Friday, March 6, 2009

Many stores today are stuggling with business due to the decling of the economy. Stores like Sharp, Claire's, Goody's, and more are all dealing with the hardship of keeping up there business. Many of the businesses filed for bankruptcy or completely shut down their stores.

Linens N' Things filed for chapter 11 backruptcy in May 2008. Which means when a business is unable to service its debt or pay its creditors, the business or its creditors can file with a federal bankruptcy court for protection under either Chapter 7 or Chapter 11. In Chapter 11, most of the time the debtor remains in control of its business operations as a debtor in possession and is subject to the oversight and jurisdiction of the court. After nobody was able to rescue the home decor shop they are now going out of business. "It ultimately collapsed amid downturns in the housing market and the larger economy in general." - This is very understandable. People today, with the economy pushing itself futher into a recession, nobody is wanting to purchase a home. As stated about the housing market is down. Linens N' Things sold things such as sheets, pillows, designer bedding, bath accessories, etc. Since fewer people are buying homes today there is nothing to decorate or they either want to spend money on the neccessities. Like why fix something thats not broken, why bye somethine new if you don't really need it. This article says "Even if we never hit a classical recession, the consumer is in a recession," she said. "It may just be a mental recession, but as long as people are feeling fear, they're not going to spend the way they did before." I feel like this does play a major role in the way we shop and will continue to shop. Not ever knowing what is going to happen with the economy it makes you ver consious of what your money goes to now. People are not wanting to spend money on things for fun because they want to save for the long run. I have become very consious with how I spend my money for these reason. I also watch my friends and family members being very scarce with their earnings