Thursday, July 31, 2008

Slew of Bankruptcies Shock the country

Very few times in our countries history have we seen so many companies file for bankruptcy. This article lists around 10 different well known companies that have filed or are going to file for bankruptcy. One that I found shocking was a retail store called Mervyns. Never heard of it? I do not blame you. However if you ever lived in California you would be quite shocked and upset. Mervyns is the same thing as a JC Pennies...but a little bit nicer. Every Californian is very familiar with this store. In fact when I lived in California my father used to manage a store where we lived. 

The point that I am getting at is that we are now being surrounded by mainstay stores and restaurants that are closing. I wonder what comes next. The economy as a whole is incredible weak and this is only the tip of the iceberg that is to come in the forms of closings. IT started with starbucks and now is slowly moving outward. Although we will know it will be time to move somewhere else is McDonalds or Walmart closes down in your town. 


Neil Boyer said...

Another move that companies are doing is shutting down some of their smaller stores, which makes people have to use more money in driving to the stores. This makes it so the people cannot afford to spend as much at their stores. With the weak economy it seems to be a lose, lose situation.

christa schott said...

With having a weak economy, it is not that surprising that a smaller based department store would be closing down. Although it may be popular in California that is the only state, it is marketing too. California is not like Ohio or West Virginia there are many more competitors trying to start up or have been around for a while. So the shut down of a concentrated department store chain makes since in today economy.