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Below are some of the major retailers that have sought bankruptcy protection over the past year:

Movie Gallery, Inc.: Filed Chapter 11 in Virginia on February 2. It plans to close 805 stores.

Southern Golf Partners: Filed Chapter 11 on January 20 in Atlanta, GA.

Bernie’s Audio Video TV Appliance: Filed Chapter 11 on January 14 in Hartford, CT and is liquidating.

E.R.T. Sales of Hawaii: Filed Chapter 11 on January 12 in Hawaii and plans to reorganize.

The Walking Co. Holdings: Filed Chapter 11 on December 7, 2009 in California and filed a reorganization plan on February 2. It expects to emerge from bankruptcy in the spring.

Penn Traffic Co.: Filed Chapter 11 on November 18 in Wilmington, DE. It agreed to sell its 79 supermarkets to Tops Friendly Markets.

Finlay Enterprises: Filed Chapter 11 on August 6 in New York, NY and agreed to sell its assets to liquidator Gordon Brothers at a September 23 auction.

Bashas’ Inc.: Filed Chapter 11 on July 12 in the U.S. Bankruptcy Court for the District of Arizona. It filed a plan of reorganization and hopes to emerge from Chapter 11 by April.

Crabtree & Evelyn Ltd: Filed Chapter 11 on July 1 in New York, NY. It is set to emerge from Chapter 11 by the end of January.

Other companies who have filed Chapter 11 since late 2007 include:

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In our last poll, we asked where you thought the U.S. unemployment rate will stand by the end of the year. A slight majority (51%) believe unemployment will dip to between 9% and 10% in 2010, following a dreadful year in which unemployment climbed from 7.7% to 10%. However, 32% believe unemployment will continue to rise to between 10% and 11%. The remaining 17% were real pessimists who believe unemployment will climb above 11%.

Amazon.com’s Profit Surges 71%, Cedes to Macmillan’s Price Demands
Amazon.com, Inc. said its 4Q profit surged 71% due to strong holiday sales of a variety of products, in particular its Kindle e-reader. It emerged as one of the winners of a 2009 holiday season characterized by stiff competition and price wars. For the period ended December 31, Amazon posted net income of $384 million, up from $225 million the previous year. Sales jumped 42% to $9.52 billion. Overall sales of media products grew 29% to $4.68 billion, while sales of electronics and other general merchandise jumped 60% to $4.61 billion. The company predicted 1Q revenue will grow between 32% and 43% and operating profit will grow anywhere from 13% to 50%. Amazon also said its board authorized it to buy back up to $2 billion in common stock under a plan that doesn't have an expiration date.

Separately, Amazon.com said it will concede to publishing giant Macmillan’s price demands and will sell electronic versions of its books at prices it considers too high. For a brief period last weekend, new copies of books published by Macmillan were unavailable, after the retailer pulled the titles in response to the publisher's new pricing model for e-books. Amazon wants to keep prices low as competitors such as Barnes & Noble Inc., Sony Corp. and Apple Inc. seek to challenge its dominant position in the rapidly expanding e-book market. But Macmillan criticized Amazon for charging just $9.99 for best-selling e-books on its Kindle e-reader, which it said could impede sales of higher priced hardcover books. Under Macmillan's model, to be implemented in March, e-books will be priced from $12.99 to $14.99 when first released and prices will change over time. Although it conceded to this model, Amazon told customers on its website, "We have expressed our strong disagreement and the seriousness of our disagreement by temporarily ceasing the sale of all Macmillan titles. We want you to know that ultimately, however, we will have to capitulate and accept Macmillan's terms because Macmillan has a monopoly over their own titles, and we will want to offer them to you even at prices we believe are needlessly high for e-books."

Movie Gallery Files Chapter 11, Closing Stores
Citing economic and competitive challenges, Movie Gallery Inc., which operates stores under its namesake, Hollywood Video and Game Crazy banners, filed Chapter 11 on February 2 in the U.S. Bankruptcy Court for the Eastern District of Virginia and plans to immediately liquidate 760 stores, leaving it with 1,906 stores in the U.S. The case number is 10-30696. It was its second Chapter 11 filing in less than three years. The movie rental chain, which is fighting to stay alive amid big changes in how consumers watch movies and television shows, said its Movie Gallery Canada Inc. affiliate was not part of the filing. It added that it expects to close additional stores while in bankruptcy. Its goal is to emerge from Chapter 11 with a new and sustainable business model centered on a smaller base of profitable stores.

The debt-strapped company has faced harsh competition from DVD-by-mail services like Netflix Inc and kiosks such as Coinstar Inc.'s Redbox, as well as rival brick-and-mortar chain, Blockbuster, which is experiencing problems of its own. Movie Gallery previously filed for bankruptcy in October 2007 and emerged the following year with private equity firm Sopris Capital Associates LLC and affiliates as its majority equity owner. According to published reports, the company's revenue fell to roughly $1.4 billion in 2009 from roughly $2 billion in 2008, and its fourth-quarter operating loss increased more than 52% to $129.3 million.

The Walking Company Files Reorganization Plan
The Walking Company Holdings, which filed Chapter 11 in December (case number 09-15138), filed a reorganization plan with the U.S. Bankruptcy Court for the Central District of California and is positioned to emerge from bankruptcy in the spring. The company expects to pay off all of its debts and future obligations to trade creditors. The company also said it had negotiated new lease agreements with landlords of about 90 of its 214 stores and that the move will generate annual cost savings of about $3 million. When it filed Chapter 11, it had initially planned to close almost half its stores. But, it now expects to keep 207.

The company has obtained a commitment from an investor group led by Richard Kayne of Kayne Anderson Capital Advisors LP to invest $10 million. In addition, Wells Fargo Retail Finance has agreed to provide $30 million in exit financing. The company, which sells shoes at its namesake stores and also runs the Big Dogs sportswear clothing line, more than doubled in size from 2006 through 2008, by opening about 140 new stores. It was forced to seek court protection because it was unable to convince landlords to cut costs under its leases amid a tough retail environment. It also shut down its Big Dog clothing store chain and has already liquidated most of the 230 stores.

Walmart Realigning U.S. Operations
Walmart Stores Inc. said it is realigning its U.S. operations in an effort to give more autonomy to executives in regional markets and spur U.S. growth. The giant retailer is combining its U.S. realty, store operations and logistics divisions and reorganizing operations under three geographic business units headed up by regional presidents: West, South and North. "This move will help facilitate our growth as we seek to enter new markets and develop new segments across the U.S. and will drive efficiencies by allowing us to better leverage our resources," Vice Chairman Eduardo Castro-Wright said. Walmart has experienced softness in its U.S. business amid a tough economy. In its most recent quarter, same store sales at its namesake discount stores fell 0.5%.

Separately, Walmart announced a new global sourcing strategy for its private label goods that involves the creation of Global Merchandising Centers, a change in leadership and structure, and a strategic alliance with Li & Fung. Walmart first announced a consolidated global sourcing structure centered on new Global Merchandising Centers (GMCs) at its annual meeting for the investment community in October. "These centers will create alignment between sourcing and merchandising and drive efficiencies across various merchandise categories,” said Castro-Wright. Ed Kolodzieski, currently President and CEO of Walmart Japan Holdings G.K. and Seiyu, has been promoted to Executive VP and will lead Walmart's Global Sourcing. In addition, consumer goods exporter Li & Fung Ltd. entered into a sourcing agreement to supply Walmart Stores, Inc. with goods valued at $2 billion in the first year, and more after that. The sourcing arrangement is non-exclusive and does not contain any sourcing volume commitments by Walmart. Walmart was already among Li & Fung's clients, which include other major retailers such as Target and Talbots. "We are redefining how we source products that are imported into Walmart retail markets around the globe," said Castro-Wright.

Walgreen’s Comps down for Second Straight Month
Walgreen Co. said same store sales fell 1.1% in January, while total sales rose as it continued to open and buy more stores. It was the company’s second straight monthly comp store sales decline. Pharmacy comps declined 1.2% and front-end merchandise comps dipped 1%. Total sales grew 2.7% to $5.36 billion, as pharmacy revenue grew 1.6% and front end sales rose 3.9%. The company said calendar shifts hurt its sales. January 2010 had one more Sunday and one less Thursday than January 2009, and business tends to be stronger on Thursdays, it said. Walgreen also said new launches of low-cost generic drugs hurt its revenue, although generic drugs are more profitable for the company.

Ann Taylor Ups Profit Outlook
Ann Taylor Stores Corp. said its 4Q profit will exceed its prior forecast and be "substantially" higher than the year-earlier level thanks to better-than-expected sales and gross margins. Sales are expected to come in at $470 million, compared to its previous forecast for sales to decline slightly from the $462.4 million it reported in the 3Q. Same store sales are expected to fall 7% at its Ann Taylor stores and increase by about 2% at its Loft chain, both exceeding prior forecasts. "Much of the upside was a result of improved product assortments at both brands," said CEO Kay Krill. She also cited a strong promotional strategy and a clean inventory position. The company said its 4Q gross margin rate should approach 52%, up from 35.7% in the 4Q of 2008, but below the 3Q rate of 57.3%.

Tractor Supply’s 4Q Profit Soars
Farm and ranch supplies retailer, Tractor Supply Co. said its 4Q profit jumped 54.8% as sales grew and it got a boost from the way it calculates the value of its inventory. For the latest quarter ended December 26, it posted a profit of $38.3 million, up from $24.7 million the prior year. Its gross margin jumped 16.6%, largely due to a drop in its provision for inventory valuation. It also said freight costs were lower. Sales advanced 7.9% to $862.5 million, while same store sales increased 0.7%. It expects comps to grow 0.5% to 2.5% in 2010. It said capital expenditures for the year will climb to between $90 million and $100 million, up from $74 million in 2009. It expects to open 70 to 80 new stores this year.

Report: Yucaipa Seeks Majority Stake in Barneys
Supermarket mogul Ron Burkle and his investment firm Yucaipa Cos. has proposed taking a controlling stake in U.S. luxury retail chain Barneys New York for a $50 million cash infusion, The Wall Street Journal reported, citing a source familiar with the matter. Last November, Yucaipa purchased a large amount of Barneys’ debt from Citigroup Inc. for $0.60 on the dollar, the Journal said. The deal would leave Istithmar World Capital with a 20% stake in the chain. Istithmar, a unit of Dubai World, acquired Barneys for $942 million from Jones Apparel Group in 2007. It provided some additional funding to the chain in April of 2009, allowing it to pay for merchandise shipments.

Pantry Swings to a Loss
Convenience store operator Pantry Inc. swung to a fiscal 1Q loss, hurt by below-average fuel and grocery margins and an impairment charge. For the quarter ended December 24, the company posted a net loss of $26.1 million, compared to a profit of $38.5 million the prior year. The loss included pretax impairment charges of $32.6 million. Total revenue rose 6.4% to $1.74 billion. Retail fuel revenue increased 6.2%, partly reflecting a 3.7% increase in the average retail price per gallon, but total fuel gross profit tumbled 56% to $57.3 million. The fuel margin dropped dramatically, from an unusually high 25.8 cents per gallon in the 1Q of fiscal 2009, to a below-average 11 cents per gallon in the latest quarter. The margin on merchandise sales slipped to 32.6%, from 35.5% a year earlier, due in part to higher taxes on tobacco products and tighter margins on grocery items.

Walgreen Finalizes Acquisition
Walgreen Co. said it completed the acquisition of the assets of 12 Eaton Apothecary pharmacies in the Boston area from D.A.W., Inc., a subsidiary of Nyer Medical Group, Inc. Terms of the deal were not disclosed. Walgreen hired a majority of Eaton Apothecary employees and will continue to operate all of the locations except those in Salem and Gloucester, MA.

Carphone Spinning off Telecom Business
Carphone Warehouse Group, a European phone retailer partly-owned by Best Buy Co. is spinning off its telecom business. Best Buy invested $2.15 billion in a joint venture with Carphone in May 2008 and opened its first European locations under its own brand name soon after. Following Carphone’s spin-off, Best Buy will retain a 50% stake in the company, to be called New Carphone Warehouse.

Report: Costco Eyes Expansion in Taiwan
An official from the Taiwan economics ministry told a news conference that Costco plans to invest about T$30 billion ($940 million) in Taiwan for expansion, including setting up a new distribution center and more stores, Reuters reported. Costco's regional marketing manager for Taiwan, Nora Wang, didn’t provide specific details, but said the company had a strong desire to invest in Taiwan, the report added.

Frederick’s Of Hollywood Curbs Debt
U.S. intimate apparel retailer Frederick's of Hollywood Group Inc. said it reached a deal with a lender to exchange $22.6 million of debt and preferred stock for common shares, helping to cut its debt load substantially. The company, which operates 132 stores, said it had reached a deal with investor Fursa Alternative Strategies LLC to exchange the debt for $11.3 million in common stock. "This is the single biggest step we've made in what's been a pretty aggressive turnaround we started about 12 months ago," said Thomas Lynch, the company's Chairman and CEO. The deal leaves the company without any long-term debt. It now only carries a revolving credit facility.

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Major retailers will be posting their January sales figures tomorrow. Who were the winners and losers in the post-holiday season? Find out by reading the nationally recognized Bernard Sands General Merchandise Comp Store Sales Analysis. Keep track of comparable and total sales growth in our detailed, easy-to-read format. Learn more about subscribing.

Nation’s GDP Gets Boost as Businesses Boost Inventories
Providing further evidence that the protracted recession is over, the Commerce Department reported that the nation’s gross domestic product grew at a 5.7% annual rate in the 4Q, the fastest rate of growth since the 2003 3Q. It was the second straight quarter of economic growth, following a record four quarters of economic decline. Still, the growth at the end of last year was primarily fueled by companies refilling depleted stockpiles, a trend that will soon fade. The report also provides an upbeat end to an otherwise dismal year: The nation's economy declined 2.4% in 2009, the largest drop since 1946. 4Q economic growth exceeded expectations mainly because business spending on equipment and software jumped 13.3%, as firms began to rebuild stockpiles depleted by the recession. Excluding inventory changes, the economy would have grown at a 2.2 percent pace, the government said. Consumer spending rose a modest 2%. A steep increase in exports also helped boost growth. The shipment of goods overseas jumped 18.1%, far outpacing a 10.5% increase in imports.

Incomes and Spending Climb in December
Helped by a one-time social security payment, personal incomes grew 0.4% in December, the Commerce Department reported. Actual wages and salaries grew a more modest 0.1%, after increasing 0.4% in November. The government also reported that consumer spending increased for the third straight month in December, rising 0.2%, following an upwardly revised 0.7% gain in November. Consumer spending accounts for about 70% of total economic activity. In last year's 4Q, consumer spending grew 2%, down from a 2.8% increase in the 3Q. Moreover, the personal savings rate in December climbed to 4.8%, up from 4.5% the prior month, the government said. That is up sharply from the spring of 2008, when the savings rate fell below 1% and underscores how frugal Americans have become in light of the past recession.

Manufacturing Activity Expands in January
The Institute for Supply Management said its manufacturing index climbed to 58.4 in January, compared with 54.9 in December. It was the sixth straight monthly gain and the highest the index has read since August 2004. A reading above 50 signals an expanding sector. The ISM said 13 of 18 industries it tracks were expanding in January, led by the apparel, textile mills and machinery sectors. Its new orders index, a sign of future growth, jumped to 65.9 in January from 64.8 in December. Current production surged to 66.2 from 59.7. Both indexes were at their highest levels since 2004. As their customers need to replenish stockpiles that were depleted during the recession, manufacturers have ramped up production in recent months. The hope is that more production will spur the hiring of more workers, which could hasten the economic recovery.

Durable Goods Orders Up Slightly in December
Durable goods orders grew 0.3% in December, the Commerce Department reported, indicating that the economy continues to recover at a slow pace. However, for all of 2009, durable goods orders plunged 20.2%, the largest drop on records that go back to 1992. The decline underscores the beating that U.S. manufacturers endured during the recession. Economists are hoping that improving economies in the U.S. and globally will make 2010 a better year for U.S. manufacturers. The December increase was helped by a 3.6% jump in orders for motor vehicles and parts. Orders for aircraft, a volatile category, plunged 38.2%. Orders for steel grew 8.1%, and orders for machinery climbed 6%. Demand for computers and other electronic products fell by 3%.

Fed Leaves Rates Alone
In what was no surprise, the Federal Reserve kept interest rates at record lows and it pledged to keep them there for an "extended period" to hasten an economic recovery. It kept its target range for its bank lending rate at zero to 0.25%. Unlike its previous meeting, the Fed made no mention about improvements in the housing market, but said it still expects to end a $1.25 trillion program aimed at pushing down mortgage rates as scheduled on March 31. However, it said it remains open to changing that timetable if necessary. Some fear that the end of the program will lead to higher mortgage rates that will dampen home sales and stall a housing recovery. It noted that economic activity has continued to improve, the deterioration in the job market is easing somewhat and consumers are spending moderately. But, it cautioned that high unemployment, stagnant incomes and tight credit could prevent more robust spending that would significantly lift the economy. Commercial banks' prime lending rate, used to peg rates on home equity loans, credit cards and other consumer loans, will remain at about 3.25%. That is the lowest point in decades.

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