American Apparel, the store perhaps better known for the barely legal, oft-undressed models in its ads, and the peccadilloes of company founder Dov Charney, than for its actual clothing, has alerted the Security and Exchange Commission that it may need to file for Chapter 11 bankruptcy protection.
Lovers of lukewarm pizza, despair. Troubled pizza chain Sbarro is getting ready to file for Chapter 11 Bankruptcy. The slice slingers are $365 million in debt and made the move after missing their interest payments. Part of the reason Sbarro has been suffering is because it has a lot of shops tied up in malls. Traffic to those dying down with the recession and the rise of online shopping has meant fewer patrons hitting the food court. The other reason is that their pizza is just sad.
Ultimate Electronics, a Colorado-based chain, took on a nationwide expansion in 2010, opening new stores, entering new markets, and taking over a lot of empty retail space abandoned by Circuit City. Now the big-box dream is over: the company filed for Chapter 11 bankruptcy in late January, and announced this week that it will liquidate and close all 46 stores.
Extended car warranty company US Fidelis already stopped selling new car service contracts and laid off over half of their staff at the end of 2009, and has now filed for Chapter 11 bankruptcy protection.
Yesterday, a gorilla* stormed through the offices of Samsonite Corp, the “world’s top luggage maker,” and jumped up and down on their financial status. Their retail unit filed for Chapter 11 bankruptcy and will close approximately half of their 173 stores.
With two weeks to go before the government deadline to approve GM’s restructuring plan, the AP says that GM’s CEO Rick “The Station” Wagoner told the press that if GM is allowed to go into bankruptcy, it will simply be liquidated.
Ever acoustically bankrupt, Muzak,the makers of elevator music, have declared themselves financially bankrupt by filing for Chapter 11. The company’s unique style of precisely limited in tempo and dynamics and unswervingly bland music may not be long for this world. Office workers and elevator riders, rejoice.
Black Angus filed for bankruptcy yesterday. The recession bodes ill for casual dining; “The debtors’ restaurants primarily are located in some of the areas hardest hit by the mortgage crisis, causing consumers in those markets to cut back on discretionary spending,” said the company in a statement filed with the bankruptcy court. Guess it turns out you can’t feed yourself with home equity after all. [Bloomberg] (Thanks to Ken!) (Photo: bdjsb7)
Bally Total Fitness has filed for Chapter 11 Bankruptcy… again. [MarketWatch]
Earlier this year when the Sharper Image declared bankruptcy, they briefly stopped accepting gift certificates. Eventually, they did start accepting them again — but with the requirement that consumers buy twice the face value of the card. This, it seems, has caused a fair amount of panic among consumers. Chain emails are circulating warning shoppers not to buy gift cards from various retailers — claiming that they are going out of business. But are they?
If you have a Circuit City refund check not deposited before 11/10, it’s going to bounce.
Bankers worked hard over the weekend to prevent the American financial system from imploding.
- Lehman filed for Chapter 11
- Bank of America bought Merrlil Lynch
- A special trading session was opened Sunday from 2-6pm to allow traders to try to unwind their positions
- The Fed is expected to temporarily make it easier for banks to borrow from the government
- European Central Banks stand ready to pump billions into the global market
- Washington Mutual’s new CEO’s disclosure of further writedowns and setting aside of capital calmed investors and stemmed the massive selloff of its stock
Consumers Union (CU) filed a petition with the FTC Thursday to protect consumer gift card holders more when retailers go bankrupt. For as long as the stores remain open, CU wants companies to have to hold gift card funds in a secure trust, unless bankruptcy courts say otherwise. Currently…