Bankruptcies boom continue in the retail industry
As the industry continues to struggle, the number of retailers filing for bankruptcy keeps growing, and 2017 could end up with the highest number of retail bankruptcies ever. These numbers will most likely continue to rise as consumers make more purchases online for must-have items and shift discretionary spending income to other things like travel. Moody's recently reported that the number of U.S. retailers with troubled financials, making them potential bankruptcy risks, was 22, topping the 19 recorded during the Great Recession. In a research report released in April of this year, Credit Suisse said that the number of individual brick-and-mortar store closures in 2017 could top the record set in 2008, resulting in over 140 million square feet of retail vacancy. Sears, J.C. Penney, Macy's and Ascena Retail, which owns Ann Taylor, Loft, Dress Barn, Lane Bryant, Justice and others, are on the list of retailers that have already announced hundreds of store closures in 2017. Few retail sectors have proven immune to the bankruptcy threat as clothes stores, consumer electronics, discount shoe-sellers and outdoor goods shops have all found themselves headed for reorganization. The retail industry has always been competitive as reflected by the number of companies that filed bankruptcy multiple times and by the fact that 40% of large retail bankruptcies end up liquidating. The ongoing decline in sales and store traffic is just one more challenge for this battered sector, which is already dealing with liquidity issues, management challenges, weakened competitive Positions, ailing credit ratings, exposure to unfavorable borrowing terms and highly promotional pricing that cuts into margins.
Source:
https://www.bankruptcydata.com/public/assets/filemanager/userfiles/Retail_Bankruptcy_Report.pdf
Retail bloodbath: Bankruptcy filings pile up
More than 300 retailers have filed for bankruptcy so far this year, according to data from BankruptcyData.com. That's up 31% from the same time last year. Most of those filings were for small companies -- the proverbial Mom & Pop store with a single location. But there are also plenty of household names on the list.
Most of these stores are suffering from the same thing: A shift away from traditional storefronts to online shopping.
Not all of these chains will eventually go out of business. Most of them fled for Chapter 11, which allows a company to keep operating while it restructures its debt. But the sector is already on course for a record number of store closings this year.
Here's a list of some of the more prominent retail bankruptcies to date.
Gymboree: The children's clothing retailer filed for bankruptcy on June 11, saying it may close 375 of its 1,300 stores under the Gymboree, Crazy 8 and Janie and Jack brands.
rue21: The teen clothing retailer filed for bankruptcy on May 15, and said it has plans to close about one third of its 1,200 stores.
Payless ShoeSource: The discount shoe retailer filed on April 4. It said it would move to close nearly 400 U.S. stores out of the 4,400 locations it has worldwide.
Gordmans Stores: A century-old regional department store chain, Gordmans had 106 stores in 22 states in the Midwest and western U.S. It filed for bankruptcy on March 13 and is shuttering all of its stores.
Gander Mountain: The hunting and outdoors retailer, which operated under the Gander Mountain and Overton names, filed for bankruptcy.
The RV retailer Camping World bought some of the company's assets at auction in April and will keep some stores open. Its remaining inventory will be sold through liquidation sales.
RadioShack: The iconic electronics retailer first filed for bankruptcy in 2015, and tried to stay in business through a deal with Sprint in which the wireless provider operated stores within the RadioShack stores. But in March the company that now owns RadioShack filed for bankruptcy once again, putting it on the path to close its remaining stores.
hhgregg: The appliance, electronics and furniture retailer filed for bankruptcy in March and has closed all of its 132 stores.
Wet Seal: The troubled teen clothing retailer, which made a previous trip through bankruptcy in 2015, filed for bankruptcy again in February. This time it went out of business, closing 171 stores and putting 1,750 employees out of work.
The Limited: The once popular women's clothing chain filed for bankruptcy in January and closed all of its remaining stores.
CNNMoney (New York)
First published June 13, 2017: 12:05 AM ET
http://money.cnn.com/2017/06/13/news/companies/retail-bankruptcies/index.html
All US Retail Chapter 11 Bankruptcies and Going Out of Business Sales
More Chapter 11 Bankruptcy Reorganizations End Famous Retail, Restaurant Brands
By Barbara Farfan
Updated April 07, 2017
Chapter 11 bankruptcy filings in the U.S. retail industry aren't as rare they as in other industries due to the inherently volatile nature of retailing and restauranteering. But since the Great Recession, the pace of Chapter 11 bankruptcy filings by U.S. retailing companies has accelerated, and the number of retail companies that end up hosting Going Out of Business sales after their Chapter 11 filings has increased.
RELATED: 2015 Retail Industry Bankruptcies Photo Gallery >>
This out-of-business conclusion to the Chapter 11 story has been particularly shocking with some of the largest U.S. retail companies which were once considered to be "too big to fail." Borders, Circuit City, GM and RadioShack are examples of these too-big-to-fail companies which have found themselves in Chapter 11 bankruptcy court in recent years. These retail giants are also great examples of the three primary paths that lead out of Chapter 11 bankruptcy protection:
Refinancing, reorganization, and forgiveness of debt which allows the company to continue ongoing retail operations
Partial or complete company buyout, which results in continued operations, but may cause the death of a retail brand
Going out of business sales and complete company dissolution of the retail brand and its operations
Chapter 11 is intended to be a "reorganization" remedy for businesses, which means that the retailing and restaurant companies that file Chapter 11 are not necessarily "bankrupt." What it does mean is that these retail and restaurant companies with Chapter 11 filings need a court-protected grace period in order to reorganize and restructure certain aspects of their business and return to profitability.
Chapter 11 is the pause button that some retail businesses need before so that they can reboot and return to profitability.
Unfortunately, trend in recent U.S. retail history has been for Chapter 11 filings to be the beginning of the final chapter for most retail and restaurant chains that have no other options.
Rather than admitting complete defeat and filing Chapter 7 full bankruptcy papers, optimistic, perseverant and stubborn leaders choose a Hail Mary Chapter 11 Hail Mary as their last effort to keep their company alive. As in all games, the Hail Mary pass is a thrilling demonstration of full out effort to the end, but more often than not is, in fact, the end.
What follows is a complete historical timeline of the major U.S. retail industry companies that have filed for Chapter 11 bankruptcy protection which resulted in going out of business liquidation sales, the closing of all retail operations, and the end of their retail brand.
BOOKMARK THIS PAGE for ongoing updates as Chapter 11 bankruptcies are filed. This list was last updated on October 31, 2015.
All U.S. Retail Chapter 11 Bankruptcies Resulting in Going Out of Business Liquidation Sales 2008 - 2015:
2015 Great Atlantic & Pacific Tea Company (A&P) Chapter 11 Filing
After 156 years in business, one of the oldest U.S. retail chains still in business filed Chapter 11 bankruptcy in July, 2015.
Click here for detailed coverage of the historic A&P Chapter 11 Bankruptcy >>
2015 Cache Chapter 11 Filing and Liquidation
In 2015 the Cache luxury fashion retail chain filed Chapter 11 bankruptcy for the second time in its history.
Click here for details about the Second Cache Bankruptcy Filing Which Ended Its Retail History >>
2009 Fortunoff Chapter 11 Filing and Store Liquidations
Filed Chapter 11 on February 4, 2008
Business was sold to an affiliate of NRDC Equity Partners (NRDC also had a major ownership in bankrupt Linens 'n Things)
Filed Chapter 11 on February 5, 2009
Liquidation of of 20 stores in four states began February 26, 2009
2009 Goody's Second Chapter 11 Bankruptcy Ends in Final Store Closings
Filed Chapter 11 on June 9, 2008
Emerged from Chapter 11 on October 20, 2008
Began liquidation of 218 stores on January 9, 2009
2009 Gottschalks Chapter 11 Is Largest Privately Owned Department Store Chain Liquidation
Filed Chapter 11 on January 14, 2009
Sought to sell the business or secure third party investors for financing
Was auctioned to liquidation company, Great American Group
Liquidation of $280 million of inventory in 58 stroes began April 3, 2009
13 retail spaces sold to Forever 21 on June 10, 2009
2009 El Paso Bar-B-Que Chapter 11 Smokes the Arizona Restaurant Chain
Filed Chapter 11 January 23, 2009
Closed one restaurant and continued to operate 7 locations
Eventually closed all the remaining 7 restaurant locations
2008 Whitehall Jewelers Liquidates More than 373 Jewelry Stores
Filed Chapter 11 on June 23, 2008
Began liquidation of stores on August 13, 2008 at 373 stores
2008 Sam Seltzer’s Steakhouses of America Don't Survive the Great Recession
Filed Chapter 11 on June 30, 2008
Complete details and updates of all steak restaurant Chapter 11 filings
2008 Shells Seafood Restaurants Bankruptcy and Restaurant Chain Liquidation
Filed for Chapter 11 on September 3, 2008
Converted to Chapter 7 bankruptcy on September 24, 2008
2008 Circuit City Chapter 11 Bankruptcy Is a Massive Fortune 500 Liquidation
Filed Chapter 11 on November 10, 2008
Began liquidation of 567 stores on January 19, 2009
2008 ArtSelect.com Chapter 11 Digial Dissolution
Filed chapter 11 on December 4, 2008
Sold at auction on January 16, 2009 to Art.com Inc. for $1.63 million
ArtSelect.com now automatically redirects customers to Art.com
2008 Christian Bernard Chapter 11 Bankruptcy Closes Retail Stores, Not Retail Brand
Filed Chapter 7 bankruptcy December 26, 2008
Closed 15 stores on December 26th, and re-opened the stores on January 20, 2009 for liquidation sales.
2008 Kira Plastinina Goes Out of Business Less Than One Year In Business
Filed Chapter 7 bankruptcy on December 31, 2008
12 stores operated in the U.S. for just seven months
The company had assets of $9.7 million against debt of $54.4 million. The U.S. bankruptcy did not affect the 70 Plastinina stores in Russia.
https://www.thebalance.com/us-retail-chapter-eleven-bankruptcies-2892788
Retail alert: Charming Charlie is closing nearly 100 stores
Mike Timmermann---December 13, 2017 11:00 am
Some of the biggest names in traditional retail have closed more than 5,000 stores this year amid slumping sales and increased competition from online sellers like Amazon.
Macy’s, J.C. Penney, Sears and Kmart are among the retailers that announced sweeping closures this year — and the list goes on.
RELATED: This retail secret may trick right-handed shoppers into spending more money
2017 retail closings: Why you don’t want to buy gift cards
Money expert Clark Howard is repeating his warning about gift cards, which become worthless if a store or restaurant suddenly goes out of business.
“If you have any gift cards in your home that are for major retailers, I want you to go and shop. I want you to use them up,” Clark said.
Think twice before you give somebody a gift card for Christmas as well. In 2017, several retailers announced store closings in early January after reporting weak holiday sales.
So, if you give a gift card in December and the store closes in January, the recipient may not have used it yet.
If you don’t know what to get somebody, give them a nice card and give them cash. It may not seem as personal, but you don’t have to worry about a store closing with cash.
Here’s our list of the major retailers that closed stores in 2017:
Breaking news
Charming Charlie – 97 stores
During the middle of the holiday season, Charming Charlie has filed for Chapter 11 bankruptcy protection.
The Houston-based specialty retailer focused on fashion jewelry, handbags, apparel, gifts and beauty products currently has about 375 stores — but that’s about to change.
Court documents indicate that 97 locations will be shut down by the end of the year. See the list in this court filing.
Department stores
Sears & Kmart – 358 stores in 2017, 63 in January 2018
Employees at 45 Kmart stores and 18 Sears stores just got word that this holiday season will be their last with the company because the stores are shutting down.
In a news release, Sears Holdings said liquidation sales will begin as early as November 9 and the locations will close in late January 2018.
The retailer has closed more than 350 stores this year. Here’s the new list of 63 stores closing in January:
Kmart
7200 Us Highway 431, Albertville, AL
1214 E Florence Blvd, Casa Grande, AZ
26996 Us Hwy 19 N, Clearwater, FL
6050 Highway 90, Milton, FL
901 Us 27 North, Sebring, FL
156 Tom Hill Senior Blvd, Macon, GA
144 Virginia Ave, South Tifton, GA
1203 Cleveland Road, Dalton, GA
3101 East 17th Street, Ammon, ID
1006 N Keller Drive, Effingham, IL
2606 Zion Road, Henderson, KY
230 L Roger Wells Blvd, Glasgow, KY
501 Marsailles Road, Versailles, KY
1300 Us Hwy 127 S, Frankfort, KY
41601 Garfield Road, Clinton Twp, MI
200 Capital Ave Sw, Battle Creek, MI
2125 S Mission Street, Mt Pleasant, MI
1547 Highway 59 South, Thief River Falls, MN
2233 N Westwood Blvd, Poplar Bluff, MO
16200 East Us Hwy 24, Independence, MO
1400 S Limit Avenue, Sedalia, MO
3901 Lemay Ferry Road, St Louis, MO
1130 Henderson Drive, Jacksonville, NC
1292 Indiana Avenue, St. Marys, OH
14901 Lorain Avenue, Cleveland, OH
2830 Navarre Road, Oregon, OH
4475 Mahoning Ave, Austintown, OH
1249 North High Street, Hillsboro, OH
3382 Birney Plaza, Moosic, PA
2830 Gracy Center Way, Moon Township / Coraopolis, PA
3319 North Susquehanna Trail, Shamokin Dam, PA
22631 Route 68, Clarion, PA
1815 6 Ave Se, Aberdeen, SD
530 Donelson Pike, Nashville, TN
560 South Jefferson Avenue, Cookeville, TN
1806 N Jackson Street, Tullahoma, TN
4520 W 7 Street, Texarkana, TX
4715 Nine Mile Road, Richmond, VA
300 Towne Centre Drive, Abingdon, VA
3311 Riverside Drive, Danville, VA
2315 Wards Road, Lynchburg, VA
111 Division St North, Stevens Point, WI
800 Grand Central Avenue, Vienna, WV
1287 Winchester Avenue, Martinsburg, WV
301 Beckley Plaza, Beckley, WV
Sears
1701 Mcfarland Blvd E, Tuscaloosa, AL
5111 Rogers Avenue, Fort Smith, AR
4201 N Shiloh Drive, Fayetteville, AR
Fiesta Mall, Mesa, AZ
Greeley Mall, Greeley, CO
8020 Mall Pkwy, Lithonia, GA
1709 Baytree Road, Valdosta, GA
Berkshire Mall, Lanesboro (Pittsfield), MA
7885 Eastern Blvd, Baltimore, MD
1200 Us Rt 22, Phillipsburg, NJ
2999 E College Avenue, State College, PA
300 Lycoming Mall Circle, Pennsdale/Muncy, PA
2334 Oakland Ave, Indiana, PA
4000 Sunset Mall, San Angelo, TX
4600 S Medford Dr, Lufkin, TX
754 S State Street, Salt Lake City, UT
114 Southpark Circle, Colonial Hts, VA
1400 Del Range Blvd, Cheyenne, WY
Sears Holdings said eligible associates impacted by these store closures will receive severance and can apply for open positions at its remaining stores.
J.C. Penney – 138 stores
These 10 retailers are closing more than 1,000 stores in 2017
More than 100 J.C. Penney department store locations closed forever in late July.
The struggling retailer said it planned to close 138 stores back in March, but it postponed liquidation sales until May due to increased foot traffic after the closing announcement.
Nearly all of the stores shut down July 31, except for a few that stayed open until September.
Macy’s – 68 stores
These 10 retailers are closing more than 1,000 stores in 2017
Macy’s isn’t finished shrinking its retail footprint quite yet.
The department store chain confirmed in February that it will close about 34 stores “over the next few years” after shutting down nearly 70 locations this year.
The company has not yet revealed which locations may soon be on the chopping block.
Other retailers
J. Crew – 50 stores
After reporting a sales drop of 12% for its third quarter, J. Crew will close dozens of stores by the end of January, CNN Money reported.
In a news release, J.Crew said it expects to close 50 stores during fiscal 2017, 39 of them in the fourth quarter.
Payless ShoeSource – 800-900 stores
Payless ShoeSource announced in August that it has successfully emerged from its Chapter 11 restructuring.
Prior to the bankruptcy filing, its website said the discount shoe retailer had 4,400 stores worldwide. That number was revised to 3,500 in its latest news release.
Vitamin World – 51 stores
Vitamin World has filed for Chapter 11 bankruptcy protection and plans to close dozens of underperforming stores, according to The Wall Street Journal.
Newsday reports that the company will shut down at least 51 of its 334 stores — many of which are located in malls — nationwide.
Gap – 200 stores
Gap Inc. plans to close 200 Gap and Banana Republic locations over the next three years, the company announced September 6. No list of the stores was released, but they are all “underperforming.”
At the same time, Gap Inc. will open 270 locations for its growing brands, Old Navy and Athleta.
Perfumania – 64 stores
Discount perfume retailer Perfumania filed for Chapter 11 bankruptcy protection in late August and planned to close 64 of its 226 stores, CNN Money reported.
In a news release, the retailer said it will emerge as a privately held company after the restructuring.
No list of the affected locations was released, but Perfumania has been reducing its retail store portfolio by accelerating the closure of underperforming stores.
Looking ahead, Perfumania will invest in its e-commerce business to improve customers’ online shopping experience.
Teavana – 379 stores
Bad news for tea lovers! Starbucks is closing every single one of its Teavana retail stores after a strategic review of the business.
Many of the 379 Teavana stores, which are primarily mall-based, have been underperforming. Starbucks said it tried to improve sales through creative merchandising and new store designs, but it just wasn’t working.
The stores will close over the coming year, with the majority shutting down by next spring, according to a news release.
Gymboree – 350 stores
The Gymboree Corporation announced in late September that it has successfully completed its financial restructuring and emerged from Chapter 11 as a new corporation under the name Gymboree Group Inc.
In June, the children’s clothing retailer said it would close approximately 350 stores, mostly across its Gymboree and Crazy 8 brands.
True Religion – 27 stores
Designer jeans and clothing retailer True Religion filed for Chapter 11 bankruptcy protection in 2017.
“After a careful review, we are taking an important step to reduce our debt, reinvigorate True Religion’s iconic brand and position the company for future growth and success,” said John Ermatinger, President and CEO of True Religion.
At least 27 stores were expected to close during the bankruptcy process, according to a list compiled by USA Today.
Ascena Retail Group – At least 268 stores
Ascena Retail Group, the women’s clothing retailer that operates the brands Ann Taylor, Loft, Dress Barn, Lane Bryant, Justice and several others, is planning to close hundreds of stores.
During a recent earnings call, company executives announced that 667 stores are part of its fleet optimization program.
At least 268 of those stores will definitely be closed by July 2019. The remaining 399 stores will be shut down if rent concessions aren’t obtained through negotiations with landlords.
The company didn’t specify which locations will be closed.
Michael Kors – 100 to 125 stores
Michael Kors is closing between 100 and 125 of its retail stores over the next two years.
According to a May 31 news release, the company is making the move to improve the profitability of its store fleet. Revenue was down in the most recent quarter.
The clothing and handbag retailer didn’t reveal a list of the stores on the chopping block.
Bebe Stores – 180 stores
Women’s clothing retailer Bebe Stores shut down all of its roughly 180 locations nationwide.
In a filing with the Securities and Exchange Commission dated April 21, the company said it expected to close all stores by the end of May after liquidation sales.
The retailer’s future remains unclear, though some speculate it will continue as an online-only merchant.
Rue21 – 400 stores
Teen clothing retailer rue21 has filed for Chapter 11 bankruptcy protection.
In a May 15 news release, rue21 said it has entered into agreements with its lenders to reduce the company’s debt and provide additional capital in support of its restructuring.
In April, the retailer began the process of closing about 400 stores in order to focus on its more successful locations.
RadioShack – 1,000 stores
After 96 years in business, consumer electronics retailer RadioShack will have just 70 corporate and 500 dealer stores nationwide — down from 7,300 at its peak.
Over the Memorial Day holiday, RadioShack closed more than 1,000 stores across the country.
Abercrombie & Fitch – 60 stores
You can add Abercrombie & Fitch to the growing list of retailers that will be closing stores this year.
According to a news release, the company plans to shut down about 60 U.S. locations during fiscal 2017 as leases expire. Fortune reports that A&F will have 670 remaining stores, down from 839 just five years ago.
Guess – 60 stores
Guess is pulling the plug on 60 of its stores this year.
CEO Victor Herrero told analysts of the decision during a Q4 earnings call on March 15. It’s expected that most of the closures will be among the flagship Guess brand stores and Marciano locations.
Guess brands operate 945 retail stores in the Americas, Europe and Asia. Some 400 of those stores are in the United States.
Crocs – 160 stores
Crocs announced in a March 1 press release that the brand will be trimming some 160 stores from its 558-store portfolio by the end of 2018.
The Limited – 250 stores
After more than 50 years in business, The Limited closed all of its nearly 250 stores across the country on January 8. The retailer indicated that its website would live on, but no merchandise is for sale.
Wet Seal – 171 stores
Bankrupt clothing store Wet Seal shut down all of its 171 stores, according to the Wall Street Journal. A message on the retailer’s website read, “Thanks babe, it’s been real.”
American Apparel – 110 stores
Made in the USA clothing manufacturer American Apparel has closed its remaining 110 stores.
According to a news release from January 10, Canada-based Gildan Activewear’s $88 million bid at a bankruptcy auction won the rights to American Apparel’s brand and some assets.
However, retail store assets were not part of the purchase, according to Gildan.
BCBG – 120 stores
High-end women’s clothing chain BCBG has closed about 120 stores, mostly in the U.S., according to the Minneapolis Star Tribune.
The Star Tribune reported in early February that liquidation sales were expected to run eight to 10 weeks before the stores closed for good.
The company’s mini-shops within Macy’s will remain open.
Gander Mountain – Undetermined
After filing for bankruptcy in March, outdoors retailer Gander Mountain has a new owner.
Liquidation sales were held at all 126 stores, but Camping World CEO Marcus Lemonis, the new owner, said he intends to keep dozens of locations open.
A final list of stores has not been released, but you can look for updates on gandermountain.com.
hhgregg – 220 stores
After more than six decades, electronics retailer hhgregg went out of business this year. The news came after hhgregg failed to find a buyer by its April 7 deadline.
GameStop – 150+ stores
After reporting a drop in fourth quarter sales, GameStop announced March 24 that it would close between 2% to 3% of its global store footprint, which means at least 150 stores.
GameStop has struggled due to weak sales of certain video games and “aggressive console promotions” from its competitors.
Staples – 70 stores
Staples said in March that it will close 70 locations throughout North America by the end of 2017.
During an earnings call, Staples said same store sales in North America were down 7% during the fourth quarter of 2016. The drop in sales was blamed on lower foot traffic.
Family Christian – 240 stores
Family Christian, the biggest seller of Christian books and merchandise in the nation, announced February 23 that 240 stores in 36 states would be permanently closed by May 13.
Source:
http://clark.com/shopping-retail/major-retailers-closing-2017/
Bankruptcy boom: distress in the US retail space
Despite overall spending in the US retail space continuing to grow steadily, today’s reality is that traditional brick and mortar retailers are being squeezed out of the picture by online shopping competitors, with many filing for bankruptcy then pulling down the shutters for good.
Certainly, the bankruptcy filings for 2017 make for distressing reading for the US retail industry. In short, so far this year, more than 300 retailers have filed for bankruptcy (mostly Chapter 11 filings) – up 31 percent year-on-year, according to BankruptcyData.com. While most of the filings have been made by small and medium-sized businesses, a number of retail household names are also in the mix, including Aeropostale, Payless ShoeSource, RadioShack, rue21, Gymboree, The Limited, and many more.
“Over the past three years, a significant number of well-known retailers have filed for bankruptcy protection,” confirms John H. Bae, a partner at Baker Botts LLP. “The size of these retailers varies from smaller operations like Jo-Jo Holdings, Inc. with 10 stores, to larger operations like RadioShack with more than 4000 stores in the US and abroad. The type of business of these retailers varies, but the vast majority of them operate in shopping malls with expensive commercial leases.”
In the view of Joshua Sussberg, a partner at Kirkland & Ellis LLP, it is the retail operators with a large brick and mortar presence and underdeveloped omnichannel platforms that are under the most intense pressure, as they attempt to adapt to the ever changing environment and internet -hungry purchasers.
That the US retail space is distressed clearly comes as little surprise to those with their finger on the pulse. Indeed, 67 percent of respondents to AlixPartners’ ‘2017 North American Restructuring Experts Survey’ stated that retail was the US industry they believed most likely to face distress in the coming years.
Cause and effect
One question vexing the US retail space is the extent to which the bankruptcy filings seen over the past year can be seen as a temporary aberration or part of an inevitable evolution of consumer shopping and spending tastes. According to Mr Sussberg, the prime reason for the uptick in filings is the shift in consumer preference away from pure in-store purchases. “Being able to provide an overall experience through the internet, combined with a retail presence, seems to be the trend for consumers,” he suggests.
As a result of this trend, the high cost of an expanded retail footprint has been difficult for many retail companies to satisfy, especially when combined with the need to infuse capital into omnichannel development. In addition, Mr Sussberg notes that the demand for ‘fast fashion’ – products that are produced quickly for consumption and at a less expensive cost (by companies such as H&M and Zara) – has impacted those branded apparel companies that require a long lead time from development to production and which goods necessarily carry a higher cost because of a more involved production process.
“Filing for bankruptcy does not, of course, mean an end to a retailer’s operations; a number of options can be explored in the bid to survive, with restructuring chief among them.”
Of particular significance are the similar profiles of many of the retailers filing for bankruptcy protection, many of which have large commercial lease obligations for their brick and mortar stores and substantial debt burdens, not to mention fewer customers entering their stores. “Virtually all the well-known retailers that have filed for bankruptcy in the past couple of years identified declining foot traffic in malls as the principal cause of the distress in their business,” says Mr Bae. “Many of these retailers were also the subjects of leveraged buyouts which imposed substantial debt burdens on top of weak operating performance.”
While many companies filing for bankruptcy firmly point the finger at online shopping as the reason for their woes, Andrew Schoulder, a partner at Bryan Cave, deigns to mention that the act of purchasing products or services over the internet is hardly a new phenomenon. “The band aid has been on for so long and part of what we are seeing now is the adhesive coming off, he suggests. “But investors and lenders are unwilling to allow the bleeding to continue in the current environment. For some businesses, the market is willing to double down after restructuring the footprint and capital structure through Chapter 11, and many believe that investors have reached the point where they feel it is necessary to cull the herd.”
Extrapolation
What then do the recent bankruptcy filings in the US retail space tell us about consumer trends and their likely impact on the future of the industry? Moreover, how far can the issues currently bedevilling segments of the industry be extrapolated across US retail as a whole?
“BCBG is a great example of what is happening across the US retail world,” says Mr Sussberg. “It is also a huge success story in that the company will reorganise and capitalise on its brand for many years to come, although on a much smaller scale.” At its peak, the fashion house BGBG operated at more than 500 retail locations, but an underdeveloped omnichannel platform and the fast fashion movement – designs moved quickly from the catwalk to capture current fashion trends – necessitated a restructuring in the face of significant leverage (which the company had used to expand) and high occupancy costs.
Despite this, the BCBG brand has proven to be valuable and the firm’s recent restructuring (completed in early August) is capitalising on that value. Going forward, the plan is for BCBG to operate a reduced retail footprint of approximately 45 retail locations and licence its apparel and brand for continued distribution around the world. “BCBG will also dedicate resources to further developing its internet and omnichannel platform,” believes Mr Sussberg. “The restructuring transaction will raise significant value and ensures that BCBG remains in operation for years to come. The reduced footprint and brand recognition model is something that I think we may also see in other retail restructurings.”
Further examples that exemplify the transition taking place in the US retail space include that of Payless Holdings LLC and Aeropostale. Payless, which filed for Chapter 11 on 5 May 2017, and Aerostaple, which made its own filing approximately one year earlier, both cited virtually identical reasons for the decline of their businesses, though the primary reason was a shift toward online retail channels. Both companies also blamed large debt burdens, commercial lease obligations and declining profits as the drivers of their Chapter 11 filings.
“The US retail industry will have to adjust to the changing tendencies of their target customers,” says Mr Bae. “If burdensome leases and a decline in foot traffic are the principal causes of distress in retail, then the obvious path forward for the retail industry is to reduce the footprint of the brick and mortar stores and increase the retailer’s online presence. That will also have an effect on mall owners and operators which will suffer declines in tenants and occupants.”
Survival options
Filing for bankruptcy does not, of course, mean an end to a retailer’s operations; a number of options can be explored in the bid to survive, with restructuring chief among them.
“Although many retail companies such as Radio Shack, Wet Seal, Coldwater Creek, Eastern Mountain Sports and HHGregg have gone out of business through their Chapter 11 filings, others, including Pacific Sunwear, BCBG, Payless, Gymboree and rue 21, have executed or stand ready to execute restructuring transactions that preserve going concern operations,” affirms Mr Sussberg. “The reason these companies have been successful is because of careful strategic planning, both internally and with key stakeholders. This includes a detailed review of the company’s existing footprint and significant consideration of cash needs in an effort to ensure development of appropriate omnichannel technology that will enable market penetration and hopeful growth.”
Another important factor, and one that is especially pertinent in retail, is whether the business in distress waited too long to react. “A few recent situations demonstrate that survival is possible by proactively tightening your belt, early,” attests Mr Schoulder. “Investors may be more amenable to recapitalising a business model that has been carefully right sized, or at minimum, providing additional time to facilitate a sale process. Too often, retailers are scrambling to conduct store closures, layoffs and heavy discounting of current inventory. By that time, you have damaged relations with vendors, landlords and lenders. The discounting has tarnished your brand and left little to reorganise around.”
Reengagement and reinvigoration
Given consumer spending trends, it seems likely that bankruptcies will continue to rise in the years to come. Should this come to pass, then fresh strategies will need to be explored if US retailers are to have any chance of stopping the rot and reinvigorating the industry.
“Retailers will continue to face financial distress and we do not anticipate a decline in retailer bankruptcy filings,” says Mr Bae. “Some well-known retailers have been struggling for a long time and their situations do not seem to be improving. Therefore, they will need to continue to explore different strategies to increase consumer foot traffic, such as Walmart introducing groceries. But it is doubtful that the current shift from in-store shopping to online commerce can be reversed.”
Further strategic moves being adopted by a number of retailers include changing the in-store experience by creating niche areas within their stores for certain products or lines. Others have dedicated substantial floor space in their primary locations to their discount businesses. “Ultimately, bankruptcy will still be important because one of the most logical options for retailers is to use the Bankruptcy Code to ‘right size’ their business to match the tendencies of their target customers to the extent that is still possible,” suggests Mr Bae. That said, even those retailers that are successful in restructuring their operations once may find themselves in a Chapter 11 scenario again – a fate that most retailers will be unable to survive for a second time, as demonstrated by RadioShack and American Apparel, for example.
“It seems likely that restructuring activity will continue in the retail industry in the months and years to come because of the ever changing landscape and technological advances,” says Mr Sussberg. “Many retail companies are actively engaged in cost reduction efforts and the types of planning activities that are necessary to potentially avoid the need for an in-court restructuring. The success of these efforts will depend on the willingness of lease counterparties to engage in meaningful negotiations, trade vendors to continue affording terms and companies having enough capital to ensure appropriate development of their omnichannel presence.”
Going forward, retailers able to maintain the flow of goods and the possibility of an ongoing, viable enterprise will be the ones that recognise the need to plan and adapt to the changes sweeping the industry – necessary measures which serve to assure the US retail space that when the shutters come down today, they do not stay down tomorrow.
© Financier Worldwide
https://www.financierworldwide.com/bankruptcy-boom-distress-in-the-us-retail-space/#.Wjzerdxt3TE
Retailers Are Going Bankrupt at a Record Pace
Department stores, electronics sellers, and clothing shops are most at risk.
By Kim Bhasin April 24, 2017, 7:00 PM GMT+3
Retailers are filing for bankruptcy at a record rate as they try to cope with the rapid acceleration of online shopping.
In a little over three months, 14 chains have announced they will seek court protection, according to an analysis by S&P Global Market Intelligence, almost surpassing all of 2016. Few retail segments have proven immune as discount shoe-sellers, outdoor goods shops, and consumer electronics retailers have all found themselves headed for reorganization
Meanwhile, America’s retailers are closing stores faster than ever as they try to eliminate a glut of space and shift more business to the web. S&P blamed retailer financial struggles on their inability to adapt to rising pressure from e-commerce.
Urban Outfitters Chief Executive Officer Richard Hayne said as much on a conference call with analysts last month. There are just too many stores, especially those that sell clothing, he said.
“This created a bubble, and like housing, that bubble has now burst,” said Hayne. “We are seeing the results: Doors shuttering and rents retreating. This trend will continue for the foreseeable future and may even accelerate.”
Jim Elder, S&P Global Market Intelligence’s director of risk services, wrote that first quarter results suggest there’s no quick recovery in sight. Sears Holdings Corp., Bon-Ton Stores Inc., and Perfumania Holdings Inc. are among the most vulnerable in the coming year, according to an S&P analysis of public retail companies. Sears acknowledged in a March filing that there is “substantial doubt” about its future. Fitch named retail chains including Nine West Holdings, Claire’s Stores, and children’s clothing outlet Gymboree Corp. in a study late last year. A spokesman for Nine West declined to comment. (Representatives from Bon-Ton, Perfumania, and Claire’s didn’t immediately respond to requests for comment.)
Department stores, electronics retail, and apparel shops are at highest risk, according to S&P. The food and home improvement segments are safest.
Risky Retail
Department stores have the highest probability of default among retailers.
Apparel retail has been particularly hard hit, with The Limited, Wet Seal, BCBG Max Azria, and Vanity Shop of Grand Forks each seeking court protection in 2017. The latest victim was Payless Inc., which filed for bankruptcy April 4 and said it would shutter 400 stores.
Rue21 may be next. The embattled teen apparel chain is said to be filing for bankruptcy as soon as this month, according to people familiar with the matter. Or perhaps it will be Gymboree, which Bloomberg News reported is preparing to file for bankruptcy as a June 1 debt payment looms.
Source:
https://www.bloomberg.com/news/articles/2017-04-24/retailers-are-going-bankrupt-at-a-record-pace
10 retail stores file for bankruptcy in 2017
Kara Driscoll Staff Writer
10:04 a.m. Monday, Sept. 18, 2017
Companies like The Limited and Gander Mountain announced this year that they would file bankruptcy — shuttering stores and laying off thousands of workers. Some of the companies to announce bankruptcies this year include:
1. The Limited
The women’s clothing store announced in early January that it would close all brick-and-mortar stores, and later its parent company filed for bankruptcy. The parent company of women’s clothing store The Limited filed a voluntary petition for relief under chapter 11 of the United States Bankruptcy Court, and the store website has been taken offline.
2. Gymboree
Children’s clothing retailer Gymboree Corp. filed for Chapter 11 bankruptcy protection in June, the latest sign of traditional retailers’ struggles as shoppers shun stores and buy online. The San Francisco-based company says it is seeking to reduce its debt by $900 million. It expects to operate its business and majority of its 1,300 stores during the restructuring.
3. BCBGMAXAZRIA
The company, which owns BCBGMAXAZRIA, said in March it filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code. The company obtained a commitment of $45 million from loan lenders in new financing and filed its plan of reorganization.
4. Wet Seal
Teen clothing retailer Wet Seal abruptly closed all of its 148 brick-and-mortar stores in early 2017. According to a letter obtained by The Wall Street Journal, the retailer is permanently shutting down and will lay off all of its workers. The company is headquartered in California. Back in 2015, Wet Seal closed 338 of its 511 stores and filed for bankruptcy protection. Versa Capital then acquired the brand for $7.5 million in April 2015.
5. RadioShack
The chain retailer announced in March it was filing bankruptcy and closing about 200 of its stores and evaluating what to do with the remaining 1,300. This isn’t the first time RadioShack has filed for bankruptcy. Electronics retailer RadioShack announced it would close more than 30 stores in Ohio, including local ones in Kettering, Springfield, Columbus and Cincinnati.
6. hhgregg
Appliance store hhgregg announced in March it was closing 88 stores and laying off 1,500 employees, and four locations in Ohio will be impacted. A month later the company received court approval to close its remaining stores and liquidate its assets.
7. Gander Mountain
Sporting goods retailer Gander Mountain Company, which had a location in Huber Heights, filed for bankruptcy in March. Gander Mountain and some of its subsidiaries filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code after the retailer “experienced traffic patterns and shifts in consumer demand resulting from increased direct-to-customer sales by key vendors and accelerated growth of e-commerce,” according to a company statement.
8. MC Sports
MC Sports, legally known as Michigan Sporting Goods Distributors, announced in February its plans to begin liquidation sales of all of its 68 stores. Two local stores were impacted.
9. Aerosoles
AGI HoldCo Inc., which owns Aerosoles stores, has filed bankruptcy and plans to keep just four stores open in New York and New Jersey. The stores sell women’s shoes, and currently has 80 stores. The store had as many as 125 stores in 2012, and the company expects the restructuring process to be completed in approximately four months.
10. Payless
Payless ShoeSource announced in April that it would close 12 stores in Ohio after filing for bankruptcy. The Kansas-based retailer said it would close nearly 400 underperforming locations in the U.S. Payless’ North American entities, and two of its Hong Kong-based entities, filed voluntary Chapter 11 petitions in the U.S. Bankruptcy Court for the Eastern District of Missouri
Source:
http://www.daytondailynews.com/business/retail-stores-file-for-bankruptcy-2017/bYSBNoGwFDUF8U2OwTGJzL/
As the industry continues to struggle, the number of retailers filing for bankruptcy keeps growing, and 2017 could end up with the highest number of retail bankruptcies ever. These numbers will most likely continue to rise as consumers make more purchases online for must-have items and shift discretionary spending income to other things like travel. Moody's recently reported that the number of U.S. retailers with troubled financials, making them potential bankruptcy risks, was 22, topping the 19 recorded during the Great Recession. In a research report released in April of this year, Credit Suisse said that the number of individual brick-and-mortar store closures in 2017 could top the record set in 2008, resulting in over 140 million square feet of retail vacancy. Sears, J.C. Penney, Macy's and Ascena Retail, which owns Ann Taylor, Loft, Dress Barn, Lane Bryant, Justice and others, are on the list of retailers that have already announced hundreds of store closures in 2017. Few retail sectors have proven immune to the bankruptcy threat as clothes stores, consumer electronics, discount shoe-sellers and outdoor goods shops have all found themselves headed for reorganization. The retail industry has always been competitive as reflected by the number of companies that filed bankruptcy multiple times and by the fact that 40% of large retail bankruptcies end up liquidating. The ongoing decline in sales and store traffic is just one more challenge for this battered sector, which is already dealing with liquidity issues, management challenges, weakened competitive Positions, ailing credit ratings, exposure to unfavorable borrowing terms and highly promotional pricing that cuts into margins.
Source:
https://www.bankruptcydata.com/public/assets/filemanager/userfiles/Retail_Bankruptcy_Report.pdf
Retail bloodbath: Bankruptcy filings pile up
More than 300 retailers have filed for bankruptcy so far this year, according to data from BankruptcyData.com. That's up 31% from the same time last year. Most of those filings were for small companies -- the proverbial Mom & Pop store with a single location. But there are also plenty of household names on the list.
Most of these stores are suffering from the same thing: A shift away from traditional storefronts to online shopping.
Not all of these chains will eventually go out of business. Most of them fled for Chapter 11, which allows a company to keep operating while it restructures its debt. But the sector is already on course for a record number of store closings this year.
Here's a list of some of the more prominent retail bankruptcies to date.
Gymboree: The children's clothing retailer filed for bankruptcy on June 11, saying it may close 375 of its 1,300 stores under the Gymboree, Crazy 8 and Janie and Jack brands.
rue21: The teen clothing retailer filed for bankruptcy on May 15, and said it has plans to close about one third of its 1,200 stores.
Payless ShoeSource: The discount shoe retailer filed on April 4. It said it would move to close nearly 400 U.S. stores out of the 4,400 locations it has worldwide.
Gordmans Stores: A century-old regional department store chain, Gordmans had 106 stores in 22 states in the Midwest and western U.S. It filed for bankruptcy on March 13 and is shuttering all of its stores.
Gander Mountain: The hunting and outdoors retailer, which operated under the Gander Mountain and Overton names, filed for bankruptcy.
The RV retailer Camping World bought some of the company's assets at auction in April and will keep some stores open. Its remaining inventory will be sold through liquidation sales.
RadioShack: The iconic electronics retailer first filed for bankruptcy in 2015, and tried to stay in business through a deal with Sprint in which the wireless provider operated stores within the RadioShack stores. But in March the company that now owns RadioShack filed for bankruptcy once again, putting it on the path to close its remaining stores.
hhgregg: The appliance, electronics and furniture retailer filed for bankruptcy in March and has closed all of its 132 stores.
Wet Seal: The troubled teen clothing retailer, which made a previous trip through bankruptcy in 2015, filed for bankruptcy again in February. This time it went out of business, closing 171 stores and putting 1,750 employees out of work.
The Limited: The once popular women's clothing chain filed for bankruptcy in January and closed all of its remaining stores.
CNNMoney (New York)
First published June 13, 2017: 12:05 AM ET
http://money.cnn.com/2017/06/13/news/companies/retail-bankruptcies/index.html
All US Retail Chapter 11 Bankruptcies and Going Out of Business Sales
More Chapter 11 Bankruptcy Reorganizations End Famous Retail, Restaurant Brands
By Barbara Farfan
Updated April 07, 2017
Chapter 11 bankruptcy filings in the U.S. retail industry aren't as rare they as in other industries due to the inherently volatile nature of retailing and restauranteering. But since the Great Recession, the pace of Chapter 11 bankruptcy filings by U.S. retailing companies has accelerated, and the number of retail companies that end up hosting Going Out of Business sales after their Chapter 11 filings has increased.
RELATED: 2015 Retail Industry Bankruptcies Photo Gallery >>
This out-of-business conclusion to the Chapter 11 story has been particularly shocking with some of the largest U.S. retail companies which were once considered to be "too big to fail." Borders, Circuit City, GM and RadioShack are examples of these too-big-to-fail companies which have found themselves in Chapter 11 bankruptcy court in recent years. These retail giants are also great examples of the three primary paths that lead out of Chapter 11 bankruptcy protection:
Refinancing, reorganization, and forgiveness of debt which allows the company to continue ongoing retail operations
Partial or complete company buyout, which results in continued operations, but may cause the death of a retail brand
Going out of business sales and complete company dissolution of the retail brand and its operations
Chapter 11 is intended to be a "reorganization" remedy for businesses, which means that the retailing and restaurant companies that file Chapter 11 are not necessarily "bankrupt." What it does mean is that these retail and restaurant companies with Chapter 11 filings need a court-protected grace period in order to reorganize and restructure certain aspects of their business and return to profitability.
Chapter 11 is the pause button that some retail businesses need before so that they can reboot and return to profitability.
Unfortunately, trend in recent U.S. retail history has been for Chapter 11 filings to be the beginning of the final chapter for most retail and restaurant chains that have no other options.
Rather than admitting complete defeat and filing Chapter 7 full bankruptcy papers, optimistic, perseverant and stubborn leaders choose a Hail Mary Chapter 11 Hail Mary as their last effort to keep their company alive. As in all games, the Hail Mary pass is a thrilling demonstration of full out effort to the end, but more often than not is, in fact, the end.
What follows is a complete historical timeline of the major U.S. retail industry companies that have filed for Chapter 11 bankruptcy protection which resulted in going out of business liquidation sales, the closing of all retail operations, and the end of their retail brand.
BOOKMARK THIS PAGE for ongoing updates as Chapter 11 bankruptcies are filed. This list was last updated on October 31, 2015.
All U.S. Retail Chapter 11 Bankruptcies Resulting in Going Out of Business Liquidation Sales 2008 - 2015:
2015 Great Atlantic & Pacific Tea Company (A&P) Chapter 11 Filing
After 156 years in business, one of the oldest U.S. retail chains still in business filed Chapter 11 bankruptcy in July, 2015.
Click here for detailed coverage of the historic A&P Chapter 11 Bankruptcy >>
2015 Cache Chapter 11 Filing and Liquidation
In 2015 the Cache luxury fashion retail chain filed Chapter 11 bankruptcy for the second time in its history.
Click here for details about the Second Cache Bankruptcy Filing Which Ended Its Retail History >>
2009 Fortunoff Chapter 11 Filing and Store Liquidations
Filed Chapter 11 on February 4, 2008
Business was sold to an affiliate of NRDC Equity Partners (NRDC also had a major ownership in bankrupt Linens 'n Things)
Filed Chapter 11 on February 5, 2009
Liquidation of of 20 stores in four states began February 26, 2009
2009 Goody's Second Chapter 11 Bankruptcy Ends in Final Store Closings
Filed Chapter 11 on June 9, 2008
Emerged from Chapter 11 on October 20, 2008
Began liquidation of 218 stores on January 9, 2009
2009 Gottschalks Chapter 11 Is Largest Privately Owned Department Store Chain Liquidation
Filed Chapter 11 on January 14, 2009
Sought to sell the business or secure third party investors for financing
Was auctioned to liquidation company, Great American Group
Liquidation of $280 million of inventory in 58 stroes began April 3, 2009
13 retail spaces sold to Forever 21 on June 10, 2009
2009 El Paso Bar-B-Que Chapter 11 Smokes the Arizona Restaurant Chain
Filed Chapter 11 January 23, 2009
Closed one restaurant and continued to operate 7 locations
Eventually closed all the remaining 7 restaurant locations
2008 Whitehall Jewelers Liquidates More than 373 Jewelry Stores
Filed Chapter 11 on June 23, 2008
Began liquidation of stores on August 13, 2008 at 373 stores
2008 Sam Seltzer’s Steakhouses of America Don't Survive the Great Recession
Filed Chapter 11 on June 30, 2008
Complete details and updates of all steak restaurant Chapter 11 filings
2008 Shells Seafood Restaurants Bankruptcy and Restaurant Chain Liquidation
Filed for Chapter 11 on September 3, 2008
Converted to Chapter 7 bankruptcy on September 24, 2008
2008 Circuit City Chapter 11 Bankruptcy Is a Massive Fortune 500 Liquidation
Filed Chapter 11 on November 10, 2008
Began liquidation of 567 stores on January 19, 2009
2008 ArtSelect.com Chapter 11 Digial Dissolution
Filed chapter 11 on December 4, 2008
Sold at auction on January 16, 2009 to Art.com Inc. for $1.63 million
ArtSelect.com now automatically redirects customers to Art.com
2008 Christian Bernard Chapter 11 Bankruptcy Closes Retail Stores, Not Retail Brand
Filed Chapter 7 bankruptcy December 26, 2008
Closed 15 stores on December 26th, and re-opened the stores on January 20, 2009 for liquidation sales.
2008 Kira Plastinina Goes Out of Business Less Than One Year In Business
Filed Chapter 7 bankruptcy on December 31, 2008
12 stores operated in the U.S. for just seven months
The company had assets of $9.7 million against debt of $54.4 million. The U.S. bankruptcy did not affect the 70 Plastinina stores in Russia.
https://www.thebalance.com/us-retail-chapter-eleven-bankruptcies-2892788
Retail alert: Charming Charlie is closing nearly 100 stores
Mike Timmermann---December 13, 2017 11:00 am
Some of the biggest names in traditional retail have closed more than 5,000 stores this year amid slumping sales and increased competition from online sellers like Amazon.
Macy’s, J.C. Penney, Sears and Kmart are among the retailers that announced sweeping closures this year — and the list goes on.
RELATED: This retail secret may trick right-handed shoppers into spending more money
2017 retail closings: Why you don’t want to buy gift cards
Money expert Clark Howard is repeating his warning about gift cards, which become worthless if a store or restaurant suddenly goes out of business.
“If you have any gift cards in your home that are for major retailers, I want you to go and shop. I want you to use them up,” Clark said.
Think twice before you give somebody a gift card for Christmas as well. In 2017, several retailers announced store closings in early January after reporting weak holiday sales.
So, if you give a gift card in December and the store closes in January, the recipient may not have used it yet.
If you don’t know what to get somebody, give them a nice card and give them cash. It may not seem as personal, but you don’t have to worry about a store closing with cash.
Here’s our list of the major retailers that closed stores in 2017:
Breaking news
Charming Charlie – 97 stores
During the middle of the holiday season, Charming Charlie has filed for Chapter 11 bankruptcy protection.
The Houston-based specialty retailer focused on fashion jewelry, handbags, apparel, gifts and beauty products currently has about 375 stores — but that’s about to change.
Court documents indicate that 97 locations will be shut down by the end of the year. See the list in this court filing.
Department stores
Sears & Kmart – 358 stores in 2017, 63 in January 2018
Employees at 45 Kmart stores and 18 Sears stores just got word that this holiday season will be their last with the company because the stores are shutting down.
In a news release, Sears Holdings said liquidation sales will begin as early as November 9 and the locations will close in late January 2018.
The retailer has closed more than 350 stores this year. Here’s the new list of 63 stores closing in January:
Kmart
7200 Us Highway 431, Albertville, AL
1214 E Florence Blvd, Casa Grande, AZ
26996 Us Hwy 19 N, Clearwater, FL
6050 Highway 90, Milton, FL
901 Us 27 North, Sebring, FL
156 Tom Hill Senior Blvd, Macon, GA
144 Virginia Ave, South Tifton, GA
1203 Cleveland Road, Dalton, GA
3101 East 17th Street, Ammon, ID
1006 N Keller Drive, Effingham, IL
2606 Zion Road, Henderson, KY
230 L Roger Wells Blvd, Glasgow, KY
501 Marsailles Road, Versailles, KY
1300 Us Hwy 127 S, Frankfort, KY
41601 Garfield Road, Clinton Twp, MI
200 Capital Ave Sw, Battle Creek, MI
2125 S Mission Street, Mt Pleasant, MI
1547 Highway 59 South, Thief River Falls, MN
2233 N Westwood Blvd, Poplar Bluff, MO
16200 East Us Hwy 24, Independence, MO
1400 S Limit Avenue, Sedalia, MO
3901 Lemay Ferry Road, St Louis, MO
1130 Henderson Drive, Jacksonville, NC
1292 Indiana Avenue, St. Marys, OH
14901 Lorain Avenue, Cleveland, OH
2830 Navarre Road, Oregon, OH
4475 Mahoning Ave, Austintown, OH
1249 North High Street, Hillsboro, OH
3382 Birney Plaza, Moosic, PA
2830 Gracy Center Way, Moon Township / Coraopolis, PA
3319 North Susquehanna Trail, Shamokin Dam, PA
22631 Route 68, Clarion, PA
1815 6 Ave Se, Aberdeen, SD
530 Donelson Pike, Nashville, TN
560 South Jefferson Avenue, Cookeville, TN
1806 N Jackson Street, Tullahoma, TN
4520 W 7 Street, Texarkana, TX
4715 Nine Mile Road, Richmond, VA
300 Towne Centre Drive, Abingdon, VA
3311 Riverside Drive, Danville, VA
2315 Wards Road, Lynchburg, VA
111 Division St North, Stevens Point, WI
800 Grand Central Avenue, Vienna, WV
1287 Winchester Avenue, Martinsburg, WV
301 Beckley Plaza, Beckley, WV
Sears
1701 Mcfarland Blvd E, Tuscaloosa, AL
5111 Rogers Avenue, Fort Smith, AR
4201 N Shiloh Drive, Fayetteville, AR
Fiesta Mall, Mesa, AZ
Greeley Mall, Greeley, CO
8020 Mall Pkwy, Lithonia, GA
1709 Baytree Road, Valdosta, GA
Berkshire Mall, Lanesboro (Pittsfield), MA
7885 Eastern Blvd, Baltimore, MD
1200 Us Rt 22, Phillipsburg, NJ
2999 E College Avenue, State College, PA
300 Lycoming Mall Circle, Pennsdale/Muncy, PA
2334 Oakland Ave, Indiana, PA
4000 Sunset Mall, San Angelo, TX
4600 S Medford Dr, Lufkin, TX
754 S State Street, Salt Lake City, UT
114 Southpark Circle, Colonial Hts, VA
1400 Del Range Blvd, Cheyenne, WY
Sears Holdings said eligible associates impacted by these store closures will receive severance and can apply for open positions at its remaining stores.
J.C. Penney – 138 stores
These 10 retailers are closing more than 1,000 stores in 2017
More than 100 J.C. Penney department store locations closed forever in late July.
The struggling retailer said it planned to close 138 stores back in March, but it postponed liquidation sales until May due to increased foot traffic after the closing announcement.
Nearly all of the stores shut down July 31, except for a few that stayed open until September.
Macy’s – 68 stores
These 10 retailers are closing more than 1,000 stores in 2017
Macy’s isn’t finished shrinking its retail footprint quite yet.
The department store chain confirmed in February that it will close about 34 stores “over the next few years” after shutting down nearly 70 locations this year.
The company has not yet revealed which locations may soon be on the chopping block.
Other retailers
J. Crew – 50 stores
After reporting a sales drop of 12% for its third quarter, J. Crew will close dozens of stores by the end of January, CNN Money reported.
In a news release, J.Crew said it expects to close 50 stores during fiscal 2017, 39 of them in the fourth quarter.
Payless ShoeSource – 800-900 stores
Payless ShoeSource announced in August that it has successfully emerged from its Chapter 11 restructuring.
Prior to the bankruptcy filing, its website said the discount shoe retailer had 4,400 stores worldwide. That number was revised to 3,500 in its latest news release.
Vitamin World – 51 stores
Vitamin World has filed for Chapter 11 bankruptcy protection and plans to close dozens of underperforming stores, according to The Wall Street Journal.
Newsday reports that the company will shut down at least 51 of its 334 stores — many of which are located in malls — nationwide.
Gap – 200 stores
Gap Inc. plans to close 200 Gap and Banana Republic locations over the next three years, the company announced September 6. No list of the stores was released, but they are all “underperforming.”
At the same time, Gap Inc. will open 270 locations for its growing brands, Old Navy and Athleta.
Perfumania – 64 stores
Discount perfume retailer Perfumania filed for Chapter 11 bankruptcy protection in late August and planned to close 64 of its 226 stores, CNN Money reported.
In a news release, the retailer said it will emerge as a privately held company after the restructuring.
No list of the affected locations was released, but Perfumania has been reducing its retail store portfolio by accelerating the closure of underperforming stores.
Looking ahead, Perfumania will invest in its e-commerce business to improve customers’ online shopping experience.
Teavana – 379 stores
Bad news for tea lovers! Starbucks is closing every single one of its Teavana retail stores after a strategic review of the business.
Many of the 379 Teavana stores, which are primarily mall-based, have been underperforming. Starbucks said it tried to improve sales through creative merchandising and new store designs, but it just wasn’t working.
The stores will close over the coming year, with the majority shutting down by next spring, according to a news release.
Gymboree – 350 stores
The Gymboree Corporation announced in late September that it has successfully completed its financial restructuring and emerged from Chapter 11 as a new corporation under the name Gymboree Group Inc.
In June, the children’s clothing retailer said it would close approximately 350 stores, mostly across its Gymboree and Crazy 8 brands.
True Religion – 27 stores
Designer jeans and clothing retailer True Religion filed for Chapter 11 bankruptcy protection in 2017.
“After a careful review, we are taking an important step to reduce our debt, reinvigorate True Religion’s iconic brand and position the company for future growth and success,” said John Ermatinger, President and CEO of True Religion.
At least 27 stores were expected to close during the bankruptcy process, according to a list compiled by USA Today.
Ascena Retail Group – At least 268 stores
Ascena Retail Group, the women’s clothing retailer that operates the brands Ann Taylor, Loft, Dress Barn, Lane Bryant, Justice and several others, is planning to close hundreds of stores.
During a recent earnings call, company executives announced that 667 stores are part of its fleet optimization program.
At least 268 of those stores will definitely be closed by July 2019. The remaining 399 stores will be shut down if rent concessions aren’t obtained through negotiations with landlords.
The company didn’t specify which locations will be closed.
Michael Kors – 100 to 125 stores
Michael Kors is closing between 100 and 125 of its retail stores over the next two years.
According to a May 31 news release, the company is making the move to improve the profitability of its store fleet. Revenue was down in the most recent quarter.
The clothing and handbag retailer didn’t reveal a list of the stores on the chopping block.
Bebe Stores – 180 stores
Women’s clothing retailer Bebe Stores shut down all of its roughly 180 locations nationwide.
In a filing with the Securities and Exchange Commission dated April 21, the company said it expected to close all stores by the end of May after liquidation sales.
The retailer’s future remains unclear, though some speculate it will continue as an online-only merchant.
Rue21 – 400 stores
Teen clothing retailer rue21 has filed for Chapter 11 bankruptcy protection.
In a May 15 news release, rue21 said it has entered into agreements with its lenders to reduce the company’s debt and provide additional capital in support of its restructuring.
In April, the retailer began the process of closing about 400 stores in order to focus on its more successful locations.
RadioShack – 1,000 stores
After 96 years in business, consumer electronics retailer RadioShack will have just 70 corporate and 500 dealer stores nationwide — down from 7,300 at its peak.
Over the Memorial Day holiday, RadioShack closed more than 1,000 stores across the country.
Abercrombie & Fitch – 60 stores
You can add Abercrombie & Fitch to the growing list of retailers that will be closing stores this year.
According to a news release, the company plans to shut down about 60 U.S. locations during fiscal 2017 as leases expire. Fortune reports that A&F will have 670 remaining stores, down from 839 just five years ago.
Guess – 60 stores
Guess is pulling the plug on 60 of its stores this year.
CEO Victor Herrero told analysts of the decision during a Q4 earnings call on March 15. It’s expected that most of the closures will be among the flagship Guess brand stores and Marciano locations.
Guess brands operate 945 retail stores in the Americas, Europe and Asia. Some 400 of those stores are in the United States.
Crocs – 160 stores
Crocs announced in a March 1 press release that the brand will be trimming some 160 stores from its 558-store portfolio by the end of 2018.
The Limited – 250 stores
After more than 50 years in business, The Limited closed all of its nearly 250 stores across the country on January 8. The retailer indicated that its website would live on, but no merchandise is for sale.
Wet Seal – 171 stores
Bankrupt clothing store Wet Seal shut down all of its 171 stores, according to the Wall Street Journal. A message on the retailer’s website read, “Thanks babe, it’s been real.”
American Apparel – 110 stores
Made in the USA clothing manufacturer American Apparel has closed its remaining 110 stores.
According to a news release from January 10, Canada-based Gildan Activewear’s $88 million bid at a bankruptcy auction won the rights to American Apparel’s brand and some assets.
However, retail store assets were not part of the purchase, according to Gildan.
BCBG – 120 stores
High-end women’s clothing chain BCBG has closed about 120 stores, mostly in the U.S., according to the Minneapolis Star Tribune.
The Star Tribune reported in early February that liquidation sales were expected to run eight to 10 weeks before the stores closed for good.
The company’s mini-shops within Macy’s will remain open.
Gander Mountain – Undetermined
After filing for bankruptcy in March, outdoors retailer Gander Mountain has a new owner.
Liquidation sales were held at all 126 stores, but Camping World CEO Marcus Lemonis, the new owner, said he intends to keep dozens of locations open.
A final list of stores has not been released, but you can look for updates on gandermountain.com.
hhgregg – 220 stores
After more than six decades, electronics retailer hhgregg went out of business this year. The news came after hhgregg failed to find a buyer by its April 7 deadline.
GameStop – 150+ stores
After reporting a drop in fourth quarter sales, GameStop announced March 24 that it would close between 2% to 3% of its global store footprint, which means at least 150 stores.
GameStop has struggled due to weak sales of certain video games and “aggressive console promotions” from its competitors.
Staples – 70 stores
Staples said in March that it will close 70 locations throughout North America by the end of 2017.
During an earnings call, Staples said same store sales in North America were down 7% during the fourth quarter of 2016. The drop in sales was blamed on lower foot traffic.
Family Christian – 240 stores
Family Christian, the biggest seller of Christian books and merchandise in the nation, announced February 23 that 240 stores in 36 states would be permanently closed by May 13.
Source:
http://clark.com/shopping-retail/major-retailers-closing-2017/
Bankruptcy boom: distress in the US retail space
Despite overall spending in the US retail space continuing to grow steadily, today’s reality is that traditional brick and mortar retailers are being squeezed out of the picture by online shopping competitors, with many filing for bankruptcy then pulling down the shutters for good.
Certainly, the bankruptcy filings for 2017 make for distressing reading for the US retail industry. In short, so far this year, more than 300 retailers have filed for bankruptcy (mostly Chapter 11 filings) – up 31 percent year-on-year, according to BankruptcyData.com. While most of the filings have been made by small and medium-sized businesses, a number of retail household names are also in the mix, including Aeropostale, Payless ShoeSource, RadioShack, rue21, Gymboree, The Limited, and many more.
“Over the past three years, a significant number of well-known retailers have filed for bankruptcy protection,” confirms John H. Bae, a partner at Baker Botts LLP. “The size of these retailers varies from smaller operations like Jo-Jo Holdings, Inc. with 10 stores, to larger operations like RadioShack with more than 4000 stores in the US and abroad. The type of business of these retailers varies, but the vast majority of them operate in shopping malls with expensive commercial leases.”
In the view of Joshua Sussberg, a partner at Kirkland & Ellis LLP, it is the retail operators with a large brick and mortar presence and underdeveloped omnichannel platforms that are under the most intense pressure, as they attempt to adapt to the ever changing environment and internet -hungry purchasers.
That the US retail space is distressed clearly comes as little surprise to those with their finger on the pulse. Indeed, 67 percent of respondents to AlixPartners’ ‘2017 North American Restructuring Experts Survey’ stated that retail was the US industry they believed most likely to face distress in the coming years.
Cause and effect
One question vexing the US retail space is the extent to which the bankruptcy filings seen over the past year can be seen as a temporary aberration or part of an inevitable evolution of consumer shopping and spending tastes. According to Mr Sussberg, the prime reason for the uptick in filings is the shift in consumer preference away from pure in-store purchases. “Being able to provide an overall experience through the internet, combined with a retail presence, seems to be the trend for consumers,” he suggests.
As a result of this trend, the high cost of an expanded retail footprint has been difficult for many retail companies to satisfy, especially when combined with the need to infuse capital into omnichannel development. In addition, Mr Sussberg notes that the demand for ‘fast fashion’ – products that are produced quickly for consumption and at a less expensive cost (by companies such as H&M and Zara) – has impacted those branded apparel companies that require a long lead time from development to production and which goods necessarily carry a higher cost because of a more involved production process.
“Filing for bankruptcy does not, of course, mean an end to a retailer’s operations; a number of options can be explored in the bid to survive, with restructuring chief among them.”
Of particular significance are the similar profiles of many of the retailers filing for bankruptcy protection, many of which have large commercial lease obligations for their brick and mortar stores and substantial debt burdens, not to mention fewer customers entering their stores. “Virtually all the well-known retailers that have filed for bankruptcy in the past couple of years identified declining foot traffic in malls as the principal cause of the distress in their business,” says Mr Bae. “Many of these retailers were also the subjects of leveraged buyouts which imposed substantial debt burdens on top of weak operating performance.”
While many companies filing for bankruptcy firmly point the finger at online shopping as the reason for their woes, Andrew Schoulder, a partner at Bryan Cave, deigns to mention that the act of purchasing products or services over the internet is hardly a new phenomenon. “The band aid has been on for so long and part of what we are seeing now is the adhesive coming off, he suggests. “But investors and lenders are unwilling to allow the bleeding to continue in the current environment. For some businesses, the market is willing to double down after restructuring the footprint and capital structure through Chapter 11, and many believe that investors have reached the point where they feel it is necessary to cull the herd.”
Extrapolation
What then do the recent bankruptcy filings in the US retail space tell us about consumer trends and their likely impact on the future of the industry? Moreover, how far can the issues currently bedevilling segments of the industry be extrapolated across US retail as a whole?
“BCBG is a great example of what is happening across the US retail world,” says Mr Sussberg. “It is also a huge success story in that the company will reorganise and capitalise on its brand for many years to come, although on a much smaller scale.” At its peak, the fashion house BGBG operated at more than 500 retail locations, but an underdeveloped omnichannel platform and the fast fashion movement – designs moved quickly from the catwalk to capture current fashion trends – necessitated a restructuring in the face of significant leverage (which the company had used to expand) and high occupancy costs.
Despite this, the BCBG brand has proven to be valuable and the firm’s recent restructuring (completed in early August) is capitalising on that value. Going forward, the plan is for BCBG to operate a reduced retail footprint of approximately 45 retail locations and licence its apparel and brand for continued distribution around the world. “BCBG will also dedicate resources to further developing its internet and omnichannel platform,” believes Mr Sussberg. “The restructuring transaction will raise significant value and ensures that BCBG remains in operation for years to come. The reduced footprint and brand recognition model is something that I think we may also see in other retail restructurings.”
Further examples that exemplify the transition taking place in the US retail space include that of Payless Holdings LLC and Aeropostale. Payless, which filed for Chapter 11 on 5 May 2017, and Aerostaple, which made its own filing approximately one year earlier, both cited virtually identical reasons for the decline of their businesses, though the primary reason was a shift toward online retail channels. Both companies also blamed large debt burdens, commercial lease obligations and declining profits as the drivers of their Chapter 11 filings.
“The US retail industry will have to adjust to the changing tendencies of their target customers,” says Mr Bae. “If burdensome leases and a decline in foot traffic are the principal causes of distress in retail, then the obvious path forward for the retail industry is to reduce the footprint of the brick and mortar stores and increase the retailer’s online presence. That will also have an effect on mall owners and operators which will suffer declines in tenants and occupants.”
Survival options
Filing for bankruptcy does not, of course, mean an end to a retailer’s operations; a number of options can be explored in the bid to survive, with restructuring chief among them.
“Although many retail companies such as Radio Shack, Wet Seal, Coldwater Creek, Eastern Mountain Sports and HHGregg have gone out of business through their Chapter 11 filings, others, including Pacific Sunwear, BCBG, Payless, Gymboree and rue 21, have executed or stand ready to execute restructuring transactions that preserve going concern operations,” affirms Mr Sussberg. “The reason these companies have been successful is because of careful strategic planning, both internally and with key stakeholders. This includes a detailed review of the company’s existing footprint and significant consideration of cash needs in an effort to ensure development of appropriate omnichannel technology that will enable market penetration and hopeful growth.”
Another important factor, and one that is especially pertinent in retail, is whether the business in distress waited too long to react. “A few recent situations demonstrate that survival is possible by proactively tightening your belt, early,” attests Mr Schoulder. “Investors may be more amenable to recapitalising a business model that has been carefully right sized, or at minimum, providing additional time to facilitate a sale process. Too often, retailers are scrambling to conduct store closures, layoffs and heavy discounting of current inventory. By that time, you have damaged relations with vendors, landlords and lenders. The discounting has tarnished your brand and left little to reorganise around.”
Reengagement and reinvigoration
Given consumer spending trends, it seems likely that bankruptcies will continue to rise in the years to come. Should this come to pass, then fresh strategies will need to be explored if US retailers are to have any chance of stopping the rot and reinvigorating the industry.
“Retailers will continue to face financial distress and we do not anticipate a decline in retailer bankruptcy filings,” says Mr Bae. “Some well-known retailers have been struggling for a long time and their situations do not seem to be improving. Therefore, they will need to continue to explore different strategies to increase consumer foot traffic, such as Walmart introducing groceries. But it is doubtful that the current shift from in-store shopping to online commerce can be reversed.”
Further strategic moves being adopted by a number of retailers include changing the in-store experience by creating niche areas within their stores for certain products or lines. Others have dedicated substantial floor space in their primary locations to their discount businesses. “Ultimately, bankruptcy will still be important because one of the most logical options for retailers is to use the Bankruptcy Code to ‘right size’ their business to match the tendencies of their target customers to the extent that is still possible,” suggests Mr Bae. That said, even those retailers that are successful in restructuring their operations once may find themselves in a Chapter 11 scenario again – a fate that most retailers will be unable to survive for a second time, as demonstrated by RadioShack and American Apparel, for example.
“It seems likely that restructuring activity will continue in the retail industry in the months and years to come because of the ever changing landscape and technological advances,” says Mr Sussberg. “Many retail companies are actively engaged in cost reduction efforts and the types of planning activities that are necessary to potentially avoid the need for an in-court restructuring. The success of these efforts will depend on the willingness of lease counterparties to engage in meaningful negotiations, trade vendors to continue affording terms and companies having enough capital to ensure appropriate development of their omnichannel presence.”
Going forward, retailers able to maintain the flow of goods and the possibility of an ongoing, viable enterprise will be the ones that recognise the need to plan and adapt to the changes sweeping the industry – necessary measures which serve to assure the US retail space that when the shutters come down today, they do not stay down tomorrow.
© Financier Worldwide
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Retailers Are Going Bankrupt at a Record Pace
Department stores, electronics sellers, and clothing shops are most at risk.
By Kim Bhasin April 24, 2017, 7:00 PM GMT+3
Retailers are filing for bankruptcy at a record rate as they try to cope with the rapid acceleration of online shopping.
In a little over three months, 14 chains have announced they will seek court protection, according to an analysis by S&P Global Market Intelligence, almost surpassing all of 2016. Few retail segments have proven immune as discount shoe-sellers, outdoor goods shops, and consumer electronics retailers have all found themselves headed for reorganization
Meanwhile, America’s retailers are closing stores faster than ever as they try to eliminate a glut of space and shift more business to the web. S&P blamed retailer financial struggles on their inability to adapt to rising pressure from e-commerce.
Urban Outfitters Chief Executive Officer Richard Hayne said as much on a conference call with analysts last month. There are just too many stores, especially those that sell clothing, he said.
“This created a bubble, and like housing, that bubble has now burst,” said Hayne. “We are seeing the results: Doors shuttering and rents retreating. This trend will continue for the foreseeable future and may even accelerate.”
Jim Elder, S&P Global Market Intelligence’s director of risk services, wrote that first quarter results suggest there’s no quick recovery in sight. Sears Holdings Corp., Bon-Ton Stores Inc., and Perfumania Holdings Inc. are among the most vulnerable in the coming year, according to an S&P analysis of public retail companies. Sears acknowledged in a March filing that there is “substantial doubt” about its future. Fitch named retail chains including Nine West Holdings, Claire’s Stores, and children’s clothing outlet Gymboree Corp. in a study late last year. A spokesman for Nine West declined to comment. (Representatives from Bon-Ton, Perfumania, and Claire’s didn’t immediately respond to requests for comment.)
Department stores, electronics retail, and apparel shops are at highest risk, according to S&P. The food and home improvement segments are safest.
Risky Retail
Department stores have the highest probability of default among retailers.
Apparel retail has been particularly hard hit, with The Limited, Wet Seal, BCBG Max Azria, and Vanity Shop of Grand Forks each seeking court protection in 2017. The latest victim was Payless Inc., which filed for bankruptcy April 4 and said it would shutter 400 stores.
Rue21 may be next. The embattled teen apparel chain is said to be filing for bankruptcy as soon as this month, according to people familiar with the matter. Or perhaps it will be Gymboree, which Bloomberg News reported is preparing to file for bankruptcy as a June 1 debt payment looms.
Source:
https://www.bloomberg.com/news/articles/2017-04-24/retailers-are-going-bankrupt-at-a-record-pace
10 retail stores file for bankruptcy in 2017
Kara Driscoll Staff Writer
10:04 a.m. Monday, Sept. 18, 2017
Companies like The Limited and Gander Mountain announced this year that they would file bankruptcy — shuttering stores and laying off thousands of workers. Some of the companies to announce bankruptcies this year include:
1. The Limited
The women’s clothing store announced in early January that it would close all brick-and-mortar stores, and later its parent company filed for bankruptcy. The parent company of women’s clothing store The Limited filed a voluntary petition for relief under chapter 11 of the United States Bankruptcy Court, and the store website has been taken offline.
2. Gymboree
Children’s clothing retailer Gymboree Corp. filed for Chapter 11 bankruptcy protection in June, the latest sign of traditional retailers’ struggles as shoppers shun stores and buy online. The San Francisco-based company says it is seeking to reduce its debt by $900 million. It expects to operate its business and majority of its 1,300 stores during the restructuring.
3. BCBGMAXAZRIA
The company, which owns BCBGMAXAZRIA, said in March it filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code. The company obtained a commitment of $45 million from loan lenders in new financing and filed its plan of reorganization.
4. Wet Seal
Teen clothing retailer Wet Seal abruptly closed all of its 148 brick-and-mortar stores in early 2017. According to a letter obtained by The Wall Street Journal, the retailer is permanently shutting down and will lay off all of its workers. The company is headquartered in California. Back in 2015, Wet Seal closed 338 of its 511 stores and filed for bankruptcy protection. Versa Capital then acquired the brand for $7.5 million in April 2015.
5. RadioShack
The chain retailer announced in March it was filing bankruptcy and closing about 200 of its stores and evaluating what to do with the remaining 1,300. This isn’t the first time RadioShack has filed for bankruptcy. Electronics retailer RadioShack announced it would close more than 30 stores in Ohio, including local ones in Kettering, Springfield, Columbus and Cincinnati.
6. hhgregg
Appliance store hhgregg announced in March it was closing 88 stores and laying off 1,500 employees, and four locations in Ohio will be impacted. A month later the company received court approval to close its remaining stores and liquidate its assets.
7. Gander Mountain
Sporting goods retailer Gander Mountain Company, which had a location in Huber Heights, filed for bankruptcy in March. Gander Mountain and some of its subsidiaries filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code after the retailer “experienced traffic patterns and shifts in consumer demand resulting from increased direct-to-customer sales by key vendors and accelerated growth of e-commerce,” according to a company statement.
8. MC Sports
MC Sports, legally known as Michigan Sporting Goods Distributors, announced in February its plans to begin liquidation sales of all of its 68 stores. Two local stores were impacted.
9. Aerosoles
AGI HoldCo Inc., which owns Aerosoles stores, has filed bankruptcy and plans to keep just four stores open in New York and New Jersey. The stores sell women’s shoes, and currently has 80 stores. The store had as many as 125 stores in 2012, and the company expects the restructuring process to be completed in approximately four months.
10. Payless
Payless ShoeSource announced in April that it would close 12 stores in Ohio after filing for bankruptcy. The Kansas-based retailer said it would close nearly 400 underperforming locations in the U.S. Payless’ North American entities, and two of its Hong Kong-based entities, filed voluntary Chapter 11 petitions in the U.S. Bankruptcy Court for the Eastern District of Missouri
Source:
http://www.daytondailynews.com/business/retail-stores-file-for-bankruptcy-2017/bYSBNoGwFDUF8U2OwTGJzL/
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