Recession and Retail

The recession/sub prime mortgage decimation/Iraq war, is setting off economic problems all over the place. We've learned about the crunch on student loans, the crunch on mortgages and how there is an amazing rise in foreclosures, drug companies are upping the ante, food prices are rising with millions around the world now at risk, plus there is ongoing inflation. Next up, its retail stores -

NYT: Retailing Chains Caught in a Wave of Bankruptcies

Since last fall, eight mostly midsize chains — as diverse as the furniture store Levitz and the electronics seller Sharper Image — have filed for bankruptcy protection as they staggered under mounting debt and declining sales.

But the troubles are quickly spreading to bigger national companies, like Linens ‘n Things, the bedding and furniture retailer with 500 stores in 47 states. It may file for bankruptcy as early as this week, according to people briefed on the matter.

Even retailers that can avoid bankruptcy are shutting down stores to preserve cash through what could be a long economic downturn. Over the next year, Foot Locker said it would close 140 stores, Ann Taylor will start to shutter 117, and the jeweler Zales will close 100.