… CIT Group’s Chapter 11 bankruptcy is a source of angst for the nation’s small and mid-sized retailers, many of whom rely on the lender for credit. CIT Group insists that its bankruptcy will not cause disruptions for the already instable retail industry which has watched revenues drop since the financial crisis began.

The article said:

“…retail groups and analysts warn that the case will likely add to the instability in the retail sector. CIT is an important source of capital, …

Tags: Bankruptcy CIT Retailers

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… in the Dallas Morning News, a survey released by the Hay Group revealed that about 57 percent of retailers are planning job losses for the 2009 holiday season, while another 40 percent said they would hire fewer workers.

The article said:

“Last year, retail employment grew by just 384,300 from October through December, according to the Bureau of Labor Statistics. That compared to 720,800 retail workers hired during the 2007 holiday months. The 384,300 seasonal workers hired in 2008 …

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According to an article in Reuters, many retailers are on the brink of Chapter 11 bankruptcy and this year’s back-to-school and Christmas season may send them over the edge.

The article said

“I expect that the numbers of bankruptcies are going to increase throughout the year as retailers now have to start spending money to increase inventory for Back-to-School and the Christmas season and they don’t have the necessary …

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U.S. retailers experienced 66,600 jobs losses in December closing out what had been the worst year for retail workers since 1939 when the government began tracking work in this sector. With over 522,000 job losses in 2008 workers in the retail sector are in the fight of their lives as many of the biggest companies plan to send more workers to the unemployment line as they struggle to recover from …

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Many retailers are recovering, but there are some retailers still struggling.

 

In 2009 there were a staggering number of retailers that filed for bankruptcy.  Retailers of all sizes saw their revenue plunge and their debts spiral out of control.  Now, the industry as a whole is seeing a recovery, but there are still companies out there that are struggling. Here is a list of four companies …

… fees are increasing or being implemented for the first time on many credit cards.  Many retailers such as Ann Taylor and Victoria Secrets have already added fees.

Raised interest rates on variable credit cards and newly issued credit cards.  The average interest rate offered for a new credit card account increase from 10.7 percent to 13.6 percent in just one year. Many credit card companies fear they won’t be able to raise their interest rates once they secure the customer so …

… come out and they’re indicating that most consumers are clamping down on spending causing many retailers to move closer to Chapter 11 bankruptcy.

Retail sales unexpectedly fell in December, leaving 2009 with the biggest yearly drop on record… The Commerce Department said Thursday that retail sales declined 0.3 percent in December compared with November, much weaker than the 0.5 percent rise that economists had been expecting. Excluding autos, sales dropped by 0.2 percent, also …

… online banking? You could be charged $1 to receive your credit card statement via mail.  Over 90 retailers who issue store credit cards Dallas-based Alliance Data Systems have decided to charge customers $1 per statement if they receive their credit card bill via mail.  Retailers such as Ann Taylor, Victoria’s Secret and Bealls department store are amongst those retailers implementing the $1 fee to offset the costs of the Credit Card Act. Many consumers advocates are against the fee and …

… foreclosure, many retail spaces are facing a large amount of vacancies because several large box retailers such as Circuit City have filed bankruptcy and gone out of business in 2009.  Dependent on the revenue of their largest renters, many retail spaces have succumbed to foreclosure and some analysts predict we may see even more commercial real estate foreclosures in 2010.

… the United States’ total economic activity, the rapid decline in spending has hurt everyone from retailers to banks.  Many consumers have been hesitant about spending because of rising unemployment which has reached 10 percent and the reluctance of banks to extend or even keep open many existing lines of consumer credit.

In September, borrowing for revolving credit, including credit cards, fell at an annual rate of 13.3 percent, a record 12th consecutive decline. Borrowing for …

… borrowers might be forced to find financing elsewhere which could prove nearly impossible. Many retailers are jittery, some even considering using as much of their credit lines as possible which could in affect put more pressure on this nearly bankrupt lender.

… Star-Telegram, as more business face the possibility of bankruptcy because of falling revenue, retailers around the country are following the marketing trend created by the federal government–”cash for clunkers” type sales gimmicks are being offered for just about any type of product you can imagine.

The article said:

“Cash for Clunkers program, offering trade-in deals on furniture, computers, appliances, hearing aids and just about every other item that can be sold…Their …