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Black Friday 10: Retailers that may not survive until 2009

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  • Black Friday 10: Retailers that may not survive until 2009

    A year ago, not many people would have thought Circuit City would be in bankruptcy now. Linens 'n Things, Mervyn's, Whitehall Jewelers and Steve & Barry's have either shut down or are closing huge numbers of locations since they moved into Chapter 11.

    The most astonishing fact about the retail industry now is that the environment has gotten much worse than it was when each of these businesses began to fail. Sales at stores across the country will be down this holiday season. Some analysts believe that the numbers will be as bad as for any fourth quarter in thirty-five years.

    Adding to the problem of slow consumer spending brought on by the recession is an unprecedented liquidity crisis. Retailers who need access to capital for inventory, rent, and personnel costs are finding that it is nearly impossible to get access to funds without a pristine balance sheet and a history of substantial positive cash flow...


    24/7 Wall St.: The Black Friday Ten: Retailers Who May Not See 2009 (BONT)(DDS)(TLB)(PIR)(CPWM)(WSM)(CHS)(SKS)(EBHI)(R AD)

  • #2
    Last night on the world news, the broadcaster said that there was an email going around talking about the businesses that wouldn't survive. I was surprised when she said that people should take that email with a grain of salt...here's some proof...look at those stock prices or lack thereof!

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    • #3
      There is an e-mail circulating warning people to buy and use gift cards with caution because if a retailer goes out of business, the cards are worthless. The e-mail goes on to list many retailers that are in trouble. The only problem is that quite a few companies on the list aren't in trouble at all (no more than anyone else). For example, Sharper Image is on the list and they are already out of business and closed all of their stores over 6 months ago. Circuit City is on the list and they are in bankruptcy. But then Gap is on the list and there have been no reports to suggest that they are in trouble. So while the theory is good, the list is not.
      Steve

      * Despite the high cost of living, it remains very popular.
      * Why should I pay for my daughter's education when she already knows everything?
      * There are no shortcuts to anywhere worth going.

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