LAST YEAR, THE COMPANY WENT _______ UP AFTER THE ONE OF, ITS SENIOR EXECUTIVES OFFERED HIS RESIGNATION
From executive missteps to pandemic-related shutdowns, we look at why some of the biggest retailers, including Bed Bath và Beyond và JCPenney, have filed for bankruptcy.
Bạn đang xem: Last year, the company went _______ up after the one of
Modern-day retail is at an inflection point as retailers face struggling physical storefronts, massive debt, và inefficient operations, among other issues.
The Covid-19 pandemic initially compounded these issues & accelerated the fall of several retailers, which had faced dwindling sales and growing debt in the years prior as consumer preferences changed.
Department stores proved to be the most vulnerable, with the pandemic felling iconic names such as Neiman Marcus & JCPenney. Malls saw declining foot traffic even pre-pandemic, but stay-at-home orders further shifted shoppers to lớn online shopping và spending cash on essential goods instead.
THE D2C SURVIVAL GUIDELearn 5 lessons from major direct-to-consumer brands — lượt thích Peloton & Casper — that faced disaster.
First name
Last name
Company Name
Job Title
Phone number
"}" data-sheets-userformat=""2":513,"3":"1":0,"12":0">
THE D2C SURVIVAL GUIDE
Learn 5 lessons from major direct-to-consumer brands — like Peloton & Casper — that faced disaster.
First name
Last name
Company Name
Job Title
Phone number
Following 2020, retail experienced a significant rebound as consumers returned to stores. While there were 52 retail bankruptcies in 2020, 2021 saw just 21 — a 60% drop year-over-year, according to lớn Axios. In 2022, only a handful of companies went under.
But this doesn’t mean that retail is out of the woods just yet. With retailers facing old challenges in addition lớn combating newly rising prices and a pullback in consumer spending, some reports indicate that retail bankruptcies may flare up once again in 2023.
In this report, we dig into 154 recent bankruptcies starting in 2015 and the reasons behind them. As we’ll see, Amazon is not the only reason that physical retail is troubled — mounting debt and retailers’ own missteps và lack of adaptability are also lớn blame, among other factors.
Here’s what we’ll cover in this article:
*Denotes a company’s second or third bankruptcy
Companies that filed for bankruptcy in 2023 so far:
Bed Bath & Beyond
Date: April 2023
Categories/Product(s): trang chủ goods
After teetering on the edge of bankruptcy for months, Bed Bath & Beyond filed for Chapter 11 bankruptcy protection in April. While the company grew its physical footprint considerably in the aughts, it lagged behind competitors like Target, Amazon, và Walmart in building out its e-commerce presence. Alongside supply chain disruption, its e-commerce shortcomings left it ill-equipped to keep up with consumer demand for online shopping in recent years.
Faced with declining revenue and a cumbersome debt load, the company tried to lớn reduce costs by cutting back on trademark offerings lượt thích mailer coupons & name-brand inventory. Ultimately, it turned lớn store closures và layoffs. While it narrowly avoided bankruptcy in February thanks to lớn a cốt truyện sale, it was unable khổng lồ uphold the terms of the agreement. The retailer announced it would close its stores while it tries to sell parts of the business.
David’s Bridal
Date: April 2023
Categories/Product(s): Bridal apparel
Wedding gown retailer David’s Bridal filed for bankruptcy (again) in April. This news came just a few days after the company announced it would lay off more than 9K employees. While the company emerged from its first bankruptcy in 2019, it was then thrust into the pandemic, which saw events like weddings (and the demand for wedding apparel) come khổng lồ an abrupt halt.
While weddings have since picked up again, the company highlighted that its business continued khổng lồ suffer due to a change in consumer preferences for wedding apparel post-pandemic. The retailer also cited broader macroeconomic turbulence as contributing to lớn its financial woes.
Boxed
Date: April 2023
Categories/Product(s): Wholesale products
Boxed — an e-commerce platform selling wholesale consumer goods — entered into bankruptcy in April. Warning signs revealed themselves gradually in the months leading up lớn its filing. For example, its stock price và market cap both fell below the thành phố new york Stock Exchange listing threshold last year. Its struggles were likely exacerbated by the crisis at Silicon Valley Bank, where it held a majority of its cash deposits and other liquid assets. Boxed announced it would wind down retail operations & sell its software business amid bankruptcy proceedings.
Independent Pet Partners
Date: February 2023
Categories/Product(s): Pet supplies
Independent Pet Partners — the parent company of Loyal Companion, Chuck & Don’s, Natural Pawz, and Kriser’s — filed for Chapter 11 bankruptcy in February. The company pointed lớn consumers’ shift away from the grain-fee, high-protein dog food sold in its stores as contributing lớn its financial difficulties. Its sales losses only worsened with temporary store closures amid the pandemic.
As part of its bankruptcy restructuring, the company decided khổng lồ exit its Natural Pawz và Loyal Companion brands as well as close some existing stores. It will continue lớn operate under its Chuck & Don’s and Kriser’s brands in Minnesota, Colorado, Kansas, Wisconsin, and Illinois.
Tuesday Morning
Date: February 2023
Categories/Product(s): Discount trang chủ goods
Discount trang chủ goods retailer Tuesday Morning filed for bankruptcy protection in February. It previously filed for bankruptcy in May 2020 due to lớn pandemic-induced store closures, at which time it shut down a number of locations in restructuring. In the face of decreased consumer spending & high interest rates, the company was forced into bankruptcy yet again. This time around, the company plans khổng lồ close unprofitable and underperforming stores in a bid khổng lồ cut costs và move forward.
Serta Simmons Bedding
Date: January 2023
Categories/Product(s): Bedding và accessories
Mattress manufacturer Serta Simmons Bedding filed for Chapter 11 bankruptcy protection in January. Serta had already been dealing with ongoing litigation over emergency funding it received during the pandemic. Slowed sales stemming from more recent macroeconomic turbulence added fuel lớn the fire. The company was left with a $1.9B debt load & turned to restructuring in an attempt to cut it down lớn $300M. Lớn aid its restructuring, the mattress company also moved to resolve the litigation surrounding its pandemic-era funding.
Party City
Date: January 2023
Categories/Product(s): buổi tiệc ngọt supplies
In mid-January 2023, buổi tiệc nhỏ supply store chain các buổi party City filed for bankruptcy protection. In addition khổng lồ a helium shortage in 2019 (which impacted the retailer’s balloon business), increased costs amid the pandemic, và an inflation-driven slowdown in consumer spending, party City has also run up against rising competition from big box and online retailers. Having secured a $150M bankruptcy loan, the company is planning lớn keep operations running while it restructures its debt load — as of the end of September 2022, các buổi tiệc nhỏ City had $1.7B in debt và $122M in available liquidity. Buổi tiệc nhỏ City could emerge from bankruptcy with a much smaller brick-and-mortar footprint — while it aims khổng lồ keep some of its stores open, it is exploring store closures amid bankruptcy proceedings.
Forma Brands
Date: January 2023
Categories/Product(s): Beauty
Forma Brands — parent company of beauty brands lượt thích Morphe, Lipstick Queen, and Bad Habits — filed for Chapter 11 bankruptcy at the start of 2023. Forma Brands originally launched as Morphe in 2008. Its affordable pricing & product variety helped it gain popularity among consumers, và it used partnerships with influencers lượt thích James Charles and Jeffree Star to create a robust social media presence. However, after some of its influencers became embroiled in personal scandal, Morphe moved away from leveraging influencer partnerships and rebranded as Forma Brands in 2020. It struggled in the time that followed, with most of its brands failing to lớn hit revenue projections, & it eventually shuttered its brick-and-mortar operations. The company entered into an acquisition khuyến mãi that would see lenders take over its wholesale operations, online platforms, và international Morphe stores.
Companies that filed for bankruptcy in 2022:
M&Co
Date: December 2022
Category/Product(s): Apparel
UK-based fashion brand M&Co fell into administration (the equivalent of Chapter 11 in the US) in the middle of December. Lượt thích many retailers, M&Co suffered the double-whammy of decreased consumer appetite and increased costs amid rising inflation. The retailer tasked management consulting company Teneo with overseeing the administration & was reported khổng lồ be exploring the sale of its business. At the time it entered insolvency, it was reported that its website và 170 stores would continue to lớn operate và nearly 2,000 employees were at risk of redundancy.
Sears Hometown
Date: December 2022
Category/Product(s): trang chủ goods
Sears Hometown Stores — a franchise-owned Sears spinoff focused on home goods — filed for Chapter 11 bankruptcy in December. The once-mighty Sears launched the chain in 2012, và Transform
Co acquired it after buying Sears out of bankruptcy in 2019. While Sears Hometown’s smaller form size and focus on home goods initially positioned it khổng lồ fare better than its department store-focused parent company, it ran into a number of issues, including pandemic aftershocks, a drop in sales, và increased costs. While the company took steps lớn mitigate its losses, like closing underperforming stores and searching for a buyer, they proved insufficient for bankruptcy prevention.
Joules
Date: November 2022
Category/Product(s): Apparel
UK-based retailer Joules entered into administration in mid-November. The business, lượt thích many others in the retail industry, had struggled with complications like supply chain disruption and decreased consumer spending. It appointed administrators with a plan khổng lồ keep its stores mở cửa while it found a buyer, which came to fruition the following month. Clothing retailer Next, in partnership with Joules founder Tom Joule, bought Joules out of insolvency in December. Next stated it would operate around 80% of Joules store locations & others would be closed by administrators.
Olympia Sports
Date: September 2022
Category/Product(s): Sporting goods
After initiating a liquidation process earlier in the year, Olympia Sports filed for Chapter 11 bankruptcy in mid-September. At the time, the company expressed its intent to lớn close its remaining stores by the kết thúc of the month. The retailer was founded almost 50 years ago and operated around 230 stores at its peak. After closing a number of unprofitable stores between 2013 và 2019, it was acquired by private equity firm Critical
Point Capital and held with the investor’s other sporting goods assets under the Running Specialty Group (RSG). Olympia’s parent organization faced a number of challenges in the time that followed, including a faulty order management system và executive flight, which were only compounded by the pandemic. The turbulence ultimately led lớn Olympia’s total closure.
Secoo
Date: August 2022
Category/Product(s): Luxury goods
Luxury e-commerce platform Secoo filed for bankruptcy in August 2022. The company first filed for bankruptcy in January 2022 but eventually withdrew its petition. Secoo had initially experienced resounding success, growing from a second-hand handbag marketplace to China’s largest luxury e-commerce platform. It went public in 2017, raising $140M in the process, & watched its net profit surge that year. However, the company struggled to lớn keep up with heightened competition & decreased consumer spending amid the pandemic. It also faced a myriad of other interrelated challenges, like sales contract disputes, false advertising charges, and consumer rights protection complaints. Despite its filings & the surrounding controversy, Secoo announced it had entered into agreements with 2 new investors at the kết thúc of August.
Future Retail
Date: July 2022
Category/Product(s): Retail chain operator
At the end of July, an Indian court accepted the bank of India’s petition khổng lồ admit debt-ridden retail chain operator Future Retail (FR) into the bankruptcy resolution process. The decision was made despite Amazon’s efforts to oppose the move. The retail giant, an FR shareholder, claimed that creditors had colluded with FR khổng lồ deny it its rights after battling for control of FR since 2019. However, much to lớn the delight of FR creditors, Amazon’s claims were dismissed. The ruling served as a major blow khổng lồ Amazon’s ability to compete with Reliance — its rival in the Indian retail market.
Revlon
Date: June 2022
Category/Product(s): Beauty
Cosmetics giant Revlon filed for Chapter 11 bankruptcy halfway through June 2022. The filing came at the over of a tough few years for the company, which had already been combatting declining sales when the pandemic arose. Covid-induced supply chain disruption proved lớn further compound the issue, making it more difficult for the company lớn manage its debt load. In addition to lớn macro pressures, Revlon had also been finding it increasingly difficult khổng lồ capture younger consumers amid the growing popularity of beauty startups lượt thích Glossier.
The company had previously tried khổng lồ prevent bankruptcy by taking on Citigroup as its loan agent. However, while the ngân hàng originally intended khổng lồ send $8M in interest payments to Revlon’s lenders, it accidentally wired $900M. At the time Revlon filed for bankruptcy, more than half of that sum had still not been returned.
While the company set up a restructuring committee, its plans khổng lồ reorganize have not moved forward và could be challenged by ongoing litigation stemming from the 2020 Citi fiasco.
Missguided
Date: May 2022
Category/Product(s): Women’s apparel
UK-based Missguided fell into administration at the end of May, as it owed more money than it was making & had a number of suppliers that had not been paid for orders. While the online fashion company initially experienced great success capitalizing on the rise of fast fashion, increased supply chain costs and inflation hampered its continued growth. The company’s attempt lớn find a buyer provider proved khổng lồ be successful — Frasers Group bought Missguided out of administration for nearly $24M at the start of June.
Escada America
Date: January 2022
Category/Product(s): Luxury womenswear
Escada America — the US face of Germany-based luxury women’s apparel brand Escada — filed for Chapter 11 bankruptcy in mid-January 2022. While the pandemic played a key role in driving Escada America khổng lồ bankruptcy, the branch had been struggling with a myriad of issues in the years prior. Escada America was born out of the previous bankruptcy of Escada USA in 2009, và the global Escada organization grappled with overexpansion, deficient leadership, and overpriced leases in the years that followed. This mismanagement trickled down khổng lồ its subsidiaries, including Escada America, which left the company ill-equipped to lớn endure the pandemic. The company has agreed lớn close 5 of its 10 US locations as part of the bankruptcy process, and it plans lớn reorganize & repay its creditors.
BH Cosmetics
Date: January 2022
Category/Product(s): Beauty
Direct-to-consumer (D2C) cosmetics brand bảo hành Cosmetics filed for Chapter 11 bankruptcy in the middle of January 2022. The Los Angeles-based company was popular among millennial và Gen Z consumers và entered into public collaborations with music artists Doja Cat và Iggy Azalea in 2021 — however, it struggled to reach profitability. The company pointed khổng lồ pandemic-driven changes in beauty routines as contributing khổng lồ its decline (it suffered a multi-million dollar revenue drop in 2020), and those involved with the restructuring process highlighted complications stemming from the unsuccessful launch of a number of hàng hóa lines. At the time of filing, bh Cosmetics stated that it planned to lớn sell its intellectual property for $4.3M. It was bought out of bankruptcy by UK-based Revolution Beauty the following month.
Companies that filed for bankruptcy in 2021:
ABC Carpet & Home
Date: September 2021
Category/Product(s): High-end home goods
After 124 years in business, the high-end home goods retailer filed for Chapter 11 protection with around $80M in unsecured debt & $8M in secured debt. Notably, the company initially survived the onset of the pandemic — however, lượt thích others in its space, it ultimately succumbed lớn decreased foot traffic và supply chain disruption. While the pandemic gave rise to new complications, it also exacerbated existing issues for the company, such as flagship store construction delays & the company’s struggle to lớn establish a digital presence on par with its in-store experience. At the time of filing in 2021, sales were down 50% from 2018, reaching just $25M. The company announced that it would maintain regular operations and seek out a buyer via auction by the end of October.
Lorna Jane
Date: September 2021
Category/Product(s): Activewear
The Australia-based activewear retailer filed for Chapter 11 protection in California’s bankruptcy court. Despite experiencing a surge in e-commerce revenue amid the pandemic, the retailer’s brick và mortar sales dropped 56% in 2020, leaving it unable to meet its lease obligations. The company was then hit with a $3.7M fine in July 2021 after falsely advertising that its clothing was capable of eliminating và providing protection from Covid-19. Bankruptcy was a strategic move on the retailer’s part, which hoped lớn use it as grounds to lớn cancel its 21 US store leases while continuing to sell to lớn US consumers online.
Sequential Brands Group
Date: August 2021
Category/Product(s): Apparel
As August came to lớn a close, consumer brand-owner Sequential Brands filed for Chapter 11 bankruptcy protection. The company, which owns brands such as Jessica Simpson, Joe’s Jeans, Avia, và AND1, ended 2020 with a debt load upwards of $450M, which it had been struggling to pay down amid executive flight in the lead up to its filing. While the company initially made moves khổng lồ improve its financial standing by selling off large assets — lượt thích Ellen Tracy and Caribbean Joe — those efforts proved futile, & Sequential filed for bankruptcy just 3 weeks later. Upon filing, it looked to lớn sell most if not all of its assets & initiate a bidding process for interested buyers.
Global Brands Group USA
Date: July 2021
Category/Product(s): Apparel
The North American arm of apparel maker và brand owner Global Brands (GBG USA) filed for Chapter 11 bankruptcy at the end of July. Established in 2005 by the century-old Li & Fung, the company licenses major brands — such as All Saints, Saga, và Le Tigre — & makes private label products as well. A large majority of its sales (around 85%) come from wholesaling to lớn major retailers lượt thích Macy’s, Nordstrom, Bloomingdale’s, and Costco, which left it vulnerable lớn the decline of retail store foot traffic and consumer spending brought on by the pandemic. Compounded by supply chain disruption, liquidity issues, and pressing royalty obligations, Covid-induced shifts led lớn sales dropping 44% in the fiscal year ended March 2021. GBG USA entered into purchase agreements for its Aquatalia brand and others & looked lớn sell its remaining assets under court supervision.
Alex và Ani
Date: June 2021
Category/Product(s): Jewelry
Jewelry brand Alex and Ani filed a restructuring tư vấn agreement in June 2021, requiring the company to tệp tin Chapter 11 proceedings in Delaware’s bankruptcy court. The company — known for its bangle bracelets — experienced success in its early days, notching a $1B valuation in 2016. Shortly afterward, the company began a downslide driven by legal complications, executive turnover, and mismanagement, which left it unable to lớn adapt in the face of changing consumer preferences, a ransomware attack, and the onset of the pandemic. Revenue fell 40% in 2020, giving way to lớn June’s bankruptcy.
Washington Prime Group
Date: June 2021
Category/Product(s): Real estate investment
Mall owner Washington Prime Group filed for Chapter 11 bankruptcy protection after temporarily closing around 100 shopping centers. Businesses had been unable lớn pay rent under the weight of pandemic pressures, resulting in the company’s rental income dropping $127M in 2020. The downturn didn’t stop there: from March 2020 lớn March 2021, income fell from $10M khổng lồ $3.3M. In initiating bankruptcy proceedings, WPG entered into a restructuring agreement with its creditors. The company stated that it had secured $100M in debtor-in-possession financing in order to maintain business operations as it looked to lớn deleverage its balance sheet by $950M.
The Collected Group
Date: April 2021
Category/Product(s): Women’s apparel
Summary: Behind the labels Joie, Current/Elliot, and Equipment, The Collected Group, which had 33 locations at its height, was already in the process of closing its locations when the pandemic hit, accelerating its move away from physical retail. The company had been looking for buyers but was unable khổng lồ find a satisfactory offer before it declared bankruptcy in April. In early June, Collected received new funding from private equity firm KKR, emerging from bankruptcy lớn continue its e-commerce business.
Paper Source
Date: March 2021
Category/Product(s): Stationary
Summary: Stationery retailer Paper Source filed for bankruptcy in early March. It saw declining sales due to lớn pandemic-related store closures as well as a drop in demand for stationary as weddings và other events were canceled. Paper Source came under fire when it was revealed it had awarded executives a combined $1.5M in bonuses during the pandemic while reportedly leaving some of its vendors unpaid. In May, Barnes và Noble acquired the retailer, providing the necessary funding for Paper Source khổng lồ emerge from bankruptcy.
Belk
Date: February 2021
Category/Product(s): Department store
Summary: Belk received speedy approval for its reorganization plan — just one day after filing, the department store chain emerged from bankruptcy. Founded in 1888, Belk was struggling lớn adapt to lớn changing consumer preferences even before the pandemic. It entered bankruptcy with a significant debt load —$1.9B — which it was unable to lớn service as the Covid-19 pandemic put a damper on its sales. Under its restructuring agreement, Belk said it had reduced its debt by $450M & received $225M in fresh capital to lớn keep its 291 stores in operation.
Solstice marketing Concepts
Date: February 2021
Category/Product(s): Sunglasses
Summary: Sunglasses retailer Solstice filed for Chapter 11 bankruptcy in February, with plans khổng lồ restructure. At the time of filing, the company said sales at its 66 stores were down more than 1/2 from 2019 due lớn pandemic lockdowns. In August 2021, the retailer emerged from bankruptcy after Second Avenue Capital Partners provided it with a $6.5M exit financing facility.
L’Occitane
Date: January 2021
Category/Product(s): Beauty
Summary: The US arm of French beauty retailer L’Occitane filed for bankruptcy in January. At the time of its filing, the company was behind on $15M in rent và was looking to exit 29 “burdensome” leases where its sales had fallen, claiming its rent at those locations “no longer reflect the market.” In August, the company announced that it had completed restructuring và planned to emerge from Chapter 11 proceedings by the end of the month.
Christopher & Banks
Date: January 2021
Category/Product(s): Women’s apparel
Summary: Minneapolis-based Christopher và Banks said it would close most, if not all, of its 450 physical stores at the time of its Chapter 11 filing in January. The company’s former CEO Keri Janes said Covid-19 hit the retailer particularly hard, as its average middle-aged female customer stopped buying new apparel in the absence of social engagements. Christopher & Banks sold its online business, which had seen growth, to an affiliate of Hilco Merchant Resources in early March. It has since closed all of its brick-and-mortar locations.
Loves Furniture
Date: January 2021
Category/Product(s): Furniture
Summary: While Loves Furniture claimed that Covid-19-related supply chain disruptions were behind its financial challenges, its bankruptcy filings revealed that warehousing and inventory problems, which led khổng lồ lost furniture, unhappy customers, & canceled orders, were also khổng lồ blame. The furniture chain, which was created to lớn take over Art Van Furniture, closed over đôi mươi stores and planned khổng lồ reorganize as part of its bankruptcy proceedings.
Field-1024x237.png" alt="*">
Stock+Field
Date: January 2021
Category/Product(s): Farming và agriculture
Formerly known as Big R Stores, Stock+Field filed for Chapter 11 bankruptcy at the start of the year. The farming and agricultural goods retailer announced that it would be closing its 25 locations after more than 55 years in business. CEO Matthew Whebbe alluded khổng lồ the Covid-19 pandemic in his statement on the matter, commenting that “there have been many challenges in 2020, and Stock+Field was not immune to lớn them.” In March 2021, R.P. Acquisition Corp. Announced that it would be acquiring the bankrupt company and reopening its stores under new ownership. The Illinois-based lumber company stated that it planned to retain the Stock+Field name & offer the same products and services.
Companies that filed for bankruptcy in 2020:
Francesca’s
Date: December 2020
Category/Product(s): Women’s apparel và accessories
Summary: Francesca’s said it would close roughly half of its 551 locations in malls across the US after filing for bankruptcy protection in December. The women’s clothing & accessories retailer had already closed 140 locations before declaring bankruptcy following 2 years of losses. In February 2021, Francesca’s sold to lớn Terra
Mar Capital and Tiger Capital Group for $18M.
Furniture Factory Outlet
Date: November 2020
Category/Product(s): Furniture
Summary: Furniture Factory Outlet, which is owned by private equity firm Sun Capital Partners, filed for Chapter 11 bankruptcy in November. At the start of 2020, the retailer had 68 stores across the US, but then supply chain disruptions và a drop in revenue due to lớn the Covid-19 pandemic forced it to close 37 stores. Retailer American Freight acquired Furniture Factory Outlet in December 2020, rebranding FFO’s remaining stores khổng lồ American Freight.
Xem thêm: Nếu khoảng cách từ điện tích nguồn tới điểm đang xét tăng 2 lần thì cường độ điện trường
Guitar Center
Date: November 2020
Category/Product(s): Musical instruments
Summary: The largest musical instruments retailer in the US filed for bankruptcy in November. Already struggling against $1.3B in debt & online competition before the pandemic, Guitar Center was unable to overcome the loss in revenue related to Covid-19-related store closures. In December 2020, Guitar Center emerged from bankruptcy following an infusion of capital that wiped out $800M of debt.
Fit-1024x237.png" alt="*">
