Out of Fashion: The Trouble With Tweens and Teens

Apparel retailers targeting tweens and teens are taking a big hit. While we have already seen filings from the likes of Cache, Wet Seal, dELiA*s and Deb Shops, this is likely just the beginning of a larger trend. Amid dwindling sales at many (but not quite all) tween and teen-focused chains, the sector is positioned for further consolidation and additional filings.
In the heyday of the […]

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Seeking Redemption: How Gift Cards Benefit Creditors in a GOB

U.S. consumers love gift cards. According to research firm CEB Tower Group, Americans loaded approximately $124 billion onto gift cards in 2014 alone. However, it is easy to see why, in the ABL world, the estate tends to regard gift cards as nothing to celebrate. After all, from the unsecured creditors’ perspective, accepting gift cards during the course of a liquidation sale is tantamount to […]

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Finding the Sweet Spot in Retail Dispositions

Baseball players often wax poetic about the “sweet spot”: that point where the bat’s barrel meets the ball and the result is a perfectly struck shot rising gloriously away from the batter’s box. You don’t need to watch it. Flip the bat to the batboy and start your trot; you know the ball’s gone. Liquidators also speak of the sweet spot—that point in a disposition […]

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Using Social Media to Reduce Marketing Costs in Dispositions

In the past, appraisers used basic principles such as comparative sales and market trends to place values on a collective of assets. Then, liquidators entered the picture, and the Net Orderly Liquidation Value (NOLV) model moved things in a far more sophisticated direction, with the actual costs associated with selling through those assets becoming the great variable. Achieving the highest NOLV means creating financial models […]

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Brands & IP: A cautionary tale

When Ron Johnson took the helm at J.C. Penney, he told The Wall Street Journal about his high hopes for the chain. “The department store is king of the hill in most countries I go to,” he said. “That’s what we want to achieve at J.C. Penney.” Unfortunately, the maestro behind Apple’s amazingly profitable stores was less successful, to put it mildly, in his 17 […]

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