Retail Apocalypse: Which Networks Close Stores and Bankruptcy
Some of the most famous US retailers in recent months announced the closure of stores or bankruptcy amid falling sales.
The growth in the number and popularity of e-commerce stores, such as Amazon, has made it difficult for traditional retailers to attract buyers to stores and forced companies to change their sales strategies. Many companies turned to advertising campaigns and strengthened their online presence in order to attract customers, while closing outlets with poor sales figures, writes Fox business.
Retail chains that have filed for bankruptcy or closing stores in recent months:
Abercrombie & Fitch
Over the past few years, the network has closed hundreds of stores, paying more attention to online sales and smaller retail formats. In May, Abercrombie & Fitch announced that it would close three of its flagship stores, including one in New York, and redesign the 85 of others.
A women's footwear company based in New Jersey filed for bankruptcy in 2017, announcing plans to "significantly reduce" the number of stores. It is unclear how many Aerosoles retail outlets from 88 will be closed, but the network said it plans to keep four flagship stores in New York and New Jersey.
American Apparel, an American clothing brand known for its bold offers, closed all its 110 stores in the US in 2017 the year after bankruptcy. Since then, this brand has been acquired by Canadian company Gildan Activewear, which bought its intellectual property for 88 million dollars.
The Los Angeles-based brand filed for bankruptcy in February 2017. The network closed 118 stores throughout the country that same year, although more than 300 outlets continued to operate as part of the company's reorganization.
Bon-Ton Stores Inc.
In February, a department store filed for bankruptcy on the 11 chapter. The network that operates 256 stores in 23 states also announced that it plans to close 42 stores as part of a restructuring plan.
The children's place
The children's clothing store said that it would close hundreds of stores by 2020, which would be part of the network’s transition to digital commerce.
Pharmaceutical retailer 2017 announced the closure of 70 stores to reduce costs and streamline business. At the same time, CVS still manages thousands of stores throughout the country.
Dressbarn announced that it will close all of its 650 stores in the coming weeks, recognizing that the network "does not work with an acceptable level of profitability for today's retail environment."
The chain of discount stores said it would close Family Dollar stores across the country before 390 and would convert these stores to Dollar Tree stores around 200.
The network of discount stores said it plans to close 104 outlets by the end of June, indicating that this step is a necessary step towards restructuring.
After counting revenues in the fourth quarter, which turned out to be much better than expected, the sports retail chain said that in 2019, it would close 165 stores and invest in upgrading the remaining places in an attempt to increase profits and improve customer service.
The retailer said it would turn its more successful Old Navy brand into its main company by closing Gap stores around 230 around the world, which is about 50% of the chain's outlets. Gap chairman Robert Fisher said the decision was made because "now each company needs its own strategy to move forward."
On the subject: In 2019, retailers will open more 2000 new stores in the USA
Guess has announced plans to close 60 for its stores in the US in 2017 as part of a plan to reorient to international markets.
It is expected that in the near future the children's clothing retailer will declare bankruptcy for the second time in two years, The Wall Street Journal reported this week. The company will close 900 stores and search for potential buyers for other brands.
The electronics retailer said it would close all its 220 stores and lay off thousands of employees if it could not find a buyer after a bankruptcy procedure.
A network of department stores closed 138 stores in 2017, restructuring their business to meet the changing tastes of consumers. The retailer also announced plans to open toy stores at all remaining points of sale. JC Penney plans to close another 24 store in 2019 year.
The clothing store network closed all 250 of its stores in January 2017 of the year to focus on e-commerce. The closure led to a loss of about 4000 jobs.
A large retailer said in January 2018 of the year that he would close seven more stores and lay off about 5000 employees as part of his ongoing job of optimizing his business and adapting to complex trading environments.
Due to a sharp drop in sales, the retailer said it would close 125 with its stores in order to adapt to a complex advertising sales environment.
On the subject: What do local bankrupt retailers in the US open?
Reuters, citing sources with knowledge of the situation, reported that the retailer of discount shoes will soon declare bankruptcy a second time in two years and close all its 2300 stores in the United States. Earlier, the company filed for bankruptcy in April 2017.
The once famous electronics retailer closed more than 1000 stores in 2017. Currently, the brand operates all 70 stores across the country, compared with a peak of several thousand a few years ago.
Sears / Kmart
Sears Holdings is one of the most famous traditional retailers suffering from difficult sales conditions. October 15 2018, the brand filed for bankruptcy protection in the 11 chapter and announced that it would close more 140 from 700 stores as part of its application for restructuring its debt. The company intends to hold an auction in January to determine whether it will be sold to former CEO Eddie Lampert or liquidate the remaining stores.
The parent company of Kay Jewelers and Zales networks said it would close more 150 stores in the 2020 fiscal year amid a decline in sales in stores. Signet also closed the 262 store in 2019, as it plans to reorient its business to e-commerce.
The retailer cited significant debt burden and “competitive pressure” in its decision to declare bankruptcy. The network will close 38 stores and sell its pharmacy business as part of a restructuring plan.
A British retailer will close all 11 stores in the United States after its parent company, Arcadia Group, has declared bankruptcy.
Toys R Us
The toy chain has declared bankruptcy in September 2017, amid growing debt and pressure from suppliers, and was forced to liquidate the remaining stores and supplies in 2018. Currently, the company no longer works, although rumors of its return to the market persist.
At the end of February, the company announced the closure of Victoria's Secret 53 stores against the backdrop of a slump in sales, after 30 stores closed in 2018. The brand loses customers due to changing fashions when consumers prefer the more inclusive and convenient products of its competitors.
The teenage fashion brand closed the 171 store in 2017 after it declared bankruptcy in 2015. The reduction in the number of visitors in shopping centers and the pressure from competitors such as Zara and H & M contributed to the death of Wet Seal.
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