Many brands were forced to lean on their own sales channels, with retail partners leaving them high and dry. Summary: Manufactured-in-America brand American Apparel faced declining sales, massive debt, and internal issues with controversial founder Dov Charney, ultimately leading to its first Chapter 11 bankruptcy in October 2015. The popular retail chain carries everything from sewing patterns and beads to yarn and thread, making it a one-stop shopping . Unfortunately, Made.com is the next brand to feel the wrath of post-pandemic life. Sponsored: Find a Qualified Financial Advisor. document.addEventListener( 'DOMContentLoaded', function() { Summary: In July 2017,Florida-based Alfred Angelo filed for Chapter 7 bankruptcy, which allowed the company to liquidate instead of restructure its debt. At the time, the company expressed its intent to close its remaining stores by the end of the month. A&P first went bankrupt in 2010, declaring $2.5 billion in assets and $3.2 billion in debt, before re-establishing itself as a private company two years later. Summary:Teen retailer Aeropostale faced similar challenges to other mall-based retailers and declared bankruptcy in May 2016. After it filed for bankruptcy in July, retail management firm Authentic Brands Group and mall landlord Simon Property Group won the bid to buy out the brand by offering a zero-interest loan. Webinar 2. > Founded in: 2010 In late November 2017, Vitamin World won court approval to close over 100 stores and put the rest up for sale over the 2017 holiday season. As Amazon expanded far beyond its initial aim of selling books through the internet, brick-and-mortar book sellers like Borders struggled to keep up. In May, DirectBuy bought Z Gallerie at auction for $20M. Category/Product(s):Department Store Chain. Summary: The high-end candy brand Sugarfina filed for Chapter 11 bankruptcy in September. Summary: Department store chain JCPenney was another early victim of the Covid-19 crisis, declaring bankruptcy in mid-May. Facing a cash crunch and another potential bankruptcy, the company negotiated $75 million in emergency financing just months after bankruptcy, and immediately came under firefrom some former bondholders who feared losing their investment. But on Jan. 5, the company warned the public that they may be in trouble. Category/Product(s): Outdoor apparel and gear. The company has asked the court to exit 30 stores but plans to stay open as it looks to restructure debt, rationalize its retail footprint, and fulfill other financial obligations. Bon-Ton is currently working to close 40+ physical stores and is also exploring the possibility of a sale. The settlement the company reached with Meghji on behalf of the share-owning trust's beneficiaries, offering $3.3 million for the group's stake, didn't offer much more. 19. With customers returning to in-store shopping, retailers are testing out new store concepts, exiting others and otherwise refining their brick-and-mortar touchpoints. Or you do, and it's just a splash in your coffee. Summary: Brookstone, the mall chain retailer that sells a variety of products, filed for Chapter 11 bankruptcy in August 2018. But the company filed for bankruptcy in 2015 after failing to turn a profit for six years. The company was previously under Mehul Choksi, who has been under fire for alleged bank fraud along with his nephew Nirav Modi. In 2002, Compaq was acquired by HP for $24 billion in a controversial and contentious merger. 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. Although sales have improved, the company is still losing money. 23. Due to operational and financial challenges, the company decided to shut down its Sport Chalet business andplace a long-term strategic focus on Bobs Stores and Eastern Mountain Sports. Modells Revenue fell 40% in 2020, giving way to Junes bankruptcy. With COVID-19 vaccines rolling out, sellers of suits are hoping for a return to offices, weddings, proms, funerals and all the other events canceled and postponed during the pandemic. The 112-year-old chain employed more than 8,000 people as of August and is set to liquidate all of its stores by the end of the year. Known for its minimalist, unbranded goods, the retailer plans to close some of its 18 US-based locations but will continue to run its e-commerce store. Acquisition Corp. announced that it would be acquiring the bankrupt company and reopening its stores under new ownership. As August came to a close, consumer brand-owner Sequential Brands filed for Chapter 11 bankruptcy protection. > Founded in: 1962 Summary: Gourmet grocery chain Dean & DeLuca had already ceased all operations when it filed for bankruptcy in March. The next year, the company announced plans to close all of its 800 or so remaining stores. In late February 2019, the footwear brand received court approval to proceed with its plan to restructure its debts. In May, Barnes & Noble acquired the retailer, providing the necessary funding for Paper Source to emerge from bankruptcy. 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. Summary: Gymboree filed for its second bankruptcy in January 2019, announcing that it would close about 800 Gymboree and Crazy 8 stores in the US and Canada. Sears Holdings, the parent company of Sears and Kmart, said it plans to keep profitable stores running. While Borders competitor Barnes and Noble launched its own eBook reader, Borders failed to adapt to shifts in customer preferences and went bankrupt in 2011. Following 2020, retail experienced a significant rebound as consumers returned to stores. "It's also important to note that the company hasn't made a full-year profit since 2011. The turbulence ultimately led to Olympias total closure. This news comes after the company was hit by several lawsuits over the last year, including one by the owners of Arden Fair Mall, where Morphe allegedly failed to pay rent in 2022. At the time, Charlotte Russe secured a $50M debtor-in-possession financing commitment in the hopes of finding a buyer. The Houston brand announced its relaunch over social media in November and is slated to open 15 stores in 2020. At the time, then-CEO Dinesh Lathi said that his company was "confident we are well-positioned for the future and look forward to building upon this momentum as we enter this next chapter.". While there were 52 retail bankruptcies in 2020, 2021 saw just 21 a 60% drop year-over-year, according to Axios. Formerly known as Dress Barn, the company was heavily reliant on sales from retail locations in malls, but saw revenue plunge in recent years with growing competition from online retailers and D2C brands. Summary: Gym chain 24 Hour Fitness filed for bankruptcy mid-June after shuttering its locations for months due to Covid-19. Keep up with the story. The COO of DirectBuy reportedly said the company will continue to operate at least 32 Z Gallerie stores and use it as a complement to the parent companys brand. Increased competition, high retail costs, andconsumer shifts to experiential spending had created a tough climate for the sporting goods and apparel industry. if( navigator.sendBeacon ) { Bank regained in-store market share since the early impact of COVID-19 in 2020. Summary:Mississippi-based Fabric retailer Hancock Fabrics first declared bankruptcy in 2007, but it emerged over a year later. These businesses will join a list of once-prominent brands that, for one reason or another (long before the pandemic), lost profitability and shut down in the past 10 years. In the first quarter of 2020, which included the temporary closure of its stores, Tailored Brands racked up a, Holly Etlin, a managing director with AlixPartners working with Tailored Brands as chief restructuring officer, said in, That included supply chain disruptions, reduced store traffic, temporary store closures, employee disruptions and, on the demand side of its business, cancellations of events like weddings and proms. It also claims that a close ring of Nygard executives conspired to enable and conceal this activity, and noted that over the past decade at least nine women in Canada and California have sued Nygard or reported him to authorities, alleging sexual misconduct. > Type of business: Grocery store. Claires is currently negotiating with its lenders to reduce its debt as it continues to operate its retail locations. Animal rights activists continuously targeted the circus for its use of creatures like elephants in the show. Sport Chalet began closing all of its locations that month, while EMS and Bobs closed only 9 locations in total. Compaq was once one of the leading computer companies in America and the world overall. G-Stars CEO said that it plans to close approximately 24 stores in the US. When the company went out of business in 2011, it became the most well-financed flop in U.S. venture capital history. Crew and Madewell was the first national store brand in the US to file for bankruptcy since the Covid-19 pandemic began. 20. Tupperware is an American kitchen classic, but the brand recently warned it could soon be out of business. The San Antonio brand was unable to recover following that filing, and it announced that it will close all of its retail stores in light of its second bankruptcy. Even having secured new financing, Tailored Brands faces plenty of uncertainty ahead. 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. > Founded in: 1982 The discount footwear chain filed for Chapter 11 protection in April 2017, which resulted in an agreement with lenders to close 800 stores and reduce debt. Many other social media platforms began to offer video services similar to Vines specifically Instagram, which also gave creators a longer time limit on videos. The company registered for an IPO in 2010 but withdrew the application in 2013 as sales have been declining. Copyright 2023 Penske Business Media, LLC. The company was dissolved in 2018. 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. > Type of business: Home goods. 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. The company was bought by Dubai-based real estate developer Hussain Sajwani in November. "The company decided to sell off parts of itself to help generate income and diversify its revenue stream, but to little avail, as the company wasn't able to make profits," Peter Varadi, retail expert and CEO of Market Gap Pro tells Best Life. 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