He must have been around here lately; quite a few storefronts uptown and at the malls are EMPTY!!!
"As retailers reel, a call for the liquidators" by Jenn Abelson, Globe Staff | November 30, 2008
It was 10 a.m. in Indiana when David Spehar got the call: Tweeter was unraveling fast and he needed to get to Boston immediately. Spehar hopped into his pearl-white Escalade, already packed with laptops, printers, two suitcases, and some "Going out of Business" signs, and drove 15 hours to his bosses' office, Hudson Capital Partners, ready to roll.
Executives at the liquidation firm briefed him on the situation: Tweeter had run out of money. Spehar, nicknamed the "junkyard dog," would lead the effort to shut down the chain's 94 stores nationwide. The going-out-of-business sale would begin the next day.
As the credit crunch and economic slowdown drags down merchant after merchant, liquidators like Hudson Capital are having a banner year. Major retail bankruptcies - more than two dozen so far this year - have tripled compared with last year as merchants who built too many stores and relied heavily on credit have been hit hard. Distressed retailers can't borrow money to finance a turnaround. Potential buyers cannot get loans to purchase floundering chains.
That's when liquidators step in. They typically put up millions of dollars of their own money to buy assets from struggling merchants and guarantee creditors payments upfront, usually as part of a bidding process in bankruptcy court. Spehar is part of the shock troops: They parachute in from anywhere, quickly sell off every asset - sweaters, hangers, delivery trucks, desks at headquarters - and, in a matter of weeks, close for good companies that took decades to build.
But it's not that simple. Liquidators need to motivate employees who are losing their jobs to sell merchandise faster and better than they did when their jobs were safe. Companies like Hudson Capital must price the goods and time the discounts precisely so they can earn the amount they promised - and make a profit. Along the way, they bear the brunt of the anger of employees who see them as vultures finishing off their jobs and irate customers who have lost deposits, and can no longer use gift cards or return merchandise.
Over the past year, Hudson Capital has helped liquidate nearly 2,000 stores - almost 10 times more than in 2007 - from onetime giants such as Linens 'N Things, Steve & Barry's, Tweeter, Mervyn's, and Norwood furniture chain Domain Home.
But, but, but, where am I going to get all my Stephon Marbury jerseys (all apparel made in offshore sweat shops)?
Hudson Capital's sales revenues grew from $450 million to $2 billion. During the past 12 weeks, Hudson Capital has added 100 workers to its staff, mostly in the field, for a total of 200 employees. And the deteriorating economic environment means business could double next year.
Jim Schaye, who launched Hudson Capital in Newton in 2004 with several former colleagues from Gordon Brothers, a major liquidator in Boston, calls his business legitimate, but misunderstood. "We're like a S.W.A.T. team coming in and we get everything cleaned up," said Schaye, who serves as chief executive of Hudson Capital. The firm is one of the industry's biggest firms by number of deals, and a majority of it is owned by a hedge fund.
"I never took enjoyment from walking through an empty store and watching people lose their jobs," Schaye said. "But someone has to do it."
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Inside, Patrick Kavanaugh, the Dedham store manager, said it was shocking and scary when the liquidators first took over. He said the incentives have helped to motivate employees - most are earning more money now than they once received under Tweeter. For example, managers are receiving up to $300 extra weekly based on sales. Other employees are now earning 5 percent of everything they sell, better than the 5 percent of profit under Tweeter.
Well, ENJOY IT while it LASTS, guys, because it WON'T BE FOR LONG!!!
Anyone else OFFENDED that the AGENDA-PUSHING MSM is trying to turn this GOING OUT OF BUSINESS into a POSITIVE?
But the promotions have also changed the ambience in Tweeter. Now, Kavanaugh said, it feels like a Wal-Mart. Spehar keeps on smiling. The job is almost done. He shuttered six stores last weekend, another 20 this weekend, and the last round is next week. Tweeter will close its doors for good next Sunday. Spehar will finish up payroll, hand over the keys, and tie up other loose ends.
And then it's off to the next stop: Wyoming, to take down western clothier Boot Town.
And I will bet they are as happy to see him as you would be to see the cybernetic Arnold asking if you are Sarah Conner, hmmm?
