Clothing retailer going out of business
May 12th, 2011, 9:00 pm ? Post a Comment ? posted by HANG NGUYEN, Retail Reporter
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Sang H. Park
Once a high-flying retailer, Metropark USA Inc. will soon disappear after entering the Orange County market less than six years ago.
Metropark, a retailer of men?s and women?s clothing including high-end denim, filed for Chapter 11 bankruptcy protection May 2. The chain, which targets 25 to 35 year olds, cited the recession, unemployment, decline in credit-card availability and glut of premium denim at reduced prices for its financial woes.
Three days after the Chapter 11 filing, the chain founded in 2004, began the closure for all 69 stores in 21 states, including locations at Westfield MainPlace in Santa Ana, Brea Mall and Irvine Spectrum Center ? its first Orange County store that opened in September 2005. The going-out-business store sales will continue until all merchandise is sold. On Monday, the MainPlace Metropark discounted the following items by 20 percent: $79 knot-front romper for $63, $98 khaki anorak jacket for $78 and $169 pair of True Religion jeans for $135.??(View slideshow to see images of a Metropark store.)
Metropark?s merchandise also includes other premium denim brands such as Rock & Republic, which also filed for Chapter 11 bankruptcy last year and was later bought by VF Corp., and Irvine-based Obey Clothing brand, which bankruptcy court documents claim Metropark owes about $212,000. Metropark stores provide style consultants, live-art installations and fashion shows. Its stores average about 2,400 to 2,800 square feet.
Lois Huff, senior vice president of consulting group Kantar Retail, said ?not that the concept is wrong but the concept is narrow and has high sensitivity to economic and credit risk.?
She added that Metropark?s prices are high for its target customers. People from 25 to 35 ?aren?t at their peak earning power.? That typically happens when people are in their 40s and 50s. Furthermore, Metropark is targeting shoppers who have many financial obligations such as the cost for their own wedding and having children as well as buying their first home.
Metropark, which offers DJ performances in its stores, described its boutiques as having the ?high energy of a stylish night club.?
?It makes for a very intriguing shopping experience,? Huff said. ?The store is about more than selling products. But my fundamental question is do shoppers want to go to a store for that experience. If they?re into the clubbing lifestyle, they would just go to a club.? Read the rest of the story.
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Source: http://retail.ocregister.com/2011/05/12/clothing-retailer-going-out-of-business/49047/
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