.

Investors are worried that less liquidity in the world's second-largest economy could further slow the shaky global recovery.

Commodities get dinged: Commodities were under pressure amid worries about a slowdown in global economic growth. Copper prices sank nearly 3%, while gold and silver continued to decline.

Oil prices were also falling. Both crude oil and Brent crude prices dropped to a three-week lows.

Related: Brazilian stocks among world's worst performers

Fed worries persist, bond yields shoot higher: Last week's comments from Federal Reserve chairman Ben Bernanke sparked a rush out of bonds. Fresh concerns about China intensified that sell-off Monday.

As investors dumped bonds, yields continued to rise, with the yield on the 10-year Treasury note hitting 2.65% early Monday. That's its highest since August 2011.

Bernanke said at a news conference last week that the central bank could slow the pace of its bond-buying program later this year if the economy continues to improve.

The Fed's stimulus program has been a major driver of the bull market, and worries over its longevity are likely to generate market volatility in the months ahead.

All three major U.S. stock market indexes ended roughly 2% lower last week, as investors were spooked by Bernanke's comments.

Despite the recent selling, stocks are still way up for the year. The Dow, S&P 500 and Nasdaq have gained between 9% and 11% since the start of January.

Stocks on the move: Shares of Vanguard Health Systems (VHS, Fortune 500) surged almost 70% after inking a $1.8 billion acquisition deal with Tenet Healthcare Corp. (THC, Fortune 500)

First Published: June 24, 2013: 9:41 AM ET

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Start the countdown! Twinkies return to shelves July 15

Twinkies will return to store shelves on July 15.

NEW YORK (CNNMoney)

The announcement was made by Daren Metropoulos, principal of Metropoulos & Co., one of the two companies that bought the rights to Twinkies and other snack brands from the bankrupt Hostess Brands earlier this year.

The new Twinkies box will look very similar to the old one, with the addition of the line "The sweetest comeback in the history of ever." The price will stay the same as last fall when Hostess shut down - $3.99 for a box of 10. Other products will also come back with the same pricing.

"America wanted Hostess back -- they wanted the original," said Metropoulos.

The new company will sell all of the Hostess and Dolly Madison branded snack products, including CupCakes, Donettes, Zingers, Ho Hos, Ding Dongs, fruit pies and mini muffins. Some products, such as Sno Balls, will take a little longer to return to shelves, but they should be available within the next few months.

Other Hostess brands, including Wonder Bread and Drake's snack cakes, have been sold to other firms. Details of their return have yet to be announced.

Related: The Devil Dog is in the details

Wonder Bread, Twinkies and other Hostess products have not been produced since November, when Hostess Brands Inc. filed with the bankruptcy court to liquidate its 82-year old business following a crippling strike by the Bakery Workers union.

But while that company is out of business, and most of its 18,500 employees have lost their jobs, a bankruptcy court has been overseeing an auction of its various brands as part of the liquidation process.

Related: Making Hostess cakes at home

The new snack company, Hostess Brands LLC, was purchased for $410 million by private equity groups Apollo Group (APOL) and Metropoulos & Co. It also bought five of the closed bakeries as part of their bid. It will produce the products out of four of the bakeries -- in Columbus, Ga., Emporia, Kansas, Indianapolis and the Chicago suburb of Schiller Park, Ill. It plans to have about 1,800 employees making the snacks within the next three months.

Metropoulos' other food holdings include Pabst Blue Ribbon beer. In the past it has owned Chef Boyardee canned pasta, Bumble Bee seafood, PAM cooking spray and Gulden's Mustard, all of which it eventually sold to ConAgra Foods Inc (CAG, Fortune 500).

--CNN's Polina Fishof contributed to this report

First Published: June 24, 2013: 7:33 AM ET

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Next week you'll pay more for a Starbucks latte

Starbucks, next Tuesday, is raising U.S. prices by an average of 1% for its brewed drinks to help offset an increase in business costs.

NEW YORK (CNNMoney)

The price hike will affect beverages including Starbucks' (SBUX, Fortune 500) brewed coffee, tea, latte and espresso drinks, said spokesman Jim Olson. While drink prices vary from city to city, Olson said that customers in some markets could pay about 10 cents more for a tall brewed coffee.

Still, less than one-third of all Starbucks beverages will be affected by the new prices, he added.

For instance, prices will not increase at a vast majority of Starbucks stores for its venti and grande-sized brewed coffees, or for its Frappuccino drinks.

This is the first price hike in nearly two years for the coffee chain, according to Olson, who said the rising cost of labor, raw materials and rent triggered the move.

Still, there is one way that customers can always shave a few cents off their coffee tab: Starbucks offers a 10 cent discount on any drink when customers bring in a personal tumbler or use a reuseable Starbucks cup.

First Published: June 21, 2013: 5:01 PM ET

21.29 | 0 komentar | Read More

LeBron will never be an endorsement star like Jordan

NEW YORK (CNNMoney)

He may be a great basketball player, but endorsement experts say that off the court, he's still no Michael Jordan.

James has $39 million in annual endorsements, more than any other active athlete, according to the Fortunate 50 rankings compiled by Sports Illustrated and Fortune magazines. But Michael Jordan is still bringing in a whopping $80 million in endorsement deals a year - even though he hasn't set foot on a court in a decade.

Many fans simply don't like James. He was heavily criticized when he moved to the Miami Heat as a free agent in 2010, and his popularity plunged according to various surveys.

Related: Heat's winning streak sparks sales rush

"That was the first time we saw such a precipitous drop in appeal without something criminal happening," said Henry Shafer, executive vice president of the Q Scores Company, which conducts one such survey.

James' likability is on par with that of Mickey Rourke and rocker Gene Simmons of KISS - which isn't great company - according to a competing survey by the Celebrity DBI index.

"It certainly doesn't hurt that [James] has won two championships in a row. But it's going to be really hard for him to match what Jordan delivered on camera and how he resonated with fans," said Darin David, director of the sports consulting group at The Marketing Arm, which arranges deals between advertisers and and celebrities.

Related: Under Armour's crew of star athletes

David and others experts say that pitchmen like Jordan and Peyton Manning have a special on-screen persona that most athletes will never have, no matter how many championship titles they might accumulate.

Both Jordan and James have deals with Nike (NKE, Fortune 500), which pays out billions in endorsement deals to athletes around the world. James also has deals with top consumer companies like Coca-Cola (KO, Fortune 500), McDonald's (MCD, Fortune 500) and Samsung. But commercials starring James get relatively limited air time, even during the NBA playoffs.

Related: Coming out could boost Jason Collins' endorsements

Shafer, from the Q Scores Company, said that while James has started to slowly win back sports fans, he hasn't made a lot of progress with the general public.

"It's not just about winning. It's about how you interact with the public," he said.

First Published: June 21, 2013: 4:28 PM ET

21.29 | 0 komentar | Read More

Pending law would block Tesla sales in New York

Elon Musk and Tesla are battling dealership associations throughout the country for the right to sell vehicles directly to customers.

NEW YORK (CNNMoney)

Tesla said in a statement Friday that if the bill passes, it will be "put out of business in New York," with all employees in the state losing their jobs.

"The bottom line for New York consumers and New York suppliers is that if this bill passes, special interests in Albany will once again have gotten their way while robbing New Yorkers of choices in the marketplace," Tesla (TSLA) said.

The current legislative session was originally scheduled to conclude on Thursday, but work continued in both the Senate and Assembly on Friday, and it is unclear when it will end.

Related: Tesla unveils 90-second battery-pack swap

CEO Elon Musk took to Twitter Friday as legislators were considering the bill, urging New Yorkers to call their representatives and ask them to vote it down.

The New York State Automobile Dealers Association did not respond to a request for comment, though the association is also urging supporters to contact their representatives, saying the pending bill is "designed to maintain the health and vitality of New York's retail automobile industry."

Tesla has tangled with dealership associations in a number of states in its effort to sell its Model S electric sedan directly to consumers rather than using franchised car dealers.

General Motors (GM, Fortune 500), Ford (F, Fortune 500), Toyota (TM) and others don't sell cars to customers. They sell to independently owned and operated dealers or distributors who, in turn, sell them to the public, usually after some negotiation over the final price.

Tesla's showrooms, by contrast, are owned and operated by the company. Most are in shopping malls, with only enough cars on hand for display and test drives. Every Tesla car sells at full sticker price, and service on the cars is performed at separate garages owned by Tesla.

Auto sales are mostly regulated at the state level. In some states, Tesla has had little or no problem opening its stores. In others, auto dealers and their allies in government have resisted Tesla's plans, fearing they could ultimately undermine the system of franchised dealers.

Earlier this month, legislators in Texas failed to vote on a bill backed by Tesla that would have loosened the state's restriction on dealerships owned by automakers. Virginia rejected the electric-car maker's dealership application earlier this year.

Dealers argue that the traditional franchise system is best for car buyers because it preserves competition between dealerships selling the same products.

But Tesla worries that traditional franchised dealers, who also have gasoline cars to sell, won't represent its products properly or aggressively enough. Dealers pressed to make quick sales will likely be tempted to steer customers to gasoline cars rather than explain the benefits of the Model S, Diarmuid O'Connell, Tesla's vice president for business development, told CNNMoney last month.

"From the beginning, Tesla's goal has been to catalyze the market for electric vehicles, and selling through intermediaries at this stage of the company will not work," Tesla said Friday.

First Published: June 21, 2013: 6:31 PM ET

21.29 | 0 komentar | Read More

Next week you'll pay more for a Starbucks latte

Starbucks, next Tuesday, is raising U.S. prices by an average of 1% for its brewed drinks to help offset an increase in business costs.

NEW YORK (CNNMoney)

The price hike will affect beverages including Starbucks' (SBUX, Fortune 500) brewed coffee, tea, latte and espresso drinks, said spokesman Jim Olson. While drink prices vary from city to city, Olson said that customers in some markets could pay about 10 cents more for a tall brewed coffee.

Still, less than one-third of all Starbucks beverages will be affected by the new prices, he added.

For instance, prices will not increase at a vast majority of Starbucks stores for its venti and grande-sized brewed coffees, or for its Frappuccino drinks.

This is the first price hike in nearly two years for the coffee chain, according to Olson, who said the rising cost of labor, raw materials and rent triggered the move.

Still, there is one way that customers can always shave a few cents off their coffee tab: Starbucks offers a 10 cent discount on any drink when customers bring in a personal tumbler or use a reuseable Starbucks cup.

First Published: June 21, 2013: 5:01 PM ET

21.29 | 0 komentar | Read More

LeBron will never be an endorsement star like Jordan

NEW YORK (CNNMoney)

He may be a great basketball player, but endorsement experts say that off the court, he's still no Michael Jordan.

James has $39 million in annual endorsements, more than any other active athlete, according to the Fortunate 50 rankings compiled by Sports Illustrated and Fortune magazines. But Michael Jordan is still bringing in a whopping $80 million in endorsement deals a year - even though he hasn't set foot on a court in a decade.

Many fans simply don't like James. He was heavily criticized when he moved to the Miami Heat as a free agent in 2010, and his popularity plunged according to various surveys.

Related: Heat's winning streak sparks sales rush

"That was the first time we saw such a precipitous drop in appeal without something criminal happening," said Henry Shafer, executive vice president of the Q Scores Company, which conducts one such survey.

James' likability is on par with that of Mickey Rourke and rocker Gene Simmons of KISS - which isn't great company - according to a competing survey by the Celebrity DBI index.

"It certainly doesn't hurt that [James] has won two championships in a row. But it's going to be really hard for him to match what Jordan delivered on camera and how he resonated with fans," said Darin David, director of the sports consulting group at The Marketing Arm, which arranges deals between advertisers and and celebrities.

Related: Under Armour's crew of star athletes

David and others experts say that pitchmen like Jordan and Peyton Manning have a special on-screen persona that most athletes will never have, no matter how many championship titles they might accumulate.

Both Jordan and James have deals with Nike (NKE, Fortune 500), which pays out billions in endorsement deals to athletes around the world. James also has deals with top consumer companies like Coca-Cola (KO, Fortune 500), McDonald's (MCD, Fortune 500) and Samsung. But commercials starring James get relatively limited air time, even during the NBA playoffs.

Related: Coming out could boost Jason Collins' endorsements

Shafer, from the Q Scores Company, said that while James has started to slowly win back sports fans, he hasn't made a lot of progress with the general public.

"It's not just about winning. It's about how you interact with the public," he said.

First Published: June 21, 2013: 4:28 PM ET

21.29 | 0 komentar | Read More

Pending law would block Tesla sales in New York

Elon Musk and Tesla are battling dealership associations throughout the country for the right to sell vehicles directly to customers.

NEW YORK (CNNMoney)

Tesla said in a statement Friday that if the bill passes, it will be "put out of business in New York," with all employees in the state losing their jobs.

"The bottom line for New York consumers and New York suppliers is that if this bill passes, special interests in Albany will once again have gotten their way while robbing New Yorkers of choices in the marketplace," Tesla (TSLA) said.

The current legislative session was originally scheduled to conclude on Thursday, but work continued in both the Senate and Assembly on Friday, and it is unclear when it will end.

Related: Tesla unveils 90-second battery-pack swap

CEO Elon Musk took to Twitter Friday as legislators were considering the bill, urging New Yorkers to call their representatives and ask them to vote it down.

The New York State Automobile Dealers Association did not respond to a request for comment, though the association is also urging supporters to contact their representatives, saying the pending bill is "designed to maintain the health and vitality of New York's retail automobile industry."

Tesla has tangled with dealership associations in a number of states in its effort to sell its Model S electric sedan directly to consumers rather than using franchised car dealers.

General Motors (GM, Fortune 500), Ford (F, Fortune 500), Toyota (TM) and others don't sell cars to customers. They sell to independently owned and operated dealers or distributors who, in turn, sell them to the public, usually after some negotiation over the final price.

Tesla's showrooms, by contrast, are owned and operated by the company. Most are in shopping malls, with only enough cars on hand for display and test drives. Every Tesla car sells at full sticker price, and service on the cars is performed at separate garages owned by Tesla.

Auto sales are mostly regulated at the state level. In some states, Tesla has had little or no problem opening its stores. In others, auto dealers and their allies in government have resisted Tesla's plans, fearing they could ultimately undermine the system of franchised dealers.

Earlier this month, legislators in Texas failed to vote on a bill backed by Tesla that would have loosened the state's restriction on dealerships owned by automakers. Virginia rejected the electric-car maker's dealership application earlier this year.

Dealers argue that the traditional franchise system is best for car buyers because it preserves competition between dealerships selling the same products.

But Tesla worries that traditional franchised dealers, who also have gasoline cars to sell, won't represent its products properly or aggressively enough. Dealers pressed to make quick sales will likely be tempted to steer customers to gasoline cars rather than explain the benefits of the Model S, Diarmuid O'Connell, Tesla's vice president for business development, told CNNMoney last month.

"From the beginning, Tesla's goal has been to catalyze the market for electric vehicles, and selling through intermediaries at this stage of the company will not work," Tesla said Friday.

First Published: June 21, 2013: 6:31 PM ET

21.29 | 0 komentar | Read More

Next week you'll pay more for a Starbucks latte

Starbucks, next Tuesday, is raising U.S. prices by an average of 1% for its brewed drinks to help offset an increase in business costs.

NEW YORK (CNNMoney)

The price hike will affect beverages including Starbucks' (SBUX, Fortune 500) brewed coffee, tea, latte and espresso drinks, said spokesman Jim Olson. While drink prices vary from city to city, Olson said that customers in some markets could pay about 10 cents more for a tall brewed coffee.

Still, less than one-third of all Starbucks beverages will be affected by the new prices, he added.

For instance, prices will not increase at a vast majority of Starbucks stores for its venti and grande-sized brewed coffees, or for its Frappuccino drinks.

This is the first price hike in nearly two years for the coffee chain, according to Olson, who said the rising cost of labor, raw materials and rent triggered the move.

Still, there is one way that customers can always shave a few cents off their coffee tab: Starbucks offers a 10 cent discount on any drink when customers bring in a personal tumbler or use a reuseable Starbucks cup.

First Published: June 21, 2013: 5:01 PM ET

19.33 | 0 komentar | Read More