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reuters.com wrote
Value City declares bankruptcy, to liquidate stores
Mon Oct 27, 2008
By Chelsea Emery
Value City Department Stores has filed for Chapter 11 bankruptcy and will liquidate its remaining 66 stores, citing a slide in consumer spending and tougher credit markets.
An economic downturn, higher gasoline prices and increasing unemployment have decimated the discount department store chain’s core market, according to documents filed with a New York bankruptcy court on Sunday.
Value City first opened in Columbus, Ohio, in 1917. It is known for selling apparel, shoes, home goods and electronics at discounted prices.
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Holy shit.
Does that effect the Value City Furniture?
That’s crazy! One would think they would be doing better during this economic climate due to their lower prices. Sounds like as good a time as any to go couch shopping, though.
Stores to close in the coming weeks.
wow…
this could leek to the furniture and eventully DSW and Filene’s. imagin
Are they going to change the name of the arena?
I glanced at the article and saw DSW mentioned.
Didn’t know they were in the Value City mix.
Probably some of these strip malls are going to start looking like Graceland did for years (not to mention Sawmill Rd).
:cry:
Sure hated to lose that Burlington at Graceland a few years back. I understand some of the Value City places will morph into Burlington’s. I’ve seen one already near Reynoldsburg.
Sad day for our city.
Retail Ventures, which owns DSW and Filene’s had largely divested themselves of the VC Department Stores earlier. The losses were largely already built into that deal, although the article mentions DSW is line for a $4.5 million dollar hit. But this is a manageable hit. I don’t see this affecting their long term outlook, indeed I think it makes the long-term prospects for RVI better by dropping the dead weight.
As for the VC Furniture stores, that is still a seperate privately controlled entity of the Schottenstein family.
The Schottenstein’s still own Value City Furniture, which is a seperate entity. I am pretty sure that name is going nowhere soon, and at the least, should the furniture chain fold I am sure the Schott part of the name will be permanent.
If we all look closely at the article, this is only 2 clothing stores in Columbus. Sad for the employees of those stores, sad for the neighborhoods that have more empty retail, but not nearly as big a bit as people are making this out to be. Retail Ventures (DSW, Filenes) and VCF are not part of this deal (save for some lingering debt to RVI).
The Schottenstein’s still own Value City Furniture, which is a seperate entity. I am pretty sure that name is going nowhere soon, and at the least, should the furniture chain fold I am sure the Schott part of the name will be permanent.
If we all look closely at the article, this is only 2 clothing stores in Columbus. Sad for the employees of those stores, sad for the neighborhoods that have more empty retail, but not nearly as big a bit as people are making this out to be. Retail Ventures (DSW, Filenes) and VCF are not part of this deal (save for some lingering debt to RVI).
Thanks for the information on the others.
FWIW, I am not sure when the Reynoldsburg location changed over to Burlington’s.
the 2 stores in Columbus are:
3251 WESTERVILLE ROAD
COLUMBUS, OH 43224
3400 NORTH BLVD.
COLUMBUS, OH 43204
i am kind of amazed that local media is not make the distinction of VC versus RVI versus VCF clear. nbc4 just reported it as “Value City” with no clarification.
Oh no! That’s bad. :-/
Maybe there will be a good last sale though….oh, gosh, I’m terrible, I know…
Maybe there will be a good last sale though….oh, gosh, I’m terrible, I know…
:lol:
Have to admit, the idea of a liquidation sale at Filene’s made me jump out of my chair a little.
Maybe there will be a good last sale though….oh, gosh, I’m terrible, I know…
:lol:
Have to admit, the idea of a liquidation sale at Filene’s made me jump out of my chair a little.
Columbus Underground Fire Sale!!! Let’s do it :-P
Heh. If I didn’t know better, I’d say whoever wrote up the FAQ sidebar for today’s continued coverage of the bankruptcy from the Dispatch was reading this thread. Answers to basically all of the above questions:
(1) Value City Furniture is no longer under the same ownership as Value City Department Stores, and therefore will be unaffected by the bankruptcy.
(2) Value City Arena will keep its name because the naming rights were bought by a foundation controlled by Jay Schottenstein (who I believe is Jerome’s son). The naming rights will therefore not be property of the bankruptcy estate and will not be liquidated. (However, that doesn’t mean that OSU might not offer them a buyout deal in order not to have an arena named after a bankrupt company. That will simply be a completely independent transaction, however.)
(3) DSW, owned by Retail Ventures (also the parent of Filene’s Basement), Value City’s original parent, remains one of the firm’s biggest creditors. Given that their debts are unlikely to get repaid in full, that’s going to put a hit on DSW’s earnings this year, which in turn will put a hit on Retail Ventures’. Therefore, the original parent company will still not emerge completely unscathed unless there’s enough money after the liquidation to pay creditors off in full (unlikely). RV just won’t take the same hit they’d take if they owned both the biggest creditor and the bankrupt chain itself.
Tuesday, October 28, 2008
BY MARLA MATZER ROSE
Value City Department Stores, known for generations as a closeout retailer, is preparing for its own closeout.
The Columbus-based chain has filed for bankruptcy and plans to liquidate the merchandise in its 37 stores, including two in its hometown. Perhaps as many as 4,000 workers will lose their jobs chainwide.
In the filing in U.S. Bankruptcy Court for the Southern District of New York, the chain blamed an “increasingly competitive” retail environment and challenging economy, combined with the tightening credit market. On a standard form, it listed assets of between $100 million and $500 million, and it said its creditors numbered between 10,000 and 25,000.
READ MORE
Well, the reporter of the story does have an account on CU. ;)
Well, the reporter of the story does have an account on CU. ;)
Oooo…the plot thickens! ;-)
As much as I enjoy CU, I didn’t have time to look at it yesterday while writing the Value City story for the Dispatch. My colleagues at the paper just happened to be asking the same dumb questions as y’all…which I guess proves they’re not dumb. :lol: