A report from the S&P Global Ratings expects more defaults and bankruptcies in 2019 and 2020. In 2018, Retail bankruptcies hit an all-time high and it is expected to keep rising. Seems the United States is oversaturated with retail and companies are starting to feel it.
Though some of these companies will never re-open their doors, bankruptcy provides some the ability to restructure and re-enter the retail world. Not many people consider the economic effects these bankruptcies will bring to the table. Employees will lose jobs, which in turn can affect so many other factors in the economy such as interest rates, housing costs and more. It all works together like a puzzle, with each piece having meaning, value, and relevance and once one is taken out of the picture, it messes with the whole picture.
Here are some of the big brands that are at risk of bankruptcy this year.
- J.Crew: Favored by our former First lady, Michelle Obama
- Sears Holdings: closing 142 stores in using Chapter 11 bankruptcy
- 99 Cents Only: net loss of $27.1 million
- GNC: company stated it would sell 40% of the company to Chinese pharma
- Fred’s Pharmacy: Sold its specialty pharmacy to CVS for $40 million
- Destination Maternity: top-line sales fell over 7 percent
- Ascena Retail: will shutter 25 percent of its Dress Barn stores by 2019
- Stein Mart: $23.4 million net loss for the year
- JC Penny: 1,000 employees were laid off and a distribution center closed
- Office Depot: a shift from products to more services
- Vitamin Shoppe: hoping to turn things around with category expansion
- Neiman Marcus: strategies were cutting over 200 job
- Bebe: moved into strictly e-commerce only by paying out $65 million
- Pier 1 Imports: S&P Global analysts also downgraded Pier 1’s credit rating
- Lands’ End: products are not resonating with consumers as much anymore
- Guitar Center: avoided a crisis by doing an emergency loan negotiation
- Southeastern Grocers: filed for Chapter 11 bankruptcy protection to restructure its debt
- Nine West: Chapter 11 bankruptcy and selling off parts of the company
- Kohl’s: announced closure of one of their major operation centers
- Bon-Ton: Amazon changed things for them
- David’s Bridal: $520 million loan facility due in 2019
- Claire’s: It closed 130 stores by May 2018
- Eddie Bauer: S&P Global downgraded the retailer’s credit rating
- PetSmart Inc.: consumers use e-commerce more and more due to its convenience
- Payless: closed hundreds of stores, but still has about 3,500 to manage
- Mattress Firm: filed for Chapter 11 bankruptcy protection on October 5, 2018
- Brookstone: planned to shut 101 locations
- Rockport: sold to private-equity group Charlesbank Capital Partners
- The Walking Company: first time The Walking Company has filed for bankruptcy
- Kiko USA: closing almost of all of its stores in the U.S.
- Toys R Us: big-time clearances at its 735 stores in the U.S
- Gymboree: filed for bankruptcy protection in January 2019
- Diesel USA: filed for Chapter 11 on March 5, 2019
- Pacific Gas and Electric: bankruptcy filing had put in limbo claims from wildfire victims
