Posted on 04/10/2017 7:00:04 PM PDT by Hojczyk
Regardless of their reason for filing for bankruptcy, more retailers who enter Chapter 11 are ending up in liquidation. That's because of a change in the bankruptcy code in 2005, which trimmed the timeline retailers have to gain approval for sale or reorganization.
While they used to be able to spend more than a year in bankruptcy, they now have 210 days to decide whether to keep a store's lease. Because going-out-of-business sales can take 90 days to run, senior lenders often try to make that decision in as little as 120 days.
As chains liquidate or restructure, their store footprints are eliminated or whittled down. Aeropostale, for example, shuttered nearly 600 stores in its reorganization last year. Meanwhile, Sports Authority's 460 locations went dark after it liquidated.
Year-to-date Chapter 11 filings:
Gordmans Stores Gander Mountain General Wireless Operations (formerly RadioShack) HHGregg BCBG Max Azria Michigan Sporting Goods Distributors Eastern Outfitters Wet Seal Limited Stores
But it isn't just bankrupt retailers chopping off real estate. Macy's, J.C. Penney, Sears and Kmart are in the process of closing nearly 400 stores, as smaller chains like GameStop and Abercrombie & Fitch take similar actions. Those vacancies are likely to have ripple effects through the industry, Rieger-Paganis said.
(Excerpt) Read more at cnbc.com ...
I have not been to a shopping mall in years, but I clearly remember that most of the stores in malls are for clothing. Apparel. Mostly women’s apparel. Overpriced apparel. Vanity.
Several on the succumbed to progressivism.
My first wife was a senior executive with Richman Gordman’s (now Gordman’s). The CEO would fire you out-of-hand for wearing the color purple for some reason.
“now Gordmans” is now out of business for the second and hopefully final time: “On March 6, 2017, Bloomberg reported that Gordmans was reportedly preparing to file for bankruptcy.[3] On March 13, 2017 Bloomberg announced that Gordmans had indeed filed for bankruptcy in Nebraska (In re Gordmans Stores Inc., 17-80304, U.S. Bankruptcy Court, District of Nebraska (Omaha).) with a liquidation deal struck with Tiger and Great American.[4]”
The “recession” has not ended. We are still cleaning up from the mess. Obamacare is taking its toll on the personal economies. Who can afford the deductibles and copays? or the premiums? The middle class that used to “shop” is now hunkering down at home trying to survive.
That being said, I do not like walking around in big stores, malls, or anyplace that takes too long to find what I want, if I EVER find what I am in the store to look for.
I prefer going in and out quickly or shopping online where I can see the description and have it to my door. It may be a Boomer thing. We are aging and do not have TIME or energy to shop.
It’s not a recession over at Amazon.
Correct. I did see an article that Amazon was the reason the brick and mortar retailers were closing.Amazon's effect on Stores We have an aging population and a younger, busier one, that just cannot "recreational shop" like they used to. Everything coming to the door is so much easier.
My parents are homebound, my sister, the caregiver, along with them. The rest of us would spend all our time shopping for elder-care necessities if it wasn't for Amazon. It has been a blessing.
Plus you can’t beat the selection at Amazon. The color size and specs that you need. And you don’t have to deal with clerks that often know less about the product that you are looking for than you do.
Amazon is killing them. And their stock is projected to hit $1000 per share by some analysts.
I think it’s due to general change in what folks purchase ~ retailers of these stores are behind the latest trends, which is pretty much comfortable sports clothes ~ folks just don’t dress up as much as they used to. Got a few pair of Lululemon black yoga pants, and change out the tops, and I’m good to go ~ weeks on end ... there’s really not a market for what these chains are selling, too much supply, plain old economics playing out.
Not just Amazon, but also other online businesses, for example EBay.
EBay is good, got burned there, though. Wal-Mart is getting into online retailing. Better than Amazon for delivery pricing.
Between the fugly, unwearable, poorly made clothing women’s apparel retailers are selling and the minimum wage increases, they’re pretty much screwed. They can’t do much about labor costs, but clothiers could try making clothes I’d be willing to buy
ebay for me is for old items or out of print ones.
Amazn for new products.
Some few exceptions.
Those clothes still exist - just stay away from big stores and shop at independent retailers with knowledgeable owners and staff (there are also a lot of small stores that have no idea what they are doing, so beware...) Look for the Made in Canada or Made in Turkey labels - the USA doesn't really know how to make quality clothes any more and the Made in USA label usually means made in a garage sweatshop in Los Angeles by illegal aliens.
Big stores can only afford big mall rents by sourcing the cheapest stuff they can find and marking it up about 10x cost.
Amazn for new products.
No more Amazon for me.
I am not feeding Bezos
He treats employees like dirt.
He is a leftist.
I source items on amazon then go to the manufacuturers and buy direct. Usually for less money and free shipping.
Books I source on Amazon and go to Alibris and buy direct, always for less money including shipping.
I do Walmart is very good for the deals as well.
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