Merry-Go-Round Calls It Quits

Merry-Go-Round Enterprises Inc. became the latest casualty of the crowded and depressed retail clothing market Friday, announcing it would go out of business and lay off 6,700 workers.

After a two-year battle to emerge from Chapter 11 bankruptcy, the apparel retailer ran out of money and lost the support of the manufacturers who supply the company’s 536 stores, company spokesman Michael Kempner said. Merry-Go-Round said it would begin liquidating its assets.

The news follows the recent demise of the Woodward & Lothrop department store chain and Handy Andy home improvement stores. Analysts say Merry-Go-Round likely won’t be the last to go out of business.

“It’s a wake-up call for the rest of the U.S. retail industry,” said Mark Millman, president of Millman Search Group Inc., a Baltimorearea retail consulting firm. “If it can happen to Merry-Go-Round, who three years ago could do no wrong, it can happen to anyone.”