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Quote:Some banks are displaying a lack of confidence in catalog and multichannel retail operations. Several multichannel merchants have closed or warned that they may have to cease operations after financing has dried up.

In the most recent example, cata­loger Red Envelope said in a filing with the Securities and Exchange Commission on March 31 that it had been informed by Wells Fargo Retail Finance LLC that the bank would no longer provide the multichannel merchant with the ability to draw on its credit line. As a result, the nine-year-old gifts cataloger said it has insufficient funds to continue operations as a going concern and is currently engaged in discussions with two potential acquirers.

“Banks are getting very skittish, particularly with retail consumer businesses that did not perform very well last year in the fourth quarter,”...

full article: http://www.dmnews.com/Banks-not-bailing-...le/108977/

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Quote:Credit Crunch Hits Offline Retailing

I have a feeling that some of the blank faces I was seeing in my audience at Shop.org last September when I mentioned the unthinkable ‘R’ word have finally seen the light. If $100/barrel oil translating to $4/gallon gasoline hasn’t provided the wake up call, then I have a feeling the changing face of offline retailing has. Truth is that gas and food (prices also rising) come first, which means that clothing and furniture merchants are not having the best days.

full article: http://www.comparisonengines.com/2008/04...retailing/

Quote:Retailing Chains Caught in a Wave of Bankruptcies.

The consumer spending slump and tightening credit markets are unleashing a widening wave of bankruptcies in American retailing, prompting thousands of store closings that are expected to remake suburban malls and downtown shopping districts across the country.

Since last fall, eight mostly midsize chains — as diverse as the furniture store Levitz and the electronics seller Sharper Image — have filed for bankruptcy protection as they staggered under mounting debt and declining sales.

But the troubles are quickly spreading to bigger national companies, like Linens ‘n Things, the bedding and furniture retailer with 500 stores in 47 states. It may file for bankruptcy as early as this week...

full article: http://www.nytimes.com/2008/04/15/busine....html?_r=1&ex=1365912000&en=7c3172beccecb646&ei=5089&partner=rssyahoo&emc=rss&oref=slogin