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25% of Retailers May Go Bankrupt
- Text size
Henry Blodget
Clusterstock
January 19, 2009
Retailing has always been a tough business. Now it’s a brutal business. Some observers now predict that more than 25% of retailers may go bust in the the next two years.
A great WSJ quote driving home how this truly is retail’s Schumpeterian moment:
Analysts estimate that from about 10% to 26% of all retailers are in financial distress and in danger of filing for Chapter 11. AlixPartners LLP, a Michigan-based turnaround consulting firm, estimates that 25.8% of 182 large retailers it tracks are at significant risk of filing for bankruptcy or facing financial distress in 2009 or 2010. In the previous two years, the firm had estimated 4% to 7% of retailers then tracked were at a high risk for filing.
More here.
- A d v e r t i s e m e n t
Granted, many retailers are perpetually on the verge of bankruptcy, but these are still unprecedented numbers. Retail, as we know it, is going to look very, very different a decade from now.
The first retail casualty of the weak holiday season could be Goody’s Family Clothing Inc., a Southeast apparel retailer. The 287-store chain emerged from bankruptcy court in October but its holiday sales were below plan and financing it was counting on didn’t materialize, according to a person familiar with the situation. The retailer is negotiating with lenders to avoid potential liquidation, say two people familiar with the matter.
A representative for Goody’s was unavailable to comment. But in October, Chief Executive Paul White was upbeat about its prospects, saying "we are energized by the opportunity in front of us and are focused on continuing to fulfill the Goody’s mission."
Other retailers are saying they will trim inventory and reduce the number of suppliers. That, in turn, will cause a ripple effect, prompting a number of weaker manufacturers, small brands and underfunded fashion labels to fail. New retail formats and concepts stores are likely to be curtailed in the coming year. And luxury-goods makers already are working to cut the long lead times between orders and store delivery as a way to reduce risk.
"We will have a lot fewer stores by the middle of 2009," says Nancy Koehn, professor of business administration at Harvard Business School. "It’s happening very, very quickly because of the financial crisis and the recession."
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January 19th, 2009 at 10:48 pm
All I can say is, if these fat cats at the top of all these retain chains didnt take 8 figure salaries and instead saved for this minor hiccup in the market they wouldnt be in this mess. Noooooo gotta take that big salary, gotta take those huge bonuses.. Now look at you.. Pathetic pricks.. Look at all the lives your misallocation of funds has brought hardship. They should round all of you up and send you to Gaza to open retain chains there.
January 19th, 2009 at 10:59 pm
Can you say WALLLLLLL-MAAAAART monopoly
January 19th, 2009 at 11:43 pm
The stores who were responsible with their spending and saving will reap the benefits from the bankruptcies in the next years. Too many stores existed only because of their access to easy credit and had no business being in business in the first place.
January 20th, 2009 at 12:03 am
Dollar store dreams and payday loan prayers…
Amazing how many of those two types of businesses are (still) popping up everywhere!
No doubt a sign of a strong ‘growing’ economy! (cough, choke, gag)
While everything else sinks into the financial quagmire we still have our dollar stores and check cashing places to keep our economy running… Great.
I’d imagine WalMart will survive…
Bummer.
January 20th, 2009 at 3:13 am
http://www.youtube.com/watch?v=KmXcsaz7BIs spread ths around
January 20th, 2009 at 3:47 am
Hank Paulson is a swindler, and thats a “SLAM DUNK”!.
January 20th, 2009 at 5:35 am
THE UK CHAIN POUND- LAND IS DOING A ROARING TRADE AS ARE THE HUGE SUPERMARKETS. EVERYONE ELSE IS DOING LESS WELL TO AWFUL. I THINK THESE NUMBERS ARE NOT REALISTIC FOR THE US AS THEY WERE PROBABLY RELEVANT 6 MONTHS AGO. NOW ITS PROBABLY MORE LIKE 30-35% WILL CLOSE IN THE NEXT YEAR AND THAT’S STILL BEING CONSERVATIVE. THE UK RECESSION BEGAN AROUND THE MIDDLE OF 2007 SO WE ARE A YEAR BEHIND YOU. BUT WE KNOW FIGURES THAT SHOW 90%OF SMALL BUSINESS FAIL WITHIN 5 YEARS IN THE BOOM TIMES, WHAT WILL THAT NUMBER BE LIKE IN A RECESSION/DEPRESSION. NOW THAT THERE IS NO CREDIT AVAILABLE TO PROFITABLE BUSINESSES, I IMAGINE BY THE MIDDLE OF 2010 THAT FIGURE MAY BE 50-60% OF BUSINESSES FAILING. I COULD BE WRONG BUT I DON’T THINK SO.WITH HYPERINFLATION PERHAPS 6 MONTHS TO A YEAR AWAY, I THINK WE SHOULD ALL GO HOME AND HAVE SOME QUANTITIVE EASING THERAPY, SO WERE IS MY CREDIT CARD THEN MMM
January 20th, 2009 at 5:55 am
yeah. everyone sing. it’s walmart world after all.
http://www.youtube.com/watch?v=jIjTE3OXc4k
January 20th, 2009 at 6:45 am
Closings and Pink Slips and Doom, Oh My
Closings and Pink Slips and Doom, Oh My
Closings and Pink Slips and Doom, Oh My
We’re off to see the wizzard
The wonderful wizzard, Obama!
I hear he is a wiz of a wiz
If ever a wiz there was.
Come On Everybody, Drink The Kool Aid And SING!!!!!
January 20th, 2009 at 7:42 am
10- wee bee – Thank for the verse I will use it.
January 20th, 2009 at 9:42 am
only monopolies will survive.
etc
January 20th, 2009 at 10:24 am
The whole disaster is due to the jews.They created the Fed they created the the financial system and instruments that have brought our country to its knees.They run the corporations that have exported our jobs overseas .Wheres adolph when u need him.
Jackson Reply:
March 21st, 2009 at 8:49 pm
Learn a little more history, these same families financed Hitler and his goals. It is always the financially disadvantaged that gets killed. Hitler himself was 1/4 jew.
January 20th, 2009 at 10:45 am
AFTER ALL
””””””””””
Some days I feel like all Hope for REAL Change is lost for this world. Today is one of those days (daze?).
From that dark perspective, I feel that today’s inauguration is the nail in the coffin of a Dream long dead and gone. Our brothers and sisters have fallen head first into the hypnotic trance of modern uber-fraudsters. My Prayers for a truly inspired critical mass of the well informed to rise up and reclaim our future now seem pointless and decaying. Days/daze like this I feel that the People have permanently chosen the convienent, superficially beautiful path of Satan, eventually leading us towards slavery under this “new world order” global dictatorship.
Is all hope really lost? Am I just depressed and not thinking clearly? Is it just my traumatizing childhood of cultural toxicity- brain and body damaging vaccinations, food and drinks, overexposure to violence and tragedy from the “entertainment” (lower brain entrainment?) industry? Are these wounds just scabbing over my inspiration, twisting my vision of victorious Human Freedom into a wasted heap of a burnt-out, exploited planet?
Whatever the future really holds for me, I know that I must push on towards Freedom… if not a physical Freedom, then a SPIRITUAL Freedom at best. For after all, this illusion we call “reality” is just a temporary step in our journey through all dimensions of existence. All we can really do is try our best in this life, and learn to overcome our fear of dying, for death is really just the beginning of our ride back home to God.
I suppose my lesson here is to learn to celebrate and grow in this wonderful oppurtunity at Life, whatever the circumstances may be, and also to learn to celebrate and grow in Death.
Infinitely Towards Higher Ground,
Never Give Up.
My Loves… my Brothers, my Sisters, all Existence…
!!!On with the r3VOLution!!!
!!!(((FTNWO)))!!!
uh
ce
k
January 20th, 2009 at 11:01 am
We will now see hotels/motels to close.
January 20th, 2009 at 12:22 pm
Williams-Sonoma will probably crash because it really relied on the home boom for years. It’s stock is down to $8 from $40. It’s CEO sold a ton of its stock to pay off his creditors who were holding his stock as collateral for his investments.
January 20th, 2009 at 12:26 pm
If you have cash, check out the liquidators like Big Lots. They have some good buys on food now, even organic canned goods–also check teas, juices, tuna. Yippee I love shopping.
January 20th, 2009 at 2:05 pm
Change is here today. Satan will reveal himself as the puppet master behind the show and not think twice about what you think. You want change? Surprise.
January 20th, 2009 at 2:12 pm
STOP THE “F” WORD! Stay in your home! Turn the tables on your bank, even if you were turned down for a refi or a loan mod! http://www.nobankfear.synthasite.com
January 20th, 2009 at 2:24 pm
Turned down for a refi or a loan mod? HIJACK FORECLOSURE http://www.nobankfear.synthasite.com
January 20th, 2009 at 2:26 pm
If it gets bad enough to where most of us are homeless on the continent our fore fathers conquered??? I wonder if you all will rise up and do anything??? or just give your future kids families a life as a slave.
I think your wives have taken all your Testosterone. We’ll find out what your made of if we continue in this downward spiral. OBAMA, OBAMA, our fucking savior. Please…..
If anything to place bets & thoughts, after Israels February election, you’ll see them go back in gaza and destroy Lebanon by the end of the year or sooner. Then look for Syria, Jordan, Iran next, then look for USA & Russia because Iran is Russia’s Allie. So go shopping, just by some ammo along with your other goods.
January 20th, 2009 at 3:38 pm
Local Plan B for Barter networking bulliten boards should be considered for every community. Example; I have this service- I need this in exchange- maybe even a suggestion box or contest for the best idea. A nation-wide network?
January 20th, 2009 at 5:04 pm
Food is still to cheap. The masses are not starving yet. We are fat & lazy. We come home from work sit in front of T.V. or P.C. & get mad as hell. Then Honey calls us to supper table & we stuff our guts. We get back up & go back to T.V. or P.C. again & get mad all over. The problem is by this time we are to full to go into the streets & do anything about the bullshit that happens. We will never rise up as long as we are so well fed. THE REVOLUTION WILL NOT BE TELIVISED!
January 20th, 2009 at 8:20 pm
the people of this land have brought this crises about by aloing our socalled leaders to pass the laws of over seas trade to happen. all stocks have drop rapidly but one has continuied to rise . thats walmart. so continuie to buying that chinese crap . mom and pop stores are a thing of the past. you are the blame. quit your whining and do something about it . stop sending your hard earned money over to china. soon the people will not say who you work for but what department are your in. wake up AMERICA . make the stand
January 20th, 2009 at 10:37 pm
The bloodletting continues. Obama in…DJIA off 332 points (below 8,000). Throw your 150 Million dollar party while the economy tanks…SHIT BRICK! We will rise up at some point.
January 21st, 2009 at 2:50 am
Isn’t it sad how much havoc we are reaping due to the 50 million murdered babies and the acceptance and promotion of the despicable so-called alternative lifestyle? The havoc is just getting started.
January 21st, 2009 at 6:14 am
http://expansions.com/News.cfm
Martian Retirement
A LA-based corporation known as SpaceX, has decided it will build retirement homes on Mars this century as an alternative to Florida and Arizona.
They have developed a spaceship called–Dragon–that should be ready for testing by 2014. Interesting name.
For a mere US $ 2 million, one can retire to Mars and avoid all the problems of Earth. The housing units are being created and tested now.
I am actually considering it.
January 21st, 2009 at 7:54 am
fcuk o”BAAA”ma bin laden & his posse of zio-neo-scum criminals !!!
We’re in an education war folks !!!
INFO-WARRIORS ??? …………………………….. THE TIME IS NOW !!!
Power needs to be returned to the people , which means REVOLUTION TIME
Let’s help ALEX JONES accelerate this INFOWAR & break free from this PRISON PLANET !!!
January 21st, 2009 at 9:01 am
this is the third time in the last 100 years that the US financial elite synthetises the global economy via creating bubbles and then bursting them. Heading to a “new” financial order? yes.