498 Seventh Avenue 12th floor Summary:Shoe retailer Nine West Holdings Inc. filed for bankruptcy in April 2018, with court documents showing the company owed more than $1B to as many as 50,000 creditors. Learn 5 lessons from major direct-to-consumer brands like Peloton and Casper that faced disaster. Bankruptcy was a strategic move on the retailers part, which hoped to use it as grounds to cancel its 21 US store leases while continuing to sell to US consumers online. Businesses had been unable to pay rent under the weight of pandemic pressures, resulting in the companys rental income dropping $127M in 2020. Summary: Gym chain 24 Hour Fitness filed for bankruptcy mid-June after shuttering its locations for months due to Covid-19. GNC Despite top-line revenue of roughly $2.5 billion for the year, widely recognized supplement supplier GNC lost 3.4% of its revenue and has $1.3 billion in debt. But as the world has slowly returned to normal (or the new normal), JOANN has had a difficult time keeping their numbers up. But are these digital spaces just billboards for brands, or can they have tangible benefits? Well before smartphones, PDAs personal digital assistants were a must-have device. Topics covered: e-commerce, payment technology, IT, in-store tech, cyber security, and more. A. It was bought out of bankruptcy by UK-based Revolution Beauty the following month. Like many other restaurants, Lubys Cafeteria struggled with the COVID-19 pandemic. 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. It entered bankruptcy with a significant debt load $1.9B which it was unable to service as the Covid-19 pandemic put a damper on its sales. According to Business Wire, "Revenues for the quarter were $6.08 billion compared to revenues of $6.23 billion in the prior year's quarter, largely due to a reduction in revenue from COVID vaccines and testing, store closures, and a planned loss of covered lives at [insurance company] Elixir.". Holly Etlin, a managing director with AlixPartners working with Tailored Brands as chief restructuring officer, said in court papers at the time the company filed that Tailored Brands had suffered deeply during the pandemic. Exacerbated by operational challenges and competition from e-commerce and fast fashion brands, the company declared bankruptcy in February 2017. During the second quarter in September of 2022, "net sales declined by 6.8 percent compared to the same period last year to $463.3 million, with total comparable sales decreasing 6.2 percent," reported the Global News Wire. Its US arm filed for a Chapter 7 bankruptcy in April, but Roots plans to keep its long-standing stores in Michigan and Utah open. Cosmetics giant Revlon filed for Chapter 11 bankruptcy halfway through June 2022. The decision was made despite Amazons efforts to oppose the move. However, it was reported that the brand is now under new ownership, as its social media page announced a relaunch of the online store in November. Crew and Madewell was the first national store brand in the US to file for bankruptcy since the Covid-19 pandemic began. xhr.send(payload); Get access to the only platform that combines expert-led research with in-depth data on the tech industry. Vine was a short-lived but beloved video making app that took the internet by storm in the early 2010s. The Los Angeles-based company was popular among millennial and Gen Z consumers and entered into public collaborations with music artists Doja Cat and Iggy Azalea in 2021 however, it struggled to reach profitability. > Founded in: 1962 Hilco Streambank, an intellectual property advisory firm specializing in the valuation and sale of intangible assets, announced Thursday that it is selling the intellectual property assets of the company Nygard International Partnership, including the trademarks associated with the Alia, TanJay and Nygard brands. New York, NY 10018. Increased competition, high retail costs, andconsumer shifts to experiential spending had created a tough climate for the sporting goods and apparel industry. Some typical causes: 1. The Covid-19 pandemic initially compounded these issues and accelerated the fall of several retailers, which had faced dwindling sales and growing debt in the years prior as consumer preferences changed. With an increase in plus-size offerings from a range of clothing companies, Avenue struggled to hold onto its market share. JOANN, formally known as Jo-Ann Fabrics, is struggling to stay afloat in the new year. Alta Motors had expanded to more than 70 dealerships by 2018, but it failed to maintain a firm financial footing, even though sales had increased 50% in 2018 and reviewers and journalists seemed to be impressed with the product. Not only did shoppers avoid stores, but they were avoiding the occasions that call for new apparel not least of all white-collar work. Many brands were forced to lean on their own sales channels, with retail partners leaving them high and dry. But the banners still have a lower share of in-store spend relative to early 2020. January 5, 2022 11:00 am. In September, it sold to China-based Harbin Pharmaceutical Group for $770M. It now operates as an online-only retailer. A&P Supermarket However, the company said it does not plan to go out of business and is instead using the bankruptcy filing to restrategize and shore up its future. The Houston brand announced its relaunch over social media in November and is slated to open 15 stores in 2020. At its peak, the company was valued at over $1 billion, and once had over $600 million in sales. document.addEventListener( 'DOMContentLoaded', function() { The company had been looking for buyers but was unable to find a satisfactory offer before it declared bankruptcy in April. Summary:Apparel chain Charming Charlie was the final casualty in 2017s retail apocalypse. 23. Hilco Streambank senior vice president Richelle Kalnit stated that the companys brands, which are sold in Canada and the U.S., have annual sales of more than $105 million through wholesale partners and nearly $110 million through the companys retail and e-commerce channels. The company said that it will continue operating throughout the bankruptcy, but it expects to close about 30% of its 800+ US stores. Summary: Facing steep competition from online retailers and shouldering a $144M debt load, Things Remembered filed for bankruptcy on February 6, 2019. 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. Although its flagship New York City store will reportedly remain open for the next year, the brand is moving swiftly to sell off inventory as licensing company Authentic Brands takes over ownership. Despite experiencing a surge in e-commerce revenue amid the pandemic, the retailers brick and mortar sales d, , leaving it unable to meet its lease obligations. Lord & Taylor, the first department store established in the United States, is officially going out of business, ending a nearly 200-year run. The company was then hit with a, in July 2021 after falsely advertising that its clothing was capable of eliminating and providing protection from Covid-19. This created issues for customers who had previously purchased products as theyno longerhad a parent company through which to claim warranties. Winnipeg-based women's retailer is liquidating its chain of 169 stores including Alia and Tan Jay. *Denotes a companys second or third bankruptcy. Amid brick-and-mortar declines and casualization of workplaces, Tailored Brands' sales were falling consistently in the years leading up to the COVID-19 crisis, but the company had also been in the black since 2015, posting regular though fluctuating profits. Under its restructuring agreement, Belk said it had reduced its debt by $450M and received $225M in fresh capital to keep its 291 stores in operation. Summary: Avenue, a plus-size clothing brand for women, pursued Chapter 11 bankruptcy in August. Summary: Amidst closing over 400 stores in efforts to downsize, teen specialty apparel retailer Rue21 filed for Chapter 11 bankruptcy in May 2017 and agreed to reduce debt and reorganize internally thanks to an injection of new capital from investors. 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: Luxury menswear brand John Varvatos declared bankruptcy in May. The Kansas City-based beauty and salon retailer is reported to have expanded its store footprint too rapidly, racking up unsustainable operating losses in the process. Ultimately, British retailer Sports Direct acquired certain assets (including Bobs Stores and Eastern Mountain Sports) of Eastern Outfitters for $101M in cash. GBG USA entered into purchase agreements for its Aquatalia brand and others and looked to sell its remaining assets under court supervision. Alta Motors HP announced in 2011 it would no longer make Palm hardware and retired the brand. Tailored Brands said at the time it announced Lathi's departure that "this is the right time to re-evaluate the skills and experiences needed in the CEO role as the Company prepares for its next chapter of growth and success." 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. In this report, we dig into 148 recent bankruptcies starting in 2015 and the reasons behind them. A&P Supermarket disappeared in 2015 after more than 100 years in business as it could not compete with cheaper grocers like Walmart or higher-end chains like Whole Foods. Store closures decimated sales and derailed IPO plans for Madewell, which has garnered more success and popularity than J. Summary: Forever 21 filed for Chapter 11 bankruptcy in September and plans to close hundreds of stores as it restructures. Inventory is gathered and any legal obligations fulfilled. 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. Univision acquired all the brands under the Gawker Media umbrella but shut down Gawker.com itself as the brand could have been a target of further lawsuits. The company closed all stores except for one in La Jolla, California. 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. Moving forward, the company plans to revampits brand, decrease its store footprint, and increase omnichannel initiatives. 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. When a business is closing, a going out of business sale typically occurs. Summary: Stationery retailer Paper Source filed for bankruptcy in early March. Summary: Ascena Retail Group, which owns Ann Taylor and Lane Bryant, will close more than half of its stores 1,600 out of 2,800 locations according to its Chapter 11 bankruptcy filing. 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. In addition, the company has had difficulties keeping up with rent. It announced in July that it would be closing up to 500 stores over a third of its locations and laying off 20% of its corporate staff. 16. 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. It went public in 2017, raising $140M in the process, and watched its net profit surge that year. Summary: Netherlands-based denim brand G-Star, which operates 31 stores in the US, filed for Chapter 11 bankruptcy in July, citing the pandemics disruption to its retail locations. With customers returning to in-store shopping, retailers are testing out new store concepts, exiting others and otherwise refining their brick-and-mortar touchpoints. Like many retailers, M&Co suffered the double-whammy of decreased consumer appetite and increased costs amid rising inflation. MoviePass The bankruptcy process has given the chain the lifeline it needed, slashing its debt and reducing the number of stores to just under 700, down from 846 at the time of the filing. Copyright 2023 Penske Business Media, LLC. In April 2017, the companys website relaunched to sell online merchandise and it announced the upcoming opening of new storefronts in Boston, New York, Philadelphia, and Washington, D.C. 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