Yesterday, TWICE reproted that the electronics retailer Vann's is preparing to file for Chapter 11 bankruptcy protection. This news comes after the retailer has spent 51 years in business and seems to continue the unfortunate trend we have witnessed in recent years.
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Vann's CEO Jerry McConnell commented that the company is waiting to finalize documents that will be filed on Friday and that by Monday, Aug. 6, "we will start the week in court."
Vann's five stores and Vanns.com are all operating profitably so why is the company filing for Chapter 11 bankruptcy protection? The unfortunate fact is that Vann's lost its credit line.
McConnell is new to the company, having come aboard in mid-June, but is thought of as a turnaround specialist. Vann's still has hope but they need to take some time to reconsider how they operate.
It's similar sentiments we have heard from Best Buy as that company attempts to reorganize as well. Hopefully, Vann's will be able to pull through this blow and not suffer the same fate as Ultimate Electronics and Sixth Avenue.