Company Man...uploaded a video yesterday about GNC, which announced it would close 900 stores last year. I plan on using that for another entry, making it the second update to Chuck E. Cheese, GNC, and Tuesday Morning all file for bankruptcy, tales of the Retail Apocalypse during the pandemic featuring a Company Man video.As promised, here is Company Man's The Decline of GNC...What Happened?
GNC has filed for bankruptcy. This video explains the reasons behind it while taking at their unique history.This is the first time Company Man has identified stock buybacks as a contributing factor in a company declaring bankruptcy. Usually it's private equity leveraging a company and making it vulnerable to bankruptcy during downturns, which happened to KB Toys, Sears and KMart, Toys R Us, Art Van, J. Crew, and Chuck E. Cheese's, although I failed to mention it until now. However, I might see stock buybacks as a cause of cash flow problems more often as the pandemic-caused recession continues.
That's it for the Retail Apocalypse for today. Stay tuned for my annual Bastille Day entry.