Big businesses come to an end

Alliyah Trim and Madisyn Hardy, Co-editors-in-chief

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The physical shopping business is slowly ending and the question now is why? Many people account the closings to the easy online shopping options, while others blame the rising prices and inflation. But the real reason seems to be bad financial management.

Many people are blaming Amazon and other online shopping outlets for destroying Toys R Us, but according to cnn.com that truly isn’t the case. The company’s biggest problem was that they were billions of dollars in debt. The debt caused the stores to stop investment in products, which made for an unpleasant shopping experience. The store filed for bankruptcy in February.

“This is the story of a company—one of the most iconic in America—that was saddled with so much debt that it could not succeed,” New Jersey Senator Cory Booker said on Businessinsider.com.

According to chicagotribune.com, Carson’s has closed, not because of online shopping, but because the Bon-Ton Stores have failed to find a bidder that is willing to keep their businesses out of bankruptcy. The final liquidation process of the Carson’s stores will be completed by Aug. 31.

Even though sources say that mismanagement is to blame, some still think that online shopping is the cause of the closures.

“It’s sad because online shopping is now taking over, and many malls are going downhill,” junior Caitlyn Kohler.

Gymboree announced they will be closing over 350 stores by July and The Children’s Place will be closing over 144 stores by 2020 due to a restructure of bankruptcy (businessinsider.com).

“The announcement represents the next step in the company’s court supervised financial restructuring as we work to more strongly position the business for long term growth and success,” CEO of Gymboree Daniel Griesemer said.

 

 

 

 

 

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Big businesses come to an end