The Answer in May-Bankruptcy Today?
...Steve & Barry's eagerly snapped up big-box sites vacated by consolidating chains like Macy's Inc. At a shopping-center conference in May, several mall owners said Steve & Barry's was one of the answers to the industry's problems filling vacant space....
In recent weeks, the retailer has been seeking at least $30 million to fund operations through 2008. It has approached a number of financing sources, say these people.
Without additional capital, the company's fate will largely be determined by the commercial-lending unit of General Electric Co. It provided the company with a roughly $200 million credit facility in March, and the company is already in default on that loan, said three people familiar with the matter.
Steve & Barry's closing would be another blow for owners of malls and shopping centers, who have struggled to cope with the 6,500 store closures predicted for this year by the International Council of Shopping Centers.
6500 STORES SHUTTING DOWN!!!!!!!!
Some monkeys would tell you to go out and invest in shopping malls. Crazy.
The joke is that the shopping malls were giving Steve and Barry's huge cash up front payments to fill big vacancies. Absent those payments, the stores were barely break even.
Thousands and thousands of stores are shutting down. Hundreds of thousands of jobs lost. Hundreds of millions in taxes gone. You think there has ever been anything close to this before in the last 60 years?
The shopping mall and strip center business model faces very difficult times ahead.
It ain't much different for homebuilders, absent being willing to sell homes for a loss, they ain't no not selling many homes. Period.
Maybe one day HBs will become like shopping mall owners and pay you to take one of their houses....can you imagine how happy scrooge would be?
What happens when people finally realize that their incomes are falling, assets crashing in value, debt is growing, and the outlook is negative?
I am not here to pass judgment(maybe a little trash talking), just present the facts and conclusions as I see them.
Are we just going to quit and form a new identity......NOT the America I know. But we better damm well be aware of the problem or we will not be able to rally and craft a solution.
In life, you can choose to seperate yourself from the crowd and be a leader, or simply be the chimp in the sideshow....either one is just fine.....just know who you are.