Another notable issue in addition to the great explanation by the other comment is that they found themselves in a very bad real-estate position as well. They h

Another notable issue in addition to the great explanation by the other comment is that they found themselves in a very bad real-estate position as well. They had large scale stores with pricy leases that didn't have a good profit to square foot ratio. Combine that with the cost of upkeep, janitorial, sufficient employee heads to run/ stock the store and you've got a recipe for failure. Their idea to open new stores in small footage locations focusing on high margin and popular products during Christmas time is great.