Hilo Hattie retail, known for its tourist-appealing clothing, jewelry, and souvenirs, has once again filed for bankruptcy. Said the company’s Vice President, Mark Storfer, although the company has increased its profit margin somewhat since it last filed for bankruptcy in 2008, from which it emerged in 2009, it has not been rapid enough to achieve important financial milestones.
This current bankruptcy, filed three days ago, lists assets of US$1 million to US$10 million and liabilities of US$10 million to US$50 million. Hilo Hattie’s mounting debt is no match for its cash reserves, and the company claims that the sluggish Oahu retail market is also posing a challenge for the company, coupled with the company not being able to find its niche in today’s market.
Although Hawaii’s visitor arrival numbers have been breaking records lately, what tourists are spending their money on is not so much on shopping and dining. Most vacation budgets are going to pay for airfare and hotel rooms.
The Hawaii retailer will continue its operations without any interruption, and will also continue to provide free entertainment at its stores, hands-on craft activities, and tastings of products for sale.