Advertisement
01/04/2011

Bankruptcy Spotlight on Struggling Borders

While Barnes & Noble touts stellar holiday sales rival Borders continues to teeter on the verge of a bankruptcy filing. The latest news from the troubled retailer is that two senior executives, D. Scott Laverty, CIO, and Thomas D. Carney, general counsel, resigned from the company.
 
Even more telling, widespread reports indicate Borders CEO Mike Edwards is meeting with publishers in New York this week to get their sign off on a plan to refinance debt and suspend payments. In response, one major distributor, the National Book Network, said it will suspend book shipments to the retailer. 
 
That Borders’ troubles are coming to a head right after the holidays should come as no surprise to retail executives. Last year six retailers filed for bankruptcy in the first quarter, and in 2009 the number was 11.
 
The good news for the retail industry heading into 2011 is that the furious pace of bankruptcy filings dropped dramatically in 2010.
 
In 2009 there were 32 retail bankruptcy filings for major chains, which included Filene’s Basement, Eddie Bauer, Gottschalks, Basha’s, Bi-Lo, Ritz Camera, Bruno’s, Crabtree & Evelyn, Anchor Blue and Fortunoff.
 
In 2010 there were 19 retail bankruptcies for major chains, a 40 percent drop due to an improving economy. These filings included A&P, Blockbuster, Loehmann’s, Movie Gallery, Urban Brands, Jennifer Convertibles and Swoozie’s.
 
Here is a complete list of 2010 retail bankruptcy filings:

A&P: 12/13/10
 
Lacks Stores: 11/16/10

Loehmann's: 11/15/10

Blockbuster: 9/23/10

Urban Brands: 9/21/10

Oriental Trading Company: 8/25/10

Gracious Home: 8/13/10

Jennifer Convertibles Inc.: 7/18/10

Controladora Comercial Mexicana, S.A.B. de C.V.: 7/16/10

Riviera Holdings Corporation: 7/12/10

Planet Organic: 6/4/10

Gems TV: 4/5/10

Rock & Republic: 4/1/10

BKV, Inc, d.b.a. Tellos: 3/1910

Swoozie's, Inc.: 3/2/10

Movie Gallery, Inc.: 2/2/10

Southern Golf Partners: 1/20/10

Bernie's Audio Video TV Appliance: 1/14/10

E.R.T. Sales of Hawaii: 1/12/10

Related Stories:

A&P Chapter 11 Filing Marks 19th Retail Bankruptcy in 2010

Texas Furniture Chain 's Chapter 11 Filing Is 18th Retail Bankruptcy in 2010

Loehmann's Is 17th Major Retail Bankruptcy in 2010