AM I NEXT? NO LOVE AT NORDSTROM (01/19/25)

JANUARY 19, 2025 — 134 EMPLOYEES

The closure of Nordstrom in the North Shore Mall, located in Peabody, Massachusetts, will affect 134 employees,

MAY 24, 2023 — 300+ LAYOFFS IN SAN FRANCISCO, CALIFORNIA

The company is closing its two San Francisco, California retail outlets due to rising crime and economic uncertainty.

The closures will impact over 300 employees located in San Frisco.

SEPTEMBER 21, 2022 — 231 LAYOFFS IN CEDAR RAPIDS, IOWA

The company has announced that it will be laying off 231 employees at its Cedar Rapids, Iowa distribution center.

According to a company spokesperson, “We have made the difficult decision to reduce our workforce at our Midwest fulfillment center in order to better align with the current needs of our business. We recognize the impact these changes have on our team members and are committed to taking care of our people as we work through this transition.”

JULY 20, 2020 — COMPANY CONTINUES ITS MAJOR REDUCTION IN FORCE WITH 521 LAYOFFS IN SEATLE, WASHINTON

Nordstrom is continuing its fight for survival in response to severely reduced revenues caused by the COVID-19 pandemic.

According to published reports, the company is “realigning and reducing our workforce to support our market strategy.” It is estimated that 6,000 layoffs occurred nationally in June 2020. It is projected that the company would layoff 20% to 25% of its staff nationwide with counts ranging from 13,600 to 17,000 employees based on a 2019 employee count.

Of course, the company refuses to reveal actual counts and locations.

MAY 24, 2020 - NORDSTROM LAYS OFF 189 IN HAPPY VALLEY, OREGON AND CLOSES STORE.

The company has announced that 189 layoffs will affect employees at the Clackamas Town Center Nordstrom in Happy Valley, Oregon. The layoffs will commence June 1, 2020 and will continue until the store is scheduled to close on or around June 21, 2020.

According to a company spokesperson, “Because of the impacts of the COVID-19 crisis, we have been forced to take a critical look at the physical footprint of our stores and assess how we can respond to the new realities of today's business environment. To maximize our ability to continue serving customers well into the future, we made the decision to close this store.”

AUGUST 6, 2019 — Original Post…

Seattle, Washington-based Nordstrom, the luxury department store retailer with legendary customer service has announced the closure of its 100,000-square-foot store in the San Francisco Stonestown Galleria. The last day of business is scheduled for September 13, 2019. According to a WARN (Worker Adjustment and Retraining Notification) notice filed with the State of California, the closure is permanent and will affect 230 employees.

According to a company spokesperson, "We keep a close eye on the long-term performance of our stores, real estate agreements and the future needs of our business. We look at our business market-to-market to understand where we have opportunities to grow while also being as efficient as possible in serving our customers. Looking at our needs in the San Francisco market, we decided it made the most sense to close this store."

Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life, or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?

NO LOVE AT KROGER MARKETS (02/18/25)

FEBRUARY 18, 2025 — 200 HQ EMPLOYEES

Kroger announced that it is eliminating up to 200 positions across three office sites at its Cincinnati, Ohio, headquarters.

A Kroger spokesperson has confirmed the layoffs but provided no details about the restructuring, commenting, “As we continue delivering fresh, affordable food to our customers, we are focusing on key priority areas that support our go-to-market strategy. As part of this prioritization work, we announced team restructures and a small number of eliminated roles to improve efficiency.”

APRIL 7, 2024 — KRONGER EXITS TEXAS

The company has announced that it will shut down its delivery services in San Antonio, Texas, and Austin, Texas, by the end of May 25, 2024.

The closure of delivery hubs will impact 125 employees, including 73 employees in San Antonio, and 52 employees in Austin. 102 employees are said to be delivery drivers.

JUNE 15, 2018 — Original Post…

Cincinnati, Ohio-based Kroger Markets, the largest U.S. supermarket chain by revenue, announced the company plans to exit the highly competitive Raleigh-Durham market in North Carolina with the sale of its 14 stores and the layoff of approximately 1,500 employees. Curiously, it is believed that eight of the stores will be sold to Matthews, North Carolina-based Harris Teeter Supermarkets, which was acquired by Kroger in 2014. 

According to Jerry Clontz, president of the Mid-Atlantic Division of Kroger, "We have decided to close our stores in the highly competitive Raleigh-Durham market. We have not been able to grow our business the way we would like in this market."

Competition in groceries and non-foods markets has been undergoing rapid change with the entry of Amazon and the availability of home delivery from larger players in an attempt to capture shoppers. The days when a large family would spend hundreds of dollars in a single-store bi-weekly or monthly shopping trip are over as consumer buying patterns appear to feature smaller purchases at multiple stores, and even higher-priced neighborhood convenience markets

Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. We see good people being laid off through no fault of their own. Just because something bad hasn't happened yet doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?

NO LOVE AT GUITAR CENTER (11/23/20)

NOVEMBER 23, 2020 — BANKRUPTCY!

Guitar Center filed for Chapter 11 bankruptcy on 11/21/20 in the United States Bankruptcy Court of the Eastern District of Virginia with a prior agreement with creditors. The company was plagued with debt and suffered major revenue loss as customers shopped in the stores where they could try, touch, and feel the goods — and the purchased online at a discount.

OCTOBER 28, 2020 — MORE RUMORS OF IMPRENDING BANKRUPTCY OR SALE

According to published reports, the company has missed a $45 million October interest payment and is in talks with creditors to avoid a default after a thirty-day grace period, after which could lead to a bankruptcy filing. The company faced a similar situation in April when it avoided bankruptcy using a distressed debt exchange.

The company is owned by a private equity firm Ares Management, which acquired its majority stake in 2014 by converting some of the debt it owned in the retailer into equity.

Original post…

Rumors regarding the financial condition of Westlake Village, California-based Guitar Center are swirling in the trade press, some suggesting that Guitar Center may be facing imminent bankruptcy or default on its debt obligations.

 It has been reported that a number of employees may be at risk for layoffs as the company attempts to recover from its financial difficulties.   

Many are pointing to the troubled nature of well-known guitar manufacturers and the changing nature of today’s music business as the proximate cause of Guitar Center’s decline. Others point to the company being run by financial engineering specialists at investment firms rather than retailers and musicians.

With more and more algorithmic sophistication, weak voices can be turned into powerhouse singers and non-musicians can actually create music. Traditional music marketing appears to be dying as record labels turn to 360-degree deals to capture profits in merchandising, videos, and ancillary-branded products. Why pay for music works individually when entire music libraries are available for listening at little or no cost. 

The financial juggling game continues …

It appears that Guitar Center has managed to re-negotiate a portion of its billion-dollar debt by exchanging its 9.625% Senior Unsecured Notes due 2020 with replacement 13% Cash/PIK (Payment In Kind) notes due 2022. 

April 12, 2018 – "Guitar Center, Inc. (the “Company”) announced the expiration and final results of its previously announced exchange offer and consent solicitation to (i) exchange its existing 9.625% Senior Unsecured Notes due 2020, of which there are currently $325 million aggregate principal amount outstanding, for (a) 5% Cash/ 8% PIK Notes due 2022 and (b) warrants to purchase shares of common stock, par value $0.01 per share, of Guitar Center Holdings, Inc., a Delaware corporation and the direct parent of the Company, and (ii) solicit consents to certain proposed amendments to the indenture governing the Existing Notes, commenced by the Company on March 12, 2018".

"At settlement, the Company issued $317,957,000.00 in aggregate principal amount of Exchange Notes, paid an Early Tender Consideration of $1,589,785.00 and support party fees totaling $1,512,775.00 in cash and Holdings issued Warrants, in each case, in exchange for Existing Notes validly tendered and accepted for exchange pursuant to the Exchange Offer. The New Securities have not been registered under the Securities Act of 1933, as amended or the securities laws of any state and may not be offered or sold in the United States absent registration or an exemption from the registration requirements of the Securities Act and applicable state securities laws."

For those unfamiliar with PIK’s, “a PIK or payment in kind is a type of high-risk loan or bond that allows borrowers to pay interest with additional debt rather than cash. This makes it an expensive, high-risk financing instrument because the size of the debt may increase quickly, potentially leaving lenders with big losses if the borrower is unable to pay back the loan.”

March 14, 2018 -- "Guitar Center, Inc. announced that its indirect wholly owned subsidiary Guitar Center Escrow Issuer, Inc. has priced $635 million in aggregate amount of 9.500% senior secured notes due 2021 at an issue price of 98.140%. The Notes are being offered to “qualified institutional buyers” in a private placement, in reliance upon the exemption from the registration requirements of the Securities Act and certain non-U.S. persons outside the United States in accordance with Rule 902 under the Securities Act. The Notes Offering is expected to close on March 16, 2018, subject to customary closing conditions. Following satisfaction of conditions including the completion of the Company’s exchange offer and consent solicitation relating to the Company’s 9.625% Senior Notes due 2020, the Issuer will be merged with and into the Company, with the Company surviving."

"The Company intends to use the net proceeds from this offering, together with borrowings under the Company’s $375.0 million senior secured asset-based revolving credit facility (the 'ABL Facility'), to (i) redeem all of the Company’s outstanding 6.500% Senior Secured Notes due 2019 (including accrued and unpaid interest, if any, to the redemption date) and (ii) pay fees and expenses related to the Notes Offering, the Exchange Offer and an amendment and extension to the ABL Facility.

"The Notes will not be registered under the Securities Act of 1933 or the securities laws of any state and may not be offered or sold in the United States absent registration or an exemption from the registration requirements of the Securities Act and applicable state securities laws. This press release does not constitute an offer to sell or the solicitation of an offer to buy any security, nor shall there be any sale of the Notes or any other security of the Company, in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction."

The play here is to move the maturity dates further toward the future to give the company additional breathing room to operate.

The ratings companies such as Moody’s and S&P Global appear unimpressed, with the ratings suggesting a high-degree of risk, weakest creditworthiness relative to other debt issuers, and have the greatest prospect for the recovery of principal or interest. 

The 59-year-old company, controlled by their primary investor Ares Management. L.P., is said to be the world’s largest retailer of musical instruments and associated paraphernalia.

For employees, the handwriting is clearly on the wall and it remains to be seen if Guitar Center can overcome the plague that is affecting the retail sector. 

Are you asking yourself, Am I Next?