"Why Be Open Seven Days When Only Four Are Profitable?" A Case Study in Creative Crisis Management.
Presented at 2011 NRF International Convention & Expo
16. July-Aug-Sept 2008 Oct-Nov-Dec 2008 Jan-Feb-Mar 2009 Apr-May-June 2009 U.S. Congress passes “bailout bill”; Confidence plummets!
17. July-Aug-Sept 2008 Oct-Nov-Dec 2008 Jan-Feb-Mar 2009 Apr-May-June 2009 Holiday Season 2008: Shoppers stay home! All retailers suffer. Media hypes free-fall.
18. July-Aug-Sept 2008 Oct-Nov-Dec 2008 Jan-Feb-Mar 2009 Apr-May-June 2009 By December 15, like most retailers in 2008... Kitchen Kaboodle’s sales were off drastically
19. July-Aug-Sept 2008 Oct-Nov-Dec 2008 Jan-Feb-Mar 2009 Apr-May-June 2009 Then, more disaster December 14 AND 21-22-23 Portland has record snowfall & ice storms City shuts down! “ Snowmygawd”
20. July-Aug-Sept 2008 Oct-Nov-Dec 2008 Jan-Feb-Mar 2009 Apr-May-June 2009 1Q Results: Grim! Sent to Bank, per their request, mid-January
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22. July-Aug-Sept 2008 Oct-Nov-Dec 2008 Jan-Feb-Mar 2009 Apr-May-June 2009 February 3 Bank calls the loans! Wants $2.2 Million paid off by March 31
23. Feb. 5 Advised Bank of work on turnaround plan Feb. 4 Owners meet with bankruptcy attorneys Feb. 4 Owners meet with outside accountants Feb. 5 Owners meet with potential funding sources: landlords, private investors, others
24. Feb. 6 Owners confirm: respective homes are pledged to Bank Feb. 6 Owners discover that Chapter 7 – liquidation - would not only dissolve the company, but also would require all of their personal assets
25. “ We Need a ‘Plan B’...Now!” Liquidation Outcome: Everybody Loses ???