Retailers have come under growing pressure as consumers cut their spending because of the drop in home values, worries about job security, eroding credit and higher food costs. Experts expect a spate of bankruptcies after holiday sales are tallied and weaker players become unable to survive.
Among notable retailers who have filed for bankruptcy protection since May:
- Circuit City Stores Inc., the nation’s second-biggest electronics retailer, filed for bankruptcy protection last month as it faced pressure from vendors and consumers who aren’t spending. It plans to keep operating.
- KB Toys filed for bankruptcy protection two weeks before Christmas and has begun to liquidate its stores and plans to shutter operations. It is the second time KB Toys filed for bankruptcy protection; the first was in January 2004.
- Parent Co., the operator of online toy seller etoys.com, filed for Chapter 11 bankruptcy protection this week and said it will consider selling some or all of its operations.
- Linens ‘n Things filed for bankruptcy protection in May. It announced liquidation sales at its stores in October after failing to find a buyer that wanted to operate the company.
- Steve & Barry’s filed for Chapter 11 bankruptcy protection in July, then later abandoned plans to keep stores open and said it would liquidate.
- Mervyns LLC filed for Chapter 11 bankruptcy protection in July and said it planned to begin liquidation sales at its remaining stores and wind down its business.