Strome Business Minute With Dr. Jeff Tanner

JC Penney finally filed for bankruptcy last Friday and it looks like this is really it. The poster child for the slow decline into oblivion among department stores is not alone, however, as both J Crew and Neiman Marcus have also filed for bankruptcy. Squeezed by online retailers who could provide greater variety and big box retailers who had better prices, department stores simply lost their place. But their place accounts for thirty percent of the square footage in the nation’s malls, a fact that has mall owners more than a little panicky. But all three are Chapter eleven filings, meaning they come back from bankruptcy, assuming they can reduce the debt they owe, one point seven billion for J Crew, three point seven for Penney’s, and four point three billion dollars for Neimans. To learn more, visit odu.edu/business. This Strome Business Minute is presented by the Strome College of Business at Old Dominion University.