Why do so many furniture stores have “Going Out Of Business” signs yet they are always still open?
There are lots of reasons a store could go bankrupt. For example: one large chain Wicks Furniture was huge. One of the top 100 furniture chains in America. It’s the old “Other People’s Money”. They did hundreds of millions of dollars but their expenses exceeded their revenue. Sun Capitol thought they were getting a bargain when they bought that white elephant. They turned off the money spigot when they could not produce and they were done. The management was spending others peoples money. Also, because of the housing downturn people are choosing to put off purchasing furniture for their home in foreclosure and you end up with 20,000 dead furniture stores in 18 months. If a furniture store doesn’t own their property for at least 10 to 15 years, they usually can’t survive a downturn in sales. When the rent is due the rent is due. Furniture is not that profitable business and retail rents are sky high. You fall below break even and you are toast. You can’t pay vendors and you’re toast. Yo
