Clothestime filed for protection from creditors last week, citing concerns about its ability to continue in a tough retailing environment.

"Longer term, the challenge is to insure leadership in a highly competitive, constantly changing retailing environment."

But he said the filing was a "rational and prudent reaction" to the difficult retailing environment and the company's debt burden.

But it turned shaky as the retailing environment changed, forcing Mr. Brennan into the role of a cost cutter fighting a defensive battle.

It has done stunningly well in a difficult retailing environment and reported record profits in its latest quarter.

"We nevertheless believe that the overall retailing environment was not importantly impacted," he added.

"I think he has not been in the retail job that long," he said, "and the retailing environment has not been good."

The residential renaissance downtown is seen as the catalyst for the improvement in the retailing environment.

"I don't think you can ever beat a retailing environment."

"The retailing environment is always challenging, but the pace of change has stepped up," he said.