Written by Craig D. Robins, Esq.
New York was a difficult year for Long Island retailers and there have been some casualties. Some of the more notable retailers who have filed for bankruptcy protection during the past year include:
The national consumer electronics chain with many stores on Long island couldn’t even last until Christmas and filed for Chapter 11 reorganization in November 2008. It is liquidating several of its Long Island stores.
National Wholesale Liquidators
Based in West Hempstead, Nassau County, they filed for bankruptcy protection in November 2008. They have a number of stores in Nassau and Suffolk County.
They filed for bankruptcy protection just two weeks before Christmas and they are currently liquidating their Long Island stores.
Linens ‘n Things
They filed for bankruptcy protection in May 2008. They began liquidation sales in October after failing to find a buyer.
Steve & Barry’s
The discount apparel merchant filed for Chapter 11 bankruptcy protection in July 2008, then later determined that it would liquidate.
The publishing company that sold Newsday to the Dolan family in the early part of 2008 filed for Chapter 11 bankruptcy protection in December 2008. Declining ad sales from retail merchants was a major factor leading to their financial difficulties.
General Motors, Chrysler and Ford
The big three automakers did not file bankruptcy but came pretty close to it towards the end of 2008.
What’s Ahead for 2009?
Bankruptcy attorneys predict that there will be a rash of additional retail bankruptcies in 2009. Unfortunately for individuals, when a store closes, employees are laid off, and suppliers are also hurt, leading to a ripple effect that will certainly trigger more personal bankruptcies as well.