Failing retailer

Many retailers are lining up to become the next victim of the crappy economy. Some retailers may be feeling the effects, but they are surviving. A lot of retailers are not so lucky. The stores on the failing list really should not be a surprise. Customers are scarce, inventory is thin, and customer service is either really bad or non-existent.

I cannot remember the last time I actually went into a Goody's store. I do not remember ever shopping in one where there were a lot of customers. I have only heard one or two people say they actually shop there and I'm always asking if that store is still open. Not a good sign at all!

According to an article in New York Post on January 5 of 2009, the prediction over the Christmas holiday was that Goody's would soon be affected by the failing economy. Goody’s was owned by Prentice Capital Management that filed for Chapter 11 a few months earlier (http://www.nypost.com/seven/01052009/business/store_warnings_147210.htm).

According to an article troymessenger.com, Goody's noted in their bankruptcy protection request that there were numerous, but isolated stores that needed to be closed due to lower sales. They also stated that there was "strain on merchandise flow" meaning that obviously the inventory turnover was not nearly enough to save the company (http://www.troymessenger.com/news/2009/jan/07/goodys-going-out-business/).

Obviously the crappy quality of the clothing at Goody's, the empty stores, and higher numbers of low performing stores than stores with sales all contributed to the downfall of Goody's, yet another victim of what is turning into game of win or lose in retail.