Friday, March 6, 2009
It is unfortunate that due to the recession many retailers have gone bankrupt. But the cause of bankruptcy is not all from the U.S.’s bad economical standing it is also caused by what the retailer did wrong. Specifically Goody’s Family Clothing Store declared bankruptcy in 2009 after 56 years of business. As quoted from the TheDeal.com “Southern apparel chain Goody's Family Clothing Inc. became the latest private equity-controlled retailer to tip into Chapter 11 bankruptcy.” Although an article from Reuters.com quotes that “ as the U.S. economic recession has undermined its (Goody’s) ability to continue operating.” The Goody’s store could have used more retailing strategies to help bring in customers to make a profit so that they would not have to liquidate their stores. For example they could have advertised more with more commercials, having their website put out their on the radio, or they could have sponsored a local news station. I think that is the reason, besides the economy, that Goody’s failed and could not make money.