After filing, Vanity’s website (which no longer exists) advertised a going-out-of-business sale. 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. Logo: e … Authentic Brands is said to be entertaining a licensing deal with Saks Fifth Avenue. Back in 2006, Dallas-based Alon USA Energy Inc. purchased 40 of its stores and converted them into 7-Elevens. Though Fred’s 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. The Authentic Brand buyout was completed in June 2015. But innovation can quickly leave a business behind if it can’t adjust to new ways of operating, or to changing customer demand for new products and services. While the company successfully emerged from its first bankruptcy, it was unable to stay afloat after one of its major suppliers cut ties. In the first half of 2019, around 640 trucking companies went bankrupt, according to industry data from Broughton Capital LLC. Like many other retailers, it faced problems stemming from before the pandemic, especially after a 2013 private equity buyout that saddled the company with debt. Summary: Netherlands-based denim brand G-Star, which operates 31 stores in the US, filed for Chapter 11 bankruptcy in July, citing the pandemic’s disruption to its retail locations. The company said it would shutter 200 underperforming locations right away, and look to potentially close 700 stores altogether over the next few months. Charlotte Olympia closed all four stores in the US after securing $410,000 in debtor-in-possession financing to support its operations and liquidation costs. Unlike the rows and rows of shelves that cluttered old Toys "R" Us stores, the new locations will have interactive and playground-like environments for toy brands. The firm has not announced store closures, but it has outlined a plan for recovery that includes opening new stores and retrofitting some old ones to make their operation more cost-effective. Summary: Texas-based jewelry chain Samuels Jewelers Inc. filed for Chapter 11 bankruptcy in August 2018, mostly due to a drop in sales and profits from increasing online retail competition. David’s Bridal emerged from bankruptcy in January 2019, yet still faces considerable challenges as the marriage rate continues to decline and millennials in particular delay their trips to the altar. 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. The retailer received about $22M in financing from Salus Capital Partners to maintain operations during the process. Struggling with the challenging retail environment and significant debt from its first foray into Chapter 11 (while managing a massive footprint of about 3,400 stores in 40 countries), Payless announced it would be closing all 2,100 of its remaining stores in the US and Puerto Rico. By the end of 2018, the company was looking to shutter at least 188 stores out of the nearly 700 that remained. Payless closes all their stores in Canada and the US due to low sales. Eventually, it could not manage the debt it incurred and filed for bankruptcy in February 2019. Summary: RadioShack’s first bankruptcy in March 2015 was an early indication that the company wasn’t prepared for the rise of mobile phones or competition from the likes of Best Buy and Amazon. At the time of the filing, the New York company said it would continue to run its business, but shutter more than 200 stores and sell or renegotiate some of its leases. Claire’s is currently negotiating with its lenders to reduce its debt as it continues to operate its retail locations. The rental car industry saw demand plummet as travel halted amid nationwide shutdowns. RadioShack exited bankruptcy earlier in November 2017 with hopes of operating as an online retailer with a limited physical footprint. Summary: Charlotte Olympia filed for Chapter 11 bankruptcy in February 2018, citing the “unprecedented disruption in the retail market.” The company’s assets totaled $3.26M, owing nearly $20M in debt. Charming Charlie plans to close 100 of its stores by the end of 2017 with larger plans to restructure its debt and business. Following this initial bankruptcy, RadioShack emerged as a private company after being bought by General Wireless, an affiliate of hedge fund Standard General LP. Insights about top trending companies, startups, investments and M&A activities, notable investors of these companies, their management team, and recent news are "Whether the above works or not very much depends on how strong the brand is and how much it is needed and wanted by consumers," Saunders said. Bankrupt Shoe Brands 2019: These 4 Retailers Are Out of Business … Category/Product(s): Apparel & accessories. Summary: After a disappointing co-branded partnership with Sprint, which was launched to help RadioShack better compete and Sprint to scale its own business, the company declared bankruptcy for the second time in March 2017 (after previously doing so in 2015). Summary: Japanese retailer Muji’s US arm filed for bankruptcy in July, one of the latest victims of the Covid-19 pandemic. Since then, the company has reopened over two-thirds of its closed stores under new leadership and is focused on refreshing its brand. At the time of the filing, the company announced its intent to restructure and reduce its debt by $500M, all while continuing to operate more than 580 stores. It finally filed for bankruptcy in June as the Covid-19 crisis forced it to close 40% of its locations. Mattress Firm filed for Chapter 11 bankruptcy protection in October 2018. The company filed for Chapter 11 bankruptcy in September 2017, noting the need to improve its financials and close many of its 88 stores. At the same time, the average size of the trucking companies going under has risen. Popular women’s apparel retailer Charlotte Russe struggled for years as online shopping disrupted the retail sector. Summary: Avenue, a plus-size clothing brand for women, pursued Chapter 11 bankruptcy in August. The retailer liquidated its assets and sold off its intellectual property, retail store leases, and the lease of its corporate office and distribution center to help pay down debts. Summary: Mississippi-based Fabric retailer Hancock Fabrics first declared bankruptcy in 2007, but it emerged over a year later. In June, Hertz stock rallied by as much as 10x, which led to, Hertz attempting to sell new shares of its stock. A man walks past a store going out of business on May 5, 2020 in the Brooklyn borough in New York City. Category/Product(s):Department Store Chain. The company exited bankruptcy after shedding a large chunk of its physical retail presence and kept 230 stores open after a buy out by mall operators Simon Property Group and General Growth. 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. After switching ownership over the years, the chain went out of business in the late 20th century. The company cited supply chain and ingredient availability issues as contributing factors towards its decline. Southeastern Grocers, operator of supermarket chains Winn-Dixie and Bi-Lo, filed for Chapter 11 bankruptcy in March 2018. The new Toys "R" Us stores set to return to the US in December. Category/Product(s): Apparel & Accessories. They Paid For Wedding Dresses, Then The Company Went Out Of Business Alfred Angelo Bridal closed all of its stores late last week, leaving brides-to … The company liquidated its assets, closed over two dozen of its stores nationwide, and was bought by the Sonnek-Schmelz brothers, who also owned soccer store chain Soccer Post. 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. According to court papers, company lacked a “sophisticated e-commerce platform to compete in today’s market.” The company also said its assets and liabilities ranged between $1M to $10M, with between 1,000 and 5,000 creditors. The chain had initially found a buyer in January 2020, but canceled the merger as the pandemic forced it to close its locations. Once-popular stores have disappeared as the retail industry is faced with a major upheaval. https://www.cnn.com/2019/12/05/business/dead-brands-revived-list The clothing retailer saw a 50% month-over-month decline in revenue amid the coronavirus pandemic. Instead, it was the year of Netflix, Here's where your 'free' online returns actually end up, The Children's Place announced in October. Summary: Owner of Eastern Mountain Sports, Bob’s Stores, and Sport Chalet, Vestis Retail Group (owned by private equity firm Versa Capital Management LLC) announced plans for Chapter 11 bankruptcy in April 2016. Beyond competition from other big-box retailers and Amazon, major sports leagues such as the NBA and NFL that sell team merchandise also chipped away at Sports Authority’s market share. Why do companies go bust? The company suffered in 2019 when Nordstorm pulled some of its brands out of its department stores, resulting in a sharp plunge in profit. With that announcement, Forever 21’s executive vice president Linda Chang told the New York Times that the company would be closing … Summary: Clothing retailer Lucky Brand declared bankruptcy in July, with plans to close at least 13 stores and sell its business to an apparel group owned by Authentic Brands and Simon Property Group, which also operate Aéropostale and Nautica. Exacerbated by a declining popularity in surfwear apparel during the recession, the company opened too many stores that relied too heavily on its surfwear products. However, new leadership has recently claimed that HHGregg will make a comeback with a revamped website and smaller physical footprint. in light of its second bankruptcy. The company also obtained another $525M in lines of credit to finance its exit from bankruptcy. Factset: FactSet Research Systems Inc.2018. The company had also made what proved to be an ill-timed $90M capital investment, mostly in its stores, that did not bear the desired fruit. 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. The brand was not able to innovate fast enough as it faced competitive pressure from fast fashion brands like H&M and Zara. Summary: Toronto-based clothing retailer Roots is shuttering the majority of its 9 US stores, which have represented only losses for the brand. The company was bought by Dubai-based real estate developer Hussain Sajwani in November. It also shuttered nearly 100 stores in the process, and plans to remodel 100 stores in 2018. Eventually, it could not manage the debt it incurred and filed for bankruptcy in February 2019. Kitchenware seller Sur La Table filed for Chapter 11 bankruptcy in the same week as Muji USA. It was sold for $102M in August to Bedding Acquisition LLC. All times are ET. In October 2018, Nine West filed an amended bankruptcy plan to reduce its pre-bankruptcy debt obligations by more than $1B. While 25 stores will be closing, the remaining 33 are expected to remain open as the beauty retailer reorganizes. Summary: Wet Seal struggled to differentiate its apparel from struggling rivals such as Abercrombie & Fitch and Aeropostale, and struggled to succeed even after its first bankruptcy (2015). 1884 Film & TV Companies in China Went Out of Business in 2019. The brand was mid-reorganization when the pandemic forced it to close stores and lay off 76% of its workforce. With a renewed focus on plus size fashion, The Limited recently launched a new website with plans to bring back The Limited storefronts to malls. Fred’s closed hundreds of locations prior to its Chapter 11 filing in an effort to save the company. The company subsequently closed its 250 retail stores across the US. The company closed all stores except for one in La Jolla, California. Business Insider teamed up with Reputation Institute to take a look at US companies with the worst reputations in their industries. Like many other retailers, it faced problems stemming from before the pandemic, especially after a 2013 private equity buyout that saddled the company with debt. In 2018, Sugarfina reportedly took nearly $18M in losses, and, as of its bankruptcy, carried $26M in debt. Disclaimer. The January 23 article goes on to say that Kansas City advertising icon Bob Bernstein (who is credited with inventing the McDonalds Happy Meal) has a strong chance of … The retailer liquidated its assets and sold off its intellectual property, retail store leases, and the lease of its corporate office and distribution center to help pay down debts. Shoe chain Aldo filed for bankruptcy in Canada in May, and it is seeking protection in the US and Switzerland. Summary: New York-based grocery chain Fairway declared bankruptcy in January and will close up to 5 of its 14 locations. Category/Product(s): Entertainment centers. In early December, Marquee Brands acquired the brand, which will likely close all retail stores in favor of an online shop. Summary: After filing for bankruptcy in February, home goods retailer Pier 1 Imports shuttered all of its retail stores as Covid-19 battered the already-vulnerable company. Declining sales in recent years strained the business, eventually contributing to its Chapter 11 filing. Most stock quote data provided by BATS. In September, it sold to China-based Harbin Pharmaceutical Group for $770M. As a rebooted brand, Gymboree promises to be more digitally focused than its predecessor, with free shipping and a new app. Pressure from larger competitors like Whole Foods and Trader Joe’s have squeezed smaller chains in recent years, with A&P, Winn-Dixie, and Bi-Lo all filing for bankruptcy in recent years. 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 furniture retailer was once one of the largest in the Midwest, with nearly 170 locations. The new FAO Schwarz store in Rockefeller Center. The company has temporarily closed all stores amid the crisis and laid off more than 90% of its employees in the meantime. in several locations. 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