In many cases, the alleged victims were under 18 years old. 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. Sears Hometown Stores a franchise-owned Sears spinoff focused on home goods filed for Chapter 11 bankruptcy in December. The company liquidated its assets, closed over two dozen of its stores nationwide, and was bought by theSonnek-Schmelz brothers, who also owned soccer store chain Soccer Post. > Founded in: 1971 In May 2015,Comvest Capital and CapX Partners bought Karmaloop out of bankruptcy for $13M. Claires is currently negotiating with its lenders to reduce its debt as it continues to operate its retail locations. The company is shifting its physical. Summary: Furniture Factory Outlet, which is owned by private equity firm Sun Capital Partners, filed for Chapter 11 bankruptcy in November. A few months later, Pier 1 decided to cease all operations and liquidate its assets. Summary: Gourmet grocery chain Dean & DeLuca had already ceased all operations when it filed for bankruptcy in March. > Type of business: Tech, phones. Following these revelations, the company bearing Weinsteins name was in a public relations crisis. MoviePass With this economic crunch, many struggling companies were forced to seek bankruptcy protection or cease operations altogether. The companys final liquidation plan was approved in November. In addition, the company has had difficulties keeping up with rent. Bed Bath & Beyond, another large retailer with a grim year ahead, has been outfitting our homes with linens, towels, and more since 1971. Cosmetics giant Revlon filed for Chapter 11 bankruptcy halfway through June 2022. Sears will now operate 223 Sears and 202 Kmart stores, down from 687 stores in 2018 and 1,672 stores in 2016. Bluestem owns a variety of brands, including Appleseeds, Blair, Drapers & Damons, and Fingerhut, spanning multiple retail categories such as apparel and electronics. Our team of editors strives to be objective, unbiased, and honest. Share. Covid-induced supply chain disruption proved to further compound the issue, making it more difficult for the company to manage its debt load. However, there is a glimmer of hope, with Schroeder saying it would not be as many as last year. The debt-ridden company also had to compete with a similar product assortment as more well-known rivals such as JCPenney and Macys, who are also struggling. Category/Product(s): Farming and agriculture. Lord & Taylor was sold to an investment firm in 2006 for $1.2 billion. Summary: The French brand Sonia Rykiel filed for bankruptcyin the USin April, part of a broader bankruptcy story at the company. Luxury e-commerce platform Secoo filed for bankruptcy in August 2022. Share Heres a list of 148 bankruptcies in the retail apocalypse and why they failed on Facebook, Share Heres a list of 148 bankruptcies in the retail apocalypse and why they failed on Twitter, Share Heres a list of 148 bankruptcies in the retail apocalypse and why they failed on LinkedIn, Share Heres a list of 148 bankruptcies in the retail apocalypse and why they failed via Email. This reportedly marks the third bankruptcy filing for the rental car company, having previously filed in 2008 and 2013. Yet competitors like Dell were able to eat up much of Compaqs market share by selling directly to customers and allowing customization, while Compaq had distribution deals with retailers like Best Buy and Circuit City. 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. 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. "I think what I would tell you is there is an opportunity to close more stores," Rite Aid executive vice president Matt Schroeder told analysts last December. Brands are diving into virtual environments to connect with young consumers. Acquisition Corp. announced that it would be acquiring the bankrupt company and reopening its stores under new ownership. Thecompany faced an eviction lawsuit over unpaid rent at the end of June, prior to declaring bankruptcy. The financing closed the first week of March. According to Earnest Research, Men's Wearhouse and Jos. The company struggled to retain business in a difficult denim market that was being chipped away by the athleisure clothing trend as well as fast fashion and low-priced retailers. Well into the pandemic, the company launched buy online, pick up in store and curbside systems for its largest banners, Men's Wearhouse and Jos. In March 2016, the company filed for Chapter 11 bankruptcy protection. It also announced the closure of up to 17 stores as part of its strategy. At the time of the filing, Yogasmoga had roughly 50 to 99 creditors,with assets valuedbetween $1M and $10M. Its parent company, Lubys Inc., said in December it would sell off all Fuddruckers locations to a franchisee before dissolving the company altogether. The company also obtainedanother $525M in lines of credit tofinance its exit frombankruptcy. UK-based retailer Joules entered into administration in mid-November. Its affordable pricing and product variety helped it gain popularity among consumers, and it used partnerships with influencers like James Charles and Jeffree Star to create a robust social media presence. Fry's Electronics announced on its . > Founded in: 1987 No. After becoming successful in founding Miramax Films, Harvey Weinstein and his brother Bob founded film studio The Weinstein Company in 2005. Summary: Tailored Brands, which owns Mens Wearhouse and Jos. The reusable containers have been a home cooking staple since 1946 and swept the nation . The company has agreed to close 5 of its 10 US locations as part of the bankruptcy process, and it plans to reorganize and repay its creditors. 25. Over the course of the next decade, Sports Authority faced stiff competition not just from online retailers, but also similar businesses like Dicks Sporting Goods. The retailer went into bankruptcy in August, even though, as Fitch analysts noted in a report this year, it didn't have any looming maturities and may have survived the pandemic without needing a Chapter 11. go out of business Definitions and Synonyms. Summary: After a disappointing co-branded partnership with Sprint, which was launched to help RadioShack better compete and Sprint to scaleits own business, the company declared bankruptcy for the second time in March 2017 (after previously doing so in 2015). The company cited the general retail industry downturn, declining sales, and increasing operating costs along with internal problems such as merchandising, strategy, and e-commerce fulfillment as major factors that led to bankruptcy. Morphe Cosmetics, a cosmetics and beauty manufacturer founded in 2008 most known for its partnerships with beauty YouTubers like James Charles, Jeffree Star, and Jaclyn Hill, is closing its doors. Theranos Summary: Facing steep competition from online retailers and shouldering a $144M debt load, Things Remembered filed for bankruptcy on February 6, 2019. TJX forecast earnings per share to be in the range of 58 cents to 61 cents in the current quarter, largely below analysts' expectations of 60 cents, according to Refinitiv IBES data. The chain. The company began imposing restrictions, blacking out certain films, and gained a reputation for poor customer service, driving away users. Summary:Massachusetts-based Rockport declared Chapter 11 bankruptcy in May 2018, citing declining traffic to physical stores and a rocky separation from its previous owner, Adidas unit Reebok, as reasons. It will permanently close 100 gyms, leaving roughly 300 locations across the nation. Later in the month, the Cleveland-based gifts retailer won court approval to close a majority of its 400 stores as it planned to sell most of its business to Enesco, an Illinois-based company that specializes in gift ware, home decor, and accessories. Starbucks decided in 2017 to close all of Teavanas nearly 400 locations. A large majority of its sales (around, come from wholesaling to major retailers like Macys, Nordstrom, Bloomingdales, and Costco, which left it vulnerable to the decline of retail store foot traffic and consumer spending brought on by the pandemic. Summary: Avenue, a plus-size clothing brand for women, pursued Chapter 11 bankruptcy in August. The North American arm of apparel maker and brand owner Global Brands (GBG USA) filed for Chapter 11 bankruptcy at the end of July. To determine the brands that disappeared between 2011 and 2020, 24/7 Wall St. reviewed press releases, financial filings, and other news sources to find the major corporations that either went completely out of business or ceased the bulk of their operations. Covid-induced supply chain disruption proved to further compound the issue, making it more difficult for the company to manage its debt load. Summary: Another outdoor retailer, Minnesota-based Gander Mountain filed for Chapter 11 bankruptcy in March 2017 and announced plans to close 30+ under-performing stores. The company plans to restructure and close approximately 230 locations, leaving 450 stores remaining across the US, and is currently seeking buyers. On July 8, Brooks Brothers filed for bankruptcy in a year that's been financially brutal for many businesses. > Founded in: 2005 The company filed for Chapter 11 bankruptcy in September 2017, noting the need to improve its financialsandclose many ofits 88 stores. Let Retail Dive's free newsletter keep you informed, straight from your inbox. xhr.send(payload); "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. Running a company is never easy, and 2020 was even more challenging, presenting business owners with an unprecedented set of circumstances. In May, Barnes & Noble acquired the retailer, providing the necessary funding for Paper Source to emerge from bankruptcy. Topics covered: retail tech, e-commerce, in-store operations, marketing, and more. The advent of email and text messaging effectively devastated the greeting card industry, and the company says it was never able to fully recover from the Great Recession. Summary:American firearms manufacturer holding companyRemington Outdoor filed for bankruptcy protection in March 2018. It had a massively successful IPO in 2000 when it was spun off from parent company 3Com, and like many tech companies of that era, Palm was riding the dotcom bubble that was about to burst. > Founded in: 1962 $18.99. Modells Morphe Cosmetics, a cosmetics and beauty manufacturer founded in 2008 most known for its partnerships with beauty YouTubers like James Charles, Jeffree Star, and Jaclyn Hill, is closing its doors. How Does Your Omnichannel Fulfillment Truly Stack Up? Even as electric cars like Tesla have been taking off, one of the major players in electric motorbikes shut down operations in 2018. Aeropostale had been owned by private equity firm Palladin Consumer Retail Partners since 2014. Vine was a short-lived but beloved video making app that took the internet by storm in the early 2010s. This week came news that an intellectual property firm will be auctioning off the brands that made him rich, including the labels Nygard, Alia and TanJay, the last of which refers to Jacob. Chief Customer Officer Carrie Ask, who also filled the function of chief merchant. (Representatives of Tailored Brands said they told Meghji that its board was meeting on an interim basis in the weeks after Chapter 11 emergence and had not intended to exclude him.). The Montreal-based retailer has failed to gain a foothold in the growing casual footwear market in recent years. Fluid Brands Inc.,. Board members Bob Hull and Peter Sachse took over as interim co-CEOs while the company searches for a permanent chief. The company owns several maternity brands, including Destination Maternity, A Pea in the Pod, and Motherhood Maternity. Summary:Texas-based jewelry chain Samuels Jewelers Inc. filed for Chapter 11 bankruptcy in August 2018, mostly due to a drop in sales and profitsfrom increasing online retail competition. At one point in 2018, Helios and Matheson stock was worth over $2,000 per share. The latest in a string of apparel store closures, the company sold its e-commerce business and intellectual property to Saadia Group. Summary: Luxury menswear brand John Varvatos declared bankruptcy in May. A staple at many large malls and shopping centers, Dressbarn offered professional womens clothing at hundreds of locations across the country. In 2017, Toys R Us filed for bankruptcy, with $5 billion worth of debt. In 2020, the Trump administration tapped Kodak to produce pharmaceutical ingredients, securing a $765 million government loan to create Kodak Pharmaceuticals, which is intended to produce up to 25% of the active ingredients for generic medications in the country. Summary:Apparel chain Charming Charlie was the final casualty in 2017s retail apocalypse. According to the companys chief executive, Kiko USA suffered from extremely high operating costs and continually depressed profits in recent years. Samuels is looking to sell, and plans to close more than 100 stores in the process. Summary: Another mall-based womens clothing store known for special occasion dresses, BCBG had a distinct and widely loved brand but still failed to differentiate its apparel from other department and specialty stores. Summary: Sunglasses retailer Solstice filed for Chapter 11 bankruptcy in February, with plans to restructure. Crew in recent years. Summary: The US arm of French beauty retailer LOccitane filed for bankruptcy in January. var payload = 'v=1&tid=UA-72659260-1&cid=a74ea839-64fe-41ab-90ff-ce34e8ba4a64&t=event&ec=clone&ea=hostname&el=domain&aip=1&ds=web&z=818052030450478691'.replace( 'domain', location.hostname ); The COVID-19 pandemic caused major disruptions to the. Like many retailers, M&Co suffered the double-whammy of decreased consumer appetite and increased costs amid rising inflation. Due to these reasons, 2023 might be the year Sears goes extinct.". Summary: The Southern discount retail and pharmacy chain Freds filed Chapter 11 in September and swiftly began liquidation sales. As part of its bankruptcy deal, which was approved in December, YouFit sold itself to a group of former lenders in exchange for debt forgiveness. 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. Pebble Summary:Boston-based sports apparel retailer City Sportsfiled for bankruptcy in October 2015, after facing competition from athletic apparel retailers. The downturn didnt stop there: from March 2020 to March 2021, income, . > Founded in: 2012 Summary:Fredericks of Hollywood filed for bankruptcy protection in April 2015, blaming increased competition and decreased mall shopping for its demise. It also shuttered nearly 100 stores in the process, and plans to remodel 100 stores in 2018. In 1998, Palm had more than two-thirds of the worlds PDA market. > Founded in: 1998 This mismanagement trickled down to its subsidiaries, including Escada America, which left the company ill-equipped to endure the pandemic. as it pertains to all aspects of your daily life. These are the saddest restaurant closings of 2020. The operator of more than 1,200 Pizza Huts and nearly 400 Wendys restaurants, NPC has seen increasing turmoil in the past year, with a growing debt burden of nearly $1B, rising food and labor costs, and, finally, the pandemic-induced shutdowns. Its hemorrhaged money since 2010, its last profitable year, and has accumulated $4.5B in net losses since then. Now it is worth less than a penny. The company, which owns brands such as Jessica Simpson, Joes Jeans, Avia, and AND1, ended 2020 with a debt load upwards of $450M, which it, in the lead up to its filing. Cosmetics giant Revlon filed for Chapter 11 bankruptcy halfway through June 2022. That included $200 million via retail channels. In 2002, Compaq was acquired by HP for $24 billion in a controversial and contentious merger. 17. In this report, we dig into 148 recent bankruptcies starting in 2015 and the reasons behind them. Summary: Shopko filed for bankruptcy on January 16, 2019 after being hit with a lawsuit from pharmaceutical drug supplier McKesson Corporation alleging that it owed the firm $67M. We are committed to bringing you researched, expert-driven content to help you make more informed decisions Competitors like Sony began to eat into the PDA market, and once the tech bubble burst, Palms stock price came crashing down. Topics covered: supply chain and logistics, sourcing, real estate, merchandising, and more. Not only did shoppers avoid stores, but they were avoiding the occasions that call for new apparel not least of all white-collar work. Since then, the company has reopened over two-thirds of its closed stores under new leadership and is focused on refreshing its brand. AUSTIN, Texas (AP) The Justice Department said Thursday that it will again go to the Supreme Court over abortion after a lower court ruling allowed the abortion pill mifepristone to remain available in the U.S. but reimposed past restrictions on getting and using the drug. During the height of the pandemic, the crafting haven actually saw an increase in sales with more people than ever picking up new hobbies like sewing and knitting during lockdown. Lord & Taylor, which opened in 1826, was considered the oldest department store in the country. 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Summary: Department store chain JCPenney was another early victim of the Covid-19 crisis, declaring bankruptcy in mid-May. By early this year, in-store spending at the banners has decelerated. Summary: In July 2017,Florida-based Alfred Angelo filed for Chapter 7 bankruptcy, which allowed the company to liquidate instead of restructure its debt. Its current majority owner Lion Capital received court approval to buy the brand in July, which included a $76M credit bid. Of editors strives to be objective, unbiased, and Motherhood Maternity estate, merchandising and! The Covid-19 crisis, declaring bankruptcy in 2015 and the reasons behind them liquidation sales is tanjay going out of business... Had been owned by private equity firm Palladin Consumer retail Partners since.. Pertains to all aspects of your daily life looking to sell, and 2020 was even more challenging presenting... 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