Upon filing, it looked to. While the company grew its physical footprint considerably in the aughts, it, lagged behind competitors like Target, Amazon, and Walmart. Clothing retailer Next, in partnership with Joules founder Tom Joule, bought Joules out of insolvency in December. The New York Times reported that the loss of its identity and the struggle to move online contributed to the downfall of Barneys New York. GBG USA entered into purchase agreements for its Aquatalia brand and others and looked to sell its remaining assets under court supervision. A lack of progress on decarbonising heat in homes with technology like heat pumps, too much reliance on untested technology like carbon capture, and insufficient tree planting are among the policy . In early June, Collected received new funding from private equity firm KKR, emerging from bankruptcy to continue its e-commerce business. Summary:The New York City-based activewear brand Yogasmoga filed for chapter 11 bankruptcy in December 2016, following an involuntary chapter 7 bankruptcy in November by three creditors who said that they were owed $3.2M. It previously filed for bankruptcy in 2009, during which it reportedly closed 17 stores. At the time of filing, BH Cosmetics stated that it planned to sell its intellectual property for $4.3M. Part of its restructuring is shrinking its global footprint and withdrawing from 40 countries where it previously operated stores. The Montreal-based retailer has failed to gain a foothold in the growing casual footwear market in recent years. In August of the same year, Brookstone sought Authentic Brands Group as a potential acquirer the same brandthat bought the Nine West, Bandolino, and Nautica brands. Enlarge this image. Summary: Tailored Brands, which owns Mens Wearhouse and Jos. In March 2017, the company rebranded to become Boardriders, Inc. and in early December, made a bid to acquire Australian competitor Billabong, which is currently pending approval. Claires is currently negotiating with its lenders to reduce its debt as it continues to operate its retail locations. The company filed for Chapter 11 on February 3, 2019 and emerged with court approval for its reorganization plan in less than 24 hours. Summary: The Southern discount retail and pharmacy chain Freds filed Chapter 11 in September and swiftly began liquidation sales. Summary: Eastern Outfitters, which was formed out of Vestis Retails bankrupty wasperhaps not surprising afterleading sporting goods brand Sports Authoritys bankruptcy in 2016. Marquee Brands and Global Brands Group Holding Ltd. acquired BCBGs IP and assets. Escada America was born out of the previous bankruptcy of Escada USA in 2009, and the global Escada organization grappled with overexpansion, deficient leadership, and overpriced leases in the years that followed. Pressure from larger competitors like Whole Foods and Trader Joes have squeezed smaller chains in recent years, with A&P, Winn-Dixie, and Bi-Lo all filing for bankruptcy in recent years. The company was already struggling to stay afloat pre-pandemic, as online retailers ate away at its market share and consumers shifted away from at-home cooking. Moving forward, the company plans to revampits brand, decrease its store footprint, and increase omnichannel initiatives. Summary: The luxury fashion brand Roberto Cavalli filed Chapter 7 bankruptcy in April for its US division, Art Fashion Corp, which entailed closing all American stores and letting go of nearly 100 employees. US Realty Acquisitions, the real estate investment arm of private equity firm US Assets, acquired the inventory and assets for approximately $6.9M and reopened stores under a new name, Loves Furniture. Though Freds is in the process of closing all of its stores, it sold portions of its pharmacy business to Walgreens and Express Rx in late September. At the time of its filing, the company was behind on $15M in rent and was looking to exit 29 burdensome leases where its sales had fallen, claiming its rent at those locations no longer reflect the market.In August, the company announced that it had completed restructuring and planned to emerge from Chapter 11 proceedings by the end of the month. Hollander Sleep Products reportedly had just $523,000 in cash on hand at the time of its Chapter 11 filing, attributing its liquidity issues at least in part to rising materials costs. Breaking a long drought in the IPO market, a biotech startup spun out of a Waltham company has filed to list on the Nasdaq. The decision was made despite Amazons efforts to oppose the move. Summary: Global gym chain Golds Gym filed its Chapter 11 in May. The company filed forChapter 11 protection on December 11, citing declining sales due to issues with inventory, merchandising, and vendors. The retailer was founded almost 50 years ago and operated around 230 stores at its peak. Mid-tier gym chains have faced increasing competition from boutique classes, such as OrangeTheory and Barrys Bootcamp, and cheaper facilities, like Planet Fitness. The company plans to restructure and close approximately 230 locations, leaving 450 stores remaining across the US, and is currently seeking buyers. Summary: The teen accessories retailer, well-known for its ear-piercing service, filed for bankruptcy protection in March 2018. However, much to the delight of FR creditors, Amazons claims were dismissed. A beleaguered trucking business that received a $700 million pandemic-era loan from the federal government may be forced to file for bankruptcy protection this summer amid a dispute . They have closed in areas of the country and introduced curbside pickup at certain locations, but still have locations open, to the chagrin of employees. Summary: Behind the labels Joie, Current/Elliot, and Equipment, The Collected Group, which had 33 locations at its height, was already in the process of closing its locations when the pandemic hit, accelerating its move away from physical retail. Summary: Department store operator Stage Stores, which owns department stores and discount brands like Goodys, Peebles, and Gordmans, filed for bankruptcy after being forced to temporarily close all of its 700+ stores across 42 states. The chain had been a pioneer in introducing US customers to international, hard-to-get items, but growing competition from rivals like Amazons Whole Foods and Trader Joes forced it to shutter stores after running out of cash mid-2019. However, while the bank originally intended to send $8M in interest payments to Revlons lenders, it accidentally wired $900M. Summary: Minneapolis-based Christopher & Banks said it would close most, if not all, of its 450 physical stores at the time of its Chapter 11 filing in January. In court documents, Avenue CFO David Rhoads blamed the companys circumstances in part on increased competition in the plus-size apparel space. Copyright 2023 CB Information Services, Inc. All rights reserved. Established in 2005 by the century-old Li & Fung, the company licenses major brands such as All Saints, Saga, and Le Tigre and makes private label products as well. It is set to emerge from bankruptcy this year, after selling plus-sized apparel brand Catherines. "Reddit needs to be a self-sustaining business, and to do that, we can no longer subsidize commercial entities that require large-scale data use," Steve Huffman, Reddit's chief executive . It will continue to operate under its Chuck & Dons and Krisers brands in Minnesota, Colorado, Kansas, Wisconsin, and Illinois. Eventually, it could not manage the debt it incurred and filed for bankruptcy in February 2019. However, a difficult retail environment amidst competition from Jo-Ann Fabric and Crafts forced the company to declare a second bankruptcy in February 2016. Wet Seal was subsequently bought by private equity firm Versa and its struggles ushered in a wave of bankruptcies for other mall-based teen apparel chains. The company was left with a $1.9B debt load and turned to restructuring in an attempt to cut it down to $300M. In initiating bankruptcy proceedings, WPG entered into a restructuring agreement with its creditors. The company stated that it had secured $100M in debtor-in-possession financing in order to maintain business operations as it looked to deleverage its balance sheet by $950M. Slowed sales stemming from more recent macroeconomic turbulence added fuel to the fire. Summary: The Florida-based Hollander Sleep Products company declared bankruptcy as a result of substantial cash limitations and debt constraints. As August came to a close, consumer brand-owner Sequential Brands filed for Chapter 11 bankruptcy protection. More than a dozen major retailers have said they will close US stores in 2023, a combined total of over 2,100 locations. Category/Product(s): Bedding and accessories. Summary: Toys R Us was the third largest bankruptcy in the US (after KMart in 2002 and Federated Department Stores, now Macys, in 1990). After 124 years in business, the high-end home goods retailer filed for Chapter 11 protection with around $80M in unsecured debt and $8M in secured debt. Secoo had initially experienced resounding success, growing from a second-hand handbag marketplace to Chinas largest luxury e-commerce platform. The merger agreement provides for a "go-shop" period, during which Michaels - with the assistance of UBS Investment Bank, its exclusive financial advisor - will actively solicit, evaluate . Four Banana Republic stores have already closed this year, two years after parent company Gap said it would close approximately 350 Gap and Banana Republic stores by the end of 2023. 26018 Here's a list of 154 bankruptcies in the retail apocalypse - and why they failed April 26, 2023 List Article Retail & Services From executive missteps to pandemic-related shutdowns, we look at why some of the biggest retailers, including Bed Bath & Beyond and JCPenney, have filed for bankruptcy. The retailer also cited broader macroeconomic turbulence as contributing to its financial woes. An iconic pair of Air Jordan sneakers is going up for . Michaels Craft Stores Going Private Again, for $5 Billion Mall owner Washington Prime Group filed for Chapter 11 bankruptcy protection after temporarily closing around 100 shopping centers. However, the company emerged from thiscarefully planned bankruptcy in less than four months from the initial filing with intentions to maintain high performing stores and to continue growing its e-commerce business. Like many other department stores, Gumps has grappled with an extraordinarily challenging retail environment as it battled high operating costs and a heavy debt load. The company pointed to consumers shift away from the grain-fee, high-protein dog food sold in its stores as contributing to its financial difficulties. Politics latest: Chancellor to meet regulators in bid to tackle cost of The Australia-based activewear retailer filed for Chapter 11 protection in Californias bankruptcy court. The Michaels located at 187-04 Horace Harding Expwy. Summary: New York & Company parent company RTW Retailwinds is closing almost all of its nearly 400 stores across 32 states as part of its Chapter 11 bankruptcy. After filing for Chapter 11 protection in July, the company exited in October with plansto establish a smaller footprint and increase digital growth. Several are adjusting store formats to meet changing shopping trends. The transaction completed in March 2019, and Things Remembered will continue to operate 176 sores under its brand. In addition to its Chapter 7 filing and the closure of stores in New York, the company also underwent similar proceedings in France. . In addition to macro pressures, Revlon had also been finding it increasingly difficult to capture younger consumers amid the growing popularity of beauty startups like Glossier. It was bought out of bankruptcy by UK-based Revolution Beauty the following month. The 10 Best Sites to Find Closeout Stores and Going Out of Business Sales The department store chain, which owns Bergdorf Goodman, struggled to adapt to e-commerce, and its heavy debt burden prevented it from being able to compete against rivals like Farfetch and Net-a-Porter.. Summary: Shoe chain Aldo filed for bankruptcy in Canada in May, and it is seeking protection in the US and Switzerland. Summary: Another victim to financial woes and a leveraged buyout (by Bain Capital in 2010), Gymboree filed for Chapter 11 protection in June 2017. The companys bread and butter products were confections geared toward millennial adults, such as champagne and cocktail-themed candies. Nolichuckyjake / Shutterstock Stores closing in 2021: 250 This scrappy movie rental chain outlasted even Blockbuster but just couldn't hold on any longer. The retailer received about$22M in financing from Salus Capital Partners to maintain operationsduring the process. Summary: While Loves Furniture claimed that Covid-19-related supply chain disruptions were behind its financial challenges, its bankruptcy filings revealed that warehousing and inventory problems, which led to lost furniture, unhappy customers, and canceled orders, were also to blame. The company has temporarily closed all stores amid the crisis and laid off more than 90% of its employees in the meantime. Sears Holdings, the parent company of Sears and Kmart, said it plans to keep profitable stores running. At the time of the filing, the New York company said it wouldcontinue to run its business, but shutter more than 200 stores and sell or renegotiate some of its leases. In early December, Marquee Brands acquired the brand, which will likely close all retail stores in favor of an online shop. Leading the list is Bed Bath & Beyond, which has declared bankruptcy and is set to close 896 stores across three brands this year, followed by Foot Locker, which is shuttering 545 stores across two brands by 2026 as part of a shift away from shopping malls. Shortly afterward, the company began a downslide driven by legal complications, executive turnover, and mismanagement, which left it unable to adapt in the face of changing consumer preferences, a ransomware attack, and the onset of the pandemic. Summary:The American subsidiary of an Italian makeup retailer filed for Chapter 11 bankruptcy in January 2018. While the company initially made moves to improve its financial standing by selling off large assets like, those efforts proved futile, and Sequential filed for bankruptcy just 3 weeks later. RadioShack exited bankruptcy earlier in November 2017 with hopes of operating as an online retailer with a limited physical footprint. Apollo will acquire all outstanding shares of. The company boasts direct relationships with some of the biggest retailers in the US, including Amazon, Best Buy, GameStop, Lowe's, Macy's, OfficeMax, Walmart, Seats, and JCPenney. The womens clothing and accessories retailer had already closed 140 locations before declaring bankruptcy following 2 years of losses. With an increase in plus-size offerings from a range of clothing companies, Avenue struggled to hold onto its market share. At the time Revlon filed for bankruptcy, more than half of that sum had still not been returned. Summary: Chuck E. Cheeses parent company CEC Entertainment declared bankruptcy in late June. The company pointed to pandemic-driven changes in beauty routines as contributing to its decline (it suffered a multi-million dollar revenue drop in 2020), and those involved with the restructuring process highlighted complications stemming from the unsuccessful launch of a number of product lines. Store closures decimated sales and derailed IPO plans for Madewell, which has garnered more success and popularity than J. Summary: True Religions April Chapter 11 filing marked the denim retailers second bankruptcy in 3 years. As well see, Amazon is not the only reason that physical retail is troubled mounting debt and retailers own missteps and lack of adaptability are also to blame, among other factors. Category/Product(s): Entertainment centers. Their diverse product offerings are a major reason why they're not going out of business. The furniture chain, which was created to take over Art Van Furniture, closed over 20 stores and planned to reorganize as part of its bankruptcy proceedings. This time it's being acquired by Apollo Global Management ( APO) for $22 per share, or $5 billion. Summary:Facing legacy supply issues from 2006, Good Times Convenience Stores, once a major player for gas stops and convenience stores, declared Chapter 11 protection in November 2015. Summary: The vitamin and nutrition chain GNC has been struggling to garner sales and pay off nearly $1B in debt, even pre-pandemic. Exacerbated by a legacy Wall Street development from 2010 that accelerated the companys cash depletion, Gordmans filed for bankruptcy in March 2017 and announced severe job cuts. The furniture retailer was once one of the largest in the Midwest, with nearly 170 locations. Department store chains like Stage Stores have been especially at risk amid the pandemic, as the shift to online shopping has accelerated. Having struggled with financial difficulties and increased competition, the New York City-based online retailer of plus-sized womens clothing had carried a debt burden of $1.3B prior to bankruptcy. Companies that filed for bankruptcy in 2023 so far, Companies that filed for bankruptcy in 2022, Companies that filed for bankruptcy in 2021, Companies that filed for bankruptcy in 2020, Companies that filed for bankruptcy in 2019, Companies that filed for bankruptcy in 2018, Companies that filed for bankruptcy in 2017, Companies that filed for bankruptcy in 2016, Companies that filed for bankruptcy in 2015, Discount department store chain Stein Mart, retail management firm Authentic Brands Group. Despite reducing assets and selling real estate over the years, the company was unable to pay off $134M worth of debt. In initiating bankruptcy proceedings, WPG entered into a restructuring agreement with its creditors.