Quote:
Originally Posted by billethkid
One has to wonder what the real reason(s) are behind the increasing bankruptcy occurances of, once upon a time, very successful businesses.
Bankruptcy can be a financial strategy to the benefit of owners/shareholders/etc.
There is no more mystery to what is required of a business to remain competitive today than 25 or more years ago.
Some times management/owners are incapable of anticipating threats to longevity.
Other time some just do not want to do so and milk the business for personal gain until they go under.
Classic? A&P in business for 156 years....then shut er down in 2015. Makes no sense other than that was the strategy.
All depends upon the direction dictated by the ownership......OR NOT!
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There are a number of different reasons. In some businesses there was very little competition. When a company operated with virtually competition for a long period of time, they had no idea what to do when competition came.
Some companies made the mistake of diversifying to too great an extent and trying to become all things to all people.
Others just had bad business plans. New companies came up with more selection and lower prices. Older companies couldn't figure out how to to that. Everyone is competing with Wal-Mart these days. Big chains like that have much stronger buying power and can buy items for less money, sell them for less money and make more profit.
Retail is like everything else in life. Survival of the fittest will always apply. While some stores are going out of business other's are taking their place and thriving.
As these malls buildings are vacated other companies will fill them. Some malls will go completely under and something else will be built on the land. Free standing stores, office buildings, condominiums, or small housing developments will always be needed.