Retail Bankruptcies

TexasFilly
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Re: Retail Bankruptcies

#201

Post by TexasFilly »

I love the poorly educated!!!

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Re: Retail Bankruptcies

#202

Post by Volkonski »

JCPenney To Close 242 Stores

https://patch.com/new-york/northfork/s/ ... newsletter
The 118-year-old chain based in Plano, Texas, filed for Chapter 11 bankruptcy last Friday. There are two JCPenney stores left on Long Island: at the South Shore Mall in Bay Shore and the Roosevelt Field Mall in Garden City.

The 242 store closures – 192 of which will occur February 2021 – represent 29 percent of the retailer's 846 stores, CBS News reported. JCPenney has not said which stores are on the chopping block.

The company's financial restructuring is due to the coronavirus pandemic and its impact on retailers.

"The coronavirus (COVID-19) pandemic has created unprecedented challenges for our families, our loved ones, our communities, and our country," said Jill Soltau, chief executive officer of JCPenney, in a news release.
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Re: Retail Bankruptcies

#203

Post by kate520 »

Pier 1 has struggled for a decade or more. Rebranding as a “designer’s” store didn’t help.

I went to middle school with Neville, one of JC Penney’s granddaughters, in Sacramento. Our class had 12 students so we were all pretty close. She was smart, kind, funny, and popular.

I’ve lost track of her but I hope she had the kind of life she was aiming for, something that didn’t involve business.
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Notorial Dissent
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Re: Retail Bankruptcies

#204

Post by Notorial Dissent »

I'm not quite sure when Penny's lost its way, but I 'm pretty sure it was with the change in management and philosophy in quite some many years ago. I know I haven't stepped foot in one in oh the last 20-30 years. They quit carrying the clothes I liked and didn't have anything else I couldn't find cheaper elsewhere.

Pier 1 has been a very sad pale ghost of itself for many years now. When they quit being the quirky interesting place they were to start with they lost their customer base. The stuff they had the last time I was in was expensive and not worth the effort. The last time I bought anything there was because they were discontinuing an item, that really didn't belong there, I wanted and got them cheap. Never went back.

The same can be said of Cost Plus, I really liked the place when it opened, but when it changed hands got all corporaty it went down hill fast and quit carrying the things I would go there to buy.
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TexasFilly
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Re: Retail Bankruptcies

#205

Post by TexasFilly »

I used to shop at Penny's when my boys were little because very few stores carried much clothing for little boys. But that was a long time ago.

Pier 1 used to be cheap. I bought some adorable ornaments for our first Christmas tree there. I have bought a few things there in recent years, but I was never a regular shopper (not a big shopper anyway).

There's going to be a lot of shopping centers that are in real danger. Bed Bath and Beyond anchored many centers, along with Pier 1. It's going to become a vast wasteland.
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Notorial Dissent
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Re: Retail Bankruptcies

#206

Post by Notorial Dissent »

This may well be round two, or is it three, of the shopping center apocalypse. We've gone through two that I remember. The mall chains are not doing well, and one I know of from personal experience has been doing poorly for the last 10 years give or take, and probably won't weather this round. We'll see what opening does.
The fact that you sincerely and wholeheartedly believe that the “Law of Gravity” is unconstitutional and a violation of your sovereign rights, does not absolve you of adherence to it.

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Slim Cognito
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Re: Retail Bankruptcies

#207

Post by Slim Cognito »

I remember buying a lot of funky, inexpensive stuff at Pier One millions of years ago. Wandered into one last summer and almost fell asleep from boredom. Then I looked at the price tags. I was done.
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Notorial Dissent
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Re: Retail Bankruptcies

#208

Post by Notorial Dissent »

Slim Cognito wrote:
Wed May 20, 2020 2:35 pm
I remember buying a lot of funky, inexpensive stuff at Pier One millions of years ago. Wandered into one last summer and almost fell asleep from boredom. Then I looked at the price tags. I was done.
My experience as well, nearing same at Cost Plus.
The fact that you sincerely and wholeheartedly believe that the “Law of Gravity” is unconstitutional and a violation of your sovereign rights, does not absolve you of adherence to it.

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Re: Retail Bankruptcies

#209

Post by Dr. Kenneth Noisewater »

Rental car giant Hertz files for bankruptcy

https://www.foxbusiness.com/economy/ren ... bankruptcy
Hertz Global Holdings Inc., one of the nation’s largest car-rental companies, filed for bankruptcy protection Friday, saddled with about $19 billion in debt and nearly 700,00 vehicles that have been largely idled because of the coronavirus.

The Estero, Fla.-based company entered chapter 11 proceedings in the U.S. Bankruptcy Court in Wilmington, Del., hoping to survive a drop-off in-ground traffic from the pandemic and avoid a forced liquidation of its vehicle fleet.



The company’s collapse marks one of the highest-profile corporate defaults stemming from the pandemic’s impact on air and ground travel, though Hertz also had challenges before the current economic crisis. Even before the Covid-19 outbreak, Hertz had been struggling with competition from peers including Enterprise Holdings Inc. and Avis Budget Group Inc., as well as from ride-hailing services such as Uber Technologies Inc. and Lyft Inc. The company lost some $58 million last year, its fourth consecutive annual net loss.

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Lani
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Re: Retail Bankruptcies

#210

Post by Lani »

Another hit for places reliant on tourism.

Today I took a back road to the vet's office and saw acres filled with tour buses and rental cars. That means a lot of drivers, cleaners, mechanics and customer service representatives are unemployed. It was sad to see because I thought about the number of people who must be very worried.

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Re: Retail Bankruptcies

#211

Post by John Thomas8 »

I'm a dinosaur. I prefer my shopping to be hands on. Used to be I would be doing a project and I could go to Radio Shack and there'd be a fellow there who understood electronics and we'd sketch things out and he'd be able to grab things out the bins and it would work. Or thumbing through books or vinyl. Putting shoes on the feet before paying. Things you just can't do on a intarwebs store.

Sigh.

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Chilidog
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Re: Retail Bankruptcies

#212

Post by Chilidog »

Lani wrote:
Sat May 23, 2020 12:30 am
Another hit for places reliant on tourism.

Today I took a back road to the vet's office and saw acres filled with tour buses and rental cars. That means a lot of drivers, cleaners, mechanics and customer service representatives are unemployed. It was sad to see because I thought about the number of people who must be very worried.
That, and no one is buying used cars right now.

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Re: Retail Bankruptcies

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Re: Retail Bankruptcies

#214

Post by ZekeB »

As the car industry goes, so goes the economy. Sorry Donnie, your fabulous economy won't be back in June. Or July. Or August ... Or December.
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TexasFilly
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Re: Retail Bankruptcies

#215

Post by TexasFilly »

Other auto rental companies are still making it next to impossible to rent a car. So their whining falls on my deaf ears.
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Dr. Kenneth Noisewater
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Re: Retail Bankruptcies

#216

Post by Dr. Kenneth Noisewater »

Makes me want to buy a 2019 Chevy Camaro from them. Always had that dream.

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Re: Retail Bankruptcies

#217

Post by ZekeB »

Dr. Kenneth Noisewater wrote:
Sat May 23, 2020 2:38 pm
Makes me want to buy a 2019 Chevy Camaro from them. Always had that dream.
I read somewhere where that Hurts is selling yellow Vettes for 20K under list. If I'm going to spend big bucks on a car like that I'd need to know that its value will appreciate.
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Re: Retail Bankruptcies

#218

Post by Gregg »

ZekeB wrote:
Sat May 23, 2020 4:32 pm
Dr. Kenneth Noisewater wrote:
Sat May 23, 2020 2:38 pm
Makes me want to buy a 2019 Chevy Camaro from them. Always had that dream.
I read somewhere where that Hurts is selling yellow Vettes for 20K under list. If I'm going to spend big bucks on a car like that I'd need to know that its value will appreciate.
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Re: Retail Bankruptcies

#219

Post by RTH10260 »

AMC Theaters says it has ‘substantial doubt’ it can stay in business.

AMC Theaters, the largest theater operator in the world, said in a financial filing on Wednesday that “substantial doubt exists about our ability to continue as a going concern for a reasonable period of time” because of the disruption caused by the coronavirus pandemic.

Moviegoing has essentially ceased around the country, with most multiplexes closed since March and new releases from major studios delayed. All AMC theaters are closed worldwide.

“During this period, we are generating effectively no revenue,” the company said. It estimated that its net loss for the first quarter would be between $2.1 billion and $2.4 billion, compared to a $130.2 million loss in the same period last year.

In April, AMC took on $500 million in new debt, pushing its total to $5.3 billion, which it said would allow it to withstand closures around the world into November.


https://www.nytimes.com/2020/06/03/busi ... virus.html

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Re: Retail Bankruptcies

#220

Post by JohnPCapitalist »

RTH10260 wrote:
Wed Jun 03, 2020 3:34 pm
AMC Theaters says it has ‘substantial doubt’ it can stay in business.

AMC Theaters, the largest theater operator in the world, said in a financial filing on Wednesday that “substantial doubt exists about our ability to continue as a going concern for a reasonable period of time” because of the disruption caused by the coronavirus pandemic.

Moviegoing has essentially ceased around the country, with most multiplexes closed since March and new releases from major studios delayed. All AMC theaters are closed worldwide.

“During this period, we are generating effectively no revenue,” the company said. It estimated that its net loss for the first quarter would be between $2.1 billion and $2.4 billion, compared to a $130.2 million loss in the same period last year.

In April, AMC took on $500 million in new debt, pushing its total to $5.3 billion, which it said would allow it to withstand closures around the world into November.

https://www.nytimes.com/2020/06/03/busi ... virus.html
First, I should point out that this is a "going concern" warning, and is routine boilerplate verbiage that auditors require companies to attach to their financial statements when certain ratios are outside healthy levels. I don't remember exactly what they are. It does not mean that the company is definitely shutting down, just that there is elevated risk of disaster. Yes, they're in deep shit, and there's a pretty good chance they'll go out of business, but it's not a certainty at this point. They'll probably file bankruptcy, try to do a debt-to-equity swap, and either default on bonds or shut the company down if they can't get cooperation from their bondholders. We've had way too many theater screens for at least a decade, so I don't feel all that sorry for the bondholders, who should have known that.

$5.3 billion in debt to generate $5.6 billion in annual revenue is a pretty horrific ratio. There's not a lot of room for things to trend down before you will have trouble covering debt. Of course, that simple logic escapes the private equity firms that have bought and sold AMC twice and loaded it up with an unsustainable amount of debt. I really like Elizabeth Warren's stance that private equity companies are evil. Every time I dealt with a private equity guy on Wall Street, I always felt a little dirty afterwards.

Only a month ago, these guys were threatening Universal to never show a Universal movie at an AMC theater again if Universal didn't respect the traditional 90-day window before releasing it via streaming services. Amazing that they were so arrogant. I'm sure Universal chuckled and gave them a polite non-response, knowing full well that AMC would be the first chain to fold as the virus shutdown got worse.

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Re: Retail Bankruptcies

#221

Post by MN-Skeptic »

JohnPCapitalist wrote:
Wed Jun 03, 2020 7:48 pm
I really like Elizabeth Warren's stance that private equity companies are evil.
:yeah: x 1000
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Re: Retail Bankruptcies

#222

Post by Northland10 »

MN-Skeptic wrote:
Wed Jun 03, 2020 8:39 pm
JohnPCapitalist wrote:
Wed Jun 03, 2020 7:48 pm
I really like Elizabeth Warren's stance that private equity companies are evil.
:yeah: x 1000
:yeah: x 100000000000000000000000000000000000000000000000000000000000

Question for JPC... Is the debt dumped on these companies by a private equity firm protected in some way during bankruptcy? Why would banks finance the deal if they were going to lose? Are they figuring that the assets will recoup part of the debt and they make up the difference with fees during the deal?

I do wonder if it is possible to add laws or regulations that force more risk on the finances. Banks might be more inclined to not let a private equity load a company with debt and grab most of the company's capital with fees if the banks would lose a large portion of their financing.
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pipistrelle
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Re: Retail Bankruptcies

#223

Post by pipistrelle »

I'm just sick of brands with long histories and fond memories for some of us being pissed away (e.g., Sears).

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Re: Retail Bankruptcies

#224

Post by ZekeB »

pipistrelle wrote:
Wed Jun 03, 2020 10:18 pm
I'm just sick of brands with long histories and fond memories for some of us being pissed away (e.g., Sears).
Sears dumped their profitable lines. I mention Kenmore and Craftsman in particular. Why in the world a store would sell the backbone of their business is beyond me.
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pipistrelle
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Re: Retail Bankruptcies

#225

Post by pipistrelle »

ZekeB wrote:
Wed Jun 03, 2020 10:22 pm
pipistrelle wrote:
Wed Jun 03, 2020 10:18 pm
I'm just sick of brands with long histories and fond memories for some of us being pissed away (e.g., Sears).
Sears dumped their profitable lines. I mention Kenmore and Craftsman in particular. Why in the world a store would sell the backbone of their business is beyond me.
Short-term gain, part of the being pissed away by people who would move on once that was accomplished.

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