Business and industries change over time, that is true.
Business and industries change over time, that is true. But I note this particular sentence about the two chains that have declared bankruptcy:
The two companies carry enormous debt loads, the result of management by private equity firms
Gee, that sounds awfully familiar.
https://www.washingtonpost.com/news/wonk/wp/2018/03/22/the-amazon-whole-foods-era-of-grocery-just-claimed-its-first-victims/?utm_term=.2d941cf9c0db
https://www.washingtonpost.com/news/wonk/wp/2018/03/22/the-amazon-whole-foods-era-of-grocery-just-claimed-its-first-victims/?utm_term=.2d941cf9c0db
The two companies carry enormous debt loads, the result of management by private equity firms
Gee, that sounds awfully familiar.
https://www.washingtonpost.com/news/wonk/wp/2018/03/22/the-amazon-whole-foods-era-of-grocery-just-claimed-its-first-victims/?utm_term=.2d941cf9c0db
https://www.washingtonpost.com/news/wonk/wp/2018/03/22/the-amazon-whole-foods-era-of-grocery-just-claimed-its-first-victims/?utm_term=.2d941cf9c0db
One thing about this that I will be watching closely is that, while Toys R Us is closing all its stores and is probably down for the count, Winn-Dixie may be able to reorganize and continue beyond bankruptcy. Being able to compete with the internet is going to be a thing, but people will always need groceries. Even with remote shopping, there's still a need for stores to be available, relatively locally, and (probably) most people are still going to want to pick out their own food.
ReplyDeleteWinn Dixie has been getting clobbered in New Orleans by both the super-national chains like WalMart and the local chains like Rouses, and the quality of their product has suffered as a result. Honestly the only reason I'll be sad to see them go is that there's no Rouses near where I currently live; Winn Dixie is the only convenient store nearby.
ReplyDeleteWith a little luck, they may not close your store, particularly if there is little competition in the area. It's also possible that they could reopen post bankruptcy, but that seems less likely.
ReplyDeleteIsn’t it possible that other chains could simply take over locations, as well?
ReplyDeleteUnlikely, based on generalized observation of past patterns. When it becomes just a question of money, areas get completely abandoned. It even happens in areas that aren't poor, per se, just not profitable enough.
ReplyDeleteF-L Silver still, though, the locations per se — at least some of them — do seem to be profitable, and it’s mainly the debt load of the parent companies that is killing them.
ReplyDelete(I mean, that’s the other business model of vulture capitalism — buy assets at pennies on the dollars from distressed companies and leave the debt holders in the lurch with the bankruptcy.)
ReplyDelete