This is a prime example of what I mentioned before about retailers not responding to demand. They haven’t edited their merchandise mix in decades. It is the same today as it was in 2000, and 1990, and 1980. Their formula is the same: viscose sweaters (including their signature shimmery metallic, mustardy fall and pastel spring color palettes), synthetic fiber suits, italian “look” shoes with the pointy toes that have since gone out of vogue, an array of $55 silk ties, and $48.50 belts with ornate accoutrements.

Wake up Bachrachs. We appreciate that you “know your customer”, but even a niche retailer needs to mix things up a bit and adjust their assortment to meet the changing styles of the demographic to which it caters.

Anyone else agree with the above assessment?

It went out of business as a result of British-owned BATUS absorbing it. They consolidated it with another one of their holdings, Marshall Field’s, and then sold Field’s to Dayton-Hudson (now Target Corp.), who the sold it to defunct May Company, who then sold it to Macy’s, who converted Field’s to the Macy’s nameplate. Macy’s is still up and running. So, Gimbels wasn’t a “failure” in the traditional retail sense. It didn’t close because of deteriorating sales. BATUS’ move to shutter the chain was mysterious to many.

If Sears can pull it together, they can make this concept work for them. They definitely need something to set themselves apart from other retailers, as their appliance sales have suffered declines and have eroded over the past decade. Similarly, their Craftsman brand has to be hurting from big box retailers like Home Depot capturing dollars from the DIY’ers.

April 1, 2009

WILMINGTON, Del. – A Delaware bankruptcy judge has agreed to the liquidation of Fresno, Calif.-based Gottschalks, which operates 55 department stores and three specialty apparel stores in six states.

Judge Kevin Carey was to sign the liquidation order Wednesday afternoon, and going-out-of-business sales could start as early as Thursday.

A Gottschalks attorney said two groups bid for 12 hours on Tuesday for the right to conduct the liquidation. The winner guaranteed a 98 percent return on the cost of inventory, valued at about $106 million, and more than $3 million for fixtures and equipment.

Under the sale order, Estee Lauder cosmetics will be included in store closing sales for six weeks. After that, Estee Lauder will be allowed to buy back inventory at 74 percent of retail cost.

By ALEX VEIGA (AP Real Estate Writer)

March 17, 2009

LOS ANGELES – Troubled shopping mall owner General Growth Properties Inc. said lenders have waived default on a $2.58 billion credit agreement until the end of the year, allowing the company some time to regain its financial footing.

But its Rouse Company unit extended the expiration date on a request for forbearance on another more than $2 billion worth of debt, after it failed to convince enough of its bondholders to give it more breathing room.

General Growth said it has received enough consents from lenders under its 2006 corporate credit agreement, which includes a $1.99 billion term loan and $590 million revolving credit facility, to extend a forbearance agreement currently in place through the end of 2009.

But the Chicago-based real estate investment trust, struggling to stave off a Chapter 11 bankruptcy filing, also had asked holders of $2.25 billion worth of bonds last week to put off calling in payments until the end of this year while it tries to refinance its debt load.

That consent solicitation, launched by Rouse, was set to expire at 5 p.m. EDT on Monday, but the company said it has extended the offer until 5 p.m. Friday because it only received enough consents from holders of its 7.20 percent notes due 2012 and 6.75 percent notes due 2013.

General Growth needed 90 percent of holders of its 3.625 percent and 8 percent notes due this year to agree to not demand payment of principal and interest on the debt for the rest of 2009. Interest on the bonds would still accrue. It also required 75 percent of holders of its 7.20 percent notes due in 2012 and 5.375 percent and 6.75 percent notes due in 2013 to agree, in order for the forbearance agreement to take effect.

But by Monday’s deadline, only about 42 percent of the holders of its 3.625 percent notes and just 59 percent of its 8 percent noteholders had agreed to the terms. It nearly cleared the hurdle with holders of its 5.375 percent notes, coming up just 6 percent short.

Meanwhile, a total of $395 million in unsecured bonds issued by the unit came due Sunday. It’s unclear whether or not those lenders will call in the debt, which could force General Growth into bankruptcy, given its lean cash reserves. Another $200 million is set to come due on April 30.

Calls to spokesman Tim Goebel were not immediately returned Monday.

General Growth, which has a stake in more than 200 malls across 44 states, has seen its fortunes sour as the U.S. economy worsened.

The company has suspended its dividend, halted or slowed nearly all development projects and cut its work force by more than 20 percent. Its stock has been pummeled, dropping from above $44 a share to well under $1 in the past 12 months.

But the main problem has been a scarcity of credit for refinancing the billions in debt it took on during an aggressive expansion effort that included the $7 billion purchase of a competitor in 2004.

In recent months, the company has sought to get lenders to rework its debt terms but warned last fall it might have to seek bankruptcy protection.

General Growth has said it has $1.18 billion of past due debt and about $4.09 billion worth of debt that could be called in. It also has an additional $1.44 billion worth of consolidated mortgage debt and about $595 million of unsecured bonds scheduled to mature during 2009 that remains to be refinanced, repaid or extended.

Buckle shines in a tough retail environment

John Keenan

March 12, 2009

Mar. 12–The Buckle is still shining.

The Kearney, Neb.-based retail clothing chain announced that net income for the fourth quarter ending Jan. 31, 2009, increased 18 percent. Income for all of 2008 increased 39 percent.

“We are pleased with our results for both the quarter and for the fiscal year, and feel that both our people and our product have us well positioned for continued success in 2009,” Dennis Nelson, president and chief executive, said during a conference call Wednesday.

The higher quarterly earnings came on a 22 percent increase in sales. For the year, sales were up 28 percent, to a record $792 million.

Fourth-quarter profit rose to $34.3 million, 74 cents a share, compared with $29.1 million the previous year. For the year, income increased to $104.4 million, compared with $75.2 million for fiscal 2007.

Denim continued to be the fabric of success for the Buckle, accounting for approximately 43.5 percent of sales for the quarter and 41.5 percent of sales for the year.

Fourth-quarter sales of men’s merchandise increased approximately 14 percent, with denim, woven and knit shirts and outerwear being highlights for the stores, according to Nelson. For the fiscal year, sales of menswear increased approximately 26 percent.

Fourth-quarter women’s merchandise sales were up approximately 28 percent, with denim, knit tops, outerwear, accessories and footwear being highlights. For the year, sales of women’s merchandise were up about 30 percent, Nelson said.

The chain plans to continue its steady growth.

During the fourth quarter, the chain opened four new stores and completed three “substantial” remodels, Nelson said.

“We anticipate opening 21 new stores during fiscal 2009,” he said.

A store opened in Buffalo, N.Y., last month, and a store scheduled to open in Mays Landing, N.J., later this year will put the chain in 41 states.

The Buckle now has 391 stores in 40 states.

BloombergFor more Business, visit NYPOST.COM

March 4, 2009

General Growth Properties, the mall owner at risk of bankruptcy, received offers of almost $400 million for properties including Boston’s Faneuil Hall and New York’s South Street Seaport, according to a person familiar with the matter.

The properties – including Harborplace & the Gallery in Baltimore – were put on the block in December. More than 10 offers were received, including offers for the entire portfolio and for individual properties, said the person, who asked not to be identified because the sales process isn’t public.

General Growth is negotiating with lenders and selling real estate to remain solvent. The company last week said it has $1.18 billion in past-due debt, and warned again it may be forced into bankruptcy.

The person familiar with the sale wouldn’t identify the bidders, which include private groups, buyers from overseas and real-estate developers. The highest bids for each property total almost $400 million, the person said.

General Growth spokesman Tim Goebel declined to comment.