Ouch

From Crain's -- "Daffy's not paying its bills - The discount clothing retailer, which has 19 stores, including eight Manhattan locations, is in financial trouble and may close underperforming shops, sources say."

http://www.crainsnewyork.com/article/20120622/RETAIL_APPAREL/120629947

There are several inaccuracies in this article (particularly the statement, "The retailer's products are often priced too high, not offering the same value the post-recession consumer has come to expect"), but I do believe we will see some store closures in the near future.  G-d willing the company will be able to restructure a bit and cut some costs.