It looks an awful lot to me like Is this becoming a trend.
Today’s post is by Ronald D. Southard, CEO at SafeSourcing Inc.
I have said over and over again that this does not need to continue to happen at the scale that it is happening today! If companies were more aggressive in managing their cost structure in their supply chains their results would be different.
The word AUCTION in this posts title is a key reason that many companies are not getting the best net landed cost for their products and services. And that is ALL products and services. Reverse Auctions (a negative connotation from the past) or Online Bids as we mostly call them today when managed properly against your entire cost model (Indirect, Direct and Capital) do return results that your internal procurement team cannot and will never be able to achieve.
While I cannot speak to each of the companies below individual issues, and certainly ecommerce competition is one, what would have happened if they had reduced their costs across the board by 20% in the current accounting year. Is it possible. Simple answer YES! Can it be done with existing tools? Contact SafeSourcing to find out. We guarantee our results. Our average annual savings against all categories is 24.8%
Here they are, five prominent retail companies that have declared bankruptcy in 2024. I hope we don’t see any more!
- Big Lots: This discount retailer has struggled with declining sales and competition from e-commerce. In 2024, Big Lots filed for bankruptcy and announced plans to close about 550 stores across the U.S.
- LL Flooring (formerly Lumber Liquidators): Known for hard-surface flooring, LL Flooring filed for Chapter 11 in August 2024. While it was partially acquired by a private equity firm, over 200 of its stores are still closing.
- Conn’s HomePlus: A long-standing furniture and electronics retailer, Conn’s filed for Chapter 11 in July 2024. The company is set to close all its locations
- Rue21: This apparel retailer, filing for bankruptcy for the third time, will close all its stores.
- Eastern Mountain Sports and Bob’s Stores: Both outdoor and apparel chains filed for Chapter 11 in June 2024.
These filings highlight the difficulties many retailers face as consumers shift toward e-commerce and grapple with economic challenges continually like rising costs or inflation.
If you would like more information on how SafeSourcing can help you reduce all of your costs, please contact a SafeSourcing Customer Service representative. We have an entire team ready to assist you today.
