So, What’s Next in Chapter 11 and Liquidation Land?

The economy is really starting to take its toll. If you don’t believe me, here’s what a few financial experts told me.

Linens N’ Things looked like it could restructure under Chapter 11, then decided it was time to say good-bye. Circuit City shouldn’t have come as a shock based on how many times it announced staff cutbacks and store closings.

Value City slid under the my radar, mainly because there are none in my neck of the woods (though a few were planned for Connecticut when SB Capital Group bought Steinbach’s out of bankruptcy last decade). But it was proof that even discounters weren’t immune to the credit crunch.

And I’m still wondering if Steve & Barry’s will survive its restructuring, with how bad a shape they were in before filing Chapter 11 this summer. I also miss my Starburys, which will no longer be a staple of the store.

So who is next? Is it fair to even speculate? And for that matter, will only those in the multichannel would survive? And by multichannel in this case, I mean bricks and mortar and retail – we know catalogs are important, but they are used to drive a customer to the phone, to the Web, and even to the store.

My guess is you’re going to have to check out the financials of public companies. The ones that have been reporting double-digit profit losses over the past year may be in the retail graveyard soon. Look to see what comapnies have been saying they want to spin a title or store off (Talbot’s regarding J. Jill, TJX to Bob’s Stores, etc.).

Maybe some of these answers will surprise us: Take Starbucks. Profits have dropped 97% this year, and that’s based on store closings. But Starbucks is trying to re-find itself as competition like McDonald’s and Dunkin’ Donuts make a better cup of coffee and provide more reasons for customer loyalty.

I guess in these economic times, nothing is going to come as a shock or a surprise.