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KeystoneRegional

Daffy’s, Discount Retailed, to Sell Assets, Going Out of Business.

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Bloomberg - "Daffy’s Inc., the discount fashion retailer that began in 1961 as “Daffy Dan’s Bargaintown,” plans to sell all its assets and liquidate merchandise in bankruptcy, citing competition from online retailers that turned over 50 years of profits into losses beginning in 2011.

 

The 19-store chain in the U.S. Northeast, with 1,162 employees, plans to sell its real estate leases and merchandise and repay creditors in full, according to papers filed yesterday in Manhattan bankruptcy court. A joint venture of Gordon Brothers Retail Partners LLC and Hilco Merchant Resources LLC will liquidate merchandise, and Jericho Acquisitions I LLC, an affiliate of JEMB Realty Corp., will buy the company’s leases and certain intellectual property for $43 million, if the court approves, Daffy’s said.

 

Daffy’s, based in Secaucus, New Jersey, filed for Chapter 11 protection listing assets of $60.2 million and debt of $70.5 million as of July 1.

 

“The debtors’ operations during the last 50 years have generally been profitable,” company Vice President of Finance Richard Kramer said in court papers. Beginning in 2011, the economic downturn and increased competition from online discount retailers led to a loss of $11.4 million."

 

Source Link /// Read More: http://www.bloomberg...-liquidate.html

Edited by KeystoneRegional

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They're trying to blame the economy for the loss and online competition... More like they started selling too much garbage in the stores to attract anyone...

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Yeah, I saw the signs at the one in the Atlantic Mall on Saturday and thought it was just that store closing. I mean I never shopped there, and I don't know people who have, but it just seemed like a busy place that wouldn't go under, then again I thought the same about Syms/Filene's Basement. I'm thinking about buying some of the computer equipment they have for sale actually, probably won't have much of a purpose for me but I'm that kind of person lol.

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lol... I went there years ago when I returned from Italy and back then they would have some things that were awesome if you knew what you were looking for. I got a few great items from Italy from there at great prices (glassware from Italy (shot glasses) which I still have in the box), but I stopped shopping there because most of what they sold there was just samples or stuff that had major defects. I don't mind buying something from last season or that was overstocked, but defective... Uh no... I think they really got hurt because they are a type of store that would depend on buying overstocked items and manufacturers started cutting back on production once the economy tanked so that meant they would buy more things that were defective as opposed to just last season's stuff or things that were overstocked.

Edited by Via Garibaldi 8

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I visited the 34th St. - Herald Square location many times, now-days more the Manhasset, Paramus and E57th St. location(s), but indeed it's sad they're closing, and VG8, great analysis and I agree. They used to have many great items that could be wearable, but now-days, it seems like they are running out of good things, and I believe more of the good items are going into more national chains and perhaps even Century 21 Dept. Stores.

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Im not shocked, they didnt keep up with the times! Im just waiting for Kmart/Sears to call it quits.

 

 

I believe the best future path of these two companies is that they should consolidate into one brand. I'd choose Sears as the new brand name because of the iconic Sears Roebuck & Co. as well as the Sears (now Willis) Tower, and cut out many stores nearby to one another I'd recommend expand the better located ones and directly go on competition with Target and Walmart. Also, a major store redesign needs to happen, many stores are bland and antiquated for young people (though I don't feel that way because I actually prefer the old "homey" feel of the stores instead of the clean and sleep "lofty" feel of the newer ones, but regardless of my opinion, they have to evolve).

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Imo, I dunno what made Target so much different from KMart. Both seemed the same to me. How KMart-sears has fallen as badly as they have seems so strange. I do agree, but even if they consolidated, I don't think it's going to save Sears. It'll be sad if they disappear, but there's enough stores to fill its place.

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