From Bloomberg news online:
“U.S. retailers face a wave of store closings, bankruptcies and takeovers starting next month as holiday sales are shaping up to be the worst in 40 years.
Retailers may close 73,000 stores in the first half of 2009, according to the International Council of Shopping Centers. Talbots Inc. and Sears Holding Corp. are among chains shuttering underperforming locations.
More than a dozen retailers, including Circuit City Stores Inc., Linens ‘n Things Inc., Sharper Image Corp. and Steve & Barry’s LLC, have sought bankruptcy protection this year as the credit squeeze and recession drained sales. Investors will start seeing a wide variety of chains seeking bankruptcy protection in February when they file financial reports, said Burt Flickinger.”
As previously posted on this blog, Orange County has been affected by the filing of bankruptcies and closings of stores like Circuit City and Linens ‘n Things. From Costa Mesa to Irvine to Lake Forest, store closings have left little of Orange County untouched. So far only bankruptcy lawyers seem to have benefited. But Flickinger says that retail bankruptcies may be good for the industry in the long run:
“We’ll be going from a Dickens-esque worst of times this December to the best of times in future Decembers because we’ll rationalize out all the redundant retailers and retail space in shopping centers,” Flickinger said.
We shall see…
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