Retail, Bankruptcy, and Interventions

Recently, many retail establishments were forced to declare bankruptcy including Kmart, Federated Department Stores, Montgomery Ward Holding Corporation, Macy (R.H.) & Company, Allied Stores Corporation, Ames Department Stores, The Circle K Corporation, Carter Hawley Hale Stores, Revco D.S., Ann & Hope, Bradlees, Woolco, Woolworth, etc. Few establishments emerged from bankruptcy but the majority seized to exist. Other retailers such as Blockbuster, Spiegel, J.C. Penney, Winn-Dixie, Great Atlantic & Pacific (A&P), Dillard’s, OfficeMax, Barnes & Noble, Foot Locker, Big Lots, etc. have lost money in at least one fiscal year over the last ten years (Evans, 2005). Evidently, interventions to prevent bankruptcy and / or provide effectiveness to retail organizations are needed. Regardless of success drivers, in many cases it seems that the traditional retail business model is no longer effective proven by the failure of more than 100,000 retail corporations between 1990and 1996 (Berry, Sieders & Gresham, 1997).
References
Berry, L. L.; Sieders, K. & Gresham, L. G. (1997). For Love And Money: The Common Traits Of Successful Retailers. Organizational Dynamics, 26(2), 6-23.
Evans, J. R. (2005). Are the largest public retailers top financial performers? A Longitudinal Analysis. International Journal of Retail & Distribution Management, 33(11/12), 842-857.