Shopping blues

Filed for Chapter 11 protection on August 15th

As the real estate market continues to flounder, fewer shoppers are springing for new toys for the home. The victims: Niche companies such as Barbeques Galore, which lack the product diversity to cope with changing buying habits. The Carlsbad, Calif. based retailer sold $102.1 million worth of grills this year, down from $124.2 million in 2006. No mass closures have been announced, but the company owes at least $22 million to Wells Fargo and $38 million to Ironbridge Capital, the Australian private equity firm that bought the retailer in 2005, when it was doing about $300 million in sales. Barbeques Galore intends to either liquidate everything or find a buyer, but it could be a tough sell--owners predicted another 18% decline in revenues for fiscal year 2009.

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