Another teen store bites the dust as allowances dry up
Saks has been trying to unload its Club Libby Lu stores almost as long as it has owned them, and now it has finally succeeded in ridding itself of the teen clothing chain. Club Libby Lu will be closing 98 locations over the next six months.
The once-hot teen clothing sector has cooled considerably since Saks bought this chain in 2003 for $12 million, and it has been downright chilly for the last few months as the economy fell apart. The recession has curbed liberal teen spending as parents have started to say no, and even teens have felt the pinch of losing jobs.
The latest sales figures show that spending at teen-oriented stores has been down almost across the board, as chains like Old Navy, Abercrombie & Fitch and American Eagle struggle. Only Aeropostale has been a winner in the numbers. Meanwhile, several other teen chains are in trouble, like Arden B and Demo, a spin-off of PacSun.
