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Circuit City filed bankruptcy last month and has since suffered a 50 percent decline in its gross sales. This decline in sales comes on the heels of the busiest shopping time of the years. The bankrupt electronics and appliance retailer projected a 28 percent decreased in sales after filing bankruptcy. Although the larger decline in sales was unexpected, the holiday shopping was a huge disappoint for retailers across the nation attempting to bolster sales numbers before the year’s end.

The bankruptcy court has approved a $1.1 billion line of credit for the Circuit City during its reorganization. However, some critics believe the company’s task of rising out of bankruptcy is too difficult because of the financing terms and the even tougher economic times ahead.

KB Toys has received permission from the New York Attorney General’s office to honor the over $2million in gift cards this year with its New York consumers. KB Toys recently filed bankrupt and had to receive permission to honor the cards through the holiday season. Although $2 million gifts cards had been sold this year, KB Toys has $12 million in unclaimed gift cards.

The Attorney General’s office is allowing KB Toys to honor the gift cards until January 12th, but is not requiring the toy retailer to accept the gift cards. KB Toys is headquartered in Massachusetts, but operates over 50 stores in the state of New York. KB Toys is closing all of its stores through its Chapter 11 bankruptcy plans.

ING Direct awarded 500 of its mortgage holders with one month’s mortgage payment. In response to the nation’s foreclosure crisis, the Dutch based ING Direct forwent its holiday party planning to conduct a contest geared to providing one month’s mortgage payment to its mortgage customers. Each participant wrote a 250 word essay sharing their reason to receive the one month’s mortgage payment. ING Direct used the over $800,000 office holiday party budget to fund the contest.

Recipients of the awards were varied from compelling stories of cancer survivorship to the financially responsible seeking relief. ING has over 83,000 mortgage customers, but only received 5500 essays for the contest. ING currently owns slightly less than 2% of the nation’s mortgages equaling $17 billion. In October, ING Direct received $14 billion dollars in aid from the Dutch government.

Polaroid Corp has filed for Chapter 11 bankruptcy protection from its creditors. Seven years ago the instant photograph industry pioneer filed for bankruptcy protection and was later acquired by Petters Group. Polaroid is reported to have over $200 million in debt, but claims its current financial issues stem from it’s parent company’s legal matters.

The founder of Petters Group was arrested in October on mail fraud and money laundering charges allegedly totaling more than $2 billion dollars. Polaroid is also disputing its total debt reported by its parent company.

The nation’s foreclosure crisis has reached the halls of education as more students become homeless. Reports state that 1 out of 10 homes in the US have or are experiencing mortgage issues during the nation’s economic meltdown. The increasing foreclosure rate has had devastating effects on housing communities and banks across the nation and consequently school kids are feeling the affects. Reportedly, 2 million school age kids are returning from schools for the holidays to find their home is now a “house for sale” and themselves without shelter.

As a result of the increased homelessness among school aged children, some school districts are facing an influx of students from devastated communities. Displaced former homeowners must turn to relatives or already crowded low income areas to live. Educational and social services are suddenly finding themselves far shorter on resources than expected. In addition, homeless students are reportedly experiencing increased levels of truancy and behavioral issues. State and local municipalities are responsible for financial support of their school systems.

Traditionally, the state schools systems relied upon real estate property taxes as the main financial resource for education funds. However, with record unemployment and foreclosure rates, school districts are losing their tax base as homes sit empty for a year or more. Many school districts are struggling to meet the federal educational standards needed to qualify for federal financial assistance. As economist predict near future waves of more economic despair, school aged children have become a major concern across the nation.