Bushonomics: The Hangover 4
The Washington Post looks at why Chapter 11 Bankruptcy isn’t working any more. Companies are giving up reorganizing and, instead, giving up the ghost.
Now, I’m not familiar with Mervyn’s, Steve and Barry’s, or Whitehall Jewelers.
I am familiar with Circuit City and have mentioned them here probably more times than I ever went into one of their stores (which was twice). At least in my little Circuit City store, they had a lousy selection unattractively arranged.
I am familiar with Linens ‘n Things and Sharper Image. Their selection ranged from the over-priced to the useless to the over-priced useless. Heck, Sharper Image made Brookstone look like a five and dime (Brookstone, for all it’s expensive, does sometimes have useful stuff that you just can’t easily find anywhere else).
In bad times, customers don’t buy over-priced unnecessary junk. Heck, they don’t even buy over-priced necessary junk.
I am not an economist (though I do have some economic training), and I’m guessing Bed Bath and Beyond is probably shaking in its bed bath and beyond slippers.
These are not times when persons are going to buy $120.00 coffee makers.
These are times when persons buy house brands, not brand hype.
January 24, 2009 at 9:30 pm
We have a Mervyn’s in walking distance that is now closed…but their two giant blue signs still light up every night. What a waste of energy. Although the one near us was new, according to the local news, small towns are really suffering without Mervyn’s…the only department store withing a twenty mile radius.
January 24, 2009 at 9:33 pm
Oh…and I just bought a classic “Osterizer” blender at Target…and it’s awesome…600 watts of complete pulverization power.
January 24, 2009 at 10:32 pm
Target rocks. No $120 coffee makers there.
I have an Ostracizer myseft.
January 25, 2009 at 2:18 pm
“No $120 coffee makers there.”
Perhaps not in the store, but Target sells them online. They have a large selection of coffee makers for $100+ online. You can drop a quick $800 on a Brewmatic Electric Stainless Steel Built-In 12-Cup Coffee “Appliance” at target.com. I wonder how different the coffee tastes when it comes out of a $800 “coffee appliance”?
Linens ‘n Things was a victim of over expansion and too much competition (and lower prices) from Bed Bath & Beyond.
As for Whitehall Jewelers, there was one in the Dover Mall along with four other jewelery stores. Plus Macy’s and JC Penney sell some upscale jewelery. How many jewelery stores could one mall or area support? When credit was easy to get, many stores making marginal profits were able to stay in business on borrowed money. When credit dried up, they had to sell out or fold. It’s just like folks how bought houses they could not afford using interest only mortgages and then used home equity lines of credit to buy Hummers and go on expensive vacations. Sooner or later their bad money management was bound to get them in trouble. Only the government can live off borrowed money for an extended period when things are tight.