(FAVORITE) "Retailing Chains Caught in Wave of Bankruptcies, NYT

[KoKo]

http://www.nytimes.com/2008/04/15/business/15retail.html?_r=1&ex=1365912000&en=7cb172b5ccec9646&ei=5090&partner=rssuserland&emc=rss&pagewanted=all&oref=slogin

Retailing Chains Caught in a Wave of Bankruptcies


Since last fall, eight mostly midsize chains — as diverse as the furniture store Levitz and the electronics seller Sharper Image — have filed for bankruptcy protection as they staggered under mounting debt and declining sales.

But the troubles are quickly spreading to bigger national companies, like Linens ‘n Things, the bedding and furniture retailer with 500 stores in 47 states. It may file for bankruptcy as early as this week, according to people briefed on the matter.

Even retailers that can avoid bankruptcy are shutting down stores to preserve cash through what could be a long economic downturn. Over the next year, Foot Locker said it would close 140 stores, Ann Taylor will start to shutter 117, and the jeweler Zales will close 100.

The surging cost of necessities has led to a national belt-tightening among consumers. Figures released on Monday showed that spending on food and gasoline is crowding out other purchases, leaving people with less to spend on furniture, clothing and electronics. Consequently, chains specializing in those goods are proving vulnerable.

more..at..

http://www.nytimes.com/2008/04/15/business/15retail.html?_r=1&ex=1365912000&en=7cb172b5ccec9646&ei=5090&partner=rssuserland&emc=rss&pagewanted=all&oref=slogin

[MadMaddie]

1. It was bound to happen sooner or later

These companies never saw it coming:sarcasm:

[marmar]

2. Please fasten your seatbelts and keep your hands inside the car at all times.....

..... It's gettin' ugly, ugly, ugly!

:scared:

[Kadie]

3. and yet they keep building more shopping centers.

Now there are empty old and new buildings all around us.

:eyes:

[Coyote_Bandit]

4. Today

I was at a Wally World. First time I had been there in a very very long time. Took someone who was without transportation to return a gift item. Since I had the opportunity I decided to browse and just look around. They still had lots of stuff from Easter (!) on the 75% off clearance shelves! And the workers were commenting about sales being down because people couldn't afford food....