Another interesting twist: news has leaked that luxury retailer Barneys is trying to close two stores. The locations, including one in Las Vegas, are significantly underperforming as consumers cut back on luxury goods. Barneys has denied the rumor.
Despite its national tastemaker reputation, Barneys only has seven stores, so two potential closings would be significant. The store's owners recently claimed sufficient cash on hand to weather the 2009 slump.
Subscription radio company XM Sirius is preparing a bankruptcy filing amid rumors the company may be sold in full to EchoStar, which is responsible for much of XM Sirius' debt. The satellite radio player has been battling its debt load and a low stock value for many months. Analysts have been angling for an EchoStar buyout to preserve the core business.
(Full disclosure: this author is a longtime XM subscriber and fan.)
Hip infant retailer Babystyle very quietly closed its business last week. Parent company Right Start seems to have laid off its employees, and local stores had unexplained going-out-of-business sales, but never made an announcement. It took tips and inquisitive bloggers to break the news.
Babystyle, which sold maternity, baby and kids' merchandise, has a simple message on its website that says operations have been "suspended." Tiny Ride, another Right Start brand, is reportedly affected as well. No official word is yet available as to whether Right Start is itself going out of business, although some rumors suggest an acquisition or bankruptcy is possible. Right Start bought Babystyle and Tiny Ride in 2008.
