Tough Times for Retailers: Whitehall Jewelers To Close 11 Arizona Stores - PhoenixCEOCFO.com

Tough Times for Retailers: Whitehall Jewelers To Close 11 Arizona Stores

Whitehall Jewelers filed Chapter 11 bankruptcy in June 2008 but it appears that the Chicago-based chain is liquidating. It's closing its 7 stores in Phoenix-area malls such as Chandler Fashion Center, Arrowhead, Fiesta, Superstition Springs, Paradise Valley, Scottsdale Fashion Center and Arizona Mills. Other retailers that have filed bankruptcy protection this year include Mervyn's, Linens-N-Things, Shoe Pavilion Inc, and Showcase Home Entertainment (part of Tweeter LLC). Mrs. Fields cookies recently emerged from a Chapter 11 bankruptcy filed in June 2008. Circuit City Stores Inc., suffering from declining sales, is closing 155 stores to prevent bankruptcy (13 in the Phoenix area). Tweeter, an electronics chain with about 94 U.S. stores, filed for Chapter 11 bankruptcy protection for the second time in two years.

Retailers are having a tough time with lower sales, increased competition and less credit. More retailers are expected to seek Chapter 11 bankruptcy to buy time with their creditors, but most will end up in Chapter 7 liquidation.

John Laub is the Chairman of the Phoenix CEO-CFO Group.

1. "Whitehall Jewelers to Close all Locations." Angelique Soenarie with help from Ryan Randazzo. The Arizona Republic. November 3, 2008.

2. "Stores Pulling the Plug. Electronics Retailers Circuit City, Tweeter Feel Economic Strain." Andrea K. Walker. The Baltimore Sun. November 4, 2008.

3. "Going out of Business a Sign of the Times." Cathryn Creno. The Arizona Republic. November 5, 2008.

4. www.whitehalljewellers.com