About US Economy, Store Closings

Discussion in 'Off Topic' started by hyde, Oct 27, 2008.

  1. hyde

    hyde Moderator KJ Supporting Member

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    I don't know how much of this is actually true and happening, but it doesn't sound too good.

    Add Circuit City, Linens & Things and CompUSA.

    STORE CLOSINGS

    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 stores 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, Catherines 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 Banana
    Republic . 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 planned 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 of its stores in
    December. The retailer dates back to 1910 when Richard Levitz opened his
    first furniture store in Lebanon , PA. In the 1960s, the
    warehouse/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
    82 stores by July 31. Today, it announced that it is closing another 23
    underperforming 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 store closings (E. Brunswick, Rt 18 just put up their closing
    sign)
    ATLANTA - Nearly 7+ months after its chief executive said there were no
    plans 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.

    Movie Gallery - 160 stores as part of reorganization plan to exit
    bankruptcyThe 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 last 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 subscribers by the thousands,
    and will now officially be dropping the ax on
    4,000 employees and 125 retail locations. Amid the loss of 639,000
    postpaid customers in the fourth quarter, Sprint will be cutting a tot al
    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.
     
  2. hyde

    hyde Moderator KJ Supporting Member

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    J. C. Penney, Lowe's and Office Depot are 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
    announced 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.
     
  3. desertkj

    desertkj Full Access Member

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    The majority of those stores really don't surprise me. I bet that quite a few have been underperforming for years. I always wondered how Circuit City and CompUSA managed to stay open at all. The recent events have just been the decisive factor. All I know is I'm still going to do my Christmas shopping and I'm still responsibly using my credit card, so I'm doing what I can.
     
  4. MoladoGuy

    MoladoGuy Full Access Member

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    Maybe they will all receive a bailout......
     
  5. timmer

    timmer Full Access Member

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    I agree, I think the market has been over saturated for many years.
     
  6. Marlon_JB2

    Marlon_JB2 Kombat Edition Jeep

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    Retail Expansion seemed to have started somewhere in the '90s. I knew as soon as it happened that it just wasn't gonna sustain itself. Each and everywhere you looked, there was a new Best Buy or Circuit City or Home Depot, etc. It just didn't make any sense. (And I was only like 10!!!!)

    And there would never be anyone in the store.

    This isn't anything new, store closings have been going on for years. Of course, recent events sure don't help matters, but oh well. Such is life.
     
  7. Ry' N Jen

    Ry' N Jen Banned

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    I feel bad for all the people who end up loosing their jobs.
    Here on the other hand more and more stores keep opening.
     
  8. Dave

    Dave Administrator Administrator Moderator

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    Yea, too many people losing jobs. The economy is not good. I hope somehow we can pull out of this economic mess.

    But so far this month I have had to replace a tv that broke and also a coffee maker that bit the dust and now my printer is clogged again and I can't seem to fix it (it is also old) so I need another one. It was on it's last leg. Seems like I am doing my part to bolster the economy....

    Dave
     
  9. JJsKJ

    JJsKJ Full Access Member

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    Sad. Lots of people selling foreign made stuff will now be out of their retail jobs and no MFG plants to go to for work. Guess we could start moving to China where all the jobs are?
     
  10. JLRockies

    JLRockies Full Access Member

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    Or cut corporate taxes so businesses can afford to manufacture here. China smells like raw sewage; I don't recommend moving there.
     
  11. Khaki-KJ

    Khaki-KJ Full Access Member

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    Bombay Company was bought out by a Canadian company and they are still open up here. They are selling all the container stock and US goods up here at a heavy discount. When that is gone, they will start selling the new stuff.
     
  12. JJsKJ

    JJsKJ Full Access Member

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    All I got to say is Best wishes to anyone of US that is affected by these bad times. Hope you all come out on the other side better off. Good luck out there!
     
  13. KeswickDave

    KeswickDave Gold Moderator KJ Supporting Member

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    I second that... being in Canada we are supposedly in better shape, but who knows...

    I was trying to explain all this to my wife and told her, it's kinda like watching your neighbor's house burn down, and hoping yours doesn't catch fire too :(

    But I work for a US-owned company and we're feeling it up here too.

    Best of luck to everyone!

    Dave
     
  14. hyde

    hyde Moderator KJ Supporting Member

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    Possibility of going out of business:
    http://finance.yahoo.com/news/15-Companies-That-Might-Not-usnews-14279875.html


    Rite Aid. (Ticker symbol: RAD; about 100,000 employees; 1-year stock-price decline: 92%). This drugstore chain tried to boost its performance by acquiring competitors Brooks and Eckerd in 2007. But there have been some nasty side effects, like a huge debt load that makes it the most leveraged drugstore chain in the U.S., according to Zacks Equity Research. That big retail investment came just as megadiscounter Wal-Mart was starting to sell prescription drugs, and consumers were starting to cut bank on spending. Management has twice lowered its outlook for 2009. Prognosis: Mounting losses, with no turnaround in sight.

    Claire's Stores. (Privately owned; about 18,000 employees.) Leon Black's once-renowned private-equity firm, the Apollo Group, paid $3.1 billion for this trendy teen-focused accessory store in 2007, when buyout funds were bulging. But cash flow has been negative for much of the past year and analysts believe Claire's is close to defaulting on its debt. A horrible retail outlook for 2009 offers no relief, suggesting Claire's could follow Linens 'n Things - another Apollo purchase - and declare Chapter 11, possibly shuttering all of its 3,000-plus stores.

    [See 5 pieces missing from Obama's stimulus plan.]

    Chrysler. (Privately owned; about 55,000 employees). It's never a good sign when management insists the company is not going out of business, which is what CEO Bob Nardelli has been doing lately. Of the three Detroit automakers, Chrysler is the most endangered, with a product portfolio that's overreliant on gas-guzzling trucks and SUVs and almost totally devoid of compelling small cars. A recent deal with Fiat seems dubious, since the Italian automaker doesn't have to pony up any money, and Chrysler desperately needs cash. The company is quickly burning through $4 billion in government bailout money, and with car sales down 40 percent from recent peaks, Chrysler may be the weakling that can't cut it in tough times.

    Dollar Thrifty Automotive Group. (DTG; about 7,000 employees; stock down 95%). This car-rental company is a small player compared to Enterprise, Hertz, and Avis Budget. It's also more reliant on leisure travelers, and therefore more susceptible to a downturn as consumers cut spending. Dollar Thrifty is also closely tied to Chrysler, which supplies 80 percent of its fleet. Moody's predicts that if Chrysler declares Chapter 11, Dollar Thrifty would suffer deeply as well.

    Realogy Corp. (Privately owned; about 13,000 employees). It's the biggest real-estate brokerage firm in the country, but that's a bad thing when there are double-digit declines in both sales and prices, as there were in 2009. Realogy, which includes the Coldwell Banker, ERA, and Sotheby's franchises, also carries a high debt load, dating to its purchase by the Apollo Group in 2007 - the very moment when the housing market was starting to invert from a soaring ride into a sickening nosedive. Realogy has been trying to refinance much of its debt, prompting lawsuits. One deal was denied by a judge in December, reducing the firm's already tight wiggle room.

    [See why "Wall Street talent" is an oxymoron.]

    Station Casinos. (Privately owned, about 14,000 employees). Las Vegas has already been creamed by a biblical real-estate bust, and now it may face the loss of its home-grown gambling joints, too. Station - which runs 15 casinos off the strip that cater to locals - recently failed to make a key interest payment, which is often one of the last steps before a Chapter 11 filing. For once, the house seems likely to lose.

    Loehmann's Capital Corp. (Privately owned; about 1,500 employees). This clothing chain has the right formula for lean times, offering women's clothing at discount prices. But the consumer pullback is hitting just about every retailer, and Loehmann's has a lot less cash to ride out a drought than competitors like Nordstrom Rack and TJ Maxx. If Loehmann's doesn't get additional financing in 2009 - a dicey proposition, given skyrocketing unemployment and plunging spending - the chain could run out of cash.

    Sbarro. (Privately owned; about 5,500 employees). It's not the pizza that's the problem. Many of this chain's 1,100 storefronts are in malls, which is a double whammy: Traffic is down, since consumers have put away their wallets. Sbarro can't really boost revenue by adding a breakfast or late-night menu, like other chains have done. And competitors like Domino's and Pizza Hut have less debt and stronger cash flow, which could intensify pressure on Sbarro as key debt payments come due in 2009.

    Six Flags. (SIX; about 30,000 employees; stock down 84%). This theme-park operator has been losing money for several years, and selling off properties to try to pay down debt and get back into the black. But the ride may end prematurely. Moody's expects cash flow to be negative in 2009, and if consumers aren't spending during the peak summer season, that could imperil the company's ability to pay debts coming due later this year and in 2010.

    Blockbuster. (BBI; about 60,000 employees; stock down 57%). The video-rental chain has burned cash while trying to figure out how to maximize fees without alienating customers. Its operating income has started to improve just as consumers are cutting back, even on movies. Video stores in general are under pressure as they compete with cable and Internet operators offering the same titles. A key test of Blockbuster's viability will come when two credit lines expire in August. One possible outcome, according to Valueline, is that investors take the company private and then go public again when market conditions are better.

    Krispy Kreme. (KKD; about 4,000 employees; stock down 50%). The donuts might be good, but Krispy Kreme overestimated Americans' appetite - and that's saying something. This chain overexpanded during the donut heyday of the 1990s - taking on a lot of debt - and now requires high volumes to meet expenses and interest payments. The company has cut costs and closed underperforming stores, but still hasn't earned an operating profit in three years. And now that consumers are cutting back on everything, such improvements may fail to offset top-line declines, leading Krispy Kreme to seek some kind of relief from lenders over the next year.

    Landry's Restaurants. (LNY; about 17,000 employees; stock down 66%). This restaurant chain, which operates Chart House, Rainforest Café, and other eateries, needs $400 million in new financing to finalize a buyout deal dating to last June. If lenders come through, the company should have enough cash to ride out the recession. But at least two banks have already balked, leading to downgrades of the company's debt and the prospect of a cash-flow crunch.

    Sirius Satellite Radio. (SIRI - parent company; about 1,000 employees; stock down 96%). The music rocks, but satellite radio has yet to be profitable, and huge contracts for performers like Howard Stern are looking unsustainable. Sirius is one of two satellite-radio services owned by parent company Sirius XM, which was formed when Sirius and XM merged last year. So far, the merger hasn't generated the savings needed to make the company profitable, and Moody's thinks there's a "high likelihood" that Sirius will fail to repay or refinance its debt in 2009. One outcome could be a takeover, at distressed prices, by other firms active in the satellite business.

    Trump Entertainment Resorts Holdings. (TRMP; about 9,500 employees; stock down 94%). The casino company made famous by The Donald has received several extensions on interest payments, while it tries to sell at least one of its Atlantic City properties and pay down a stack of debt. But with casino buyers scarce, competition circling, and gamblers nursing their losses from the recession, Trump Entertainment may face long odds of skirting bankruptcy.

    BearingPoint. (BGPT; about 16,000 employees; stock down 21%). This Virginia-based consulting firm, spun out of KPMG in 2001, is struggling to solve its own operating problems. The firm has consistently lost money, revenue has been falling, and management stopped issuing earnings guidance in 2008. Stable government contracts generate about 30 percent of the firm's business, but the firm may sell other divisions to help pay off debt. With a key interest payment due in April, management needs to hustle - or devise its own exit strategy.
     
  15. desertkj

    desertkj Full Access Member

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    There's no news like bad news. The media is getting beyond aggravating. They go out, find any company that may be struggling, and essentially blacklist them. While I know it is not the best of times, this recession is largely mental. People are getting bombarded by every news outlet telling them to put away their wallets and doomsday reporting that what was once a bad situation has turned to catastrophic. Beyond that, it is simply survival of the fittest. Too many people got used to the extraordinary wealth we had been experiencing and the "get it now, pay for it later" mentality that MTV and other outlets are desperately trying to maintain. It will get better with time, the U.S. has had several recessions throughout its history, people just need to turn off the news, stop checking the 401K every hour, and focus on the non-monetary aspects of life that are more important anyways.
     
  16. hyde

    hyde Moderator KJ Supporting Member

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    I agree with you desert. This thing was actually expected, but probably not that hard hitting. During last 10 years, everyone thought it was going to be great, especially with the lower price of technology related merchandise, TVs etc kept the economy strong, until the time came where everyone pretty much had everything they wanted. There wasn't anything else that they could buy (that did not make their current and completely functional, useful devices "old"). I blame this on ipod generation when the manufacturers kept coming up with revamped devices every 6 months, which actually did not attract new buyers, but forced the owners of same device to upgrade (they fell in love once, and they did again and again and again) The revisions still could not make anyone fall in love.

    I am not sure if they looked at the statistics, to see what percentage of sales/purchases were in a certain category that affected economy... Was it cars? Furniture? Clothing? Toys? or Electronics?
     
  17. desertkj

    desertkj Full Access Member

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    I would have to think of it as being all of those categories. Being a college student, I am typically around the 20-something, lower income demographic. I cannot tell you how many college kids I see with $400 iPhones, complete designer attire, Starbucks in hand, with the newer BMW in the parking lot. The majority of them will tell you that it, along with their tuition, is all in student loans which they are nowhere near capable of paying off. I think it really became a "satisfaction now, consequences later" mindset across the country where many people abused the credit system to acquire the lifestyle they wanted, but could not truly afford. While I have been guilty of this at times, fortunately, I was raised with the mentality that debt is bad and not a way to get what you want sooner. Sorry, I'm venting now I think.
     
  18. BMR

    BMR Full Access Member

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    I, like desert am a college student... I don't feel much pressure from the economy right now because I don't have a lot to lose. I don't hold a career position, no family to take care of, etc. I hope you guys on here older than us are doing okay through all of this.

    It's way too easy for us college kids to over finance our education to be able to acquire the things we'd might not be able to without student loans. Deferred payments are the devil. It indeed fosters the aforementioned consequences later mindset. On top of that, college students spend sooo much time in courses, some of which we'll never use, but no one teaches us a solid personal financial management foundation. :rolleyes:
     
  19. MoladoGuy

    MoladoGuy Full Access Member

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    This economy has seen tough times and we will prevail from this. Hang in there everyone!! The ride will be bumpy but we are familiar with that feeling since we all drive a Jeep :)