It virtually goes without saying that businesses without an online presence may not last long. New Hampshire shoppers are increasingly buying things online; from clothes to books to food to toys, online shopping can save time and money. This is good news for stores that have an online presence, but for those brick-and-mortar stores who just don’t have the ability to sell merchandise online, business bankruptcy may be on the horizon.
It is important to note that any small business owner who is curious about filing for bankruptcy should reach out to an experienced bankruptcy attorney to find out more. If it is done properly, the business may be able to emerge from bankruptcy as a viable business. Just because a business has declared bankruptcy does not mean that it will automatically fail.
Unfortunately for discount store Loehmann’s, numerous trips to bankruptcy court took their toll and the Northeast staple is closing its doors for good. It was in 1999 that the company first declared Chapter 11 bankruptcy. It had to declare bankruptcy two more times before a majority of the company was purchased by a hedge fund for $80 million. Loehmann’s is not unique, however, there have been a number of other high-end discount stores who have gone out of business recently.
Again, one of the biggest reasons these companies were in trouble was the shift toward online shopping. Shoppers these days are in a hurry and want to save time and money, so they log onto Amazon or some of the bigger department stores to quickly find and buy what they need. It is highly likely that online shopping has changed traditional profit margins in New Hampshire businesses, too.
Source: Upstart Business Journal, “Lessons from Loehmann’s liquidation,” Teresa Novellino, Jan. 27, 2014