Searle Files for Bankruptcy

by Terri Potratz | January 12, 2009 at 10:40 am

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Another US retailer has filed for bankruptcy, indicating that store closings may soon follow for Searle. The womenswear manufacturer and retailer is based out of New York, with 7 operating stores selling ready-to-wear items.

President of debtors Searle Blatt cited the economic downturn as the reason for the filing, obviously, noting sales "dropped dramatically" over the past year with no improvements during the holiday shopping season. The business will still operate but Searle's sales director Rick Weinstein hasn't ruled out closing stores.

The announcement comes after a year of dismal sales, which was not uplifted by the holiday shopping season. Searle has marked store items down 80%, and that seems to be bringing in some business. It is still unknown whether Searle is looking to sell the company, or liquidate their holdings and close all or some of their stores:

“Everything is being reevaluated, but we haven’t made any decisions yet,” said Rick Weinstein, Searle’s director of sales and marketing. Asked whether Searle would consider shedding any of its locations, Weinstein said: “We are considering everything.”

Retail experts predicted a spate of bankruptcies this month, following a dismal holiday season. “I am not surprised,” said Walter Loeb, president of Loeb Associates. “Bills had to be paid by Jan. 10. People that are highly leveraged may not find it possible to pay and seek court protection.”