Owners of small businesses likely to cut employee count

The job outlook at America’s small businesses is the worst it’s ever been, according to new research.

Last month, 21 percent of small business owners said they expected to lower head count during the next six months. The percentage is the highest recorded by the Wells Fargo/Gallup Small Business Index since its launch in 2003. In July, the last time the data was compiled, 10 percent of bosses said they planned to shrink employee ranks.

More than 6 in 10 owners said they would keep their workforce steady, while 17 percent said they intended to boost hiring. That’s down from the 20 percent of bosses who said the same in July.

On the Gallup index, the difference between the companies that plan to raise employee numbers and those that will lower it resulted in a score of -4. A score of 0 indicates equal percentages of businesses planning to increase and decrease hiring.

Historically, according to Gallup, the index tends to show a positive figure, even reaching double digits during good economic years. But a number of factors — including the looming "fiscal cliff," the effects of Hurricane Sandy and the recent election results — could be stoking Main Street’s pessimism.

Total recall

WASHINGTON » The government is taking action against the makers of a portable baby recliner called the Nap Nanny after five infant deaths.

The Consumer Product Safety Commission filed an administrative complaint last week alleging the new model of the Nap Nanny, called the Chill, and two earlier versions "pose a substantial risk of injury and death to infants."

The commission is seeking an order that would require Nap Nanny maker Baby Matters LLC of Berwyn, Pa., to notify the public about what the agency deems a serious product defect. The agency also wants the company to offer consumers a full refund.

Baby Matters went out of business a month ago, according to an email from the company. On its website is a message from owner and founder Leslie Gudel that says, "We do not believe the complaint has merit and stand behind the safety of our product when used as instructed."

She adds that "no infant using the Nap Nanny properly has ever suffered an injury requiring medical attention."

Some of the cases involved recliners that were placed in a crib, which the company has urged parents not to do. The Nap Nanny should be placed on the floor with the harness secured. In all, the says it has received more than 70 reports of children nearly falling out of recliners.

The commission filed the complaint after discussions with the company broke down over a recall plan.

To contact the CPSC, call 800-638-2772 between 3 a.m. and 12:30 p.m. Hawaii time Monday through Friday.

Video game sales drop 11%

U.S. consumers spent 11 percent less on video games, consoles and accessories in November than a year earlier, led by fewer purchases of consoles and hand-held players.

Retail spending on the products totaled $2.55 billion last month, down from $2.87 billion a year earlier, industry researcher NPD Group Inc. said last week.

Manufacturers of game consoles are beginning a round of product introductions to replace players that have been around for six years or more. Nintendo Co. said Nov. 26 that it sold more than 1.2 million game players in the U.S. since Nov. 18, including 400,000 of its new Wii U with a touch-screen GamePad.

Whole Living magazine folding

Martha Stewart Living Omnimedia Inc., the media and merchandising company founded by Martha Stewart, will shut down its Whole Living magazine early next year after deciding not to sell the publication.

"The January-February issue will be the last issue of the magazine," said Dawn Bridges, a spokes­woman for the New York-based company. "The content will live on digitally within our website."

Martha Stewart Living said in November that it was entertaining offers for the magazine, part of an effort to slim down its operations and focus more on the Web.

Cat picked for Home Depot marketing

ATLANTA >> On the Internet you can never go wrong with a cat.

Seeing the popularity of feline videos and hoping to prove its sense of humor and online bona fides to a younger generation, Atlanta-based Home Depot is turning to a tomcat named Richard to introduce its brand to the Instagram set.

It’s the first time the home improvement retailer is using a character to sell Home Depot, and not to sell tools. Home Depot’s name is at the bottom of the pictures of Richard the cat, who is shown commenting on his owners’ inability to clean a litter box or decorate for the holidays in moderation.

But as the company posts commentary and photos on the websites Twitter and Tumblr, it wants the surly cat to start a conversation and engage potential customers, not create sales.

Home Depot is also partnering with the snarky greeting card site Some­ecards and using a Funny or Die comedian to help with the humor.

“We need to inject a little humor into the brand in the social space,” said Trish Mueller, Home Depot’s senior vice president and chief marketing officer. “There’s a lot of engagement with cats.”

Cats have a large following on YouTube with a number of videos that can claim hits in the millions.