The Official "Business Destroyed By Lockdown" Thread

hoosierdoc

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I think it's appropriate that we make a list of businesses we know that have been shuttered permanently due to our response to COVID

Stacked Pickle - and I'm tired of people saying "I didn't like their food anyway". who cares. it was a successful business that employed a lot of people. now it's gone

several others I have heard that are not public yet.

what else is closing?
 

BGDave

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I've always said that not finding butt wipe is way better than not being able to afford TP. It's always the little guys that get hurt.

BTW- Did you guys know that dog groomers are shut down? Seriously, dog groomers. My last hope for a hair cut.
 

BehindBlueI's

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Stacked Pickle - and I'm tired of people saying "I didn't like their food anyway". who cares.

I don't eat out much but I liked the Stacked Pickle.

JC Penny is going to file for bankruptcy but blaming the Corona response is akin to blaming the sinking of the Titanic on the last couple gallons of water to enter the hull. It was going down anyway.


From their most recent 10-K:


As of February 1, 2020, we have $3.721 billion in total indebtedness and we are highly leveraged. Our level of indebtedness may limit our ability to obtain additional financing, if needed, to fund additional projects, working capital requirements, capital expenditures, debt service, and other general corporate or other obligations, as well as increase the risks to our business associated with general adverse economic and industry conditions. Our level of indebtedness may also place us at a competitive disadvantage to our competitors that are not as highly leveraged. In addition, the future limitations on tax deductions for interest paid on outstanding indebtedness as a result of the Tax Cuts and Jobs Act enacted in December 2017 (the “Tax Act”) could have a material adverse effect on our results of operations and liquidity.


We are required to make quarterly repayments in a principal amount equal to $10.55 million during the seven-year term of the real estate term loan credit facility, subject to certain reductions for mandatory and optional prepayments. In addition, we are required to make prepayments of the real estate term loan credit facility with the proceeds of certain asset sales, insurance proceeds and excess cash flow, which could reduce the cash available for other purposes, including capital expenditures for store improvements, and could impact our ability to reinvest in other areas of our business.




We currently operate with significantly fewer individuals than we have in the past who have assumed additional duties and responsibilities, which could have an adverse impact on our operating performance and efficiency. Negative media reports regarding the Company or the retail industry in general, as well as uncertainty due to store closings or future Company performance, could also have an adverse impact on our ability to attract, retain and motivate our employees. If we are unable to retain, attract and motivate talented employees with the appropriate skill sets, we may not achieve our objectives and our results of operations could be adversely impacted


Ok, so you are deeply in debt and can't hire and retain sufficient talent. That's an issue. But are you at least making money?




We expect our ability to generate cash through the sale of non-operating assets to diminish as our portfolio of non-operating assets decreases. In addition, our recent operating losses have limited our capital resources. Our ability to achieve our business and cash flow plans is based on a number of assumptions which involve significant judgments and estimates of future performance, borrowing capacity and credit availability, which cannot at all times be assured. Accordingly, there is no assurance that cash flows from operations and other internal and external sources of liquidity will at all times be sufficient for our cash requirements.


Ah, so not really. How much of an operating loss? Let me check 2019 full year financials and..


For the year, the Company’s net loss was $268 million, or ($0.84) per share, compared to a net loss of $255 million, or ($0.81) per share, last year.




Ok, that looks bad. Is the ship turning around, though? Are sales trending the right way? Also per 2019 end of year financials:


Comparable store sales decreased 7.7%
Adjusted comparable store sales decreased 5.6%




Ah, ok, what's your plan?


Maintaining and continually enhancing the value of our Company and our private brand merchandise is important to the success of our business. The value of our private brands is based in large part on the degree to which customers perceive and react to them. The value of our private brands could diminish significantly due to a number of factors, including customer perception that we have acted in an irresponsible manner in sourcing our private brand merchandise, adverse publicity about our private brand merchandise, our failure to maintain the quality of our private brand products, the failure of our private brand merchandise to deliver consistently good value to the customer, or the failure to protect the image associated with our private brands.


Show of hands, folks: Who here has a positive opinion of JC Penny private label products? Positive enough you would actively drive to/log on to JC Penny to intentionally seek it out to purchase. Ok. If you have a hand up, if you are over 55 put your hand down. Anyone still have a hand up? Right. So that's not going to work. What else do you have?


[we need more customer traffic so...] Customer traffic depends upon our ability to successfully market compelling merchandise assortments, present an appealing shopping environment and experience to customers, and attract customers to our stores through omnichannel initiatives such as buy-online-pickup-in-store programs. Our strategies focus on increasing customer traffic and improving conversion in our stores and online; however, there can be no assurance that our efforts will be successful or will result in increased sales or margins. Further, costs to drive online traffic may be higher than anticipated, which could result in lower margins, and actions to drive online traffic may not deliver anticipated results


We believe it is critical that we deliver a superior omnichannel shopping experience for our customers through the integration of our store and digital shopping channels. Omnichannel retailing is rapidly evolving and we must anticipate and meet changing customer expectations. Our omnichannel strategies include our ship-from-store and buy-online-pickup-in-store programs. In addition, we continue to explore ways to enhance our customers’ omnichannel shopping experience, including through investments in IT systems, operational changes and developing a more customer-friendly user experience.


Another show of hands, how many of you shop JC Penny's website and are interested in buying online then driving to the store? Ok. Now keep your hand up if you'll browse the store after you pick up the thing you ordered online? Right, because if you wanted to browse you'd have just went to the store to begin with. So that's not going to work.


JC Penny is a dead brand. Some names continue to have a cultural cache even once the company itself is dead. Indian motorcycles or Polaroid cameras, for example. There's an association with them that outlives the business and can be revived with a new angle for a new audience. JC Penny isn't one of them, it's a burden. The name itself is worthless because the associations with it aren't quality or cool, they are "grandparent-y". Building a strategy around a private label with that sort of baggage? Good luck. Trying to interest anyone, but especially younger online shoppers, with "omnichannel experience" which means "higher prices with more effort required on your part"? Good luck.
 

indykid

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Affecting J.C. Penny is being an anchor store in a shopping mall that people no longer want to go to. There was a time when it was sort of fun to go to the mall and walk around window shopping and maybe buy something. These days many malls are in the same league as someone with Covid-19, stay away.
 

Super Bee

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Logans Steakhouses closed nationwide.

Don Halls Guesthouse in Fort Wayne. This was a large hotel/conference center/restaurants which just closed. There rooms were booked every weekend for wedding receptions. I can only imagine how many brides are now rushing around trying to find another place for their reception.
 

BehindBlueI's

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Logans Steakhouses closed nationwide.

That sucks, I always take my dad there when we go visit Indiucky.

That said, their parent company filed for bankruptcy before the pandemic related closure and was already looking for a bidder on their assets. This just sped up the inevitable and probably made those assets less valuable.
 

BehindBlueI's

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So here's a question. Do you think Las Vegas will survive in anything like it's previous form?

Housing sales are plummeting. Even if things start to reopen, will there be workers interested in returning? Can the city maintain it's infrastructure without the income of tourism? Will people go back to Vegas even when things are 'normal' again?
 

GodFearinGunTotin

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I don't eat out much but I liked the Stacked Pickle.

JC Penny is going to file for bankruptcy but blaming the Corona response is akin to blaming the sinking of the Titanic on the last couple gallons of water to enter the hull. It was going down anyway.


From their most recent 10-K:










Ok, so you are deeply in debt and can't hire and retain sufficient talent. That's an issue. But are you at least making money?







Ah, so not really. How much of an operating loss? Let me check 2019 full year financials and..







Ok, that looks bad. Is the ship turning around, though? Are sales trending the right way? Also per 2019 end of year financials:







Ah, ok, what's your plan?





Show of hands, folks: Who here has a positive opinion of JC Penny private label products? Positive enough you would actively drive to/log on to JC Penny to intentionally seek it out to purchase. Ok. If you have a hand up, if you are over 55 put your hand down. Anyone still have a hand up? Right. So that's not going to work. What else do you have?








Another show of hands, how many of you shop JC Penny's website and are interested in buying online then driving to the store? Ok. Now keep your hand up if you'll browse the store after you pick up the thing you ordered online? Right, because if you wanted to browse you'd have just went to the store to begin with. So that's not going to work.


JC Penny is a dead brand. Some names continue to have a cultural cache even once the company itself is dead. Indian motorcycles or Polaroid cameras, for example. There's an association with them that outlives the business and can be revived with a new angle for a new audience. JC Penny isn't one of them, it's a burden. The name itself is worthless because the associations with it aren't quality or cool, they are "grandparent-y". Building a strategy around a private label with that sort of baggage? Good luck. Trying to interest anyone, but especially younger online shoppers, with "omnichannel experience" which means "higher prices with more effort required on your part"? Good luck.

That’s a shame about JCP. My dad worked for them back in their heyday. I remember when it was them vs. Sears pretty much. Bedford has a small one and I went in there a month or so ago looking for shirts. That place was a ghost town. How it stays open, I don’t know.

But...like how the CDC is counting deaths, we should use their logic and count JCP’s death (assuming this will be the end of them) due to CV-19.
 

GodFearinGunTotin

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I saw where the Golden Corral will be opening back up their dining room this week. As a place whose model is based off a huge buffet serving area, I have to imagine that will slow them down quite a bit as so many people are afraid to even touch a shopping cart someone else used, much less a serving spoon and food someone else has shed germs all over.
 

BehindBlueI's

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That’s a shame about JCP. My dad worked for them back in their heyday. I remember when it was them vs. Sears pretty much. Bedford has a small one and I went in there a month or so ago looking for shirts. That place was a ghost town. How it stays open, I don’t know.

But...like how the CDC is counting deaths, we should use their logic and count JCP’s death (assuming this will be the end of them) due to CV-19.

Sears can't be far behind. Another fuddy-duddy brand and one that's sold off most of their valuable assets. They sold Craftsman for $900 million dollars a few years ago, yet that cash injection didn't help them. Sales are declining year after year. Assets are trending down year after year and, IMO, are artificially high due to their valuation of intangibles. Losses are nearly $400 million a year. Debt service alone is $539 million a year and total debt is roughly $5 BILLION dollars.
 

MarkC

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That’s a shame about JCP. My dad worked for them back in their heyday. I remember when it was them vs. Sears pretty much. Bedford has a small one and I went in there a month or so ago looking for shirts. That place was a ghost town. How it stays open, I don’t know.

But...like how the CDC is counting deaths, we should use their logic and count JCP’s death (assuming this will be the end of them) due to CV-19.

I think COVID-19 may not have killed JCP directly, but based on the info BBI extracted, it seems there were in dire straits anyway, and COVID just sharply increased the likelihood and the timing of their death.

So, yeah, COVID-19! :):

A couple of salons Mrs. MarkC patronizes are reopening soon. Unfortunately, one is brand new and the aggressiveness and tone of the "mandatory" "no exceptions" requirements on their customers, in my opinion, reduces their chances of success.

The other two, I guess we'll have to see. All very small, locally owned and operated.
 

Super Bee

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Sears can't be far behind. Another fuddy-duddy brand and one that's sold off most of their valuable assets. They sold Craftsman for $900 million dollars a few years ago, yet that cash injection didn't help them. Sales are declining year after year. Assets are trending down year after year and, IMO, are artificially high due to their valuation of intangibles. Losses are nearly $400 million a year. Debt service alone is $539 million a year and total debt is roughly $5 BILLION dollars.


The Sears in Fort Wayne closed last year and they tore the building down within a couple months. It was a huge store with a very large automotive center.
 

femurphy77

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I think it's appropriate that we make a list of businesses we know that have been shuttered permanently due to our response to COVID

Stacked Pickle - and I'm tired of people saying "I didn't like their food anyway". who cares. it was a successful business that employed a lot of people. now it's gone

several others I have heard that are not public yet.

what else is closing?

The Pickle's closed?


Damn, they had a great Reuben!:xmad:
 

JettaKnight

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Don Halls Guesthouse in Fort Wayne. This was a large hotel/conference center/restaurants which just closed. There rooms were booked every weekend for wedding receptions. I can only imagine how many brides are now rushing around trying to find another place for their reception.

That place was totally looking run down, so having it completely close isn't a shock.


Caliente is not reopening. Now that is a shock since their business was doing great in their new location. But, Gus and Yaly just don't have it in them to weather the storm. It's unfortunate because I don't know any harder working restaurateurs.
 

BehindBlueI's

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The Sears in Fort Wayne closed last year and they tore the building down within a couple months. It was a huge store with a very large automotive center.

I remember when Sears was an everything store to lots of people. Clothes, tools, auto maintenance, etc. Now their stock hasn't been above $1/share for nearly 2 years. It's a dead brand just limping along shedding assets to try and minimize losses to investors at this point.
 

GodFearinGunTotin

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Sears can't be far behind. Another fuddy-duddy brand and one that's sold off most of their valuable assets. They sold Craftsman for $900 million dollars a few years ago, yet that cash injection didn't help them. Sales are declining year after year. Assets are trending down year after year and, IMO, are artificially high due to their valuation of intangibles. Losses are nearly $400 million a year. Debt service alone is $539 million a year and total debt is roughly $5 BILLION dollars.

For all intents and purposes, it’s already gone. There’s no store around us anymore. The small hometown version closed down here a year or so ago. I think the closest one to us is in Jasper now.
 

JettaKnight

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I remember when Sears was an everything store to lots of people. Clothes, tools, auto maintenance, etc. Now their stock hasn't been above $1/share for nearly 2 years. It's a dead brand just limping along shedding assets to try and minimize losses to investors at this point.

They everything, but really did nothing well.


In Ft. Wayne, that location has been rebuilt, but I haven't been there to see what.
 

GodFearinGunTotin

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I remember when Sears was an everything store to lots of people. Clothes, tools, auto maintenance, etc. Now their stock hasn't been above $1/share for nearly 2 years. It's a dead brand just limping along shedding assets to try and minimize losses to investors at this point.

I know our Lowes has pretty much replaced Craftsman stuff for their Kobalt stuff. I think they still sell it but the red stuff is seemingly everywhere now.
 
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