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The retail unit of Samsonite Luggage filed for Chapter 11 bankruptcy last week, with plans to rapidly close 84 stores. The move is designed to increase profitability by halving the number of existing retail outlets. Merchandise is to be liquidated this fall.

Samsonite expects no disruption of business beyond the proceedings and store closings. The company blamed the recession's impact on travel as the main driver of the bankruptcy filing.

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.

Mattress manufacturer Spring Air shut down its manufacturing nationwide last week and is filing for bankruptcy protection. The company has been suffering under a severe debt load and reportedly was unable to secure new financing through a buyout. Up to nine plants have been closed and the company's futue is unclear.

Norwood Promotional Products filed for Chapter 11 bankruptcy and is trying to sell its assets. This one's not directly b2c, but if you have a pen, calendar, golf tee or bag from a conference with a logo on it, there's a decent chance it came from Norwood, the second-largest supplier in the U.S. The company cited economic conditions, high debt and a decline in order volume, coupled with $17 million in recent flood damage, as combining to throw the company into bankruptcy. Norwood has arranged a buyer for the tail end of its bankruptcy process.

Timely Demise read two interesting articles in yesterday's New York Times. First, the news: retail sales fell in March, as did producer prices, as a temporary bump in spending pulled back. While a few chains posted sales gains, the overall retail industry fell 1.1%, suggesting continued weakness but not market contraction.

More curious was the Times' coverage of bankrupt stores resuscitated as brands. Several companies are being leveraged for their well-known identities despite the failure of their store-level businesses. Among them: Sharper Image, which sold its name for a hefty sum to use on a new line of gadgets; as well as Linens 'n Things and Bombay.

This is a strange one. Dial-a-Mattress, infamous for their late-night commercials, saw sales fall to $100 million, from $170 million two years ago, and now:

Creditors filed an involuntary Chapter 7 bankruptcy petition against Dial-a-Mattress last week, seeking $1.7 million. The company is seeking to convert that to a Chapter 11 reorganization.

Sleepy's said in a statement on Tuesday that it would provide debtor-in-possession financing to help Dial-a-Mattress operate. The financing is subject to bankruptcy court approval.

Barnes and Noble may be cutting hours of stores in order to keep doors open, but Borders, about to announce its 4th quarter of '08 numbers, has another plan, to be revealed next week. We're thinking "slash and burn" is the plan. Its stock is trading at 69 cents. It had terrible holiday numbers. And:

Borders also is expected to ask shareholders to approve a reverse stock split at its annual meeting on May 21 to use if necessary to push the share price above $1 and avoid delisting.

Famed luxury goods purveyor Tiffany might look immune to the recession but actually they are in a world of trouble. "Net income fell to $31.1 million, or 25 cents per share, down from $127.4 million," for one thing; these costs are associated with store closing and with layoffs. So what's Tiffany's solution? More layoffs! "Tiffany plans to offer early retirement packages to 800 of its employees in the U.S., and cut 10% of its staff worldwide." Great plan.

You may not have expected to see the recession come to Reno and Vegas, and yet! Herbst Gaming will lose control of its 15 casinos in Nevada, Iowa and Missouri in its new bankruptcy filing; the company blames its expensive expansion in the Nevada market in 2007. And extremely troubled Progressive Gaming, which at one time provided gaming systems for casinos, filed for liquidation this week.

The failure of a large chain like Circuit City means a competitive segment has an opening to be filled. After all, Best Buy can't be the only option for electronics retailing forever.

And so the market will slowly see companies begin to fill that void, starting in Connecticut, where PC. Richard & Son is expanding, opening a store in Norwalk. P.C. Richard is a 100-year old company that has grown slowly and locally in the New York metropolitan area. Now with 52 stores, it has the mass to continue its expansion into places where competition is light.

Expect to see more reports like this as the economy settles down and smaller companies decide to challenge the remaining national brands.

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:

• Cincinnati: luggage store Bankhardt's is closing. The store is 130 years old and has inhabited the same location since 1935. The business owner sold the building and is moving on. Interestingly, three splinter stores with the same name will continue to operate.
• The 16-store jewelry chain Robbins Brothers filed for bankruptcy after struggling during the recession. Robbins Bros' history dates to the 1920s, in Seattle, before moving to California and ultimately expanding to four states.
• In the Pacific Northwest, Joe's Sports and Outdoor is operating during a restructuring. The 30-store chain is owned by a private equity firm that filed as a strategic move. Joe's first opened in 1952 as a military surplus store.

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.

The economic downturn is hitting local stores especially hard. Saddest among those affected are the decades-old establishments, many involved in housing and home goods, suddenly facing bankruptcy or liquidation.

Some recent changes of note:

• In Canton, Ohio, 85-year-old Art's Diamond Jewelers closed on Valentine's Day. Art's had 10 locations not long ago but the slowly declining business reached an end in the recession.
• Dearborn, Mich.: local booster Adray Appliance is closing after more than 50 years as a local presence. The owners are mulling options, including reopening in a smaller space, and refuse to call this "going out of business."
• Worcester, Mass. is saying farewell to 136-year-old M. Steinert and Sons. The piano dealer has two other locations in Massachusetts.
• And in Port Washington, N.Y., on the north shore of Long Island, the historic Knickerbocker Yacht Club has closed and put itself up for sale. Declining membership has hurt the club, which has a strong reputation in the sailing community.

Some good news: discount retailer Dollar General is accelerating store openings following a robust fourth quarter. The company is America's largest discounter in terms of number of doors, with more than 8,300 outlets. Dollar General is planning a robust 450-door expansion plan for 2009 and is remodeling hundreds of existing stores.

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.