Comments on: Why Are So Many Companies Going Under?

By: Michelle

Michelle — Fri, 30 Jan 2009 21:46:00 +0000

Where was the basic math and common sense?I had a job a few years ago in an independent bookstore and the owners kept complaining that they didn't have enough income coming in compared to expenses. I knew there were loans and all, but something didn't connect in my brain. And here's why: at some very basic level, I was thinking: "well, the lights are on, the books are coming in, we have this place to rent, how bad could it be?"The store went under. There are so many reasons why the store went under, I am not blaming the owners (independent bookstore, small business etc).But. The experience taught me that I have difficulty thinking in terms of debt. Which isn't surprising, since I have what could probably be accurately named a phobia of debt. I have had this for as long as I can remember. /rambling

By: ActsofFaithBlog

ActsofFaithBlog — Thu, 29 Jan 2009 23:28:00 +0000

Hey Brother Omi:Yes I know but it doesn't make any sense to me that these businesses were able to operate like this for years. That's building on a stack of cards that one good wind could blow away. What about all the other companies? The Postal Service wants to cut back mail delivery now. That just seems insane to me! Where was the basic math and common sense? If individuals are behaving the same way as companies isn't this indicative of no checks and balances, rampant greed and zero leadership?! I mean the entire country of Iceland is bankrupt!!

By: Brother OMi

Brother OMi — Thu, 29 Jan 2009 18:06:00 +0000

its actually very simple. Most retail chains and stores operate in the red for most of the year. Right after thanksgiving, they make a great portion of their revenues. In the last three years, most of the retail chains mentioned in your post and others have had tremendous losses during the Xmas season. This year most of these chains were hit hard after already cutting jobs, stores, etc. also deflation did a number. it seems like these stores had sales each week. they continued to dropped their prices to the point where they were not making any profits. Most of these stores have reached the point where it is not economically feasible to continue to operate. so they will liquidate or file for bankruptcy