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

Swoozie's, Inc.: Filed Chapter 11 in Atlanta, GA on March 2 and is seeking a sale or liquidation.

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, 2009 in Wilmington, DE. It agreed to sell its 79 supermarkets to Tops Friendly Markets.

Finlay Enterprises: Filed Chapter 11 on August 6, 2009 in New York, NY and agreed to sell its assets to liquidator Gordon Brothers.

Bashas’ Inc.: Filed Chapter 11 on July 12, 2009 in the U.S. Bankruptcy Court in Phoenix, AZ. The grocer filed a plan of reorganization and hopes to emerge from Chapter 11 by April.

Crabtree & Evelyn Ltd: Filed Chapter 11 on July 1, 2009 in New York, NY. It emerged from Chapter 11 at the end of January.

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

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Days Sales Outstanding (DSO) is an important metric that calculates how many days a company takes to collect revenue after a sale has been made – thus measuring the effectiveness of receivables management. Last week, we asked if your company’s DSO improved or worsened this quarter. Nearly half of the respondents (47%) said DSO stayed the same, while 31% said DSO improved and 22% said it worsened.

Swoozie’s Succumbs to Chapter 11
Gifts and party goods retailer Swoozie’s, Inc. filed Chapter 11 on March 2 in the U.S. Bankruptcy Court for the Northern District of Georgia, in Atlanta (the case number is 10-66316). The company cited the weak economy as well as 13 poorly performing Blue Tulip stores it acquired in February 2009. It also said a delayed capital infusion in the 3Q of 2009 left it unable to buy new inventory or pay its vendors in a timely manner. The company engaged Clear Thinking Group to help it arrange a sale or liquidation and said it can no longer operate its stores for a sustained period. Swoozie’s operates 43 stores in 14 states across the Southeast, Northeast, Texas and California. In its filing, it listed assets of $1 million to $10 million and liabilities of $10 million to $50 million. Its sole secured lender is Wells Fargo, who is owed $3.1 million on a revolving credit facility. It owes more than $5 million to its top 40 trade creditors.

Old Navy Helps Gap’s Profit Climb
Gap Inc. posted a 45% increase in its 4Q profit, citing better inventory management, fewer discounts and strong sales at its Old Navy division. 4Q net income grew to $352 million from $243 million a year earlier. Sales increased 4% to $4.24 billion. Comp store sales grew 2%, compared with a 14% decline the year before. Comps at its Old Navy unit climbed 7%, following a 17% plunge a year earlier. Comps at the Gap chain in North America fell 1%, declined 2% at Banana Republic and were down 2% in the international division. The company kept inventories lean to avoid steep discounting, trimmed headquarters staff and shifted buying to cheaper countries to cut costs. To further its growth this year, Gap said it plans to remodel another 200 Old Navy stores. It also plans to open its first stores in Italy and China and add more outlets in Canada, Europe and Asia as part of its international expansion while making it possible for customers in Canada, Britain and nine other European countries to shop online by the end of this year.

Kohl’s Profit Jumps 28%
Kohl’s 4Q profit grew 28% to $431 million, as it kept its inventory levels in line with demand and didn’t have to resort to steep markdowns. It also captured solid sales from exclusive brands like Dana Buchman, Simply Vera, Vera Wang and LC by Lauren Conrad, and picked up market share from the closings of competitors like Mervyn's. Sales increased 8.5% to $5.68 billion, while comp store sales advanced 4.5%. The company said customer counts rose 7.3% per store for the quarter, but the amount that shoppers spent per transaction dropped 8.2% as shoppers continue to purchase fewer items per trip.

Kevin Mansell, Kohl’s Chairman, President and CEO, said, “We are pleased that we were able to gain market share in a difficult environment, achieving both total and comparable store sales increases for the year. We improved our merchandise margins significantly through strong inventory management and successful private and exclusive brand strategies.” He added that consumers continue to feel pressured by high unemployment and tight credit and are looking to stretch their dollars further, which means the company will be planning conservatively in its sales expectations, inventory levels and expenses. Kohl's said it plans to open 30 new stores this year and remodel 90 others, up from its previously planned 65.

General Growth Strikes Deal to Exit Chapter 11
Shopping mall operator General Growth Properties Inc. said it has reached a deal with Canadian property manager Brookfield Asset Management Inc. that will enable it to exit Chapter 11. General Growth said Brookfield will invest $2.625 billion in cash in exchange for General Growth shares, giving Brookfield a 30% stake in the company. General Growth plans to emerge from bankruptcy and pursue capital-raising initiatives aimed at generating $5.8 billion in cash to pay off creditors. The plan also calls for General Growth to spin off some assets as a new company. The deal, which comes days after General Growth rejected a hostile $10 million takeover bid by Simon Property Group, requires bankruptcy court approval.

Report: Bi-Lo Closer to Exiting Chapter 11
A potential obstacle to Bi-Lo's emergence from Chapter 11 was removed when two former executives withdrew their objection to the company's proposed reorganization, the Greenville News reported. The supermarket chain now expects to emerge from bankruptcy around May 1 with the bulk of its operations intact. Bi-Lo's former CEO, Dean Cohagan, and the company's former general counsel, Kevin McDougall, had said in a court filing that Bi-Lo's reorganization plan cut out minority equity holders and failed to comply with provisions of the U.S. Bankruptcy Code, the report noted. They said Bi-Lo's parent company, Lone Star, was in control as debtor-in-possession and was seeking complete ownership without providing an opportunity for minority equity holders to participate. But, they withdrew their objection without comment.

Under BiLo’s amended reorganization plan, Dallas-based Lone Star, a private equity firm, would retain ownership of the grocery chain by paying term-loan lenders $260 million and giving unsecured creditors $30 million to $35 million to divide, the report noted. The reorganization plan would be funded by a combination of $150 million of new equity from a Lone Star affiliate and a new $200 million term loan, Bi-Lo said. The grocer, which filed Chapter 11 last March, expects to emerge from bankruptcy with 207 stores in South Carolina, North Carolina, Georgia and Tennessee and a substantially reduced debt load.

Costco’s Profit Climbs 25.1%
Costco Wholesale Corp.’s fiscal 2Q earnings jumped 25.1% as the warehouse club operator posted strong overseas sales growth and increased domestic sales due to higher gasoline prices. Net income grew to $299 million for the period ended February 14, up from a profit of $239 million the year before. Revenue climbed 11.3% to $18.74 billion, while comp store sales grew 9%, due largely to higher gas prices and the weaker dollar. Excluding those two factors, comps grew a more modest 3%. A soft dollar leads to increased revenue for companies with overseas operations because foreign currencies translate back into more dollars. Comps from Costco’s international operations surged 26%, while U.S. comps grew 5%. Costco has prospered during the economic downturn as shoppers have flocked to its stores to bulk up on necessities. However, sales of bigger-ticket items like furniture have been soft.

Higher Gasoline Sales Fuel BJ’s Profit Gain
BJ's Wholesale Club Inc. said its 4Q profit climbed 4.6%, as higher gasoline prices pushed sales up. Its net income increased to $55.1 million from $52.7 million a year earlier. Sales for the quarter ended January 30 rose 9.4% to $2.8 billion. Comp store sales grew 4.6%, which included a 2.3% benefit from gasoline sales, following a 2.5% decline in the 3Q. BJ’s said 4Q sales of food increased about 7%, while general merchandise sales declined by about 1%, indicating that consumers are still largely focused on necessities amid a fragile economy. BJ's expects food and basics to continue to drive sales this year. It will continue to remodel stores and add new units to existing markets. It is also experimenting with a smaller store format. Late last year, it opened an 85,000-square-foot store in Quakertown, PA, and it plans to open another similar size unit in Quincy, MA.

Walmart Unveils Sustainability Program
Walmart is once again taking an industry-leading role, and this time its focus is on environmental sustainability. This means suppliers are going to be asked to rethink their sourcing initiatives, manufacturing processes, packaging methods and materials and how they transport goods to help Walmart meet its goals. In anticipation of a world of more expensive energy, the company will seek to eliminate 20 million metric tons of greenhouse gases (GHGs) by the end of 2015. This represents “one and a half times the company’s estimated global carbon footprint growth over the next five years and is the equivalent of taking more than 3.8 million cars off the road for a year.”

Walmart has partnered with the Environmental Defense Fund in its greening effort and will collaborate with other advisors, including PricewaterhouseCoopers, ClearCarbon, Inc., the Carbon Disclosure Project and the Applied Sustainability Center at the University of Arkansas. The team will identify projects, engage suppliers, ensure proper procedures are followed for each GHG reduction claim and quantify GHG reductions. The ambitious project will begin by focusing on popular product categories with the highest embedded carbon — such as milk, bread, meat and apparel. It will then determine that for something to be part of the project it must “reduce GHGs from a product in either the source of the raw materials, manufacturing, transportation, customer use or end-of-life disposal.” Lastly, suppliers and Walmart will jointly account for the reduction, with ClearCarbon conducting audits to ensure claims are correct.

Hefty Charges Push Safeway into the Red
Charges to write down the value of two of its supermarket chains (Vons and Eastern) pushed Safeway’s 4Q results into the red. The grocery chain reported a loss of $1.61 billion for the latest quarter, compared to a $338 million profit a year earlier. The results included a non-cash goodwill impairment charge of $1.82 billion. Without the charge, its net income was $209.1 million. Revenue fell 8.1% to $12.69 billion, although the prior year’s quarter had an extra week. Comp store sales dipped 4.1%. Safeway stumbled during the recession, as it was slow to cut prices to attract budget-minded shoppers. It has since lowered prices on key items and drawn more shoppers to its stores. However, those lower prices, along with limited spending by shoppers and intense competition, have pressured profits.

Blockbuster Exploring Recapitalization Possibilities after Big Loss
Blockbuster said its 4Q loss widened on a massive charge related to the diminished value of certain assets. The company said it lost $435 million, compared with a loss of $359.8 million in a prior-year period that also included an impairment charge. Excluding items, Blockbuster said its adjusted net loss was $44.3 million for the latest quarter. Revenue fell 17.5% to $1.08 billion, while same store sales in the U.S. plunged 16%. Blockbuster also said it continues to explore various recapitalization possibilities. In 2010, it intends to close 500 to 545 underperforming stores in the U.S. Its video rental stores are struggling to attract consumers who are increasingly getting their movies through the mail, vending machines and high-speed Internet connections. Blockbuster is setting up more video rental kiosks similar to those operated by Coinstar Inc.'s Redbox, which has been chipping away at Blockbuster's market share. It added 2,000 kiosks last year and plans to set up another 7,000 of the vending machines this year in a partnership with NCR Corp. It is also offering to mail DVDs that customers can't find in stores in an effort to compete with Netflix.

Blockbuster Inc. hired law firm Weil, Gotshal & Manges and investment bank Rothschild Inc. to help it find ways to cut its $1 billion debt load, the Wall Street Journal reported. The firms will also look at other strategies, such as acquisitions or partnerships, the newspaper said, citing people familiar with the matter. Bondholders have also begun talking with potential advisers about reworking Blockbuster's capital structure, such as converting debt to equity, the Journal reported. "We don't contemplate filing for bankruptcy," Blockbuster CEO Jim Keynes was quoted as saying.

Limited Brands Post Big Profit Gain
Limited Brands Inc. reported a sharp 4Q profit increase, as it benefited from cost-cutting and tight inventory controls. The operator of Victoria’s Secret and Bath & Body Works said it earned $356.1 million for the quarter ended January 30, up from $16.1 million the year before. The company also benefited from the absence of an impairment charge that cut into its year earlier profit. Sales grew 2.4% to $3.06 billion, while same store sales increased 1%. The company has experienced a solid pickup in sales during the first two months of the year.

Talbots Restructuring Clears a Hurdle
Shareholders of BPW Acquisition Corp., a special-purpose acquisition company, agreed to be acquired by Talbots Inc. as part of the women’s apparel retailer’s broader restructuring plan. This deal is part of a plan to let Talbots buy out its majority shareholder, lower its debt by about $330 million and continue its turnaround. In December, Talbots announced a financing solution which included three related transactions: a merger with BPW Acquisition Corp.; the retirement of parent company Aeon’s equity and repayment of Talbots existing debt; and a commitment for a new $200 million revolving credit facility from GE Capital. After the merger with BPW is completed, Aeon will hold no Talbots’ debt or equity as the proceeds of BPW’s cash-in-trust of about $350 million, in conjunction with the additional financing from GE, will be used to retire Talbots’ existing debt and acquire all shares held by Aeon. Talbots expects the BPW deal to close by the end of March. Once the acquisition closes, current BPW shareholders will own 60.4% to 69.1% of Talbots, and current Talbots’ shareholders will own 30.9% to 39.6%.

Staples Profit Down, Sales up
Several charges and a lack of big-ticket purchases resulted in an 18% 4Q profit decline at Staples, Inc., despite a gain in sales. The office supply retailer’s earnings fell to $233.9 million for the quarter ended January 30, down from a profit of $286 million the year before. Results included a pre-tax $42 million charge related to the settlement of some retail wage and hour class action lawsuits, plus $20 million in pre-tax integration and restructuring charges related to Corporate Express. Staples acquired Dutch office supply company Corporate Express NV in July 2008 for $2.7 billion.

4Q Revenue grew 4% to $6.41 billion, while comp store sales improved 3%. However, businesses have held back on buying big-ticket office-supply items, as the economy remains fragile, which dented profits. Nevertheless, comps at its North American stores grew for the first time in ten quarters and sales to small businesses grew for the first time in six quarters. Staples added that store traffic improved and it posted strong sales of computers, ink and toner. This was offset by softness in business machines and furniture. Staples reported that its North American delivery sales fell 1% to $2.4 billion, while North American retail sales climbed 8% to $2.6 billion. Overseas sales increased 7% to $1.4 billion.

Disciplined Cost Controls Help Dillard’s Swing to a Profit
Lower costs and leaner inventory helped Dillard’s, Inc. swing to a 4Q profit, although sales continued to drop. The department store chain earned $79.5 million for the quarter ended January 30, compared to a loss of $149.3 million a year earlier. Sales, however, fell 10.1% to $1.83 billion, while comp store sales declined 8%. Dillard's trimmed its advertising, selling, administrative and general expenses to $431 million from $481.8 million during the quarter. It also lowered its inventory by 5% year over year. Gross margin from retail operations widened by 8.2 percentage points due to lower inventory levels and decreased markdown activity.

Justice Helps Dress Barn Swing to a Profit
Helped in large part by the acquisition of the Justice label, Dress Barn, Inc. swung to a fiscal 2Q profit. The apparel chain earned $21.7 million for the three months ended January 23, compared to a loss of $1.8 million the previous year. Dress Barn acquired Tween Brands Inc. – and its Justice label that caters to tweens - in November. Excluding items related to that deal, Dress Barn earned $28.1 million. Boosted by the acquisition, sales climbed 73% to $594.1 million. Still, comp store sales advanced 10%. Comps at its Dress Barn stores grew 6%, and climbed 5% at its Maurices units and 19% at Justice. David R. Jaffe, President and CEO of Dress Barn, said, “Our sales trends are strong, our inventory and margins are at good levels, and we are seeing improving unit-level productivity.”

AutoZone’s Profit up on Higher Margin Sales
Improved sales of higher-margin items and expense reductions helped AutoZone grow its fiscal 2Q profit by 6.4% to $123.3 million. Sales for the quarter ended February 13 grew 4% to $1.51 billion, while comp store sales increased 1%. Gross profit, as a percentage of sales, climbed to 50% from 49.7% last year due to lower product acquisition costs and a shift in mix of sales to higher margin items, the company said. The company’s inventory increased 3.3% over the same period last year on the strength of new store openings, although inventory decreased on a per store basis. AutoZone opened 24 new stores in the U.S. and nine in Mexico during the fiscal 2Q. It has 4,289 stores in the U.S. and Puerto Rico and 202 stores in Mexico.

Big 5’s Profit up a Big 77%
Big 5 Sporting Goods Corp.'s 4Q profit jumped 77% on higher sales and merchandise margins and lower distribution costs. The retailer earned $6.4 million for the three months ended January 3, up from the $3.6 million a year earlier. Revenue rose 8% to $237.6 million, while same store sales edged up 0.1%. For the full year, Big 5's profit climbed 57% to $21.8 million, while revenue increased 4% to $895.5 million. Big 5, which has 384 stores in 11 states, expects to open three new stores in the 1Q. It expects 1Q same store sales to be up in the mid-single-digit range.

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Major retailers report their sales results for February tomorrow. Who will be the winners and losers and what are the big trends heading into the spring 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. Learn more about subscribing.

Consumer Sentiment Down in February
While not fearful of another spike in layoffs, consumers have turned sour about their job and income prospects and have grown impatient with government’s efforts to create jobs, according to the Thomson Reuters/University of Michigan's Surveys of Consumers. The survey's overall index of consumer sentiment was at 73.6 in February, down from 74.4 in January. “Consumers have been getting more impatient with the slow progress of the stimulus program, and confidence in the Obama administration's economic policies has begun to wane," Richard Curtin, director of the surveys, said. The gauge of current economic conditions was at 81.8 in February, up from January's reading of 81.1. However, the survey's barometer of consumer expectations weakened to 68.4 in February from 70.1 in January.

Solid 4Q GDP Likely to Slow in 1Q
A revised estimate by the Commerce Department showed that the nation’s gross domestic product (GDP) grew at a 5.9% annual rate in the 4Q, up from an initial estimate of 5.7% and the best showing in six years. Much of the strength came from a burst in manufacturing as businesses replenished depleted stockpiles. However, consumer spending was not nearly as strong, which means that 1Q growth will likely not be as good, since growth in business investment is expected to diminish. In the 4Q, businesses boosted spending on equipment and software at an 18.2% pace, the fastest in nine years. Foreigners were also hungry for U.S.-made goods and services, which pushed exports up at a 22.4% pace, the best in 13 years. Consumers, however, increased their spending at a pace of just 1.7%. That was weaker than first thought and down from a 2.8% growth rate in the 3Q. If consumer spending trends continue, GDP growth will likely dip to a 2% to 3% range in the coming quarter, some analysts note.

Stagnant Incomes May Dampen Recovery
Personal incomes barely budged in January, but that didn’t stop consumers from spending. The Commerce Department reported that personal incomes grew 0.1% in January, while personal spending jumped 0.5%. The income gain was the weakest showing in four months and raised concerns about whether consumers will be able to continue spending at a rate that can support an economic recovery. If incomes remain stagnant, spending will likely wane since many Americans are not willing or able to borrow in order to spend.

Private wages and salaries were up by $16.1 billion at an annual rate, compared to a $2.3 billion gain in December, the government reported. However, households did not get the usual boost from the government's annual cost-of-living adjustment for Social Security and other benefits. The 50 million recipients of Social Security saw no gain at all in January because of low inflation, the first time that has occurred in more than three decades. Moreover, after-tax incomes actually fell 0.4% in January, the biggest monthly decline since last July. With after-tax incomes falling as spending increased, the personal savings rate dipped to 3.3% in January, down from 4.2% in December.

Housing Recovery Shaky as New Home Sales Dip
Existing home sales fell sharply for the second straight month in January, another sign that the housing market's recovery is wobbling. The National Association of Realtors said sales fell 7.2% to a seasonally adjusted annual rate of 5.05 million. It was the weakest showing since last June. Sales declined nationwide, with the biggest drop - nearly 11% - in the Northeast. Sales fell about 7% in the South and Midwest and more than 5% in the West. The median sales price of an existing home was $164,700, unchanged from a year earlier and down 3.4% from December. Analysts are hoping that an extension of the government’s tax credit for home buyers to April 30 will spur a buying surge in the spring.

Growth in Manufacturing Slows in February
Manufacturing activity expanded in February for the seventh straight month in February, although the pace of growth slowed from January. The Institute for Supply Management (ISM) said its manufacturing index was 56.5 last month, down from 58.4 in January. A reading above 50 indicates expansion, below contraction. The declining rate of growth in February raises concerns about growth prospects. The positive effect of inventory restocking late last year will wane unless demand from companies and consumers picks up. That’s far from certain as American’s personal incomes grew a mere 0.1% in January, the Commerce Department said.

On the positive side, ISM said its employment measure grew for the fourth time in five months, accelerating to 56.1 in February from 53.3 in January. February's number is the highest since January 2005. "With these levels of activity, manufacturers are seemingly willing to hire where they have orders to support higher employment," said Norbert Ore, chair of ISM's manufacturing survey committee.

Durable Goods Orders up in January
Durable goods orders grew in January by the largest amount in six months, but the strength came largely from a surge in demand for commercial aircraft. The Commerce Department reported that orders for big-ticket manufactured goods jumped 3% in January, the biggest increase since a 5.8% increase last July. However, excluding transportation, orders fell by 0.6%. Demand for autos, machinery and other products fell in January, a sign that manufacturing is still challenged. However, the government revised higher the increase in orders excluding transportation in December to show a gain of 2%, stronger than the initial estimate of a 1.4% gain. January’s 3% gain in overall orders was led by a 15.6% increase in demand for transportation products, which was fueled by a more than doubling in demand for commercial aircraft, where orders jumped by 126%. This offset a 2.2% drop in orders for motor vehicles. Outside of transportation, orders for machinery fell 9.7%, while orders for primary metals grew 1.9%.

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