New data from Coresight Research reveals that US retailers have announced the closure of 8,400 this year. Ascena Retail has closed nearly 1,200 most locations. Coresight predicts that closures will snowball and set new records this year, breaking the 2019 record of 9,302 closures tracked by the company.
Business is equally challenging for the US restaurant industry. According to a recent National Restaurant Association report, about 17% (about 110,000) of restaurants in the country have closed completely this year, with thousands more approaching.
Many have already faced serious problems due to the blockades that devastated retail stores and restaurants, with dozens of people proclaiming bankruptcy this year.
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papyrus: The classic mall, best known for selling stationery and luxury greeting cards, has closed and more than 250 stores in the US and Canada have been closed. Papyrus accused the overexpansion of stores, the recession of physical shopping, and the failure to fully recover from the 2008 financial crisis.
Bar Louis: About half of the 90 most well-known casual restaurant chains in the United States for happy hour deals were last called. The chain has filed for Chapter 11 and has reached an agreement with the lender to purchase the chain through a bankruptcy sale.
crystal: In a bankruptcy filing, the 88-year-old fast-food chain has blamed several factors, including intensifying competition, changing consumer tastes, and the rise of online distribution platforms. Crystal escaped bankruptcy in May.
Import of peer 1: Household goods retailers have filed for bankruptcy after years of decline due to online competition and large chains. Wharf 1, which once had more than 1,000 locations, cultivated all locations closed. In July, an investment company purchased the brand name and reopened as an online-only store.
Modell’s Sporting Goods: Founded in 1889, the family-owned chain was best known for selling equipment for local team jerseys and youth leagues. Due to the bankruptcy, all 153 stores, mainly in the northeast, were completely closed. The same company that bought the Pier 1 also bought the Modell brand name in its online store in August.
True religion: Temporary closures and the tendency to work from home have hit denim retailers. True Religion was able to break out of bankruptcy in October and cut debt, but closed dozens of places.
J. Crew Group: Preppy retailers operating the J.Crew and Madewell brands became the first US domestic retailers to file for bankruptcy protection as the pandemic flooded the wave of temporary store closures. With less debt, he escaped bankruptcy in September and became the third new CEO in November for the first time in three years.
Neiman Marcus: The 113-year-old luxury department store has been hit hard by the people who work from home. Since the bankruptcy in September, including the flashy Hudson Yards store that opened in New York City in 2019, debt has been reduced by billions of dollars and five stores have been reduced.
JC Penney: The pandemic was the last blow for a 119-year-old company struggling to overcome decades of bad decisions, management instability, and deteriorating market trends. JC Penney has closed about one-third of its stores. The company was rescued by mall owners Simon Property Group and Brookfield Asset Management in December and acquired JC Penney from bankruptcy.
Soup lantern and sweet tomato: COVID-19 was a cruel blow to the all-you-can-eat buffet, especially for this restaurant chain. Announced closure of all 97 stores in the United States and liquidated assets.
Tuesday morning: Another discount household retailer filed for bankruptcy in the spring, saying long-term store closures created an “insurmountable financial hurdle.” The Dallas-based chain has completely closed about 230 of its approximately 700 US stores in “very close proximity” cities.
GNC: The 85-year-old vitamin and dietary supplement company has closed about 1,200 stores as part of its bankruptcy. GNC is in debt of nearly $ 1 billion and has faced a decline in in-store sales even before the pandemic.For sale to a Chinese pharmaceutical company
CEC entertainment: Long-term closure and curfew have caused particular damage to Chuck E. Cheese’s parent company. CEC, which also owns Peter Piper Pizza, uses the protections of Chapter 11 to “realize a comprehensive balance sheet restructuring that supports resumption and long-term strategic planning.”
NPC International: The name of this giant franchisee may sound unfamiliar, but the stores it operates are certainly recognized: 1,200 Pizza Hut and 400 Wendy’s restaurants nationwide. The company has blamed nearly $ 1 billion in debt and rising labor and food costs due to bankruptcy. A few weeks later, NPCs announced that up to 300 Pizza Hut locations would be closed.
Brooks Brothers: A 200-year-old men’s clothing retailer who dressed 40 US presidents and informally became a Wall Street banker’s jewelery filed for bankruptcy. Privately held companies have been struggling in recent years as business outfits have become more casual, especially pandemics, and demand for suits has plummeted. The brand was purchased by Simon Property Group in September.
Sur La Table: A 50-year-old luxury kitchenware supplier filed for bankruptcy, resulting in the closure of about half of 120 stores in the United States. Sur La Table was sold to an investment firm in August for $ 90 million.
MUJI USA: The US division of Japanese retailers went bankrupt and closed a “minority” of the place. MUJI is using this process to refocus its online sales.
Lucky brand: A once-popular denim company filed for bankruptcy, and the pandemic “had a serious impact on sales on all channels,” the release explained. Lucky Brand will immediately close 13 of its approximately 200 stores in North America. Most of these stores are in malls. Sold to the SPARC Group, the owner of Nautica and Aeropostale, in August.
RTW Retailwinds: Female retailer New York & Co submitted in mid-July. Owner. With nearly 400 stores and 5,000 employees, RTW Retailwinds has closed hundreds of stores. It blamed the collapse of the “difficult retail environment, coupled with the effects of a pandemic” that caused “serious financial distress.”
Ascena Retail Group: The owners of Antilles, Loft, Lane Bryant and other women’s clothing stores have also filed for bankruptcy. In severe financial trouble before the pandemic, Asina closed hundreds of stores, including all of its approximately 300 Catherine locations. Currently on sale to a private equity firm.
California Pizza Kitchen: A 35-year-old pizza chain filed for bankruptcy due to restricted indoor dining in some states in the United States. It used the process to reduce debt and closed some unprofitable places. CPK ended bankruptcy in mid-November.
Lord & Taylor: A once-fashionable luxury retailer filed for bankruptcy just a year after it was acquired for $ 75 million. The hope of maintaining some stores soon collapsed, and the brand announced that it closed all stores a month later and closed nearly 200 years of operation.
Tailored Brands: The brand that owns Men’s Wearhouse and JoS. A. Bank has filed for bankruptcy to reduce debt. Filing followed the previous announcement that it would close one-third of its stores and reduce its position by 20%. Tailored was born out of a bankruptcy in December when the debt burden was reduced.
Steinmart: The third major discount store that filed for bankruptcy and closed 300 stores in the United States. With a history of 112 years, the company has blamed consumer habit changes and pandemic failures. Both “caused significant financial distress to our business,” said the CEO. The brand was acquired by an investment firm in December and will resume online.
Century 21: The New Yorker-loved department store chain has closed 13 locations, ending its 60-year history. The company blamed the underpayment of business interruption insurance as the cause of death.
Sizzler USA: One of the first casual restaurant chains in the country, the restaurant chain has filed for bankruptcy due to the temporary closure of the restaurant’s dining room due to the blockade of Covid-19. The 62-year-old company said it is using the bankruptcy process to reduce debt and renegotiate leases.
Ruby Tuesday: Another casual dining chain has accused the pandemic of bankruptcy. Ruby Tuesday said it is using this process to reduce debt and operate as well as possible. Privately held chains have closed about 200 locations in the last few years, leaving about 300 locations worldwide.
Friendly: The East Coast diner chain, best known for its “fribble” milkshakes and sandwiches, has filed for a second bankruptcy in less than a decade. We plan to “sell virtually all of our assets” to private hedge fund companies that own other quick service restaurants, such as Red Mango and Souper Salad. Friendly’s has about 130 places left, compared to 400 places that were in operation about 10 years ago.
Guitar center: The 61-year-old company, the largest US musical instrument retailer, tried to stay at sea by offering virtual music lessons during a pandemic, but eventually filed for bankruptcy. Stores like Guitar Center rely on people making discretionary purchases and are one of the worst-hit retailers of the year.
Francesca’s: Mall was hit another hit by the bankruptcy of this women’s boutique. Francesca’s has closed about a quarter of its 700 stores and is taking advantage of bankruptcy to gain new funding and potential sales.
The above media player video was used in a previous report.
Retailers and restaurant chains that filed for bankruptcy in 2020 include Ann Taylor, Pier 1, JCPenny and Ruby Tuesday
Source link Retailers and restaurant chains that filed for bankruptcy in 2020 include Ann Taylor, Pier 1, JCPenny and Ruby Tuesday