Haggar Announces New Leadership



Final Phase of Continental GOB Sale



Continental Jewelry Closing in Tampa



Unico Designs

the look to hold Two-Store retirement



Jewelers Could Have

A Happier Holiday This Year



Maharaja's Loses Beachfront Store

as Oil Wary Tourists Avoid the Gulf



Buxbaum Group Relocates



Michael Lebowitz Joins

Buxbaum Jewelry Advisors



Lisa Ketrick Joins

Buxbaum Jewelry Advisors



Gold-Buying Helps Jewelers

Weather Great Recession



Buxbaum Jewelry Advisors

Helps Hoff Family Jewelers



Rapid Sale of $1.5 M Inventory Shows  Demand for Value Jewelry



Highly successful sale for

Henricks Jewelers Bonita Springs



M.J. Christensen Plans To

Reopen Under New Name



Filene's Basement Files

For Chapter 11



M.J. Christensen

Store Closing



Reviewing All 'Available

Business Options’ for Filene's



Jewelry Superstore Offers

Huge Discounts In

Going Out Of Business Sale



Retailers to Shout 'Value!' from the Rooftops This Holiday Season



Buxbaum Forms Wholesale, Retail

Jewelry Liquidation Venture



Toys, Games, and Collectibles

Offered at Huge Discounts



Dismal Consumer Confidence

Undermines 'Immunity'

of Luxury Retail



Gigantic Inventory Clearance Sale

Makes Dream Kitchens A Reality



Western Wear Chains Offering Huge Savings at Special Inventory Sale



Shoppers Can Expect Quick Holiday  Bargains As Worried Retailers Cut Prices



Rosslyn Hotel Renovation

into Affordable and

Market-Rate Housing



Retailers's Shift Away

from Purchasing Contracts



Buxbaum Group Relocates

to Agoura Hills, CA



Downturn Means Uncertainty For

New Breed of Asset-Based Lenders



Collectors Art

Going-Out-of-Business Sale



Buxbaum Group Announces Senior Executive Changes



What Will the Holiday Season Bring



Marcos and York Join Buxbaum Group

Asset Appraisal Group



Acquisition of Honduran Factory to

Help Indosheen Regain Prominence



Buxbaum Group Readies

Indosheen for More Growth



 Confirmation Hearing on

Waterman Reorganization



Buxbaum Group

Gets Gramicci

Back On Track



Buxbaum Group the Key to

Sale of Rampage


Buxbaum Group Inventory
Appraisals Hit $5.0 Bil.
in 2003


David Buxbaum Named to Local
Airport and Hospital Boards



Right Start Stores Now in
Liquidation Mode, As Court
Rejects Offer On Business

Buxbaum Group Inventory
Appraisals Exceed $3.5 Bil.
on Target to Reach $5.0 Bil.
for 2003


Inventory Clearance Sales
Begin in All 142 FAO Schwarz,
Zany Brainy, and the
Right Start Stores


Buxbaum Group Appraised
Approx. $4.0 Billion
in Inventories in 2002


Court Approves GOB Sales
For Troutman's Emporium;
Buxbaum Group, Others
to Run Liquidation


RETAILERS’ SHIFT AWAY FROM PURCHASING CONTRACTS PRESENTS RISKS TO MANUFACTURERS AND SECURED LENDERS - Use of ‘forecasts’ shifts burden to suppliers, notes Buxbaum Group’s Stevan Buxbaum

AGOURA HILLS, Calif. (9/10/07) – Major retailers’ widespread shift from purchase orders to less-formal “forecasts” of their merchandise needs is putting both manufacturers and their secured lenders at risk of increased losses, according to Stevan Buxbaum, executive vice president of Agoura Hills-based turnaround investors and consultants Buxbaum Group.

Historically, large retailers gave manufacturers purchase orders that were contractual commitments for the delivery of a set amount of merchandise at a specific time, Buxbaum noted. Now, however, nearly all big chains give their suppliers forecasts of their estimated requirements that carry no obligation for the retailer to purchase the goods once they are produced, he explained.

“Manufacturers are producing goods to the forecast, but there are no guarantees that the customer will take the goods,” Buxbaum said. “With nothing but a forecast in place, it’s not uncommon for a retailer to buy only a fraction of what the manufacture produced or to stretch out deliveries over a much longer period of time, and the manufacturer doesn’t have a leg to stand on.”

The problem is especially acute in apparel. “In many cases, those goods carry the retailer’s private label, and the chain is not going to want them in circulation,” Buxbaum says. “That creates issues. Is the manufacturer allowed to liquidate goods that are produced but not accepted by the retailer? If so, do the private labels have to be removed? Or does the manufacturer have no choice but to wait for the goods to eventually be accepted?”

The shift to the forecast approach is causing problems for secured lenders, as well. “They are lending against this merchandise, but there is no guarantee that the purchaser will take it, and they may be limited in their ability to sell the goods. Lenders need to completely understand the agreements the manufacturer has with the retailer and be willing to walk away from deals whose terms are onerous,” Buxbaum advised. “Just because the merchandise exists, that doesn’t make it an asset. It is only an asset if you have the right to sell it and recover the money.”

Why have manufacturers allowed such a system to come into play? Buxbaum noted that they are typically eager to do business with the largest retail chains and, accordingly, are often willing to do enter such agreements even under unfavorable terms.

In this environment, secured lenders need to stay vigilant if they are to avoid financial losses in such dealings. “There has been a fundamental shift not just in the way merchandise is bought, but in the balance of power,” he commented. “Lenders that don’t understand that are doing business at their own risk.” 

About Buxbaum Group - Buxbaum Group had built its reputation for over 30 years as one of the largest liquidators and appraisers of retail and wholesale inventories across North America. While continuing to operate in those areas, the company has shifted its primary focus in recent years to turnaround investing. For more information, visit: www.buxbaumgroup.com

Press Contacts:  At Buxbaum Group, Stevan Buxbaum, (612) 363-6517, at Parness & Associates Public Relations, Lisa Kreda or Bill Parness, (732) 290-0121.