Timely Demise

The economic downturn is hitting local stores especially hard. Saddest among those affected are the decades-old establishments suddenly facing bankruptcy or liquidation. Recent news affects a variety of beloved and longtime stores around the country:

• Washington, D.C.'s Apartment Zero is closing its District location after 10 years in business. The owners vow to continue online and may open another location, but in the meantime, the items in store are being liquidated.
• Out in Billings, Montana, Sutton's Sportswear is closing, two and a half years after its original owners sold the store. Sutton's, which made its own line of clothes, had been around since 1981.
• Aurora, Illinois' Montgomery Ace has started its going-out-of-business sale. The store, which had been a go-to for hardware and housewares, had been operating since the 1970s. [added 2:09 p.m.]
• And in Decatur, Illinois, 121-year-old Wyker's Toys closed for good on Tuesday. Wyker's had been family-run since 1888, when it first opened as a hardware store. The owners cite the economy and changing shopping habits as contributing to the store's demise.

Two beleaguered grocery store chains, Bashas' and Bruno's are in the news this week following earlier store closing and bankruptcy announcements. The chains first appeared in Timely Demise together in February.

Bashas' is closing at least two more locations as it continues a lengthy restructuring. The chain, which previously had announced five store closings, is being criticized for dragging out the process.

In better news, Bruno's new owner is rapidly reopening stores, having remodeled dozens of locations in the past few weeks. The renewed Bruno's chain has 31 doors and a new pricing structure for its products.

The U.S. unit of specialty retailer Crabtree & Evelyn filed for Chapter 11 bankruptcy this morning, citing economic conditions. The company, which sells popular soaps and other products, has 126 stores across the country. Crabtree & Evelyn plans to work on rent reductions at existing locations and will close an unspecified number of stores.

Premium children's clothing retailer Pumpkin Patch is reviewing its U.S. operations and will be closing around 20 of its 35 locations this summer. The company, which is based in New Zealand, hopes to close in on a break-even level with the action. Pumpkin Patch's U.S. stores have struggled since 2007 and underperformed in the recent economic climate.

In Richland, Wash., 13-year-old Liquidation World is going out of business. Its parent company, in Canada, is closing all its United States locations (which, to the best of Timely Demise's knowledge, totals three stores in Washington state).

Two celebrity-focused jewelers fell victim to the recession this month.

First, Michael Beaudry, who is known for manufacturing and supplying jewelry to Hollywood stars, filed for bankruptcy June 4. Sister company Centerstone Diamonds filed for Chapter 11 on the same day. No information is available about the company's future plans.

Yesterday, Harry Dunay also filed for Chapter 11 bankruptcy, citing economic conditions. The business, which dates to 1965, sells its jewelry at high-end stores like Neiman Marcus as well as direct to celebrities. Harry Dunay plans on reorganizing the business and continuing operations.

Luxury and specialty stores nationwide are reducing the amount of items they order to balance their inventories--and expectations--post-financial crisis.

Steven Sadlove, CEO of Saks, refers to "enormous excess" as driving sales in 2008, and tells shoppers to expect "less of the sizes, less of the availability in almost all of the categories." Saks Fifth Avenue and Neiman Marcus cut orders 20 and 25 percent this quarter, respectively.

This author's wife has noticed a similar trend on a local level--the shoe stores in our neighborhood are stocking much less merchandise than last year, most likely in anticipation of lower volume.

Furniture retailer the Door Store filed for bankruptcy protection in late May. The Door Store, which was founded in Ohio in 1953, has had a drastic sales shift since the financial crisis began. High rents on large showrooms are being cited as the main cash flow concern. The company expects to fulfill all outstanding orders and continue operations.

Anchor Blue, a southwestern chain selling denim and other clothing, is closing and liquidating 46 stores. The closings are related to a bankruptcy filing from May (which somehow slipped past Eyes McGurk at Timely Demise). Anchor Blue had 177 stores before the closings; another 75 Most outlet stores were sold to Levi Strauss at the time of the Chapter 11 filing.

Apparel and footwear retailer Finish Line, responding to poor company-wide sales, is selling the Man Alive chain to the owner of Jimmy Jazz. Man Alive is a 75-store street wear retailer, and is a small piece of Finish Line's business, which has 685 Finish Line stores alone. Jimmy Jazz has roughly 65 outlets and the Man Alive acquisition will "accelerate growth initiatives in the urban market sector faster than we could attain through organic growth alone," stated owner Jimmy Khezrie in a statement.

Tool supplier Western Tool filed for Chapter 11 bankruptcy last week to deal with a cash crunch. The company, which had as many as 61 stores across 13 states, is down to just over half that number. Western Tool plans on using the bankruptcy filing to "stabilize operations" and continue in business.