Even niche marketing can't protect businesses in this recession

The owner of a famous niche store in London's Covent Garden, specialising in American men's clothes which had been open for 29 years and survived 2 recessions, has decided to close his business in February 2010 and will sell everything, even the fittings, when a closing down sale starts in December. The owner decided that the business was not financially viable to continue.

Some interesting issues in this story which relate to what we study in Business Management:

• The reluctance of banks to lend to businesses is one reason given for the business closing down - without finance, supplies can't be purchased or orders met. Staff may not get paid and general expenses may become difficult to pay e.g. electricity, etc.
• This business operated in a niche market - it had little competition as it sold brand name goods not found elsewhere in the UK. Customers were loyal to the exclusive clothes.