Klein & Wilson

More retailers closing their doors

You may not have noticed it the last time you went to the mall, but traditional brick and mortar retailers are having a difficult time. The proliferation of online retailers is taking a bite out of the marketplace previously dominated by retailers with physical locations. Examples of this can be seen with a number of stores.

Electronics dealer Radio Shack recently announced that it would be closing 1,100 stores across the United States. This represents 20 percent of its national locations. Questions abound as to how the leases Radio Shack had with these various locations were settled.

The traditional electronics retailer lost nearly $200 million in the three months leading to 2014. Likewise, Staples will be closing 225 stores in an effort to save half a billion dollars over the next two years, and has been reducing the size of its existing stores as well.

Also, clothing retailers Macy’s and Sears will be closing stores, with Sears closing its flagship store in Chicago. All of these closures are indicative of two important trends: it is increasingly expensive to maintain a physical presence, and more consumers are finding merchandise online. It is estimated that online purchases are growing by 10 percent every year, and accounted for $963 billion in transactions in 2013.

This may not signal a death knell to the traditional way to shop, but it certain represents a shift in how to make things available to consumers. In the meantime, it also presents a number of legal issues that both retailers and landlords must deal with, and it takes experienced counsel to help resolve them.

Source: TheNewsFunnel.com “A rough time for retail,” March 20, 2014 

No Comments

Leave a comment
Comment Information
  1. RATED BY | Super Lawyers | Top 100 | Southern California | SuperLawyers.com
  2. Avvo Rating | 10.0 | SUperb | Top Attorney Litigation
  3. PREEMINENT AV | Martindale-Hubbell | PeerReviewRated
  4. RATED BY | Super Lawyers | Top 50 | Orange County | SuperLawyers.com
  5. Best Lawyers | BEST LAW FIRMS | U.S.NEWS | 2018
  6. KLEIN & WILSON | RECOGNIZED BY | Best Lawyers | 2019
  9. AVVO Client's Choice | Award 2017
  10. OCTLA | Orange County | Trial Lawyers Association | Trial Lawyer Of The Year
  11. The National Trial Lawyers | Top 40 Under 40

Contact Our Attorneys Today

Please call the law office at 949-478-0521 or fill out the form below to arrange a consultation with a lawyer.

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Get Started

Klein & Wilson
4770 Von Karman Avenue
Newport Beach, CA 92660

Phone: 949-478-0521
Fax: 949-631-3703
Newport Beach Law Office Map

Firm Office