Types Of Store Closings
As the economic downturn brought on by the pandemic continues, many businesses have been forced to make the difficult decision to close stores. Store closings have come in a variety of ways:
- Temporary closings: Some stores have closed their brick-and-mortar stores temporarily, sometimes shifting their efforts to their online store. Many of these stores are now reopening.
- Permanently reducing locations: Many stores have had to permanently close some of their locations while keeping others open.
- Bankruptcy: If a business is in financial trouble and needs to reorganize its debts to continue operations, it can file for Chapter 11 bankruptcy protection. According to the terms of their bankruptcy, retailers may have to reduce services, liquidate some assets or even close some locations to cut costs and cover debts.
- Going out of business: Some retailers have had to cease operations entirely. Depending on their financial situation, they may need to file a Chapter 7 bankruptcy, which will entail going out of business and selling their assets to repay their debts.
Here is a list of the retail stores that have closed, filed for bankruptcy or gone out of business in 2020 and 2021. Well be keeping this list updated as more stores announce closures.
Is Starbucks Going Out Of Business
Starbucks is not going out of business. The coffee retailer did temporarily close its locations in response to the pandemic but has since reopened many locations for to-go only service. In 2020, Starbucks announced that it would be permanently closing 500 of its company-operated locations in the U.S. and Canada. In January 2021, the company announced it would be closing an additional 300 Canadian locations by the end of March. The company, which operates more than 32,000 stores worldwide, announced plans to open 300 to-go style locations through the end of 2021.
Is Ulta Beauty Going Out Of Business
Ulta Beauty is not going out of business. In July 2020, the company announced it would permanently close 19 locations by the third quarter of the year. The company has plans to open about 100 stores in 2021, as well as 100 shops within Target locations. Ulta Beauty currently operates more 1,200 stores in the U.S.
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Shopko Is Closing Most If Not All Of Its Stores
Initially, Shopko planned to exit bankruptcy with around 250 stores. However, the company has radically scaled back its ambitions. Shopko is now on track to operate roughly 110 stores by mid-May.
Management said it’s closing additional stores to make Shopko more attractive for its upcoming bankruptcy auction. Discussions with potential buyers and investors indicated that there would be more interest if the company focused on its best stores in its core markets.
That said, operating a small chain of general merchandise stores profitably would be extremely challenging, given how competitive the market has become. Thus, there’s a sizable chance that Shopko’s attempt to emerge from bankruptcy as a smaller retailer will fail, leading to a full liquidation. That’s the path Bon-Ton took last year.
Is Pier 1 Going Out Of Business
In October 2020, the company announced that Pier 1 had re-launched as an online-only retailer, Pier1.com. Back in February 2020, Pier 1 filed for Chapter 11 bankruptcy protection and, after liquidation sales, permanently closed all of its 540 stores nationwide. In June 2020, Retail Ecommerce Ventures, an investment firm with an e-commerce focus, acquired Pier 1s intellectual property and e-commerce assets.
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Kohl’s Could Be The Big Winner Again
Shopko had annual sales of around $3 billion in 2017. Thus, if the company shrinks its store fleet by two-thirds or goes out of business entirely, it would put a lot of sales up for grabs. As was the case following Bon-Ton’s liquidation, Kohl’s is likely to pick up a meaningful share of Shopko’s revenue, excluding the latter’s grocery, pharmacy, and optical businesses.
First, like Shopko, Kohl’s offers a broad selection of name-brand and private-label apparel, footwear, and home goods. Thus, there is probably a good deal of customer overlap already.
Second, both companies are headquartered in Wisconsin and have lots of stores in the Upper Midwest. In fact, while Shopko operates in about two dozen states, 231 of its stores — about two-thirds of the current total — are in Wisconsin, Michigan, Minnesota, Iowa, North Dakota, South Dakota, and Nebraska, including 76 in Wisconsin alone. While many Shopko stores are in smaller towns, Kohl’s has pretty broad market coverage in this part of the country, especially compared with other department store chains.
Analysts currently expect Kohl’s to post a 4% earnings-per-share gain in fiscal 2019 on a meager 1% uptick in sales. That’s a big reason Kohl’s stock trades for just 12 times earnings. Yet the company has a good chance to blow past those sales and earnings estimates in the coming year — which could send Kohl’s stock rocketing higher.
Is Kohl’s Filing For Bankruptcy
Is Kohl’s Filing For Bankruptcy. Card activation please sign in or register to activate your kohl’s credit card. How to apply for bankruptcy:
It’s important to understand what happens after a. Learn what bankruptcy is, what bankruptcy can and cannot do, the difference between chapter 7 and chapter 13 bankruptcy, alternatives to bankruptcy, and more. How long it shows up depends on which type of. It is possible creditors enter into a forbearance agreement if the company needs additional time to iron out. Filing bankruptcy once you have gathered this information, either on your own or with the help of an attorney, you should then determine which property you believe is exempt from seizure based on the california exemptions.
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Are Stages Stores Going Out Of Business
In May 2020, Stages Stores filed for Chapter 11 bankruptcy protection. The retailer announced that it will reopen its over 700 stores for going-out-of-business sales, liquidate its assets and search for a buyer. The retailer will permanently close all Stage, Goodys, Palais Royal, Bealls, Peebles and Gordmans locations.
Is Kohl’s Headed For Bankruptcy
I don’t normally discuss the stock market anymore, now that I noticed it’s one big scam.I went to Kohl’s recently, and had an interesting observation.I was in K-Mart before they filed for bankruptcy. The store was completely disorganized. Inventory was on the floor. Inventory was not sorted.I was in Circuit City before they filed for bankruptcy. The store was completely disorganized. Inventory was on the floor. Inventory was not sorted.When I was in Kohl’s, I noticed the same problem. The store was completely disorganized. Inventory was on the floor. Inventory was not sorted.I pointed this out to my sister. She said “Every store is like that this time of year!” That’s not true. I went to Modell’s and Best Buy. There, it was well organized and the staff were paying attention. It seemed like the staff working in Kohl’s just didn’t care.All stock investments will underperform true inflation. It seems that Kohl’s is headed for bankruptcy more quickly than others.The fact that management at Kohl’s isn’t paying attention, is a really bad sign. It’s a symptom of complete economic collapse.Like all large corporations, Kohl’s receives massive direct and indirect State subsidies. That allows them to stay in business, even if most of their staff aren’t trying.
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Secured Bankruptcy Credit Cards To Consider
1. Discover it Secured Credit Card
The Discover it Secured Credit Card is a great option for those looking for cashback rewards! With a $200 minimum deposit and no annual fee, so you can rebuild your credit without putting a nick in your bank account.
Earn Monthly Spending Checks: One of the best perks about this bankruptcy-friendly credit card is that if you improve your credit score enough over the course of using it, Discover will automatically perform monthly checks on your spending habits. If you meet their requirements, they’ll automatically refund your deposit without the need to close the card.
Get Cashback: The Discover it Secured card offers 2% back on the first $1,000 you spend on gas and groceries combined each quarter, as well as an unlimited 1% back on all of your other purchases.
2. Capital One Secured Mastercard
If you feel that the minimum $200 deposit for the Discover it card is too high, then consider applying for the Capital One Secured Mastercard. This card is a great entry point when rebuilding your score.
Flexible Deposit: Capital One allows borrowers to deposit $49, $99, or $200, depending on their creditworthiness. These deposits are refundable and qualify users for a starting credit line of $200. After five months of timely payments, users will have the ability to qualify for higher monthly amounts.
Chapter 1: Adjustment Of Debts For Individuals With Regular Income
Chapter 13 bankruptcy is a reorganization bankruptcy typically reserved for individuals. It can be used for sole proprietorships since sole proprietorships are indistinguishable from their owners. Chapter 13 is used for small businesses when a reorganization is the goal instead of liquidation. You file a repayment plan with the bankruptcy court detailing how you are going to repay your debts. Chapter 13 and Chapter 7 bankruptcies are very different for businesses.
Chapter 13 allows the proprietorship to stay in business and repay its debts and Chapter 7 does not.
The amount you must repay depends on how much you earn, how much you owe, and how much property you own. If your personal assets are involved with your business assets, as they are if you own a sole proprietorship, you can avoid problems such as losing your house if you file Chapter 13 instead of Chapter 7.
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Fullbeauty Brands Holdings Corp
FullBeauty owns brands for plus-size men and women such as fullbeauty.com, Woman Within, Roamans, Jessica London, ellos, KingSize, and Brylane Home. Its one of those retailers that also blames e-commerce giant Amazon for its troubling sales. This is definitely a common reason retailers have linked to finance problems. FullBeauty, owned by Apax Partners, included this message to its lenders in 2017.
The company told its lenders that its earnings dropped 30 percent during the 2017 fiscal years first quarter. FullBeauty did have a shake-up of its executive team in July 2018, bringing on Bob Riesbeck as CFO, Liz White as chief customer officer and Robert Lepere as chief people officer. A press release said theyd lead the company into more growth.
These Companies Are Closing Locations In 2020
Retail bankruptcies hit an all-time high in the first quarter of 2018, even more than last year according to Business Insider. More defaults and bankruptcies are expected to come, says a report from S& P Global Ratings, with retail liquidations speeding up. The report also says the U.S. remains oversaturated with retail despite this.
Some of the businesses that have made this list might surprise you! On the face they might look fine the clerks still have smiling faces when you walk in and the clothing is still folded neatly on the shelves. But behind the scenes, theres turmoil! Curious to see if your favorite store is on the list? Read on
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Another Retailer Is On The Rocks
Shopko currently has 134 full-line stores averaging 80,000 square feet in size, making them about the same size as a typical Kohl’s store. It also operates more than 170 Shopko Hometown stores — which range from 15,000 to 35,000 square feet — in smaller markets. The company’s store base is heavily concentrated in the Midwest.
Kohl’s is one of Shopko’s biggest competitors. Image source: Kohl’s.
Most of Shopko’s merchandise selection resembles that of a department store. But in addition to selling apparel, footwear, jewelry, and home goods, many Shopko stores also have grocery sections, optical departments, and pharmacies, though it decided to exit the pharmacy business when it declared bankruptcy.
For decades, this business model made sense, allowing Shopko to cater to a wide variety of needs in areas where there wasn’t much big-box competition. However, now it’s fighting for its life. The company’s current plight resembles that of other retailers that have recently gone out of business. Like Toys R Us, Shopko ended up with too much debt as a result of being taken private more than a decade ago. And like small-market department store Bon-Ton, Shopko faced a much tougher competitive landscape after e-commerce went mainstream.
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In Fitchs credit downgrade, its model assumed these nine retailers would not open until mid-May and that revenues would fall by a stunning 90%, assuming a limited shift of sales to digital channels. The credit agency also assumed sales at these retailers would remain down double-digits in 2021.
Credit ratings agencies use a complex calculation that includes not just sales trends, but also when debt is coming due, says BDOs David Berliner. A lot of lenders may not want to force liquidation so they will give loan extensions and kick the problem down the road because they cant handle that many distressed companies at once.
Just like hospitals, lenders will want to flatten the curve to not be overwhelmed and only deal with the ones where there is nothing thats going to help them, Berliner adds.
The recently downgraded retailers are all venerable brands, but not all are guaranteed to make it due to the damage caused by COVID-19.
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Is American Eagle Outfitters Going Out Of Business
American Eagle Outfitters is not going out of business. In January 2021, the retailer announced plans to shutter up to 250 of the 880 current American Eagle locations primarily mall-based stores in the U.S. and Canada over the next two to three years. Meanwhile, the retailer plans to expand its lingerie and activewear brand Aerie by opening up 50 new stores in 2021, bringing the total to approximately 400 by the end of the year. By 2023, the company hopes to have more than 500 Aerie locations and double its revenue to $2 billion.
Are Heritage Brand Stores Going Out Of Business
In July 2020, PVT Corp, the parent company of Heritage Brand outlet stores announced that it would be closing all of its Van Heusen, Izod, Arrow, Warners, Olga and Geoffrey Beene outlet stores. The company expects the stores to continue operating through mid-2021. The brands will continue to be available through wholesale stores and online. PVT Corp is also the parent company of Tommy Hilfiger and Calvin Klein, but these brands will not be affected by the announced closures.
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Is Paper Source Going Out Of Business
Paper Source is not going out of business. In March 2021, the company filed for Chapter 11 bankruptcy protection to reorganize debt and rent agreements. The retailer also announced the permanent closure of 11 store locations. The company was acquired by Barnes & Noble, which provided it the funding needed to emerge from bankruptcy. Paper Source will continue to operate 130 stores in addition to its website and wholesale division, Waste Not Paper by Paper Source.
Is Modells Going Out Of Business
In March 2020, Modells Sporting Goods filed for Chapter 11 bankruptcy protection. It announced that it would permanently close all 141 of its stores once going-out-of-business sales were completed and all assets were liquidated. In August 2020, Retail Ecommerce Ventures, an investment firm with an e-commerce focus, acquired Modells intellectual property and e-commerce assets.
Nearly 200 Department Stores Have Shuttered In The Past Year And Another 800 Roughly Half The Countrys Remaining Mall
Adrienne Whyte used to go to the mall twice a week, where she might meet up with her personal shoppers at Neiman Marcus and Saks Fifth Avenue or scourMacys for bedding and kitchenware.
But its been well over a year since she set foot in a department store and she isnt sure when, or whether, she will again.
Now if I need something, I buy it online, said the 72-year-old retiree from Falls Church, Va. The department store is a one-stop shop, but so is the Internet.
Department stores, once a middle-class mainstay of convenience and indulgence, had been spiraling downward long before the pandemic turbocharged online shopping and helped tip a number of big-name retailers into bankruptcy. Nearly 200 department stores have disappeared in the past year alone, and another 800 or about half the countrys remaining mall-based locations are expected to be shuttered by the end of 2025, according to commercial real estate firm Green Street.
Those closures, analysts say, will have a cascading effect on American shopping malls, which already are battling record-high vacancy rates and precipitous drops in foot traffic, as well as on the commercial real estate market and the broader economy.
It used to be see it, want it,’ she said. But during the pandemic, Ive realized I dont need as much as I thought I did.
Is Bath & Body Works Going Out Of Business
Bath & Body Works is still in business. In May 2020, its parent company L Brands announced that it would be permanently closing 50 stores in the U.S. However, L Brands ended up only closing 30 Bath & Body Works locations during the pandemic and opened 26 new stores outside of malls, while remodeling another 29 locations.
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