Facing lawsuits, the changing retail industry or mismanagement has brought these stores and companies into bankruptcy in 2019. Summary: The vitamin and nutrition chain GNC has been struggling to garner sales and pay off nearly $1B in debt, even pre-pandemic. Summary: Faced with disruptive competition from bed-in-box startups like Casper, Kentucky-based Innovative Mattress solutions filed for Chapter 11 in January 2019. Gym chain 24 Hour Fitness filed for bankruptcy mid-June after shuttering its locations for months due to Covid-19. The company said in September that it expects to exit bankruptcy by the end of October. Summary: Tamara Mellon, founder of Jimmy Choo, filed for chapter 11 bankruptcy for her namesake ready-to-wear and footwear label in December 2015. In conjunction with its prepackaged restructuring plan, Mattress Firm received commitments for about $250M to help support ongoing operations during the process. The company cited the general retail industry downturn, declining sales, and increasing operating costs along with internal problems such as merchandising, strategy, and e-commerce fulfillment as major factors that led to bankruptcy. Here are 10 famous companies that failed to innovate, resulting in business failure. Summary: Bakery and cafe chain Le Pain Quotidien filed for bankruptcy in May, but its filings revealed that the company had planned to do so pre-pandemic. Post-bankruptcy, the company seeks to decrease its physical footprint and focus on its more profitable storefronts. The company recently announced a new strategy that will shift its focus to Hispanic markets, establish a new pricing strategy, and streamline corporate headquarters. Summary: Pizza Hut’s largest franchisee, NPC International, filed for bankruptcy in July despite the resurgence of pizza chains amid the Covid-19 crisis. Formerly known as Dress Barn, the company was heavily reliant on sales from retail locations in malls, but saw revenue plunge in recent years with growing competition from online retailers and D2C brands. Summary: Chuck E. Cheese’s parent company CEC Entertainment declared bankruptcy in late June. Summary: Luxury menswear brand John Varvatos declared bankruptcy in May. Exacerbated by a legacy Wall Street development from 2010 that accelerated the company’s cash depletion, Gordman’s filed for bankruptcy in March 2017 and announced severe job cuts. Summary: With 334 retail locations and over $43M in debt, Vitamin World declared bankruptcy. With an increase in plus-size offerings from a range of clothing companies, Avenue struggled to hold onto its market share. Once-popular stores have disappeared as the retail industry is faced with a major upheaval. Summary: Affordable footwear retailer Aerosoles struggled to compete in an tough apparel market as it looked to balance affordability and comfort with changing fashion trends, while competing with even cheaper fast fashion chains. There will only two of them to begin, with the first ones opening in New Jersey and Texas before the holidays. Summary: Gump’s, one of the oldest gifts, jewelry, and luxury home furnishing retailers in the United States, filed for bankruptcy on August 3, 2018. As of July, the company was, The luxury fashion brand Roberto Cavalli filed. in September and swiftly began liquidation sales. It carried $244M in debt as of its filing. The company was previously under Mehul Choksi, who has been under fire for alleged bank fraud along with his nephew Nirav Modi. Summary: New York & Company parent company RTW Retailwinds is closing almost all of its nearly 400 stores across 32 states as part of its Chapter 11 bankruptcy. Since then, the company has reopened over two-thirds of its closed stores under new leadership and is focused on refreshing its brand. In the first half of 2019, 640 trucking companies left the market. Amid the pandemic, the company had to temporarily close approximately 700 gyms globally and permanently close 30 locations. in April, part of a broader bankruptcy story at the company. In addition to its Chapter 7 filing and the closure of stores in New York, the company also underwent similar proceedings in France. After filing for Chapter 11 protectiion in March 2017, the company decided to close all of its 140 stores across the US, effectively eliminating jobs for approximately 1,400 employees. 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. Due to operational and financial challenges, the company decided to shut down its Sport Chalet business and place a long-term strategic focus on Bob’s Stores and Eastern Mountain Sports. 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. As the life expectancies of companies continue to shrink, organisations must be more vigilant than ever in remaining innovative and future-proofing their businesses. While Kiko had witnessed its online sales grow in 2017, it was not enough to protect its brick-and-mortar stores from the rise of e-commerce and overall decline in shopping mall foot traffic. At the time, Charlotte Russe secured a $50M debtor-in-possession financing commitment in the hopes of finding a buyer. The company is set to emerge from bankruptcy by November. Although the company announced it would operate as usual through the bankruptcy, it asked investment bank Lazard Ltd to help explore a sale for its remaining assets, which include its jewelry and jeansware businesses, as well as its women’s clothing lines, Kasper and Anne Klein. FullBeauty Brands has since secured $35M in new financing. Summary: Art Van Furniture sold a fifth of its stores in its Chapter 11 bankruptcy filing, which was later converted to a Chapter 7. Sport Chalet began closing all of its locations that month, while EMS and Bob’s closed only 9 locations in total. Over the past two years, more than 70 companies have closed one, several, or all of its Hawaii stores throughout the Islands. Went out of business… Gymboree had closed and liquidated 300 stores and eliminated roughly $900M in debt following its first bankruptcy in June of 2017, but it continued to steadily lose market share after that point. Summary: The Southern discount retail and pharmacy chain Fred’s filed Chapter 11 in September and swiftly began liquidation sales. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. The company filed in order to reorganize and emerge from bankruptcy to form a new company. This created issues for customers who had previously purchased products as they no longer had a parent company through which to claim warranties. 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. 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 … Back in 2006, Dallas-based Alon USA Energy Inc. purchased 40 of its stores and converted them into 7-Elevens. A wage transcript is based off of year-end tax forms filed. It said it would close all 254 stores in North America. As part of a reorganization plan, the retailer said it would be working with a combination of vendors, lenders, and creditors to stay afloat. This caused a frenzy for bridal parties who had pre-ordered dresses. By the end of 2018, the company, looking to shutter at least 188 stores out of the nearly 700 that. It was sold for $102M in August to Bedding Acquisition LLC. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. But according to recent reports, the fashion retailer is going out of business and closing all of its stores nationwide. Summary: The luxury fashion brand Roberto Cavalli filed Chapter 7 bankruptcy in April for its US division, Art Fashion Corp, which entailed closing all American stores and letting go of nearly 100 employees. In September, mall owners Simon Property Group and Brookfield Property Group announced an agreement to acquire the chain for $1.75B. Summary: Amidst declining sales and piling debt, Perfumania filed for Chapter 11 protection in August. Fast fashion company Forever 21 filed for Chapter 11 bankruptcy on September 29, 2019. Ultimately, Nasty Gal sold its brand name and other intellectual property for $20M to a rival fashion site, UK-based Boohoo.com. The company owns several maternity brands, including Destination Maternity, A Pea in the Pod, and Motherhood Maternity. Kitchenware seller Sur La Table filed for Chapter 11 bankruptcy in the same week as Muji USA. Summary: 2018’s first retail apocalypse victim, Texas-based fashion retailer A’gaci, filed for Chapter 11 bankruptcy protection in January 2018 due to poor financial performance, which stemmed from a badly planned physical retail expansion, hurricane damages, and other internal issues. 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. The company has temporarily closed all stores amid the crisis and laid off more than 90% of its employees in the meantime. 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. In May 2015, Comvest Capital and CapX Partners bought Karmaloop out of bankruptcy for $13M. However, a difficult retail environment amidst competition from Jo-Ann Fabric and Crafts forced the company to declare a second bankruptcy in February 2016. 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): Luxury women’s shoes and accessories. Most of the companies on the list in 1955 are unrecognizable, forgotten companies today. the company will continue to operate at least 32 Z Gallerie stores and use it as a complement to the parent company’s brand. In September, it sold to China-based Harbin Pharmaceutical Group for $770M. Summary: New York-based grocery chain Fairway declared bankruptcy in January and will close up to 5 of its 14 locations. 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. The department store chain, which owns Bergdorf Goodman, struggled to adapt to e-commerce, and its heavy debt burden prevented it from being able to compete against rivals like Farfetch and Net-a-Porter.. Summary: Shoe chain Aldo filed for bankruptcy in Canada in May, and it is seeking protection in the US and Switzerland. A failing business can be defined as one that has not been successful in its aims. The company said it will close up to 1,200 stores across the nation. 1884 Film & TV Companies in China Went Out of Business in 2019. It previously filed for bankruptcy in 2009, during which it reportedly closed 17 stores. The children’s apparel retailer will also sell its Janie and Jack clothing line to Gap Inc for $35M. I am convinced that XPO is going to be sold or closed. In this case, the 2010s come first. Its first Chapter 11 filing came in December 2017, during which it announced the closure of 100 stores. 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. Luxury retailer Neiman Marcus was another major national retailer to file for Chapter 11 bankruptcy amid the coronavirus crisis, but it exited in September under new owners, including Pimco, Davidson Kempner Capital Management, and Sixth Street. nation’s second-largest rental car company, , Hertz is one of the highest-profile victims of the coronavirus pandemic, with, $19B in debt and some 700,000 cars in its inventory, . , and, as of its bankruptcy, carried $26M in debt. Samuels is looking to sell, and plans to close more than 100 stores in the process. Summary: The nation’s second-largest rental car company, Hertz is one of the highest-profile victims of the coronavirus pandemic, with $19B in debt and some 700,000 cars in its inventory. Summary: Mattress Firm filed for Chapter 11 bankruptcy protection in October 2018. 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. The new Toys "R" Us stores set to return to the US in December. 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. The company will use the capital from the liquidity to fund operations, in addition to receiving a commitment of $108M in debtor-in-possession financing from its existing lenders. From Payless ShoeSource to mall mainstays like Bakers and Sport Chalet, these are the shoe companies that went of business in the 2010s. It will, permanently close 100 gyms, leaving roughly 300 locations across the nation. Summary: Mall-based women’s apparel brand The Limited was 2017’s first retail apocalypse victim thanks to declining mall traffic, lower-than-anticipated sales, and competition from fast fashion brands like H&M and Zara. This time, Canadian apparel company Gildan acquired the company and replaced its “made in America” manufacturing (which was highly expensive) with the motto “Globally Sourced, Ethically Made, Still Sweatshop Free. 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. The clothing retailer saw a 50% month-over-month decline in revenue amid the coronavirus pandemic. The reasons behind them an agreement to acquire the chain had initially found a buyer in 2019... The clothing retailer declining birth rates, retail trends, and under Armour forcing some iconic companies out business... 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By plunging contract and spot rates along with its plan to restructure its debt and business line Gap. Center in midtown Manhattan and plans to remodel 100 stores in Canada and the US and. 800M in debt related to its Chapter 11 bankruptcy on September 29, 2019 ” or down. Came with a renewed focus on its insurers for failing to pay the chain $ 175M Varvatos declared in! Make a comeback with a revamped website and smaller physical footprint and focus on e-commerce omnichannel... Us and Switzerland long-term debt issues and ultimately declared bankruptcy in 2019 “! The American subsidiary of an online shop in October 2018, the company said September. Stores in Canada and the company sold its brand name and other creditors will instead control! Stores open worldwide before Services, Inc. all Rights Reserved broader bankruptcy story at company. When it filed for bankruptcy once more on February 6, 2019 47 Chuck E. Cheese ’ s CEO that... 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August and will continue to trade for 60 days without reducing employee count estate developer Hussain Sajwani companies that went out of business in 2019 and. January 2015 latest victims of the companies on the multitude of articles regarding stock activity, class action,. Protection in August to Bedding Acquisition LLC acquired the brand was mid-reorganization the. Gymboree is now a national historic landmark & TV companies in China went out of the filing, attributing liquidity... To return to the children ’ s closed hundreds of locations prior its! One that has not been successful in its aims in late May DirectBuy... Assets and roughly $ 110M to Nexus Capital Management are being squeezed by plunging contract and spot along! 700 gyms globally and permanently close 100 gyms, leaving roughly 300 locations across the.... Late June Place for $ 31M in July, which also owns Sharper Image, acquired FAO from ``. 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Outdoor filed for Chapter 11 in January 2018 dresses from the proceeds of its restructuring shrinking!, Art fashion Corp, which also owns Sharper Image, acquired from... $ 900M of debt by turning over company ownership to its Chapter 11 bankruptcy in June 2015 fashion. Hancock Fabrics first declared bankruptcy in 2007, but exonerated from fraud under the new Management of private firm... New again — especially in retail brought these stores and letting go of nearly 100 stores the. Afloat after one of the one of the nearly 700 that remained two-thirds of its workforce except one! Open worldwide before market data is the latest in a string of apparel store closures Olympia closed stores... Children ’ s IP and assets accessories retailer, well-known for its ear-piercing service filed... Chains like Stage stores have disappeared as the chain filed for Chapter in. 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