Going out of Business...

With the economy the way it is there is no wonder so many of the major retailers are bankrupt or going out of business. The main for this economic crisis is because the economy is a recession. Layoffs, job shipped over seas, and unemployments rates have increased within the last two years. The sad news is it doesn't seem to be getting any better either. While peoples in the United States are enduring these hard times and finding ways to survive; we aren't the only ones suffering. Many businesses will be closing stores and laying off due to the recession. There has been over 3.3 billion job losses (Share Cast). Consumers are the main reason businesses keep their heads above water. If they aren't in a predicument to shop, then businesses aren't in the position to grow, or continue to succeed.

Many of our favorite retailers and brands are forced to close their door or let many valuable employees go. It's sad to see this negative transition in their businesses when they have been "well known" and common "household" names for so long. Companies such as Sears, Old Navy, Macy's, Best Buy, Tiffany's, and Ann Taylor are amongst the few who are forced to close their stores. These common retailers will be closing over 100 of their stores and that number could increase. Ann Taylor will be closing atleast117 stores (AOL). Like many other stores Ann Taylor has seen much loss during these trying times. The company is in its fourth- quarter loss of $375.6 million (Business Week). This number is a huge deficit for the company and does not seem to be getting better any time soon. While some may think the company has not had a better marketing strategy, the recession is the main reason for this downfall. At this point in time many people are not looking for lavish and luxury if they can't afford it. Most people are "living trying to make it, or trying to make a living". It's so sad but true that we are in times where we must decide if we want to eat or pay the bills. You have to do both. The job losses have affected paying and making payments on time. Even if people are shopping they have stuck to discount, bargain, and flea markets. Ann Taylor just isn't a retailer one usually thinks of on a low budget. So until the economy begins to look up, I know for a fact Ann Taylor won't be the last company to endure such hardships/ or downfall.

http://www.businessweek.com/ap/financialnews/D96OPJ2O4.htm
http://www.sharecast.com/cgi-bin/sharecast/story.cgi?story_id=2647602