Retailing Chains Caught in a Wave of Bankruptcies

Retailing Chains Caught in a Wave of Bankruptcies
www.nytimes.com...

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.

But several big-name chains are looking vulnerable. Linens ’n Things, which is owned by Apollo Management, a private equity firm, is considering a bankruptcy filing after years of poor performance and mounting debts, though it has additional options, people involved in the discussions said Monday.

Whether more chains file for bankruptcy or not, it will be hard to miss the impact of the industry’s troubles in the nation’s malls.

NYT: Retailer bankruptcies set to prompt thousands of store closings
rawstory.com...

It doesn't look like much will be left open after reading those articles. I would certainly look for those unemployment numbers to keep rising and the financial gurus to keep struggling for answers...

[edit on 4/15/2008 by RabbitChaser]

What a wonderful year 2008 is turning into.

housing bubble burst
banks collapsing
airlines closing
Record bankruptcies
Record fuel prices
Highest food price jumps in 17 years
Unemployment up
Stock Market down 1200pts
New domestic spying programs

I am sure there are many more that I am forgetting though.



[edit on 15-4-2008 by Karlhungis]

Make sure you're not holding any gift cards with balances on them for any retailer, large or small.