Economy

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The Swoozies Scorecard: Who’s in, who’s out

by Cinda Baxter on April 16, 2010

in Economy, Retail

Now that we’ve all begun spinning like whirling dervishes over the absurdity of vendors allowing massive debt to accumulate with Swoozies, the fallout is beginning to take shape. Here’s the scorecard thus far; if you have additions (and can back them up with a vendor email, website, or confirmable third party source), please post them in the Comments section.

1. Mud Pie                     $ 865,852.71
> Raised cash by selling minority portion of company to equity firm Lineage Capital (article here)
2. Design Design            352,268.51
> According to company president, Don Kallil, the company is able to absorb the loss (see his 4/22/10 comment posted here)
3. FedEx                    300,290.65
4. Heart Strings                283,440.40
5. Creative Containers        234,283.84
6. Crane & Co.                227,856.38
7. Innovative Packaging        206,337.20
8. Inviting Company            204,394.85
9. Patience Brewster        197,051.94
10. Peking Handicraft        197,051.94
11. Dennis East International    173,123.53
12. Cross-My-Heart-Cards    160,787.86
> Has gone out of business due to Swoozie’s losses, as explained in 4/7/10 email to retail accounts
> UPDATE 5.12.10: Roseanne Beck Collections will have three booths at NSS…?
13. Oh Sugar!                147,504.44
14. William Arthur            129,746.20
15. Lifeguard Press            123,029.54
16. Hilco Real Estate            115,067.17    (Lease, Northbrook IL)
17. AmEx                    113,743.05
18. MS. Dee / Molly ‘n Me        111,236.76
19. Print Appeal                109,019.93
20. Berman Enterprises        103,772.98    (Lease, Rockville MD)
21. Caspari                    101,766.79
22. San Lori Designs              98,955.98
23. Natural Life                  89,184.62
24. Lady Jane Ltd.              81,023.02
25. Morgan & Company          80,768.60
26. Recycled Paper Greetings      73,871.05
27. Opus Real Estate           67,820.16
28. Room It Up (Prime Source) 62,950.45
29. Cov II DDR Trademark      62,950.45    (Lease, Dallas TX)
30. Anna Griffin Invitations      62,451.89
31. ShopperTrak RCT Corp.      61,442.12    (Mall traffic analysis group)
32. Tri Coastal Design          58,679.67
33. The Orb Factory Ltd.          58,673.17
34. New Dimensions              56,815.36
35. Hog Wild                  56,384.00
36. American Greetings          55,953.85
37. Long Grove Confectionery      53,082.11
38. Melissa & Doug LLC            51,692.83
39. B*Posh                      49,025.08

{ 3 comments }

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The Swoozie’s bar tab, in detail

by Cinda Baxter on April 12, 2010

in Economy, Retail

At the request of a whole heck of a lot of retailers, here’s the bar tab Swoozie’s rang up before filing bankruptcy (as listed in public court records, confirmed here):

Top Unsecured Swoozie’s Creditors

1. Mud Pie                     $ 865,852.71
2. Design Design            352,268.51
3. FedEx                    300,290.65
4. Heart Strings                283,440.40
5. Creative Containers        234,283.84
6. Crane & Co.                227,856.38
7. Innovative Packaging        206,337.20
8. Inviting Company            204,394.85
9. Patience Brewster        197,051.94
10. Peking Handicraft        197,051.94 [click here to continue…]

{ 16 comments }

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Are Swoozie’s customers getting refunds?

by Cinda Baxter on March 22, 2010

in Economy, Retail

Now that the Swoozie’s bankruptcy news has been out for a while, I’m wondering…are customers who pre-paid special orders getting refunds (or, more shockingly, their orders)? Stores were promising to do the right thing, but I haven’t heard how “the right thing” is actually playing out.

Also, if a customer gets a refund, is it being issued to their credit card (assuming that was the original form of payment) or is Swoozie’s saying they’ll mail a check? If the latter, well….what are the odds it won’t bounce? [click here to continue…]

{ 4 comments }

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BOA cuts off the cash…finally.

by Cinda Baxter on March 11, 2010

in Economy, Finances, Retail

Remember those halcyon days of free flowing cash? That’s when the debit card was born—branded with a major credit card logo, it allowed consumers to pay for purchases without a paper check or relying on extended credit. If the money was in their checking account, the purchase was approved. If funds were insufficient, the card declined. For retailers, accepting debit cards was safer than accepting checks, a form of payment that wouldn’t show up as a “bounce” until long after the customer had left the store with their merchandise. [click here to continue…]

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Another sign the economy is (slowly) turning around

by Cinda Baxter on March 8, 2010

in Economy

From the Associated Press over the weekend:

The economy is showing renewed strength as retail sales surged last month and factory orders also increased. Such gains could lead to more hiring — if they can be sustained. Retailers said Thursday that store sales rose in February by the largest amount since November 2007. And orders to U.S. factories in January posted their sharpest rise in four months. It was another sign that manufacturing is helping drive the economic recovery. [click here to continue…]

{ 0 comments }

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Swoozies files bankruptcy

by Cinda Baxter on March 2, 2010

in Economy, Retail

Was it just me, or did every independent stationer in America see this one coming?

Those of you who have been quietly asking me “What’s the deal with Swoozies?” the past week have been getting lukewarm responses and a little tap dancing, given a tidbit of confidential news I’ve been keeping under my hat. Now that the cat’s out of the bag, well…. It’s true. The Blue Tulip acquisition turned out to be the nail in the Swoozies coffin, pulling the already shaky chain under water. [click here to continue…]

{ 15 comments }

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See? Customers WILL pay for quality.

by Cinda Baxter on February 23, 2010

in Economy, Real World, Retail

From a recent Accenture Consumer survey:

“Do you consciously pay more for a luxury item
at a brand store than a discount store?”

Yes – 59%
No – 41%

Granted, it’s close, and they’re talking about brand stores (ex: Coach), but…the key word here is “consciously.” Consumers seeking luxury goods are willing to bypass discount outlets in favor of quality, even though they know it will cost a bit more. For upscale retailers, that’s good news, regardless of whether they’re a national brand or an independent, locally owned boutique.

Bottom line? If you have the goods, and can back it up with top notch service and an equally matched environment, your customers are willing to skip T.J. Maxx and head your way. Just need to be sure (a) they know you’re there, and (b) you’re worth the trip.

Source: Accenture Consumer Luxury survey of adults 18 or older who purchased luxury items during the 2009 holiday season

{ 2 comments }

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Which credit card do you charge business expenses to?

by Cinda Baxter on February 18, 2010

in Economy

credit_card_singleNow that the new federal laws governing rate hikes, notifications, and fees on credit cards are about to take effect, many small business owners have begun to ponder a move from their current business card to a personal one, in hopes of limiting their financial downside. After all, the new guidelines only extend that far, making the resulting predictability pretty attractive and fiscally responsible.

Seems like a logical move, right?

Well…maybe not. Turns out that bumping everything onto a personal card could put your credit rating in a precarious position (read: an even more precarious position than is already the case if you’re a sole proprietor).

An article that ran on the Wall Street Journal website sums the pros and cons up well. Take a moment and take a peek. You’ll be glad you did.

{ 2 comments }

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