How many more stores will go bankrupt?

[Sheripoms]

Just curious about how many more major stores will be bankrupt come the first of next year? I know Circuit City and Linen's and Things are gone. Oh yeah also Pet Smart I think. Anybody know of any others? Crud I kinda liked Pet Smart.

[newsfrettir]

Pet Smart gone? Are you sure about that?

[Sheripoms]

I thought I heard Petsmart was going under. I might be wrong. I know the one here went out of business.

[Wisconsin Ann]

Best Buy has started warning about lower than expected earnings this last quarter, with a 1% loss...but they're not supposed to be near bankruptcy...yet.

Pet Smart will announce it's earnings on November 19th for the last quarter, and I can't find any news items about them being in trouble. So, I'm thinking you maybe have misheard the name of the petstore in trouble.

forgot to add: Circuit city filed for chapter 11, meaning they can continue to operate stores (although they're closing 155 stores) while they reorganize and try to find financing. doesn't meant they'll survive...but seems there are a couple of companies interested because "there is a market for high end electronics" according to one report...have to wait and see.

[whinnyninny]

My DH told me yesterday that PetSmart is going out of business. Said he heard it from someone he works with.

[christij]

Be careful about buying gift cards this year, if a store goes under or files chapter 11 they may not honor them.
http://globaleconomicanalysis.blogsp...-and-no-2.html

[MoonRiver]

Circuit City is in bankruptcy because of poor management. The economy is just an excuse.

[Gary in ohio]

All the stores that were poorly managed should go out of business, If its GM, circuit city or billy bobs carry out.

[myheaven]

Originally Posted by Gary in ohio

All the stores that were poorly managed should go out of business, If its GM, circuit city or billy bobs carry out.

Can we get an AMEN

[Bandit]

When I went to my bank tonight DCU , the Tweeter ( A High End Entertainment Store ) on the corner had a big sign across the building " Store Closing "
I googled it when I got home , and this is there second Bank. in 18 months. ??
They were bought out of BK. 18 mos. ago . Now the new owner is throwing in the towel and closing 104 stores .
Bob
http://www.cepro.com/article/is_this...nd_of_tweeter/

[MariaAZ]

I just checked MSN's finance page for news of Petsmart's fiscal health. I didn't find anything that said they were going out of business, only that WalMart's push to expand their pet department may impact them. Petsmart is based here in Phoenix (or at least they have major corporate operations here) and I haven't found anything on the local newspaper's website indicating the company is having problems, either.

[Quint]

Originally Posted by myheaven

Can we get an AMEN

And the Libertarian congregation said AMEN!

[Beeman]

They're all closing because they might have to pay more taxes on their earnings with a new administration.

Had to get that out of my system. Basically when we have a chain of pet food/accessory stores it's a sign we have overbuilt retail. Close about half of the retail chains and about half of the food chains and we might see a glimpse of America.

[snoozy]

We do have way more retail space per person in this country than we should, but the big chains are not the only businesses going out of business. And it isn't because of poor management or they're worried about paying more taxes. PEOPLE AREN'T BUYING THINGS AND ARE PUTTING OFF HIRING SERVICES.

Lots of perfectly viable businesses are going to bite the dust. Don't disparage them unless you know their situation and are walking in their shoes. Because all their laid-off employees won't be buying your stuff/services either, and your community won't have the revenue to keep up the crumbling infrastructure it has now. We're all in this chickenwire canoe together, whether we deserve it or not.

[ladycat]

Here is Petsmart's corporate site, in case anyone wants to monitor it:

http://phx.corporate-ir.net/phoenix....&p=irol-irhome

[myheaven]

Originally Posted by Quint

And the Libertarian congregation said AMEN!

Sorry but Im republican.

[MariaAZ]

Originally Posted by Beeman

Basically when we have a chain of pet food/accessory stores it's a sign we have overbuilt retail. Close about half of the retail chains and about half of the food chains and we might see a glimpse of America.

I would disagree, as I don't think the TYPE of outlet signifies overbuilding. Rather, I think it's more the gross NUMBER of retail outlets that have been constructed which signifies overbuilding.

In our city it seems like every corner has a store of some sort. With very few exceptions, you can't drive more than a couple miles ANYWHERE and not pass at least one strip mall.

Actually, the argument that specialty stores such as Petsmart signify an overbuilding of retail has merit. It is an excellent argument for the consolidation of different kinds of retail stores into one large outlet where the buyer can purchase everything s/he needs in one trip. Sounds a lot like Walmart...

There might be another reason for the retreat of retail as we know it. People are increasingly turning to the Internet for shopping. From a strictly fiscal point of view, it's ideal; centralized warehousing (or even drop shipping in which case warehousing needs can be reduced), centralized workforce, reduced infrastructure costs; no need to build, staff and pay maintenance on a lot of individual brick-and-mortar stores.

[poppy]

Originally Posted by Gary in ohio

All the stores that were poorly managed should go out of business, If its GM, circuit city or billy bobs carry out.

I hadn't heard about Billy Bob's Carry Out being in trouble. The one near us seems to be doing fine. Where did you hear this?

[Beeman]

Circuit City definetly was mis management. They were the #1 electronic retailer with plenty of cash. They got the great idea of investing in Car Max instead of concentrating on their electronics business.

Retail square footage in this country is insane. Every little town is overbuilt with chains. Add to that the fact that the majority of their sales are credit sales and you get the ingredients for the disaster we've cooked up. Then let them tell you that more credit is the answer along with more development.

[copperpennykids]

It isn't just the big chain stores going down. A dry cleaner in Spokane WA with stores in 2 locations (so totally local) just had to close his doors and let his 30 employees go. The local news was interviewing him and you could see he was just broken up about the situation. Said sales were down 25%. He was in the red for $150,000.00. Very worried about his employees "The best any business owner could ever have. They are like family to me". This fellow had been in business for 18 years. No bad management.

Poor economy coupled with High taxes (my words, not his) and they were in trouble. He plans to pay off the debt just as soon as he can. Unlike corporate America (and lots of folks, unfortunately) he isn't just planning to "walk away" from his debt, leaving other companies holding the bag.

I am not sure how he is going to do it, but his intentions are certainly honorable. He did intimate that he was just the beginning and he is praying for several other local small businesses who are in trouble too.