Recently, Many retailers have declared bankruptcy and/or are shutting down stores. Circuit City, Linen's and Things, Club Libby Lu, and Goody's are just a few retailers who have declared bankruptcy and are closing down stores. Why have these retailers failed?
Club Libby Lu is a place for young girls, ages 6-12, where they can get all dressed up as Disney princesses, Hannah Montana, or other characters. The girls are also given makeup and/or temporary tattoo's to put on. Sometimes, the girls would put on a show (singing) outside of the store and all around the mall. Libby Lu was bought by Saks Inc. in 2003 but was found to be non-profitable and all stores have been shut down but why? The prices in this place were extremely high; too high for mommy to take her daughter and daughters friends in such a crappy economy.
Im sure most of you have heard of Circuit City. Its an electronic store. They have (or should i say had)your flat screen televisions, laptop, digital cameras, etc. Circuit City was the second top electronic retailer so how is it possible that such a retailer has filed bankruptcy? Well, Circuit City attempted to compete with Walmart and obviously, Circuit City lost. ANYONE WHO TRIES TO COMPETE WITH WALMART WILL LOSE!
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