https://www.forbes.com/sites/shelleykohan/2020/04/18/macys-may-need-a-miracle-on-34th-street/#40ecbadc5a48
8 replies (most recent on top)
Rich’s has been gone for years, Macy’s is not even close to Rich’s when it was in its heyday.
Amen to that, these Vp’s and CEO’s bleed the company dry
I’m going shopping at Rich’s in downtown Atlanta after the virus ends, Oh wait it closed 25 years ago...
Honey Rich’s is gone with the wind, Macy’s and when it was Rich’s -Macy’s it was a shyt show, executive staff left the company y the busload and they brought in people from other companies, WTF you talking about?
Rich's never "went bust" so I'm betting your entire story is bull. If your husband worked for Rich's then you would know the actual events as they really happened.
Another problem is that retail stores tend to drastically overpay upper management and executives, my husband was a division Vice President for Rich’s back in the early 1990s, late 1980s and was making $190,000 plus a $30,000 bonus, company car, free hotel rooms at five star hotels, fancy dinners at the Ritz Carlton, you name it, then Rich’s went bust. He only worked Monday-Thursday from 9-3pm, then would take the weekend off, all he did was walk around stores and direct management. He admits he was drastically overpaid and that’s why these stores eventually fold.
The answer is they simply don’t pay their suppliers. Not saying it’s right, but that’s what happens. Suppliers really don’t have a choice, they won’t bother to seize the inventory because there is no one to sell it to.
A designer who is a friend of my wife used to sell her high-end clothes to Nieman. It brought in huge revenues, but whenever something didn’t sell she had to accept whatever price they marked it down to or even take back inventory. It got to be such a headache that she gave it up and went back to focusing on her own single-store boutique. Obviously, much lower total revenue, but less headache and less business risk.
Seeking Alpha contributor, Adam Levine-Weinberg, states, “The fundamental short-term problem for department store operators in the current environment is that they have a ton of capital tied up in inventory that is now selling at a glacial pace due to nearly all department stores being closed.” Levine-Weinberg continues the point that normally, retailers rely on selling inventory at a steady pace to generate cash that they use to pay their suppliers, landlords, employees, and other business partners. Now, most of those bills are still coming due, without the corresponding cash flow needed to pay them.