Tuesday, November 11, 2008

Chronicles Of Depression 2.0: #384: Liquidation

National Wholesale Liquidators Files for Bankruptcy (Update2)
Nov. 11 (Bloomberg) -- National Wholesale Liquidators Inc., a family-owned discount retailer, sought bankruptcy protection from creditors without giving a reason.

The company, based in West Hempstead, New York listed assets and debt of $100 million to $500 million each in Chapter 11 documents filed yesterday in U.S. Bankruptcy Court in Wilmington, Delaware. Sixty-two affiliates also filed, according to court documents.

The company, founded in 1984, carries more than 120,000 items including brand-name closeouts. Its more than 50 stores are located in suburban shopping plazas in 10 states including New York, New Jersey and Pennsylvania. The retailer forgoes "fancy" store fixtures to keep prices low, according to its Web site.

Emphasis added by me.

A discount store going under?!
A pull back in consumer spending has contributed to more than a dozen retail bankruptcy filings in the past year, including Circuit City, which sought protection yesterday, Sharper Image, Boscov's, Mervyn's, Linens 'n Things and Value City Departments Stores LLC, an operator of 66 discount stores.

Value City, Linen n' Things, Sharper Image and Mervyn's are liquidating their assets. Circuit City plans to close 155 stores and renegotiate leases on some locations to conserve cash. Boscov's will be purchased by its founding family. The purchase still needs bankruptcy court approval.

Emphasis added by me.

Ah, well. The world changes, doesn't it?

But just not always for the better!

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