Retail Companies Filing for Bankruptcy During COVID-19

​Intellizence monitors distress and risk signals (e.g.bankruptcy, layoff, restructuring, industrial accidents) in companies for risk intelligence, customer intelligence, sales intelligence, and market intelligence purposes.

​The retail industry has been going through challenging times, trying to stay afloat, and the COVID-19 pandemic has added to their woes. A considerable number of retailers have had to close stores, and are filing for bankruptcy.

Weighed down by huge debts, and declining sales, there have been big names in retail that have filed for bankruptcy protection, like US fashion-retailing company J Crew that has a huge debt of $2 billion, and Neiman Marcus that owes $5.1 billion in debt, to name a few. By filing for bankruptcy, the retailers are trying to restructure their liabilities, either selling off a part of their business or the whole of it.  

In 2020, 35 retailers filed for bankruptcy in the US and Canada. While 8 retailers have filed for bankruptcy in 2021 so far. 

Intellizence monitors companies that are filing for bankruptcy, in Canada and the USA – collecting data from multiple news sources, press releases, and regulatory filings. Here are some of the major retail bankruptcies are:

Headquarters: Cranston, Rhode Island, United States
Date: June 2021
Bankruptcy Type – Chapter 11

Jewelry retailer Alex and Ani filed for bankruptcy protection and put themselves up for sale. The company listed assets and liabilities of $100 million to $500 million each. The retailer has about $127.4 million in outstanding funded debt obligations. The retailer had been struggling for some time. In February 2020, it was hit with a ransomware attack, and the pandemic further disrupted the company. It was forced to shutter stores and saw sales fall.

 

Headquarters: LA, CA, & NY, USA
Date: April 2021
Bankruptcy Type – Chapter 11

The Collected Group, an American retailer of apparel lifestyle brands Joie, Current/Elliott, and Equipment, filed for bankruptcy protection in April 2021. The US company, which closed its 33 stores even before the pandemic, plans to focus on e-commerce and wholesale, accelerating its move away from brick and mortar retail. The company would use the bankruptcy proceedings to facilitate those store closures and cut more than 80 percent of its debt.

The company exited from bankruptcy on 7th June following its completion of restructuring in Chapter 11. A group of lenders took over The Collected Group, via reorganization, and helped the retailer pay off the US $ 150 million in secured debt.

Headquarters:  Chicago, Illinois, USA
Date: March 2021
Bankruptcy Type – Chapter 11

In March 2021, Paper Source filed for bankruptcy with a plan to close at least 11 stores and sell itself. Earlier in March 2020, the stationery retailer had acquired 30 prime store locations from Papyrus, the stationery, and paper goods specialist that shut shop due to COVID.  

In May 2021, Barnes & Noble acquired the retailer, providing the necessary funding for Paper Source to emerge from bankruptcy.  

Headquarters: Charlotte, North Carolina, USA
Date: February 2021
Bankruptcy Type – Chapter 11

Belk, the Charlotte-based department store chain, filed for bankruptcy with a debt load of $1.9 billion. The store presented its reorganization plan and got speedy approval from the court the very next day. Belk emerged from bankruptcy with all of its 291 stores intact, $450 million less in debt, and $225 million new working capital.

Headquarters: New Jersey, USA
Date: February 2021
Bankruptcy Type – Chapter 11

Solstice Sunglasses calls itself the second-largest specialty retailer of sunglasses in the US, with over 66 retail stores focusing on high-end brands. The company filed for Chapter 11, planning to reorganize and emerge from bankruptcy intact.

Headquarters: New York, USA
Date: January 2021
Bankruptcy Type – Chapter 11

Beauty retailer L’Occitane filed for Chapter 11 protection, with $162 million in debt, and plans to close some of its stores. The filing does not include the L’Occitane en Provence brand or any operations outside the U.S.

Headquarters: Plymouth, Minnesota, USA
Date: January 2021
Bankruptcy Type – Chapter 11

Apparel retailer Christopher & Banks, filed for bankruptcy protection amid the coronavirus pandemic, listing assets of $166.3 million against debts of $105.6 million. The company operated roughly 450 stores, which are now offering going-out-of-business sales. The company is in discussion with potential buyers for the sale of its online business and related assets.

Effective March 1, 2021, the Company closed on the sale of all or substantially all of the assets used in the conduct of its business, including its retail store business and its e-Commerce business, to ALCC, LLC. 

Headquarters:  Warren, Michigan, USA
Date: January 2021
Bankruptcy Type – Chapter 11

Loves Furniture, the new retailer that took over many shuttered Art Van Furniture stores has filed for Chapter 11 bankruptcy. In addition to Covid-19-related supply chain disruptions, Loves bankruptcy filings revealed that warehousing and inventory problems that led to lost furniture, unhappy customers, and canceled orders, were also some of the reasons. The company plans to close 19 of its 32 locations and keep just 13 stores open.

 

Headquarters:  Houston, USA
Date: December 2020
Bankruptcy Type – Chapter 11

The women’s apparel and accessories chain, Francesca’s, plans to close about 140 of its 700 stores — roughly half of which are in U.S. shopping malls, after filing for bankruptcy protection. Francesca’s had temporarily closed its stores in March, resulting in a 50% drop in first-quarter net sales. In February 2021, Francesca’s was sold to TerraMar Capital and Tiger Capital Group for $18 million.

Headquarters: Fort Smith, Arkansas, USA
Date: November 2020
Bankruptcy Type – Chapter 11

Furniture Factory Outlet, owned by Sun Capital Partners, filed for Chapter 11 bankruptcy in November. With over 68 stores across the US due to pandemic-induced supply chain disruptions and a drop in revenue,  FFO was forced to close 37 stores.

In December 2020, Furniture Factory Outlet was bought by retailer American Freight, rebranding FFO’s remaining stores to American Freight.

 

Headquarters: Westlake Village, California, USA
Date: November 2020
Bankruptcy Type – Chapter 11

Guitar Center, the world’s largest musical instruments retailer, filed for Chapter 11 with a plan to pay off $800 million in debt, inject new equity and debt capital, and exit bankruptcy before year’s end. The company was already struggling under $1.3 billion in debt before the pandemic and was forced to file for bankruptcy. 

Guitar Center emerged from bankruptcy in December 2020, eliminating $800 million of debt in the process.  The company got new financing from existing creditors, plus $165 million in new equity from owner Ares Management Corp., along with Carlyle Group and Brigade Capital Management.

 

Headquarters:   New York, USA
Date: September 2020
Bankruptcy Type – Chapter 11

After nearly 60 years in business, Manhattan-based off-price retailer Century 21 filed for Chapter 11 bankruptcy in Sept. 2020. The retailer plans to wind down all 13 stores across locations in four states. Its flagship store that was rebuilt after it was destroyed in the 9/11 terrorist attacks, stood as a symbol of the city’s endurance.

In March 2021, Century 21 announced its comeback, with plans to relaunch its stores.

 

Headquarters:   Jacksonville, Florida, USA
Date: August  2020
Bankruptcy Type – Chapter 11

The 112-year-old discount retailer Stein Mart, sought Chapter 11 protection in August 2020. The company, which employed more than 8,000 people, went on to liquidate all of its nearly 300 stores by the end of October 2020. The company blamed its failure on the pandemic and the changing consumer habits.   

In December 2020, the Miami-based investment firm Retail Ecommerce Ventures (REV) acquired Stein Mart’s intellectual property in a court auction for $6.02 million. REV received Stein Mart’s private-label brands, domain names, and customer data.  

 

Headquarters:  Houston, Texas, USA
Date: August  2020
Bankruptcy Type – Chapter 11

Tailored Brands (TLRD), which owns Moores Clothing for Men and K&G Fashion Superstore, filed for bankruptcy in August. The company expected to reduce its debt and strengthen its finances, which were impacted by the pandemic. A month before filing for bankruptcy, Tailored Brands announced plans to close as many as 500 stores and also reduced its corporate workforce by 20%.

The retailer emerged from bankruptcy in December 2020 with $686 million debt eliminated, and a significantly strong financial position. Tailored Brands operates with a capital of a $430 million ABL facility, a $365 million exit term loan and $75 million of cash from a new debt facility. The retailer is looking to stabilize its position to avoid a second bankruptcy.

 

Headquarters:  New York, USA
Date: August  2020
Bankruptcy Type – Chapter 11

The nearly 200-year-old, first US department store operator, Lord & Taylor, filed for Chapter 11 bankruptcy in early August. The company would be liquidating all 38 of its stores and website. The company opened its first store in New York in 1826 and was known for its high-end fashion. In 2012, the retailer was acquired by Hudson’s Bay Company and later sold to clothing rental subscription service Le Tote for $75 million in 2019.  In October 2020, it was acquired by The Saadia Group for $12 million.

Lord & Taylor emerged from bankruptcy in April 2021 as an online-only retailer.

Headquarters: New Jersey, USA
Filing Month: July 2020
Bankruptcy Type – Chapter 11
Source Source

Ascena Retail, the parent company of brands Ann Taylor, LOFT, Lane Bryant has entered into a restructuring support agreement (“RSA”) with its secured term lenders, to reduce its debt by approximately $1 billion, and provide increased financial flexibility. Ascena filed voluntary Chapter 11 petitions in the United States Bankruptcy Court for the Eastern District of Virginia. Throughout the restructuring process, the Company’s brands will continue to operate 95% of its stores. The company plans to close all of its 1190 Catherine stores (and related websites), while Ann Taylor, LOFT, Lane Bryant, Justice, and Lou & Grey will continue to operate. Ascena has also entered into an asset purchase agreement to sell Catherines’ intellectual property assets.

Ann Taylor, LOFT, Lane Bryant, Justice, and Lou & Grey have been sold to Sycamore Partners in December 2020. As of January 2021, the company had closed all of its 1100 Catherine stores (and related websites).

Headquarters:  New York, USA
Filing Month – July 2020
Bankruptcy Type – Chapter 11
Source  Source

RTW Retailwinds, the parent company of fashion retailer New York & Co. and plus-size store Fashion, filed for Chapter 11 bankruptcy protection after losing millions. The company said it had deferred rent payments and missed other payments to vendors and suppliers in the wake of COVID-19. The bankruptcy was filed in the U.S. Bankruptcy Court for the District of New Jersey. The company is assessing all possible alternatives, including shutting down all or most of its stores and sale of its eCommerce business and related intellectual property.

The company has closed on the sale of its e-commerce business and all related intellectual property, including its websites, rental subscription businesses and certain other assets to Saadia Group, a New York investment company. 

Headquarters: Acton, Massachusetts, USA
Filing Month:  July 2020
Bankruptcy Type: Chapter 11  
Source

The Northeastern specialty gift retailer is looking to enter into a financial restructuring and has filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the District of Massachusetts. The company is evaluating all options, including selling off essentially all or most of the company’s assets. The Paper Store expects to continue operating its business as usual.

Headquarters:  Madison Avenue in Manhattan, New York City, USA
Filing Month: July 2020
Bankruptcy Type – Chapter 11
Source 

The two hundred and two years old apparel brand Brooks Brothers filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the District of Delaware. America’s oldest and the most prestigious retailer said Covid-19 became immensely disruptive and took a toll on the business and drove it to insolvency. Due to the pandemic, the company has decided to close, or are in the process of closing  51 Brooks Brothers stores in the United States. According to the bankruptcy filing, Brooks Brothers has secured $75 million in financing to continue operating.

 

Headquarters:  Seattle, Washington, USA 
Filing Month: July 2020
Bankruptcy Type: Chapter 11
Source Source Source

Sur La Table, the Seattle-based French-inspired luxury kitchen goods retailer, has filed for Chapter 11 bankruptcy protection. According to the court document, the company plans to sell some of its retail stores after rationalization and close some stores to prosper and do well in the current retail environment. Sur La Table has entered into a stalking horse asset purchase term with the Fortress Investment Group. The recent update is that Sur La Table has been sold for almost $89 million to a joint venture between e-commerce business CSC Generation and Marquee Brands LLC. The sale needs approval from the bankruptcy court.

Sur La Table has been sold for around $89 million to a joint venture between e-commerce business CSC Generation and Marquee Brands LLC, the highest bidders at a bankruptcy auction.

Headquarters: New York, USA
Filing Month: July 2020
Bankruptcy Type: Chapter 11
Source  Source source

Muji, the trendy Japanese home-goods chain that sells minimalist decor, stationery, and clothing, has filed for Chapter 11 bankruptcy protection in Delaware with a total debt of $64 million. The company, which is owned by Japanese retailer Ryohin Keikaku Co. plans to close its unprofitable stores and focus on key regional markets and e-commerce.

Headquarters:  Quebec, Canada
Filing Month: July 2020
Bankruptcy Type:  CCAA
Source  

DavidsTea, a leading tea merchant in North America, is seeking court protection from creditors under the Companies’ Creditors Arrangement Act (CCAA), for it to continue operating while it restructures. The company plans to transition to be an online retailer and wholesaler of high-quality tea and accessories.  

Headquarters: Los Angeles, USA
Filing Month: July 2020
Bankruptcy Type: Chapter 11
Source

Lucky Brand has initiated bankruptcy proceedings under Chapter 11 of the U.S. Bankruptcy Code in the District Court of Delaware. The Los Angeles based designer and retailer of American denim and apparel has entered into a stalking horse asset purchase agreement with SPARC Group for the sale of substantially all of the company’s operating assets.

In August 2020, Lucky Brand received court approval to sell its business to buyers led by apparel retail operator SPARC Group for $140.1 million in cash and $51.5 million in credit. SPAR operates under the Aeropostale and Nautica brands that are owned by Authentic Brands and Simon Property Group, which also operate Aéropostale and Nautica.

Headquarters: Los Angeles, USA
Filing Month: July 2020
Bankruptcy Type: Chapter 11
Source  Source

Denim brand G-Star, which operates approximately 31 across 12 states in the U.S., filed for Chapter 11 bankruptcy protection from creditors due to the impact of the coronavirus pandemic. G-Star had to shutter its stores and lay off all of its retail employees and a majority of its corporate employees. G-Star’s CEO said that it plans to reopen the previously-profitable stores in the U.S. once the COVID-19 crisis has passed.

   

Headquarters: Pittsburgh, Pennsylvania, USA
Filing Month: June 2020
Bankruptcy Type: Chapter 11
Source Source Source

The leading health and wellness brand GNC filed for Chapter 11 bankruptcy at the end of June, struggling to pay off its $900 million debt. The company filed for bankruptcy amid falling sales at its stores and the impact of the COVID-19 pandemic. It expects to close 800 to 1200 stores. GNC has secured $130 million in additional liquidity to help with the restructuring process. GNC stores and its subsidiaries will remain open for business. The company is putting itself up for sale as it searches for a buyer.

In September 2020, it was acquired by its largest investor, Harbin Pharmaceutical Group, for $770 million.

Headquarters: Mississauga, Ontario, Canada
Filing Month:  June 2020
Bankruptcy Type: Companies’ Creditors Arrangement Act (“CCAA”)
Source

The leading specialty fashion retailer, Comark Holdings Inc., serving customers through its Ricki’s, Cleo, and Bootlegger brands, obtained protection from their creditors under the Companies’ Creditors Arrangement Act (CCAA). The fallout from the COVID-19 pandemic hit the Canadian apparel retailer’s business, forcing them to file for bankruptcy. The fashion retailer’s Ricki’s, Cleo and Bootlegger websites will remain operational. Comark plans to optimize its store footprint during the restructuring.

 
Headquarters: Ontario, Canada
Filing Month: June 2020
Bankruptcy Type: Bankruptcy and Insolvency Act 
Source

Sail Outdoors Inc. has filed for protection under the Bankruptcy and Insolvency Act as part of a restructuring process amid the COVID-19 pandemic. The filing will enable the company to implement a plan aimed at restoring its financial health and better responding to the retail environment.

Headquarters: Dallas, Texas, USA
Filing Month: May 2020
Bankruptcy Type: Chapter 11
Source 

Home goods retailer Tuesday Morning has filed for Chapter 11 bankruptcy. The Texas-based company that operates 687  stores in 39 states plans to shut around 230 of its stores in a phased manner. To continue business operations during the proceedings, the company has secured $100 Million Debtor-in-Possession (DIP) financing.

The company exited bankruptcy in January 2021 with new debt financing and a planned rights offering for shareholders. It has closed nearly 200 store locations, leaving around 490 stores across the country.

Headquarters:  Mississauga, Ontario, Canada
Filing Month: May 2020
Bankruptcy Type: Companies’ Creditors Arrangement Act
Source 

Reitmans, the 100-year-old Canadian retailer, has filed for bankruptcy protection under the Companies’ Creditors Arrangement Act after the pandemic forced it to close all its stores. With over 576 stores across Canada and online, the company obtained CCAA to facilitate its operational, commercial, and financial restructuring

Centric Brands finally emerged from bankruptcy in October 2020, under private equity ownership. It has also reduced its debt by around US $ 700 million.

 

Headquarters: New York, USA
Filing Month: May 2020
Bankruptcy Type: Chapter 11
Source  Source

Centric Brands entered into a Restructuring Support Agreement (RSA) with their secured lenders, led by funds managed by Blackstone, HPS Investment Partners, and Ares Management Corporation to reduce its debt load, and continue operations.  As part of the agreement, the Company has voluntarily filed for protection under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York.

Headquarters: Plano, Texas, USA
Filing Month:  May 2020
Bankruptcy Type: Chapter 11
Source

JCPenney entered into a restructuring support agreement to reduce debt and strengthen financial position with lenders holding approximately 70% of JCPenney’s first-lien debt. To this end, the Company filed for voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Texas.

JCPenney, emerged from Bankruptcy in December 2020, after being acquired by mall owners Simon Property Group and Brookfield Asset Management Inc. Since then the retail chain has closed over 174 JCPenney locations as of June 2021. 

 
Headquarters:  Houston, Texas, USA
Filing Month: May 2020
Bankruptcy Type: Chapter 11
Source

Stage Stores has filed voluntary petitions under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Texas. The Company aims to sell its business and any of its assets. It will wind down operations at some locations if it receives a suitable bid. Stage Stores will continue to operate their businesses as “debtors-in-possession” under the jurisdiction of the Bankruptcy Court.

Stage sold its intellectual property (IP) and other assets to its competitor Bealls for $7 million in October 2020.

 
Headquarters:  Dallas, Texas, USA
Filing Month: May 2020
Bankruptcy Type: Chapter 11
Source

The luxury retail company commenced voluntary prearranged Chapter 11 to implement restructuring support agreement (RSA) with a majority of its creditors to reduce its debt and continue operations amid the COVID-19 pandemic. To implement the RSA, the Company has commenced voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division. Neiman Marcus Group has secured debtor-in-possession (“DIP”) financing of $675 million from creditors to enable business continuity throughout the proceedings. 

Headquarters: Montreal, Canada
Filing Month: May 2020
Bankruptcy Type: Companies’ Creditors Arrangement Act 
Source

The Aldo Group filed for bankruptcy in the bankruptcy court of Quebec, Canada. The Company has applied for similar protection in the United States and Switzerland. Aldo stated that the COVID-19 pandemic had put too much pressure on business and cash flows, forcing it to take this step.

Headquarters: New York, USA
Filing Month: May 2020
Bankruptcy Type:  Chapter 11
Source

Luxury menswear brand John Varvatos filed for bankruptcy in the Bankruptcy Court of Delaware. The company has signed an agreement with Lion/Hendrix Cayman Limited, an existing investor, under which the company will sell its business to Lion to ensure the business’s long-term success.

Headquarters: New York, USA
Filing Month: May 2020
Bankruptcy Type: Chapter 11
Source

J.Crew Group has reached a Transaction Support Agreement (“TSA”) with its lenders holding approximately 71% of its Term Loan and approximately 78% of its IPCo Notes, under which the Company will restructure and deleverage its debt. To facilitate this, the parent company of J.Crew Group, Inc., Chinos Holdings, Inc., and certain affiliates, have filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Eastern District of Virginia.

The company emerged from Bankruptcy in September 2020.

 

Headquarters: Melville, New York, USA
Filing Month: April 2020
Bankruptcy Type: Chapter 11
Source  Source Source

Rubie’s, the world’s largest designer and manufacturer of Halloween costumes, filed for Chapter 11 bankruptcy.  The company plans to secure a new credit arrangement within 90 to 120 days. In case they are unable to do so, it may have to sell. Rubie’s received bankruptcy court approval for access to about $17 million in cash reserves and its request to pay critical vendors as it gears up to fulfill customer orders.

The company officially emerged from Chapter 11 Bankruptcy under a new entity, as Rubies II, owned by strategic operator and managing partner Joel Weinshanker, majority owner of Elvis Presley Enterprises.

 
Headquarters: Toronto Ontario, Canada
Filing Month:  April 2020
Bankruptcy Type: Chapter 7 
Source

The U.S. unit of the Toronto-based outdoor apparel brand Roots is set to liquidate in bankruptcy. The retailer is closing 7 of its U.S. stores that have been running in losses owing to the COVID-19 pandemic. Roots plan to continue operating its two long-standing stores in Michigan and Utah. The retailer will continue to sell to U.S. customers through e-commerce.

Headquarters: Vernon, California, USA
Filing Month: April 2020
Bankruptcy Type: Chapter 11
Source Source Source

True Religion, the designer jeans company filed for Chapter 11 bankruptcy protection citing the shortage of liquidity brought on by forced store closures due to the coronavirus pandemic. True Religion has filed for bankruptcy for the second time in less than three years. True Religion estimates it will emerge from bankruptcy by mid-August. The last bankruptcy was in 2017, and they were able to come out of it in just four months, closing stores and investing in e-commerce.

True Religion successfully emerged from chapter 11 bankruptcy in October 2020, under a court-approved plan of reorganization. This significantly reduced the Company’s debt and provides the Company with liquidity to execute upon its growth plans over the next several years.

Headquarters: Eden Prairie,  Minneapolis, USA
Filing Month: March 2020
Bankruptcy Type: Chapter 11
Source Source

Bluestem Brands, an indirect, wholly-owned subsidiary of the Bluestem Group, together with certain of its affiliates, has filed for bankruptcy in the U.S. Bankruptcy Court for the District of Delaware. The Chapter 11 filing includes a stalking horse bid, a deal to sell itself to private equity firm Cerberus Capital Management LP, which agreed to forgive $250 million of the company’s debt. The sale has been approved on the 7th of July.

 The sale was approved on the 7th of July 2020.

Headquarters:  New York, USA
Filing Month: March 2020
Bankruptcy Type: Chapter 11
Source Source

Modell’s Sporting Goods, the 131-year-old family-owned retailer, filed for bankruptcy protection, choosing to close all of its 153 stores. As of June 2020, a joint venture of Tiger Capital Group, Great American Group and SB360 Capital Partners, have restarted liquidation sales at 107 of Modell’s remaining stores.

The Modell’s Sporting Goods brand was acquired by Retail Ecommerce Ventures (REV), for $3.6 million in August 2020. 

 

Headquarters: Warren, Michigan, USA
Filing Month: March 2020
Bankruptcy Type: Chapter 11 converted to Chapter 7
Source

Art Van Furniture filed for Chapter 11, due to debt. They intended to close a majority of their stores, liquidate their assets, and pay debtors and wind up their operations. But due to COVID-19, Art Van was unable to go as per the reorganization plan and effective April 7, 2020, the Chapter 11 case was converted to Chapter 7 as per the United States Bankruptcy Code. In accordance with the priorities outlined in the United States Bankruptcy Code, the Trustees have to collect the Art Van Debtors’ assets, sell them and pay creditors’.

US Realty Acquisitions, the real estate investment arm of private equity firm US Assets, acquired the inventory and assets for approximately $6.9M. The stores were reopened under a new name, Loves Furniture.

Headquarters: Quebec, Canada
Filing Month: Feb 2020
Bankruptcy Type:  Companies’ Creditors Arrangement Act
Source

Stokes, a Montreal, Quebec-based tableware, kitchenware, and home décor retailer with 147 stores across Canada, filed an NOI, listing $22.9 million in liabilities. The retailer plans to close its less profitable stores after it sought protection recently under the Bankruptcy and Insolvency Act while maintaining the majority of its retail locations across Canada and its head office operations in Montreal, QC.