McDowell Memo: Retailers that have failed in a good retail environment
The following Retailers have filed for Bankruptcy in 2019
Beauty Brands January filing
Innovative Mattress Solutions (Mattress Warehouse, Mattress King, and Sleep Outfitters, filed for Chapter 11 bankruptcy on January 14)
Shopko- filed for Chapter 11 bankruptcy on January 16. On March 19, CBS reported that Shopko's 363 stores would close after the company failed to find a buyer.
Gymboree, a clothing company that also runs Janie & Jack and Crazy 8 stores, filed for bankruptcy on January 17. It is closing all of its more than 800 Gymboree and Crazy 8 stores.
Charlotte Russe This women's clothing retailer filed for bankruptcy on February 4 and announced that it would closing all of its stores on March 6.
Things Remembered Filed Chapter 11 on February 6th
Payless Shoe Source -Filed February 18th will close all stores
Diesel USA- clothing company filed March 5th
Z Gallerie- Home Furnishing store filed March 11th
Kona Grille Filed on April 30th closed all 15 Resturants
This reflects a real weakness in high end fashion businesses. But should this occur in a strong economy with little unemployment and a huge increase in spending potential in the customer base?
It is the concept of a consumer who after weathering a recession want to spend but not spend as they did in the past. In reality the recession was fueled by most American households living way beyond their means. Thus the number of bank failures, repossessions , etc. from that time frame. This speaks well of the present day consumer but also does not preclude spending excesses in the future. Stay Tuned this Christmas season will tell a lot about the power of the economy and the self control of the consumers.
Mark on Home Depot
Beauty Brands January filing
Innovative Mattress Solutions (Mattress Warehouse, Mattress King, and Sleep Outfitters, filed for Chapter 11 bankruptcy on January 14)
Shopko- filed for Chapter 11 bankruptcy on January 16. On March 19, CBS reported that Shopko's 363 stores would close after the company failed to find a buyer.
Gymboree, a clothing company that also runs Janie & Jack and Crazy 8 stores, filed for bankruptcy on January 17. It is closing all of its more than 800 Gymboree and Crazy 8 stores.
Charlotte Russe This women's clothing retailer filed for bankruptcy on February 4 and announced that it would closing all of its stores on March 6.
Things Remembered Filed Chapter 11 on February 6th
Payless Shoe Source -Filed February 18th will close all stores
Diesel USA- clothing company filed March 5th
Z Gallerie- Home Furnishing store filed March 11th
Kona Grille Filed on April 30th closed all 15 Resturants
This reflects a real weakness in high end fashion businesses. But should this occur in a strong economy with little unemployment and a huge increase in spending potential in the customer base?
It is the concept of a consumer who after weathering a recession want to spend but not spend as they did in the past. In reality the recession was fueled by most American households living way beyond their means. Thus the number of bank failures, repossessions , etc. from that time frame. This speaks well of the present day consumer but also does not preclude spending excesses in the future. Stay Tuned this Christmas season will tell a lot about the power of the economy and the self control of the consumers.
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