CNN – Coronavirus, large amounts of debt and a change in shopping habits created a lethal cocktail of bankruptcies and store closings in July.
So far this year, 21 public and private retailers have filed for Chapter 11, according to BankruptcyData.com. That’s more than double the number presented for the same period last year, reports CNN. In total, 20 retailers filed for bankruptcy in 2019.
In July, the mall’s best-known staples that filed for Chapter 11 included Lucky Brand, Brooks Brothers, Muji, and Sur La Table. All of those stores, and others, announced significant store reductions for more than 1,000 closings in the list below.
These are some of the brands that announced closings and bankruptcies in July:
NPC International
The name of this great franchisee may not sound familiar, but what it operates certainly does: 1,200 Pizza Hut and 400 Wendy’s restaurants in the United States.
NPC International kicked off the July series of bankruptcies with its own, attributing its collapse to the coronavirus-related closings, a debt burden of nearly $ 1 billion, as well as rising labor and food costs. Its restaurants will continue to operate and employ nearly 40,000 people in 27 US states, according to its website.
The company will use Chapter 11 to “evaluate and optimize our restaurant portfolio so that we are better positioned to meet the needs of consumers across the country.”
Lucky mark
The denim company, once in vogue, filed for bankruptcy on July 3, explaining in a press release that the pandemic “has severely affected sales across all channels.” Lucky Brand will immediately close 13 of its approximately 200 stores in North America, which are primarily located in shopping malls, according to CNN. However, your online store and reopened locations will continue to operate normally.
The plan through the Chapter 11 process is to sell to SPARC Group, the owner of Náutica and Aéropostale.
Brooks Brothers
The 200-year-old menswear retailer that dressed 40 American Presidents filed for bankruptcy on July 8. The private company had been struggling as commercial clothing became more informal in recent years and the transition to working from home due to the pandemic.
Brooks Brothers has been evaluating various strategic options, including a potential sale. But he has had trouble finding a buyer. A spokesperson for the company told CNN Business that it expects “to complete the sale process in the coming months.” It is also in the process of permanently closing 20 percent of its 250 stores in the United States.
South La Table
CNN confirms that the nearly 50-year-old provider of luxury cookware and cooking classes filed for bankruptcy on July 8. Despite the fact that people increasingly cook at home and need cooking supplies, the retailer was affected by temporary store closings caused by the pandemic.
To “prosper better in a post-COVID-19 retail environment,” the company is closing approximately half of its 120 stores in the United States and seeking a buyer.
Muji
The Japanese fashion retailer selling minimalist decor, stationery, and clothing filed for bankruptcy on July 9. Muji CEO Satoshi Okazaki said the company “felt the devastating effects of the COVID-19 pandemic on retail in stores” and is closing a “small number” of its stores in the United States.
Muji plans to focus his efforts on online sales. The company said in its statement that the bankruptcy process “will ensure the future health, growth and viability of the company.” Muji is committed to serving its customers in the marketplace and providing high product quality and experience in the future. “
RTW Retailwinds
The owner of the women’s retailer New York & Co. introduced on July 13, just weeks after warning that her future was in “substantial doubt.” RTW Retailwinds, which has about 400 stores and 5,000 employees, said it “hopes to close a significant part, if not all, of its physical stores” after clearance sales are completed.
Like others, he blamed his collapse on the “challenging retail environment coupled with the impact of the coronavirus pandemic” that has caused “significant financial problems.” It seeks to sell its online operations and the intellectual property of centuries-old businesses.
Heritage marks
PVH Corp., which owns Calvin Klein and Tommy Hilfiger, did not file for bankruptcy, but announced the substantial closure and layoffs of its Heritage Brands unit on July 14.
Van Heusen and Izod Golf stores are part of Heritage and are staples in US malls. In total, it is closing its entire footprint of 162 stores and PVH is laying off 12% of its total workforce, which is equivalent to approximately 450 jobs.
Heritage also owns the women’s brands Olga and Warner’s, as well as the men’s casual outfitter Arrow. Those brands won’t go away and will still be sold in department stores and warehouse clubs.
Custom brands
OK, technically Tailored has not filed for bankruptcy. Still. Despite the strong rumors of a bankruptcy filing.
Instead, on July 21, it announced store closings and deep cuts to its corporate workforce.
The owner of Men’s Wearhouse suit sellers, Jos. A. Bank, and K&G identified 500 stores for closings and said it is cutting 20 percent of its corporate positions in hopes of strengthening its “financial position and allowing it to compete more effectively in the challenging retail environment.” release.
The company has around 1,500 stores in the United States, with about half operating under the Men’s Wearhouse name.
Ascena Retail Group
The owner of Ann Taylor, LOFT, Lane Bryant and other women’s clothing stores filed for bankruptcy on Thursday. Ascena was in serious financial trouble even before the Covid-19 pandemic, reporting a positive operating profit in just one year out of the last five and has reported operating losses of $ 2.4 billion since the summer of 2014.
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