David Wertheimer: July 2009 Archives

Kind of nice, isn't it: Timely Demise has had almost nothing to say for a week.

Could it be "the beginning of the end of the recession?" The slow summer news cycle? Executives on vacation?

This writer believes it has more to do with the economy taking a well-deserved summertime nap than any macro-level trends--just because the stock market bounced doesn't mean America still isn't facing a workforce that's 20% underemployed.

In any case, Timely Demise owns a sister website that will launch once good news starts to eclipse bad. And if that takes awhile, TD will be sure to note it. Keep your tips and thoughts coming.

Whatever may happen, this blog is content to not have much to say. The break, while not a compelling read, is refreshing. We'll see what happens next week.

TD posts now have a Retweet link that allows for one-click publishing to Twitter. Sooner or later I'll activate better sharing functionality for more sites, like Delicious.

Timely Demise already twitters and cross-posts to Facebook to service the busiest of the social networks. Please email or comment if you have a specific site to request.

Ritz Camera, which filed for bankruptcy in February, has been purchased by CEO David Ritz. The company put its remaining assets up for auction two weeks ago, and Ritz submitted the highest bid for his firm. The winning bid was confirmed for Timely Demise by representatives within the company.

After the sale, the company will be renamed Ritz Camera & Image, and its core business strategy will stay focused on photographic services. Subbrands like Wolf and Kits will continue to operate. No word is available yet on how many locations will be open after the restructuring is complete.

Bankruptcy court is to review the purchase Friday morning.

In a move sure to sadden music and garden merchandise fans alike, the iconic Fountains of Wayne closed this spring. Located in Wayne, New Jersey, Fountains of Wayne had been selling outdoor items since the 1960s. The store closed in March and underwent an inventory liquidation in April.

The store attained a new level of fame when a power pop band from the region adopted its name. Fountains of Wayne, the band, has had a celebrated career including the pop hit "Stacy's Mom." The store also appeared in "The Sopranos."

Microsoft, having tired of Apple's standalone successes with its standalone stores, is opening numerous retail locations in time for the 2009 holiday season. Recession notwithstanding, Microsoft wants to make a splash at the consumer level when it releases Windows 7 in October. The company is also shooting to have the stores open for the holiday season, although Timely Demise wonders how many people want a new OS for Christmas. Microsoft is adopting the time-honored tactic of opening stores right near its main competitor.

Fashion designer Mary Norton filed for bankruptcy last week, citing "harsh economic conditions." Mary Norton's stores, in Charleston, New York and Los Angeles, have all closed, a few weeks after holding extensive clearance sales. The company had also sold its fashions in an assortment of boutiques and at Saks Fifth Avenue.

In New York City, storefronts in Manhattan have hit their highest vacancy rates since 2001. Citywide, the vacancies stand at 12.4 percent; on some important shopping lanes, like tony Madison Avenue, the rate is more than 15%. (This author rode up Madison Avenue in a cab recently and spotted more than one empty storefront per block.)

Experts estimate rents may fall as much as 23% by the end of next year. Which, while bad for real estate companies, presents a bargain opportunity for retailers ready to capitalize toward the end of the recession.

Beleaguered southwestern grocer Bashas' filed for Chapter 11 bankruptcy protection Sunday night in an attempt to continue operations. The company announced 10 new store closings alongside the filing. Bashas' owns the Food City and AJ's Fine Foods chains in addition to its namesake, a total of 158 stores.

Bashas' made headlines less than two weeks ago with several store closings. The chain first began closing locations in February in an effort to improve profitability.

Garden and outdoor retailer Smith & Hawken is going out of business. All 56 locations are begin final clearance sales today. The chain, which was founded 30 years ago, is being closed after owner Scotts Miracle-Gro couldn't find a buyer. Smith & Hawken's website has already been shut down.

Ritz Camera's 400 remaining locations are going up for auction following an unsuccessful bankruptcy reorganization. The chain, which filed for Chapter 11 bankruptcy protection in February, closed half its stores but has run out of cash for continuing operations.

As of now, there are no strong indicators whether a buyer will take over some or all of the locations, although Ritz hopes that is the case. If not, inventory and stores will be liquidated following the auctions, which are to be held later in July.

As has been noted here on and off, retailers are focusing on their core brands in order to maximize profitability in the recession. Reuters covers this trend with an overview of many brands finding this new focus: Abercrombie, Talbots, Finish Line and others have sold or closed brands to strengthen their main offerings.

Wisely, the Reuters article notes that this may lead to innovation and new energy within the sector. "Retailers are finally realizing that they have to get their own personality back," says NPD chief industry analyst Marshal Cohen in the piece. "They are beginning to recognize 'you know what, we have to go back to who our core customer is and deliver on the promise.'"

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.