This always seems to happen and a new furniture store moves right in, I ask because they just built a huge showroom by me within the last few months and now it says its bankrupt. It is a chain but how would they have the money to build this huge building just to go into bankrupcy a couple of months later
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. You should look for warning signs of trouble.
1. Delayed delivery
2. Not willing to give refund even when they have failed to perform as agreed.
3. Manager is unavailable.
3 The store is looking worse and worse day by day and they are running out of product,
There is a point that you should take anything not nailed down to substute for your order, because once they file for either chapter 7 or 11 you are not getting anything out of them and no one is going to help you. If you paid by credit card and dispute it fast enough, you have a small chance of getting your money back. The better Business Bureau is no help at all. No one in a bad possition cares one wit what their rating is.
