Retail Roundup: Lenox Files for Bankruptcy Protection, 7-Eleven and J.C. Penney Team-up, More
Lenox files for bankruptcy protection --- Lenox Group Inc. joined the growing number of businesses falling victim to the sour economy recently: The Minnesota-based company, famed for its Lenox tableware and Department 56 collectibles, filed for Chapter 11 bankruptcy protection earlier this week. The company seeks court approval for $85 million in debtor-in-possession financing from its revolving-lender group, according to the Minneapolis St. Paul Business Journal. Lenox will continue to pursue a sale of the company, while the $85 million will be used to pay employees, purchase merchandise, and cover operating expenses. "While fundamentally sound, our business has been significantly impacted by economic conditions and excessive debt levels incurred at the time Department 56 purchased Lenox Inc. in 2005," says Lenox CEO Marc Pfefferle. [Source: Business Journal]
An unlikely pairing: 7-Eleven and J.C. Penny team-up -- Corner-store cornerstone 7-Eleven and department-store chain J.C. Penney Co. are cross-promoting one another this week in Dallas, Chicago, Los Angeles, and Miami as part of a new test aiming to increase sales. Penney stores are distributing fliers for free 12-ounce cups of coffee at 7-Eleven, redeemable Black Friday through Sunday. Meanwhile, 7-Eleven checkout counters will display tear pads with Penney coupons good for $10 off purchases of $50 or more Saturday. "Smart retailers are coming up with good ideas," says Candace Corlett, president of WSL Strategic Retail. "This nasty crisis is just bringing out the creativity of the survivors." [Source: The Dallas Morning News]
Retail icon goes under -- Park Avenue retailer Linda Dresner, named one of "fashion's most famous independent retailers" by a WSJ blog, is shutting its doors at the end of the year after more than two decades in business. Dresner introduced Big Apple fashionistas to cutting-edge designers like Yohji Yamamoto, Comme des Garcons, Ann Demeulemeester, Martin Margiela, and Claude Montana. The store was also one of the first in the U.S. to carry Jil Sander. The closing of Linda Dresner highlights the recent pattern of big chains crushing small boutiques as retailers are forced to get scrappy. [Source: WWD]
Will Black Friday live up to reputation? -- Although the Friday after Thanksgiving, called "Black Friday" thanks to its supposed ability to lift retailers out of the red and put them in the black, is reputed to be the busiest shopping day of the year, that hasn't always been the case. Often the Saturday before Christmas draws in more shoppers, yet ShopperTrak predicts a return to tradition, estimating that Black Friday will indeed be the highest shopping-traffic day of 2008. Retailers are eager to make Friday a success, and select malls are even offering coupons to early-bird customers who do their shopping in pajamas. [Source: The News-Sentenial]