Some retailers may choose bankruptcy before Christmas

[Eugene]

Source: Reuters

Some retailers may choose bankruptcy before Christmas
Fri Oct 24, 2008 5:39pm EDT

By Caroline Humer and Jessica Wohl - Analysis

NEW YORK/CHICAGO (Reuters) - The conventional
wisdom for retailers having financial difficulty
has been to stave off bankruptcy until after the
holiday season, but cracks in that thinking are
starting to show and fewer companies may make
it past the new year.

Tumultuous financial markets, flagging consumer
confidence and cautious lenders are undermining
the efforts of struggling retailers to stay in
business, restructuring experts say. And many
retailers hoping to ride out the storm face tough
choices about store closings, and ways to raise
cash.

Industry experts say some of these companies may
even find themselves going straight to liquidation
rather than restructuring.

"There are five or six public companies that are
teetering right on the brink and given this credit
environment frankly they could go away any moment.
Anything can happen," said Howard Davidowitz,
chairman of retail consulting and investment
banking firm Davidowitz & Associates.

-snip-

Read more: http://www.reuters.com/article/newsOne/idUSTRE49N87F20081024

[tech3149]

1. I had to take my Mom to the mall today

I'm a dropout from the consumer community, so it was an interesting affirmation of my view of the financial health of the country. About 10% of the spaces were vacant. All the anchor stores were still there, but not much traffic. The low-budget clothing outlet (Steve & Barry's)was doing a fire sale. Suck's that they didn't have anything that would fit me. Since my parent's went through the greatest Republican Depression,I have an idea what kind of shitstorm we have to look forward to. Whatever you do, it's going to be hard to avoid taking a screwing.

[Warpy]

2. Adaptation is the key

along with teaching yourself survival skills like learning how to cook, repair and mend.

It also helps if you approach this as an adventure. It is, you know, even though it will be a very uncomfortable one.

[CoffeeCat]

3. A mall in the city where I grew up...

...was a bustling, gigantic shopping haven.

There were at least 250 stores there.

I've lost contact with some family members (long story), and out of curiosity, I tried to find
their business (a restaurant in this mall) to see how they were doing.

There restaurant is gone. There are about 20 stores left in this mall. Three of the large anchor
department stores are gone. The only anchor store--if you can even call it that, is JCPenney.

I'm totally blown away.

I did some further research, and it appears that General Growth Properties, the owners of the mall, have
resorted to other means of renting out the space. They're now leasing space to local government and
city offices.

I'm kind of in shock right now.