Back before the Christmas holidays, I remember hearing news about the toy store company, Toys R Us, closing some of its stores. I didn’t take a serious note of it; first, because I don’t have kids, and my youngest nephew is 16 years old. So it’s been quite a while since I’ve shopped in any of their stores. Second, news of the closing of “some” of their stores was not unlike the reoccurring news of Kmart, Sears, Macy’s, even Sam’s Club. It had become an all too real part of the news cycle. Another month, another retail store filing bankruptcy, mostly to reorganize, and in the process, closing several of their stores.
But then earlier this month, that news changed. It was no longer just some stores closing, but rather, news broke that the company planned to sell or close all 800 stores in the US. The part that jumped out to me in the articles I read was that as many as 33,000 employees would be affected!
From what I understand, Toys R Us had declared bankruptcy back in Fall 2017 because of an almost EIGHT BILLION DOLLAR debt it was struggling to pay. Let that sink in… Other than the position we’ve allowed ourselves to get into as a country, where else do you hear about a business continuing to operate for so long with that kind of outstanding debt?
One of the things that came to mind was wondering how many employees took any action upon originally hearing about the company’s bankruptcy? How many people in upper and middle management pulled out their resumes and started working on updating their information? Or who of the hourly employees started looking for other places hiring in their community? How many even knew or gave thought about the financial instability of their company — even though the information was readily available and reported on?
Perhaps it’s hard to say with certainty what any one of us would do, given the same scenario. Or maybe you DO know, because you have already been in this situation. But I ask these questions because I’m curious as to why people stay in a place, making little effort to seek alternative employment, when they know the clock has already started ticking down towards the day when they will lose their job. An announcement that a company you work for is closing should signal that it’s time to get serious about making a change; preparing for reality — the new normal that’s about to fall up you.
One article I read talked about the gap between the time when some people can apply for unemployment, and the timing it takes to actually start receiving an unemployment check. And while that money is there for such a time as this, it won’t be the same amount as what most soon-to-be former employees have become accustomed to living on. By its design, it’s suppose to just tie people over until they find that next job. For some, they’ll have one the day their store closes. For others, it may take weeks or months.
So my question for you is, how prepared are you if you were to find out today that you will no longer have your job by the end of the year? Or by the end of the month? Maybe even by the end of the week?
In a list posted by Clark, a retail and consumer news site, some of the other stores scheduled to close at least some, if not all of their stores this year, include: Abercrombie & Fitch, Foot Locker, Best Buy cell phone stores, J.C. Penney, Bon-Ton, Sam’s Club, Macy’s, J. Crew, Gap and Banana Republic, Teavana, and Michael Kor’s. Additionally, Ascena Retail Group, which is the women’s clothing retailer that operates the brands Ann Taylor, Loft, Dress Barn, Lane Bryant, Justice and several others. (https://clark.com/shopping-retail/major-retailers-closing-2018/)