apparel: April 2009 Archives

In a cost-cutting maneuver, Jones Apparel is closing 225 stores nationwide. The company, which sells women's apparel in a range of brands, did not specify the closings, and forecast them over an 18-month period. Jones plans on continuing its new-brand growth while simultaneously working to cut costs.

Good news! (We couldn't believe it either.) H&M, home of many trendy clothing items under $10, is taking advantage of current consumer tendencies to bargain shop. The world's third-largest fashion chain (based on revenue) just announced plans to open 225 new stores in 2009. Their first Beijing location opens today, one of five or six upcoming China posts. Other regions they're targeting for new stores include the Middle East and Japan—bringing their total number of venues to just under 2,000.

Struggling discount retailer Filene's Basement has been sold to a liquidation and turnaround specialist. Officials noted "uncertainty" for its 25 doors but no announcement of store closings or liquidation has been made.

Filene's Basement has had difficulty all year; in January it closed 11 stores in a restructuring move.

For what it's worth, Timely Demise is a fan of Filene's Basement (so say many of the clothes in the TD closet) and is rooting for a turnaround and not a liquidation.

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 several notable stores with long histories:

• In Westchester County, New York, Chappaqua's Second Story bookstore is closing after 37 years in business. Its owner, a former president of a national booksellers' association, is retiring and not selling the business. Second Story counts Bill and Hillary Clinton among its patrons.
• In the Denver suburbs, Andrisen Morton is closing its women's store after 30 years in business. Its men's outlet remains open, but the women's business has been declining since the recession picked up steam.
• And if you're trying to practice your way to Carnegie Hall, Joseph Patelson won't be able to help you anymore. The longtime sheet-music retailer is closing its doors after six decades in business.
  

Block Corporation, a holding company for numerous apparel brands, filed for Chapter 7 bankruptcy this week. The move is usually a precursor to a corporate liquidation. Block Corp owns licenses for 18 well-known brands including Izod, Van Heusen, Panama Jack, Geoffrey Beene, Hobie, Timberland and Botany 500. Detailed information has not been released.

Several stores formerly profiled on Timely Demise are in the news today.

Pier 1, which announced up to 125 store closings in February, has closed 22 stores so far, 20 of them through lease negotiations.

Aeropostale, which has strong sales results in recent months despite the economy, issued another strong sales report, despite the Jimmy'Z store closings announced recently.

Advantage Rent-a-Car, which filed for bankruptcy in December, has been purchased by Hertz, which reportedly gives the acquiring firm a brand for budget-minded renters.

And in New Jersey, the recently bankrupt Marty's Shoes chain has been brought back to life. Its former CEO and original owner have purchased the Marty's brand out of bankruptcy and opened stores in four locations. An ecommerce site is operational, and plans are to open nearly 20 stores.

Updated April 10.