Usually, when a retailer finds itself in financial trouble, experienced observers see the signs.
In the month before JCPenney filed for Chapter 11 bankruptcy, for example, regular shoppers noticed that inventory was thin. You might see the shirt, shoes, or pair of pants you wanted, but it would only be available in less common sizes.
That’s because when stores begin conserving cash, they cut back on inventory.
In many cases, that becomes a death spiral because when consumers visit a brick-and-mortar retail store and can’t get what they want, they either walk elsewhere in the mall to make the purchase or buy it online.
There are, however, cases where a retail chain closing surprises its customers, and that’s likely the case…