June is just a microcosm of broader closings affecting the retail industry. Coresight Research said as many as 25,000 retail stores in the United States are expected to close permanently this year as consumer demand for discretionary goods stands and more people shift to online shopping.
The firm anticipates that the closings will only worsen this year and set a new annual record this year. Corelight last year posted a record 9,302 closings.
Chuck and cheese
The party ended for Chuck in about 45 places. Its parent company, CEC Entertainment, filed for bankruptcy, resulting in the closure of some of its entertainment centers.
CEC, which also owns Peter Piper Pizza, said it will use Chapter 11 protection to “achieve a comprehensive balance sheet restructuring that supports its long-term and reopening strategic plans.” She partly blamed Covid-19 for bankruptcy, but she is also grappling with declining earnings before the pandemic.
The company will have around 500 company-owned locations remaining after the closing.
CNG
The 85-year-old vitamin and dietary supplement retailer filed for bankruptcy this week, resulting in the closure of up to 1,200 stores in the United States.
GNC was already in trouble, but Covid-19 compounded its problems. He blamed orders to stay home for preventing him from achieving his refinance plans due to the abrupt “dramatic negative impact” on his business.
The debt-laden retailer will continue to operate, but it will get smaller. GNC plans to close up to 20% of its 5,800 retail stores, equivalent to 1,200 locations in the United States this year. GNC also sells its products for an additional 1,200. aid ritual (RAD) stories.
Hill city
Gap’s men’s athleisure brand is closing after just two years of operation. Although it operated predominantly online, Hill City clothing was sold in some of the company’s Athleta stores.
Hill City was more expensive than the men’s training gear already sold in Gap stores. The brand announced on June 4 on Instagram that “it will close operations later this year.”
Gap said he “will take advantage of Hill City’s styles, fit and innovation in future men’s lines at its other brands, starting with Banana Republic.”
JCPenney
Bankrupt department stores announced an additional 13 store closures in June, in addition to the 250 location closure it announced in May after its bankruptcy filing.
JCPenney said it expects 200 of those closings to occur later this summer, and the remaining 50 to close next summer. Most of the 13 stores in the last round will begin clearance sales around July 3.
The pandemic was the final blow to a 118-year-old store, struggling to overcome a decade of bad decisions, executive instability, and damaging market trends.
Inditex
The Spanish owner of Zara and other affordable fashion brands said on June 10 that it would close 1,200 stores in the next two years.
Inditex said the closings were part of its broader post-pandemic plans that include an investment of $ 3 billion over the next three years to develop a “fully integrated store and online model.”
Stores of various Inditex brands will face the ax, including Zara, Bershka, Massimo Dutti and Pull & Bear with closures that primarily affect their locations in Europe and Asia. Some stores in the Americas will also be closed.
Seal jewelers
The name of the parent company may not be instantly recognizable, but the brands it operates are. The owner of Kay Jewelers, Zales and Piercing Pagoda announced on June 9 that at least 150 stores of its various brands will not reopen after being temporarily closed due to the pandemic.
Stamp (S.I.G) He also said he will close “at least 150 additional stores” by the end of the month. The Bermuda-based company has around 3,200 global locations. The closings will amount to more than $ 100 million in savings.
– CNN Business’s Chris Isidore contributed to this report.
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