Swimwear retailer Everything but Water filed for bankruptcy in the face of difficult economic conditions. Everything but Water, which sells its products in 70 stores, is being sold by its parent company.
chapter 11: February 2009 Archives
Ritz Camera, the nation's largest camera and imaging chain, filed Chapter 11 bankruptcy due to the recession and digital photography trends. Ritz, which owns Wolf Camera and other sub-brands, had a difficult holiday season and increased pressure from creditors. The company hopes to keep operating during its restructuring.
In the wake of the Peanut Corporation of America scandal, snack bar manufacturer Forward Foods filed for bankruptcy. Forward, which makes Detour energy bars, is suffering from the extensive peanut recall. The company's private-equity owners have lined up financing to continue operations during the bankruptcy restructuring.
Trump Entertainment filed for bankruptcy this morning to restructure a billion dollars in debt. This is the third bankruptcy filing for the company, whose bondholders are angry and trying to interfere with the movement. Donald Trump has resigned from the board of his company in frustration.
Not economy-related, but certainly retail-affecting, the Peanut Corporation of America filed for bankruptcy protection on Saturday. The company is under extreme pressure following salmonella outbreaks traced to unclean conditions at more than one of its factories. Sales of peanut-based grocery products are down as much as 28% in the wake of the health scare.
Video game maker Midway filed for bankruptcy to avoid a credit default. Midway is hoping the filing allows continuing operations. In December Midway's principal owner sold 87 percent of the company for $100,000 to help with debt restructuring.
Muzak--purveyors of the soothing background music played in stores, medical offices and elevators everywhere--filed for bankruptcy to escape its debt. The company, which has been in business for 75 years, has two million songs playing at a wide variety of retail stores from Macy's to DSW Shoes. Muzak expects to successfully continue operations following the restructuring.
S&K Famous Brands filed for bankruptcy, citing the usual reasons in this marketplace in its filing. S&K operates 136 stores up and down the eastern seaboard. The company is seeking funding to continue operations while under bankruptcy protection.
In related news, the Massachusetts menswear chain Kaps is closing all its stores due to declining sales. The company has shut one store while the other three hold going-out-of-business sales. Kaps dates its origins to 1885.
Spectrum Brands, a consumer products manufacturer, filed for bankruptcy amid a heavy debt load earlier this week. Spectrum, which manufactures Rayovac batteries, Remington shavers and a variety of household and pet products, is working on efficiencies that will strengthen the company after its filing. Continuing operations are expected.
Retailers selling food, typically among the lowest-margin businesses in the nation, are suffering as much as anyone in the rough economy. Some regional stories of note:
- Bashas', an independent supermarket chain in Arizona, is closing five locations to focus on more profitable locations. The company is also the subject of a federal discrimination investigation regarding its Hispanic employees.
- Ike's Farmer's Market, a related store from Bashas, is closing as well, a failed attempt to counter the natural foods movement established by Whole Foods (who itself is enduring a difficult year).
- Bruno's Supermarkets in Alabama filed for Chapter 11 bankruptcy this week. The company anticipates no change in store operations during its restructuring.
