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alstry (< 20)

American Retail Shutting Down



October 18, 2008 – Comments (5)


The Hayward retailer said Friday that it would close its remaining 149 locations. The stores will remain open through the holiday season with liquidation sales.

Mervyns previously planned to close 26 underperforming locations. The 59-year old chain, with a California-heavy store base, filed for Chapter 11 bankruptcy protection at the end of July, but proved unable to gain any traction on its turnaround efforts.

Linens n Things

Specialty retailer Linens 'n Things, which filed for bankruptcy protection in May, plans to begin liquidation sales at its stores as early as Thursday after failing to find a buyer that wanted to operate the company.

"It's a straight going-out-of business liquidation sale," said James Schaye, president and chief executive of Hudson Capital Partners, one of the members of the investment group buying the company's assets. He expects the process for the company's approximately 371 remaining store locations will take about 11 weeks.

Just with these two chains we are probably contemplating more than 25 million square feet of retail space going dark.  Imagine owning a shopping center with both a Linens n Things and a Mervyns as your tenants???  Expect a few others similar announcements in coming weeks.   Anyone paying retail this Christmas????

5 Comments – Post Your Own

#1) On October 18, 2008 at 5:45 PM, alstry (< 20) wrote:

The trading opportunities ahead are going to be unprecedented. Traders don't care about absolute price levels....simply changes in price that creates opportunties.

We are likely to see incredible price declines ahead in many areas of the economy....such price movement will create trading openings.....becareful of quacks calling premature could simply be a trap door for further price declines.

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#2) On October 18, 2008 at 9:10 PM, DemonDoug (31.53) wrote:

I think all these store closings will be bullish for the stronger retailers.

-DemonDoug, long 25 shares of WMT.

Oh wait I didn't mention that in my main text did I?  Anyway - go walmart!

p.s. I think I might be the biggest a-hole investor out there.  I advocate and buy companies like Suncor, Cryptologic, Wal Mart, Altria, and Philip Morris.  I think if there was a company out there that was legally selling crack or heroin I'd probably be owning that one too lol.  Vice stocks for the win!

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#3) On October 18, 2008 at 10:34 PM, alstry (< 20) wrote:


What may be different this time is that people may not have enough money to satisfy their this point, based on current policy may be quicker than many think.

Great opinion in today's WSJ from Anna Schwartz....a must read for anyone interested in markets.

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#4) On October 18, 2008 at 11:05 PM, dwot (29.03) wrote:

Time to go SHOPPING!  Oh right, I don't live in the US...  And the Canadian linens and things isn't going bankrupt.  I like their stuff...

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#5) On October 19, 2008 at 2:29 PM, gman444 (28.19) wrote:

Alstry:  nice post, but I agree with DD that some will gain from this.  And I am a firm believer that people will go to nearly any lengths to always support their vices....

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