Anatomy of a Bankruptcy

CA - The Gardena-based parent company of the retail chains Fallas and Anna’s Linens said Monday it filed for bankruptcy reorganization and plans to close 74 of its 344 stores. National Stores Inc., a family-owned firm, operates in 22 states and Puerto Rico...

National Stores said the bankruptcy filing was due to certain under-performing stores and severe weather in various regions that hurt sales.

In addition, the company suffered a data breach in the second half of last year in which some customers’ payment-card information was exposed at dozens of stores, and as a result “access to operating funds diminished” for the company, National Stores said. more

Three reasons for the failure, in the order stated:

1. Under-performing stores.
2. Severe weather.
3. Data breach diminished operating funds.

Number One is manageable. 
Number Two is vague. 
Number Three is a killer.
The list should be reversed, to show order of importance order.

Takeaway... Information security (from IT to TSCM) can make or break any business.