Company Closings/Cutbacks In December: KB Toys, Office Depot, And Others

    This list is not as up to date as I would like it to be, but it is fairly recent.

KB Toys Fully Liquidating Its 431 Stores; In Bankruptcy - Again
Pittsfield, MA-based KB Toys filed bankruptcy on Dec. 11. Brought out of chapter 11 in 2005 through a buyout by private equity firm, Prentice Capital Management, liquidation is the path the toy retailer is taking this time around.
The company said going-out-of-business sales would immediately commence at its 431 stores, "in order to take advantage of the last two weeks of the holiday selling season." The company concluded an "expedited and orderly" liquidation would be the best option for its debtors.

Office Depot Shuttering 126 Stores, 6 Distribution Centers, and Cutting 2009 Store Opening Plans
Boca Raton, FL-based office supply retailer, Office Depot, Inc. (NYSE:ODP), announced the closure of 126 stores and six distribution centers today, Dec. 10, 2008. The company made the announcement as part of its strategic review process, initiated in late October. Labeled underperforming, Office Depot will close 112 stores over the next three months, while the remaining 14 closures will occur over the course of 2009 as leases expire or terminations are negotiated.
Office Depot said total company headcount would be reduced by 2,200 positions as a result of the closures.

S&K Menswear Will Rack Up 81 Store Closings in 6 Months, Come January
Richmond, VA-based S&K Famous Brands (dba S&K Menswear) launched a strategic turnaround initiative on July 25, 2008 that included a realignment of its store locations. The company said it would "move aggressively to pursue early lease terminations in locations
that no longer positively represent its brand strategy or do not generate an adequate financial return." S&K's new strategy was to locate exclusively at "attractive" malls and lifestyle centers in eastern states. At the time, the men's apparel retailer had 219 stores in 26 states.
Since, it has whittled down to 196 stores. Last week, S&K said it would close another 58 underperforming stores by the end of January. In addition, the company has put its headquarters up for sale with plans to downsize its corporate operations.

EZ Lube Files Bankruptcy, Selling Assets
Santa Ana, CA-based EZ Lube, LLC, an operator of express oil change auto service stations, filed Chapter 11 on Dec. 9, 2008. The company operates 82 locations in California and Arizona under banners EZ Lube and Xpress Lube-Tech and has nearly 1,000 employees.
  EZ Lube plans to utilize a $62.5 million loan to fund its operations during the bankruptcy process; but said it intends to sell off "substantially all" of its assets.

BTWW Retail Fully Liquidating; RCS Appointed to Dispose of 78 Leases
BTWW Retail, a western wear and accessories retailer that filed bankruptcy on Nov. 3, 2008, recently retained RCS Real Estate Advisors to dispose of the leases related to the 78 stores that remain in its portfolio. Now in the midst of a full-liquidation process, BTWW recently operated as many as 130 stores under banners Western Warehouse, Boot Town, Corral West Ranchwear, Western World, and Workwear Depot.

  Expect to see much more of this in the following months. Consumers do not have the money to spend, businesses have to close.

Technorati Tags: Layoffs,Retail,Closings,Bankruptcy,KB Toys,Office Depot,Economic News