Title: Which Stores are Going Out of Business in 2019 and Why? - South Florida Reporter
Headings: Which Stores are Going Out of Business in 2019 and Why?
Which Stores are Going Out of Business in 2019 and Why?
Changing Tastes Determine Which Stores are Going Out of Business
Other Factors in the Retail Apocalypse
Small Retail Retrenches
When You’re Not the CEO
Who We Are

Content: Other Factors in the Retail Apocalypse
Changing tastes in the market are one factor, Amazon is another, but the elephant in the room is private equity and its impact on the retail ecosystem. Private equity is the invisible factor in determining which stores go out of business. The practices of private equity cause even highly successful chains such as Toys R Us to go into a tailspin, and then close having been squeezed for every penny. Private equity was supposed to be the savior of numerous retail concerns, but after being purchased by private equity, stores such as David’s Bridal, Toys R Us, Claire’s and others instead found themselves burdened with insurmountable debts, stagnating sales, and finally facing liquidation and a place on Wikipedia’s listing of defunct stores. The most glaring example is the acquisition and slow dismantling of Sears via Eddie Lampert – a man credited with genius based on the success of his hedge fund. Merged with Kmart, the new Sears Holdings Company was supposed to be a super retailer that would carve out a niche between Wal-Mart, Target, and Amazon. Instead, under the new management, Sears began cutting costs to improve profits, buying back stock boosted the share price, and spinning off and selling the profitable parts of the corporation such as Land’s End and Craftsman Tools. In short, Eddie Lampert owned the company, ran the company, was the company’s biggest creditor, and purchased many of the assets formerly owned by the company. Now his hedge fund has purchased the shattered shell of Sears out of bankruptcy, though the lawsuits are still flying thick and fast. Look up “ self-dealing .”