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Wednesday, April 7, 2010

Here We Go Again

I think it was in early 2009...  Some alleged financial experts came out with a long list of companies likely to go into Chapter 11 bankruptcy during the year.  The vast majority of companies on the list stayed solvent, and they're still around today.

Well, there's been another list.  Once again, Blockbuster has made an appearance.  It's not suprrising the company has been closing a ton of stores.  It's apparent people like Red Box machines, Netflix, and "on demand" a lot better.

Borders is on the "likely to fail" list.  I wonder if the writer has ever visited the Viewmont Mall store.  It's busy from opening to closing.  I will concede that the internet and gadgets like Kindle have given readers other options.  I'm a big Amazon.com fan.  The prices are reasonable, and books arrive in your mail box just days after ordering.  Still, there's nothing like wandering through a book store and holding one in your hand.

Another entry on the endangered list is Rite Aid.  The reason is that sales are down while the company is swimming in debt from the Eckerd chain purchase.  I'm a frequent visitor to the Dunmore store.  Like Borders, it's busy from opening to closing.  Rite Aid's newer stores are rather nice-- not too big, not too small, everything you need.  WalMart has better prices on most stuff, but as a drug store, I've always been rather happy there.  Still, you can't ignore crushing debt.

I have to wonder if the latest list is just another doomsday scenario.  Like last year, I'm betting most of the entries will live to see another year.