David Wertheimer: August 2009 Archives

Timely Demise is on its summer vacation. Posting will resume after Labor Day.

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 numerous local stores with long histories:

• Syracuse, New York, home furnishings retailer Goldberg's is closing after nearly a century in business. Goldberg's, which once operated seven stores across upstate New York, first opened in 1910. Descendants of the founder include the owners of the Raymour & Flanagan furniture chain.
  
• In good ol' Gothenburg, Nebraska, 43-year-old Hometown Variety is closing this autumn after clearing out inventory. Longtime owner Merle Honerman cites rising costs and declining sales as the usual culprits, and says he was unable to find a buyer for the business.
• Kent Hardware in Kent, Ohio, is ending a 125-year-run next month. A sister store will remain open in a neighboring town, but Kent is now left without a hardware store.
• And in Vinton, Iowa, Mahood's Shoe Store is closing after 63 years of operation. Bob Mahood plans on continuing shoe repairs after the clearance sale is complete.
  

Bargain home decorating retailer Old Time Pottery Inc. filed for bankruptcy as part of a restructuring. The chain, which operates 37 stores across 12 states in the southeast, is expecting business as usual with no layoffs.

Reader's Digest, the once beloved publication found on millions of newsstands and checkout carousels, is filing for bankruptcy protection. The private equity concern that bought Reader's Digest two years ago is looking to reduce its debt. The company has secured funding to continue operations, and the bankruptcy filing will not affect its extensive international business. Reader's Digest, like many print publications, has struggled with circulation and revenue issues for several years.

German fashion company Escada filed for bankruptcy protection after failing to secure financing. The company had planned on making moves to continue funding its operations. Reuters said the company is "throwing in the towel" and "admit[ting] defeat," which casts doubt on the company emerging from bankruptcy as an ongoing business. Escada had more than 400 worldwide locations.

Upscale makeup brand Paula Dorf filed for bankruptcy protection last week. The company claims the filing was strategic, but industry experts say the line has too many skus and not enough new, innovative items that spur growth.

Prestige beauty products saw a sales decline in 2008 and have experienced continued weakness this year.

Finlay Enterprises, the jeweler retailer behind such brands as Bailey Banks & Biddle and Carlyle, filed for bankruptcy protection. The company plans on selling its assets at auction, bringing an end to its current composition. Finlay, which dates to 1887, still has nearly 200 locations including department store installations.

Finlay announced a series of store closings in February, which proved to be insufficient in narrowing the company's losses.

In related news, Zale closed 118 locations in the past fiscal quarter, bringing its total closings to 191 this year as it tries to preserve its own profitability.

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 regional chains with long histories:

• Colegate Food Center in Marietta, Ohio, is closing up shop after 52 years in business. "We're not closing because we want to be closing," said owner Glen Antill, who has been working at Colegate since 1955, two years before it turned into a supermarket.
• Next Friday is the last day for Crocodile Pie, the 20-year-old children's bookstore in the Chicago suburbs. The store was bought in a rescue maneuver last year but sometimes fails to generate as much as $100 in sales in a day. Chicago's 35-year-old Prairie Avenue Architecture Bookstore is also closing if it fails to find a buyer by September 1.
• In Grand Junction, Colorado, Appleseed Health Foods is closing after a 31-year run. The official reason is the owner's retirement, although the store tried to sell itself for two years without success.