| Often high profile retail companies fail to recognize | | | | uninterested in the story, even having them believe |
| when they have reached a “retail crisis situation”. | | | | there is not one. |
| Generally when a company reaches this point, the | | | | Don't try to fix the problem all by yourself, or even let |
| management panics and is unable to think clearly. Their | | | | the management team do so. Whatever happened, |
| failure to act quickly and seek the services of a retail | | | | generally happened because of decisions made by |
| crisis specialist or consultant is often the difference | | | | management. They are too close to the situation |
| between restructuring and liquidation. | | | | anyway. Wait until the retail crisis manager arrives, let |
| Of course all firms would prefer not to face a | | | | him/her know the facts, and get back to your business |
| negative financial situation that would throw them into | | | | of running the store. The retail crisis manager will do his |
| the media limelight, public scrutiny, and phone calls that | | | | or her part. The good ones, like Waldoff, know the |
| come in way more often from creditors than | | | | score, and can give you the proper information to |
| customers. But in this economy, and actually in any | | | | close profitably, or keep the store open and turn it |
| economy, it can happen. There are many factors that | | | | around. All situations are different. |
| can precipitate this kind of occurrence, but fortunately | | | | Give accurate information to the crisis management |
| there is a way out, and often even a profitable one. In | | | | team. Don't inflate or deflate the facts. Generally the |
| certain situations, a good retail crisis manager can not | | | | team has seen it all. Many of them such as Waldoff |
| only help bring a retail business back on track, but | | | | has had over five decades of running massive |
| make it profitable. Crisis management is all about giving | | | | organizations and have seen it all. The better you can |
| the right crisis response whether it is precautionary, | | | | explain the real facts, the faster the problem(s) can be |
| structural, ad-hoc, or all of the above. | | | | solved. There are two important issues to evaluate |
| The author of this story has been conducting research | | | | when closing. One is the short-term effects and the |
| for a number of years regarding small to medium retail | | | | other long term. A good retail crisis |
| businesses that have folded. In 1978-1981 London | | | | Consultant can tell you what they both mean and |
| owned a health food store in a Mississippi university | | | | which steps to take to make it work best for you, and, |
| town which closed in what he called “a pigpen of | | | | hopefully remain profitable. |
| embarrassment”. London always wondered if there | | | | Remember, time is of the essence. Please do not wait |
| might have been another way. A local liquidator | | | | until it is too late; like so many retail establishments do. |
| offered London seven cents on the dollar. In the | | | | The faster you can get a grasp on the issue(s), the |
| course of his research, London discovered a specialist | | | | faster you can contact the retail consultant, and the |
| in retail liquidation, a retail turnaround expert named | | | | faster problems, even big ones, can be solved and you |
| Milton Waldoff, who happens to be ranked #1 the | | | | can stay in business or walk away with a profit. It is |
| number one retail crisis turnaround specialist on both | | | | more often or not your choice. A wise decision, in this |
| Google and MSN. | | | | case, is a quick one; getting the right information fast to |
| London learned a number of details from Waldoff that | | | | the right person, a retail crisis manager. |
| he says he wish he had known when he had his own | | | | Firms equipped with business continuity plans for |
| retail store. Rehearsal of retail management crisis. | | | | responding to likely disruptions will be in a better |
| Preparing for such events can be a “make or | | | | position to minimize the business impact and irreparable |
| breaker”. A crisis management can be on the | | | | financial situations. However, their executives find the |
| scene within days or even hours and start repairing | | | | process of developing these plans has an indirect |
| situations and stop the hemorrhaging of dollars. | | | | benefit. Their organizations are more sensitive to |
| Management should make it very clear in a formal | | | | possible crisis situations that could disrupt the business |
| meeting that the only employees to communicate with | | | | and affect its operating expenses, profits and overall |
| anyone outside of the retail establishment regarding | | | | growth, resulting in management responding more |
| the crisis are the retail crisis management team. | | | | rapidly and effectively to deter yet more problems |
| Once you discover there is a crisis move “faster | | | | before the crisis manager can be there to evaluate |
| than fast”. This is the kind of story the media loves, | | | | and fix the situation.. As overwhelming as it may seem |
| and the faster the retail team puts its “ducks in a | | | | now, it might not be as impossible as you think. Try a |
| row” the less time the media has to prepare to | | | | seasoned retail turnaround expert and see the |
| make it look worse. The retail crisis manager can do a | | | | difference. |
| lot to lessen the blow, and often make the media | | | | |