In the past few weeks the housewares chain, Linen and Things, which has been operating in Chapter 11 of the bankrupcy laws has decided to close it's doors and go out of business. Circuit City, which only a few weeks ago announced the closing of 155 stores, has now sought the protection of a Chapter 11 reorganization under the bankrupcy rules and has said that it hopes to be able to hang on until after Christmas. One or two other chains have filed for protection under Chapter 11. We are in a very difficult retail environment.

Consumer confidence is at a very low level, unemployment is creeping up, and retail spending has decreased to point where many chains and retail organizations are measuring same store sales in terms of negative numbers. This is a very difficult retail environment. People are afraid to spend money.

This morning I looked through the sale fliers that accompany my Sunday papers and the discounts seemed to be unbelievable. Sears, for example is advertising its "Black Friday Prices Now". The other stores are promoting and price cutting to an extent that I've never seen this early before. It is hard to believe that any of the retailers will make a profit this year. Especially knowing that this price cutting and discounting is going on seven weeks before Christmas.

My question is which other retailers do you think are are trouble? Which ones do you think will file for bankrupcy, and which ones do you think will disappear after Christmas?

 

I got this email a couple of days ago that had ifo on companies that were having troubles. Not sure how good it is.
..........................................

Ann Taylor closing 117 stores nationwide. A company spokeswoman said the company hasn't revealed which stores will be shuttered. It will let the stores that will close this fiscal year know over the next month.

Eddie Bauer to close more stores. Eddie Bauer has already closed 27 shops in the first quarter and plans to close up to two more outlet st ores by the end of the year.

Cache closing stores. Women's retailer Cache announced that it is closing 20 to 23 stores this year.

Lane Bryant, Fashion Bug, Catherine's closing 150 stores nationwide. The owner of retailers Lane Bryant, Fashion Bug , Catherines Plus Sizes will close about 150 underperforming stores this year. The company hasn't provided a list of specific store closures and can't say when it will offer that info, spokeswoman Brooke Perry said today.

Talbots, J. Jill closing stores. About a month ago, Talbots announced that it will be shuttering all 78 of its kids and men's stores. Now the company says it will close another 22 underperforming stores.. The 22 stores will be a mix of Talbots women's and J. Jill, another chain it owns. The closures will occur this fiscal year, according to a company press release.

Gap Inc. closing 85 stores. In addition to its namesake chain, Gap also owns Old Navy and BananaRepublic. The company said the closures - all planned for fiscal 2008 - will be weighted toward the Gap brand.

Foot Locker to close 140 stores. In the company press release and during its conference call with analysts today, it did not specify where the future store closures--all plan ned in fiscal 2008--will be. The company could not be immediately reached for comment.

Wickes is going out of business. Wickes Furniture is going out of business and closing all of its stores, Wickes, a 37-year-old retailer that targets middle-income customers, filed for bankruptcy protection last month.

Goodbye Levitz / BOMBAY - closed already. The furniture retailer, which is going out of business. Levitz first announced it was going out of business and closing all 76 o fits stores in December. The retailer dat es back to 1910 when Richard Levitz opened his first furniture store in Lebanon , PA. In the 1960s, the wa rehouse/showroom concept brought Levitz to the forefront of the furniture industry. The local Levitz closures will follow the shutdown of Bombay.

Zales, Piercing Pagoda closing stores. The owner of Zales and Piercing Pagoda previously said it plans to close 82st stores by July 31. Today, it announced that it is closing another 23underperforming stores. The company said it's not providing a list of specific store closures. Of the 105 locations planned for closure, 50 are kiosks and 55 are stores.

Disney Store: Owner has the right to close 98 stores. The Walt Disney Company announced it acquired about 220 Disney Stores from subsidiaries of The Children's Place Retail Stores. The exact number of stores acquired will depend on negotiations with landlords. Those subsidiaries of Children's Place filed for bankruptcy protection in late March. Walt Disney in the news release said it has also obtained the right to close about 98 Disney Stores in the U.S. The press release didn't list those stores.

Home Depot< /FONT> store closings (E. Brunswick, Rt 18 just put up their closing sign), Atlanta. Nearly 7+ months after its chief executive said there were noplans to cut the number of its core retail stores, The Home Depot Inc. announced Thursday that it is shuttering 15 of them amid a slumping U.S. economy and housing market. The move will affect 1,300 employees. It is the first time the world's largest home improvement store chain has ever closed a flagship store for performance reasons. Its shares rose almost 5 percent. The Atlanta-based company said the underperforming U.S. stores being closed represent less than 1 percent of its existing stores. They will be shuttered within the next two months.

CompUSA (CLOSED) clarifies details on store closings. Any extended warranties purchased for products through CompUSA will be honored by a third-party provider, Assurant Solutions. Gift cards, rain checks, and rebates purchased prior to December 12 can be redeemed at any time during the final sale. For those who have a gadget currently in for service with CompUSA, the repair will be completed and the gadget will be returned to owners.
http://www.news.com/8301-10784_3-9834177-7html

Macy's - 9 stores

Movie Gallery - 160 stores as part of reorganization plan to exit bankruptcy. The video rental company plans to close 400 of 3,500 Movie Gallery and Hollywood Video stores in addition to the 520 locations the video rental chain closed las t fall.

Pacific Sunwear - 153 Demo stores

Pep Boys - 33 stores

Sprint Nextel - 125 retail locations. New Sprint Nextel CEO Dan Hesse appears to have inherited a company bleeding subsc ribers by the thousands, and will now officially be dropping the ax on 4,000 e mployees and 125 retail locations. Amid the loss of 639,000 postpaid customers in the fourth quarter, Sprint will be cutting a total of 6.7% of its work force (following the 5,000 layoffs last year) and 8% of company-owned brick-and-mortar stores, while remaining mute on other rumors that it will consolidate its headquarters in Kansas. Sprint Nextel shares are down $2.89, or nearly 25%, at the time of this writing.

J. C. Penney, Lowe's and Office Depot are all scaling back.

Ethan Allen Interiors: The company announced plans to close 12 of 300+ stores in an effort to cut costs.

Wilsons the Leather Experts - 158 stores

Pacific Sunwear will close its 154 Demo stores after a review of strategic alternatives for the urban-apparel brand. Seventy-four underperforming Demo stores closed last May.

Sharper Image: The company recently filed for bankruptcy protection and an nounced that 90 of its 184 stores are closing. The retailer will still operate 94 stores to pay off debts, but 90 of these stores have performed poorly and also may close.

Bombay Company: (Freehold Mall store closed) The company unveiled plans to close all 384 U.S.-based Bombay Company stores. The company's online storefront has discontinued operations.

KB Toys posted a list of 356 stores that it is closing around the United States as part of its bankruptcy reorganization. To see the list of store closings, go to the KB Toys Information web site, and click on Press Information.

Dillard's to close more stores. Dillard's, Inc. said it will continue to focus on closing underperforming stores, reducing expenses and improving its merchandise in 2008. At the company's annual shareholder meeting, CEO William Dillard II said the company will close another six underperforming stores this year.

 

^^^ Almost every single one of them is a specialty retailer that commanded or commands premium for there products. Suffice to say that model of retailing will not survive in this economy. 80% of them also cater to a specialized consumer which puts them at a negative from day one.

 

Also this is a good time to make some needed cuts and blame it on the economy.

 

Damn trapper, that's some list. I heard a few days ago talk that Sears might be next to go under but it's sad to see so many stores listed already.

 

As consumers become more budget concious and hesitate before using credit for day to day living expenses, we'll probably see more and more specialty stores closing doors. I really do not know ANYONE who is not cutting back on spending. The headlines of the local newspaper yesterday was FORECLOSURES. The gist of the story was the parallels between the foreclosure of a $1million house and several $20,000 houses in the inner city. I'm curious to see what happens with Genworth and J Crew, two of our larger employers here. Those companies employ many of our young people (the 20 something age group) and are usually the starting point for their first jobs out of college. I'm expecting layoffs .

 

My son is an engineer. His company an international manufacturer of water filtration systems. Last Tuesday they announced there would by 40 engineers let go on Friday. All engineers were to be in their office by 8:30A and if management stopped by their office they would have until the end of the day to clean out their desk. Sure enough the main guy and his assistant went down the line and simply said "Thank you for your service, you are no longer needed". My son was not one of the ones let go. Question - How do companies like this expect to grow with morale at such a low point? BTW, the company has orders for the next three years, so there is no lack of work.

 

Maury,
some times it feels harder to be the survivor than the layoff victim.
In the end however it is usually better to keep your job.
Yup morale goes in the toilet. productivity suffers as everybody starts looking over their shoulder.

On the flip side, maybe the company is just doing a long overdue knucklehead roundup.
In down time when there is a labor surplus it is easier to refresh the company with cheaper but more qualified talent.

I was at a company in early 90's where at the end of the quarter managers had to write the justification for every employee.
And at the beginning of every quarter a few poeple would go away and be replaced.

We joked that we had superstars and new hires.
It wasn't a comfortable existence.

 

[QUOTE=Jumpy Guy,Nov 17 2008, 07:40 AM] Question - How do companies like this expect to grow with morale at such a low point?

 

You are not alone, that's what came out of the economic summit in Paris a week or so ago.