Struggling Retail Chains: Store Closures and Bankruptcies

Earlier this year, Bed Bath & Beyond announced that it would file for bankruptcy and close and liquidate all of its brick-and-mortar stores. 

Just a few months later, Overstock.com acquired the Bed Bath & Beyond name, and they’ve now launched the new Bed Bath & Beyond mobile app and website. 

The website, which can be found at bedbathandbeyond.com, features both the traditional BB&B logo and the Overstock logo, and assures shoppers that this will be a “bigger, better beyond.” The mobile app will also be rebranded to Bed Bath & Beyond by Overstock. 

“Bed Bath & Beyond is back with a new website and app where you’ll find the quality items you know and love,” the website explains. “And now we’re offering an even bigger ‘beyond’ with a wide selection of furniture, decor, rugs, and more to help you create the home of your dreams.” 

Expect deals and savings

The deals and discounts that shoppers have come to expect from both Bed Bath & Beyond and Overstock are easy to find on the new website and mobile app. 

For starters, the website boasts a 25% off coupon for downloading the new app and making your first purchase from that platform. There is also an “exclusive discount” of 12% off your purchase, and subscribing to the email list nets a 10% off coupon. 

Some of the other big deals include: 

• 15% off select Lucid mattresses

• 20% off select Bush furniture

• 20% off select Christopher Knight patio furniture

• Back-to-college items from $19

• Kitchen essentials from $39

• Extra 20% off area rugs by Artistic Weaver, bedding, and bath 

• 15% off select furniture 

Making the most of rewards programs

Overstock’s former loyalty program was “Club O,” which has transitioned to Welcome Rewards for the new Bed Bath & Beyond launch. Former Club O members will log into Welcome Rewards with their same username and password, while old Bed Bath & Beyond rewards members will need to activate a new account with the same email address. 

There are also benefits for members of both old rewards programs. Bed & Bath & Beyond rewards members will receive up to $50 in unused rewards points to their accounts, while former Overstock rewards members will receive a 20% off coupon. 

Welcome Rewards costs members $19.95 per year, and the program comes with exclusive benefits designed to save consumers money.

Each purchase yields 5% points for every $1 spent, all purchases are eligible for free returns, members earn up to 40% in extra rewards when purchasing from the Extra Rewards Store, and more. 

National discount chain Tuesday Morning has announced it is closing all of its stores and going out of business. It’s just the latest move in the struggling home furnishings retailer’s downward spiral.

In December, the company voluntarily delisted from the Nasdaq stock exchange when it could no longer meet financial requirements. Earlier this year it filed for Chapter 11 bankruptcy protection.

For shoppers, it could be an opportunity to scoop up some bargains. The company’s website has announced “everything must go” and merchandise has been marked down by up to 30%.

Use gift cards now

Consumers who have Tuesday Morning gift cards should plan to use them right away. The company says gift cards and returns will not be accepted after Saturday, May 13.

With a goal of liquidating all merchandise, the sales event offers a variety of discounted home décor – things like bedding, bath, furniture, lamps, and kitchen. These sales also offer a large assortment of toys, pet supplies, luggage, beauty, crafts, and seasonal decorations.

Bankruptcy filings among retailers have begun to pile up this year as interest rates rise and the industry adjusts to the post-pandemic economy. Bed Bath & Beyond recently filed for bankruptcy, as did David’s Bridal and Party City.

Tuesday Morning did not offer a timetable for closing all of its stores in 25 states. A complete list of the stores that will close is contained in the company’s press release.

Two rival retailers are throwing a lifeline to consumers stuck with expiring Bed Bath & Beyond coupons. After a prolonged struggle, the home goods chain recently announced that it was filing for bankruptcy and would be liquidating its brick-and-mortar and online inventory. 

As part of this process, shoppers had until Wednesday, April 26 to use any of their remaining coupons either online or in-store at the retailer. 

Now, The Container Store and Big Lots have announced that they will accept Bed Bath & Beyond coupons for the coming weeks. The Container Store will accept coupons for 20% off a single item through May 31, while Big Lots will be accepting coupons for 20% off orders of $50 or more through May 7. 

“So. Much. NEW,” The Container Store tweeted on Wednesday, April 26. “Bring in a blue coupon."

David’s Bridal, one of the largest providers of wedding gowns and formal wear, is declaring bankruptcy for the second time in five years. It is also laying off nearly 10,000 employees nationwide and putting the company up for sale.

But the company went out of its way to assure brides planning their wedding that their orders are safe. The company said its stores will remain open and it plans to fulfill “all customer orders without disruption or delay.”

David’s Bridal online platforms, including its Pearl platform and vendor marketplace, remain available and accessible to brides for their wedding planning needs, company executives said. Loyalty rewards members can continue earning and redeeming rewards and the company said it will also continue honoring gift cards as it seeks a buyer for the chain.

James Marcum, David's Bridal CEO, said the company was severely impacted by the COVID-19 pandemic and it has struggled to recover.

“Our business continues to be challenged by the post-COVID environment and uncertain economic conditions, leading us to take this step to identify a buyer who can continue to operate our business going forward,” Marcum said. “We are determined to stay focused on our future because we believe we have an important role in ensuring that every bride, no matter her budget, can have her perfect dress."

Growing budget problems

Before the bankruptcy announcement, David’s Bridal began an evaluation of a wide range of strategic alternatives to maximize value for all stakeholders, including a marketing and sale process for its assets. In light of its liquidity constraints, the company said it was unable to finalize its marketing and sale process out of court and intends to continue exploring a sale of all or some of its assets pursuant to section 363 of the Bankruptcy Code.

"We are grateful to the seven decades of brides and customers who have trusted us with the most special events of their lives, as well as to the dedicated associates and valued partners who make our customers' dreams come true,” Marcum said. “We remain as committed as ever to providing excellent service, delivering for our brides and customers, and being part of magical moments."

As COVID-19’s Omicron variant continues to impact nearly every aspect of American life, small restaurant operators are headed back to Capitol Hill to ask for financial help. Industry officials say they need help dealing with higher costs and less revenue from diners who are nervous about dining out. 

Things are so bad that more than 3,000 restaurant owners wrote U.S. lawmakers to say they were in danger of closing down for good if the Restaurant Revitalization Fund (RRF) isn't refilled soon.

"I can't go into further debt to salvage this restaurant," Dwayne Allen, owner of the Breadfruit & Rum Bar in Phoenix, told FoodMarket. Allen said he had to close his restaurant for long stretches during the pandemic, which forced him to fall behind on paying his rent. When his landlord left him with no other option, Allen said he had to take out a $48,000 loan to keep the doors open.

Hoping that their support adds some validation and muscle to the situation, the mayors of 27 U.S. cities have come out in full support of small restaurant operators to urge Congress to refill the Restaurant Revitalization Fund.

In a new letter sent just last week, the mayors – who represent over 16 million Americans from Boston to Seattle – argue that not giving restaurants relief would be “catastrophic.” They emphasized that the Omicron variant is “causing more strife for restaurants and bars in such peril that they might not survive the winter.”

The consequence for consumers

As restaurateurs try to find ways to make ends meet, consumers are getting caught in the pinch. Customers are encountering issues ranging from missing menu items to long waits to get their meals.

In Knoxville, Tenn., one DoorDash driver told Reuters that he’s been sitting in drive-thru lines at fast-food chains for as long as 30 minutes since December. He noted that McDonald’s, Taco  Bell, and Chick-fil-A all recently started putting up signs warning customers and delivery drivers of longer wait times because of labor shortages. Diners shouldn’t be surprised if some of their favorite menu items go missing.

“We took our sampler off the menu at many locations because it became a bottleneck for the kitchen,” said Brandon Wright, co-owner of Hamburger Mary’s International. “Some of the items on the platter had different cooking times, which took a lot of effort to coordinate. This often resulted in longer ticket times.” 

But the National Restaurant Association (NRA) says the main reason why menu items go missing is due to supply chain issues. In a recent survey, 75% of restaurants stated that they have had to change menu items in recent months as a result of supply chain challenges. 

The biggest hit is being felt by indoor dining operators. The study found that 88% of fine dining operators and 81% of casual dining operators said they had to change their menus because of food supply delays or shortages.

Drug store chain CVS Health has announced a new strategy that calls for it to reduce its footprint, closing 900 stores in the next three years. The company did not disclose which stores would be closed.

CVS said it is changing its strategy to better align with evolving consumer needs. The shift will also result in new store formats “to drive higher engagement with consumers.” In the future, there will be three different models of CVS stores.

Some will be dedicated to offering primary care services through walk-in clinics. There will also be an enhanced version of HealthHUB locations, featuring products and services designed for everyday health and wellness needs.

Finally, there will be the traditional CVS Pharmacy locations that current customers are familiar with. These stores will provide a range of health services like prescriptions, health, wellness, personal care, and other retail offerings.

"Our retail stores are fundamental to our strategy and who we are as a company," said Karen Lynch, CEO of CVS Health. "We remain focused on the competitive advantage provided by our presence in thousands of communities across the country, which complements our rapidly expanding digital presence."

Evaluating changes

CVS said it has been evaluating changes in population, consumer buying patterns, and future health needs to ensure it has the right kinds of stores in the right locations for consumers. The announced changes coincide with a recent increase in 1-star reviews from consumers posting comments at ConsumerAffairs, many of which complain about service at pharmacies.

Marlene, of Brooklyn, N.Y., says she is a health care provider and thinks her local CVS store is taking on more than it is able to handle.

“Try calling in patient’s blood pressure prescription all day… 2 days back to back…CVS Linden… Keep holding forever and no pharmacist came to the phone. I have to hang up,” Marlene wrote in a ConsumerAffairs review. “If you want to act like Urgent care, a clinic or a hospital… You have to take on Labor!!!”

As part of its new strategy, CVS said it plans to reduce store density in certain locations. To accomplish that, it will shutter 300 locations a year for three years. Employees at closed stores will be offered roles in other locations or different opportunities as part of its overall workforce strategy.

After pulling itself out of the bankruptcy heap and relaunching its brand, Toys "R" Us is once again Toys R’nt Us. The once legendary chain is officially closing its last two remaining U.S. stores for good.

Tru Kids Inc., the company that owns the Toys "R" Us and Babies "R" Us brands in the United States, confirmed that its locations in Paramus, New Jersey and Houston, Texas have permanently closed due to financial losses related to the COVID-19 pandemic.

"As a result of Covid-19, we made the strategic decision to pivot our store strategy to new locations and platforms that have better traffic," a Tru Kids spokesperson told CNN Business. 

The online version is still operational

Tru Kids added that demand for the brand "remains strong" thanks to its fully-operational 700+ stores and e-commerce sites outside the U.S. It says the company will continue to invest in “the channels where the customer wants to experience our brand.”

In short, the “channel” for stateside toy buyers will be online. The Toys “R” Us website will continue, albeit dependent on Amazon and other retail partners to sell and fulfill purchases. 

It’s pretty much a no-lose, all gravy opportunity. Toys “R” Us’ online site is driven by content and doesn’t have to worry about warehousing, staffing, or returns. As an Amazon Associate, Toys “R” Us earns a piece of each qualifying purchase.

Macy’s is reportedly planning to close another 45 stores in the first half of 2021 as the struggling retailer fights to overcome the headwinds from the coronavirus (COVID-19) pandemic.

CNBC reports that the closings are part of a plan Macy’s announced last year to reduce its brick-and-mortar footprint by as many as 145 stores by 2023. The latest report suggests that as many as a third of the closings will come in the next six months.

A Macy’s spokeswoman told CNBC that the retail chain is “rightsizing” its fleet of stores by looking closely at mall locations across the U.S.

“To that end, we announced several store closures today that align to the guidance we provided in February 2020,” she said. “These closures bring us closer to achieving the right mix of mall-based stores.”

Pandemic speeds up downsizing

Malls have been in slow decline for several years, but the pandemic is speeding up that trend. Restrictions in some areas have kept people away. Even in the absence of restrictions, many consumers have avoided enclosed spaces since the pandemic began in March.

Macy’s announced its plan for a shrinking footprint 11 months ago, just as coronavirus cases began to appear in the U.S. 

“We have a clear vision of where Macy’s, Inc. and our brands, Macy’s, Bloomingdale’s and Bluemercury, fit into retail today,” Jeff Gennette, chairman and CEO at Macy’s, said at the time. “We are confident in our Polaris strategy, and we have the resources required to return Macy’s, Inc. to sustainable, profitable growth.”

Focus on shopping malls

The Polaris strategy involves analyzing shopping malls across the country and deciding where Macy’s wants to continue a physical presence. Presumably, most (if not all) of the store closings this year will create empty spaces at malls across the U.S.

Since March, Macy’s has shifted much of its focus to its online channel, seeking to boost digital sales as foot traffic in its stores continued a downward trend. 

According to the industry publication Digital Commerce, Macy’s online sales grew 27 percent in the third quarter of 2020. But that was a decline from the second quarter of the year, when online sales were up 53 percent in the early days of the pandemic.

The COVID-19 pandemic has turned the relationship between food producers and consumers on its head. Shortages of products like meat pushed more plant-based products into grocery carts, and sit-down restaurants took it on the chin because of mandated closings while their drive-thru competitors and food delivery services prospered.

Will 2021 be more of the same or a whole new narrative? That’s a tough question, but it’s safe to bet that COVID-19 concerns and restrictions will play a hand in the world’s new normal as we enter the new year. 

Better, cleaner, and more streamlined for the consumer

Food industry consulting firm Technomic and food processor ADM predict several game-changing -- if not eye-opening -- food industry shifts for 2021. They include: 

Streamlining of menus. No matter where they’re located, Technomic says that restaurants are expected to focus on core menu items while, in some cases, revamping them as “new and improved” with higher-quality ingredients. Eateries may also launch “safer” limited time offers with ingredients they already have on hand. 

Better-for you, local, and clean-label items. Technomic also sees a shift toward better-for-you, local, and clean-label menu items. “Clean-label,” you ask? It basically means making a product with as few ingredients as possible, with the goal of making sure those ingredients are things that consumers are familiar with and consider to be wholesome. 

The whole wellness trend plays into that by creating new opportunities for nutrient-dense products with real health benefits. In its take on the subject, ADM went as far as saying that sensory factors like flavor and color -- such as colors that indicate a vitamin C-like citrus flavor -- will also play a key role. 

“The global health crisis has changed consumer preferences in new and unexpected ways,” says Vince Macciocchi, president, Nutrition, at ADM. “We are seeing a heightened demand for foods and beverages that support immune systems, enhance our mood and reduce our environmental impact, driven in part by emerging human tensions. This has provided a unique opportunity for brands to develop disruptive new products that will forever change the way we eat and drink. It’s going to be a year of innovation, marked by significant breakthroughs in nutrition.”

Socially aware. With social unrest paralleling the pandemic in 2020’s news cycle, greater emphasis on social justice issues can be expected of restaurants in 2021, says Technomic. That means consumers will be making sure that a restaurant is talking the talk and walking the walk when it says it’s actually making an effort regarding fairness and inclusion and not throwing out a bunch of buzzwords and hashtags.

Improved sanitation. Technomic says to look for more investments in contactless technology for sanitation and ease of use on the consumer side.

Foreign foodie delights. Due to travel restrictions, Technomic says to expect a renewed interest in Italian, Mexican, and Chinese menu items.

Enter Umami. While Umami isn’t exactly a household name, Technomic predicts that it will start showing up in foodie circle discussions. Umami is not a “thing,” but rather a Japanese term for “savory.” In Japanese food culture, it is one of the five basic tastes and is characteristic of broths and cooked meats. Technomic’s take is that umami will start showing up in fruit vinegars, new mushrooms, protein swaps, and tomato jam. The company also thinks that chefs will jump on board because umami gives them a new way to plate recognizable umami ingredients.

More plant-based foods. Whether you’re ready for it or not, plant-based food production isn’t stopping at veggie burgers and tofu turkey. ADM predicts that the plant-based shelves will add alternatives to products like steak and chicken breast, lunch meat, and bacon. However, they’re not stopping there. Food producers are also planning to go as far beyond the bun as possible to create more novel alternatives like shellfish and shrimp, plant-based cheeses, and ready-to-eat protein snacks.

A bankruptcy court in Richmond, Va., has approved a deal giving new life to Ann Taylor and several other apparel brands. A judge approved the sale by Ascena Retail Group to Sycamore Partners, which will keep more than half of the stores open.

Judge Kevin Huennekens approved the sale of Ascena Retail Group’s assets to Sycamore for $540 million. The private equity firm will also assume Ascena’s debt and other liabilities, raising the price of the sale to around $1 billion.

In addition to Ann Taylor, the purchaser will acquire the bankrupt retail operator’s other brands, including Lane Bryant, Lou & Grey, and Loft. The deal is expected to close next week.

“This is a pretty marvelous transaction and I just wanted to applaud all of you for putting this together and getting this done,” Huennekens said during Tuesday’s hearing, which was held virtually.

Ascena Retail Group was another victim of the coronavirus (COVID-19) pandemic, declaring bankruptcy in July. At the time, it operated nearly 2,800 stores. During its restructuring process, it closed underperforming locations, reducing its footprint.

At least 900 stores will remain open

At the time of the hearing, Ascena operated approximately 1,500 stores. Sycamore Partners has said it plans to maintain at least 900 locations.

At Tuesday’s hearing, Steven Serajeddini, a lawyer representing Ascena, praised the deal saying Sycamore Partners is an experienced retail operator that has the best chance to revive the sagging brands.

“We are very thrilled with the result,” he said.

The U.S. Justice Department was less than thrilled with the sale. It raised objections, saying the transaction was approved without a bidding process or auction that might have produced more cash for the bankrupt company’s creditors.

Sycamore Partners has purchased a number of distressed retailers in recent years, including Belk and Talbots. It also purchased Staples for $6.9 billion in June 2017.

Guitar Center is the latest business to seek bankruptcy protection as the coronavirus (COVID-19) pandemic has eroded sales.

The musical instrument retailer has filed petitions for reorganization pursuant to Chapter 11 in the United States Bankruptcy Court of the Eastern District of Virginia.

The company says Chapter 11 status is the final piece in its turnaround plan. It says it has secured new financing and has the support of its investors. The plan calls for deleveraging the balance sheet and injecting more cash so it can continue to pay its vendors, suppliers, and employees.

“This is an important and positive step in our process to significantly reduce our debt and enhance our ability to reinvest in our business to support long-term growth,” said Ron Japinga, CEO of Guitar Center. “Throughout this process, we will continue to serve our customers and deliver on our mission of putting more music in the world.”

Japinga says the company has received a “strong level of support” from Guitar Centers’ lenders and creditors and expects to complete the bankruptcy process before the end of this year.

Relies heavily on in-person sales

Guitar Center has been especially hard-hit by the pandemic because it relies so heavily on in-person, face-to-face sales encounters. Consumers considering the purchase of an expensive musical instrument normally want to see and touch it.

When the pandemic hit with full force in March, the retailer was forced to close 75 percent of its stores during the economic shutdown. Most of its 300 stores have reopened, and the company stresses that it will be business as usual during its bankruptcy.

With Black Friday approaching at the end of the week, Guitar Center is promoting a number of holiday deals that have knocked more than $100 off guitars, amplifiers, and drum kits.

The company joins other national retailers that have declared bankruptcy since March. They include J. Crew, Brooks Brothers, Friendly’s restaurants, Gold’s Gym, Hertz, JC Penney, and Pier 1.

The week has begun with a pair of bankruptcy filings, both likely caused by the economic effects of the coronavirus (COVID-19) pandemic.

CBL & Assoc. Properties, a major mall operator, and Friendly’s (FIC), a family restaurant chain famous for its ice cream, sought Chapter 11 protection in filings on Sunday and early Monday morning, respectively.

CBL & Assoc. Properties filed for bankruptcy protection after some of its biggest tenants, such as JC Penney, had done the same and stopped paying rent. Mall traffic has plunged since March when the pandemic closed most stores and required mitigation measures like social distancing after they reopened.

Malls have also suffered because of the pandemic-induced shift to online shopping. With most consumers seeking to have purchases delivered, brick-and-mortar stores without a robust online channel have suffered.

The company told the bankruptcy court in South Texas the filing will allow it to reorganize and wait out the pandemic. A filing shows its assets and liability and about even -- between $1 billion and $10 billion each. The company manages 108 properties in 26 states.

Take-out and delivery hurt ice cream sales

Friendly’s, a chain operating mostly on the East Coast, has struggled since the pandemic limited most restaurants to take out and delivery -- something that doesn’t work so well with ice cream. In a news release, the company said it will seek permission from the bankruptcy court in Delaware to sell most of its assets to Amici, a major restaurant operator.

"Nearly all of Friendly's 130 corporate-owned and franchised restaurant locations are expected to remain open subject to COVID-19 limitations, and the transaction is expected to preserve thousands of corporate-owned restaurant team member and franchisee jobs," the company said.

In its filing, Friendly's Restaurants LLC estimated its liabilities at $50 million to $100 million and estimated its assets at $1 million to $10 million. The company said it has enough cash on hand to continue operations and pay its employees and suppliers.

Ruby Tuesday filed for Chapter 11 bankruptcy protection on Wednesday and announced that it will be permanently closing 185 restaurants.

The restaurant chain said the challenges that it and other sit-down dining chains have battled in recent years have only been exacerbated by the pandemic. The company said it remains hopeful that its restructuring efforts will help it bounce back.

“This announcement does not mean ‘Goodbye, Ruby Tuesday,'"  CEO Shawn Lederman said in a statement. "Today’s actions will allow us an opportunity to reposition the company for long-term stability as we recover from the unprecedented impact of COVID-19."

Impact of COVID-19 

The pandemic has had a drastic impact on Ruby Tuesday’s operations. Previously, 90 percent of its sales came from dine-in business.

While other restaurant chains swiftly implemented new COVID-19 protocols, Ruby Tuesday wasn’t as quick to do so. The company’s efforts to adapt to the current conditions included launching “virtual kitchens,” expanding delivery and takeout, and selling raw food on its website. 

But Lederman said sales have remained poor, especially at the chain’s mall locations. In a court filing, Lederman said that the company was “not immune to the overall shift in customer spending from casual dining to fast food and fast casual.”

Ruby Tuesday said it has "reached an understanding with its secured lenders to support its restructuring." After closing 185 restaurants, the chain will have 236 remaining company-owned and operated locations. 

The company has nearly $43 million in senior debt. In 2020, Ruby Tuesday tried to avoid bankruptcy by renegotiating leases and loan agreements and cutting corporate costs, according to a court filing.

You can add another name to the coronavirus-driven pile of businesses biting the dust. On Thursday, off-price retailer Century 21 Stores announced plans to start a sell-off of its current inventory followed by the closure of its 13 stores in Florida, New Jersey, New York, and Pennsylvania.

The chain has no connection to Century 21, the real estate company, or 21st Century, the insurance company.

Rebounding from 9/11 was easier than the pandemic

The decision follows nonpayment of policies by the company’s insurers that had been put in place to protect against losses stemming from business interruption during the COVID-19 pandemic.

"While insurance money helped us to rebuild after suffering the devastating impact of 9/11, we now have no viable alternative but to begin the closure of our beloved family business because our insurers, to whom we have paid significant premiums every year for protection against unforeseen circumstances like we are experiencing today, have turned their backs on us at this most critical time," said Century 21 co-CEO Raymond Gindi. 

"While retailers across the board have suffered greatly due to COVID-19, and Century 21 is no exception, we are confident that had we received any meaningful portion of the insurance proceeds, we would have been able to save thousands of jobs and weather the storm, in hopes of another incredible recovery."

Bargains remain

Things like bankruptcies and business closings take time. In its announcement, the company said that shoppers will be able to take advantage of even deeper discounts throughout the stores and, for a limited time, online at c21stores.com. 

For Century 21 devotees, the company has put together a list of FAQs to help answer questions pertaining to sales, payments, rewards programs, and more. 

Pizza hut is closing 300 of its U.S. restaurant locations after one of its largest franchisees declared bankruptcy in July. NPC International is closing about 25 percent of its restaurants and has agreed to sell the rest. A timeframe for the closings has not yet been announced.

It may seem odd that pizza restaurants would be shutting down at a time when pizza sales are booming -- sales are so strong that there’s now a pepperoni shortage -- but it turns out some kinds of pizza restaurants are doing better than others.

A spokesperson for NPC International said “a substantial majority” of the locations targeted for closing have dining rooms. Until recently, restaurant dining rooms have been closed due to the coronavirus (COVID-19), and these Pizza Hut locations have been relying on take-out business. Pizza chains like Domino’s, built around home delivery, have thrived during the pandemic.

Significant blow

The NPC International bankruptcy is a significant blow for the brand. The company is Pizza Hut’s largest franchisee in the U.S., operating 1,227 locations. That represents 20 percent of Pizza Hut’s U.S. restaurant base.

“We have continued to work with NPC and its lenders to optimize NPC’s Pizza Hut restaurant footprint and strengthen the portfolio for the future, and today’s joint agreement to close up to 300 NPC Pizza Hut restaurants is an important step toward a healthier business,” Pizza Hut, owned by Yum! Brands, said in a statement.

NPC International employs approximately 23,000 people, producing more than 68 million pizzas to consumers in 27 states. NPC has been a pizza restaurant franchisee for nearly 60 years. It joins 43 other retailers, mostly department stores and apparel retailers, that have declared bankruptcy since the beginning of 2020. 

CNBC reported in July that the franchisees operating fast-food restaurants are struggling. CEC Entertainment, the parent company of Chuck E. Cheese restaurants, filed for Chapter 11 bankruptcy protection in June.

Another retailer is closing up shop due to the coronavirus pandemic. On Wednesday, Stein Mart announced that it plans to file for Chapter 11 bankruptcy and will be closing “a significant portion” of its stores as it seeks to reorganize its business.

As is typical with Chapter 11 filings, the company will continue to maintain its operations for now and meet financial responsibilities like paying employees, suppliers, and vendors. However, officials say they may sell the ecommerce branch of the company and any intellectual property during the course of its liquidation process.

“The combined effects of a challenging retail environment coupled with the impact of the Coronavirus (COVID-19) pandemic have caused significant financial distress on our business,” said CEO Hunt Hawkins. 

“The Company has determined that the best strategy to maximize value will be a liquidation of its assets pursuant to an organized going out of business sale. The Company lacks sufficient liquidity to continue operating in the ordinary course of business. I would like to thank all of our employees for their dedication and support.”

Stein Mart joins a growing list of retailers that have also filed for bankruptcy and closed stores over the last several months. This includes major names like JCPenney, Ann Taylor, J. Crew, GNC, and Chuck E. Cheese. Stein Mart was founded in 1902 and currently operates 281 stores in 30 states across the U.S. 

The parent company of Ann Taylor, LOFT, Lane Bryant, Justice, Catherines, and Lou & Grey -- ascena retail group, inc. -- is the latest retailer to take a fall from the COVID-19 pandemic and file for Chapter 11 bankruptcy protection.

Those stores aren’t going away, however. Chapter 11 simply allows ascena to restructure its agreements with its lenders. Currently, the company is operating with close to 95 percent of its 2,764 stores reopened and serving customers in those stores and through its e-commerce brand websites. Ascena says it will use the safety and well-being of its associates and customers as a benchmark for the future of its operations.

“The meaningful progress we have made driving sustainable growth, improving our operating margins and strengthening our financial foundation has been severely disrupted by the COVID-19 pandemic. As a result, we took a strategic step forward today to protect the future of the business for all of our stakeholders,” said Carrie Teffner, Interim Executive Chair of ascena. 

What changes and what stays the same

As part of the restructuring, ascena says two major steps will be taken. Firstly, it will optimize its brand portfolio. Secondly, it will reduce its footprint by closing a “significant number” of Justice stores and a “select number” of Ann Taylor, LOFT, Lane Bryant, and Lou & Grey stores. 

The company said in its announcement that it is getting completely out of Canada, Puerto Rico, Mexico, and will be getting out of the plus-size business altogether by closing all of its Catherines stores.

Another one bites the dust

The coronavirus has thrown quite the bankruptcy pity party. Besides ascena, the pandemic is also playing host to other major apparel retailers like J.Crew, JCPenney, Neiman Marcus, and Brooks Brothers which, collectively, account for thousands of shuttered stores.

“It will take more than store closures to ensure the long-term survival of these brands,” GlobalData Retail Managing Director Neil Saunders said in a note to clients about Ascena. “In our view, a label like Ann Taylor does not have a very clear sense of identity. Its proposition lacks both clarity and relevance and, as a result, it is all too easy to overlook.” 

RTW Retailwinds, Inc., an omnichannel specialty apparel retail platform for New York & Company and several other brands, has filed for Chapter 11 bankruptcy protection. The company represents yet another retail victim of the coronavirus (COVID-19 pandemic that has thrown the economy into a recession.

Besides New York & Company, the company’s brands include Fashion to Figure and Kate Hudson’s fashion line Happy x Nature.

In announcing its bankruptcy filing, the company said it will likely “close most, if not all” of its 400 retail stores in 32 states and has already begun that process. It said it has sought permission from the bankruptcy court to maintain operations in the ordinary course of business.

Like some other retailers that have been forced into bankruptcy over the last four months, RTW Retailwinds was already struggling before the virus forced a shutdown of the U.S. economy in March.  Last year, the company’s revenue declined by more than 7 percent. It went from earning a profit of $4.2 million in 2018 to losing $61.6 million in 2019.

Other pandemic victims

It joins J. Crew, Neiman Marcus, Brooks Brothers, and JCPenney in the bankruptcy club. Not coincidentally, all of those retailers specialize in apparel, which had been in a slow decline for several years before the pandemic caused a huge drop in clothing sales.

“The combined effects of a challenging retail environment coupled with the impact of the Coronavirus pandemic have caused significant financial distress on our business, and we expect it to continue to do so in the future,” said company CEO Sheamus Toal. “As a result, we believe that a restructuring of our liabilities and a potential sale of the business or portions of the business is the best path forward to unlock value.”

New York & Company may have been especially hard-hit by the coronavirus because it specializes in women’s work apparel. With most of the nation’s workforce working from home, clothing sales have suffered.

New York & Company was founded in 1918 as Lerner Shops by Samuel A. Lerner and Harold M. Lane in New York City.

Vitamin and dietary supplement company GNC has filed for bankruptcy. 

GNC cited, among other reasons, the financial toll of the COVID-19 pandemic. Sales at the chain had already been declining before the health crisis, but GNC said stay-home-orders had a “dramatic negative impact” on its business. 

Before the pandemic, the company had nearly $1 billion worth of debt. Its refinancing plans were derailed this year due to the pandemic, but company officials are optimistic that the bankruptcy filing will help to get on a more sustainable track. 

Bankruptcy will give GNC the "opportunity to improve our balance sheet while continuing to advance our business strategy, right-size our corporate store portfolio, and strengthen our brands to protect the long-term sustainability of our company,” the company said in a statement. 

"The Chapter 11 process will allow us to accelerate these strategies and invest in the appropriate areas to evolve in the future, while improving our capital structure and balance sheet.”

Closing nearly a quarter of stores 

GNC aims to emerge from bankruptcy in the fall “better positioned to meet the strong consumer demand for health and wellness products by executing on omnichannel and brand strategies.” In the meantime, it’s closing up to 20 percent of its stores (up to 1,200 stores) and looking for a buyer. 

“GNC remains committed to delivering wellness solutions to its consumers through easier and enhanced options to live well, from a strong product pipeline to an improved e-commerce experience,” the company said, adding that it will be launching the option to buy online and pick-up in-store later this year. 

A number of other retailers have filed for bankruptcy in the wake of the unexpected health crisis. Last month, J.C. Penney, J.Crew, Neiman Marcus, and Stage Stores (SSI) all filed for bankruptcy due to a significant decrease in sales. 

Hertz, which even its closest rival once acknowledged as the number one rental car firm, has filed for Chapter 11 bankruptcy protection in a Delaware court.

The company said the sudden impact of the coronavirus (COVID-19) on the travel business had caused a big drop in company revenue and bookings. 

“Hertz took immediate actions to prioritize the health and safety of employees and customers, eliminate all non-essential spending and preserve liquidity,” the company said in a statement. “However, uncertainty remains as to when revenue will return and when the used-car market will fully re-open for sales, which necessitated today's action.”

Hertz said the financial reorganization under bankruptcy protection will provide it with a path toward a more “robust financial structure” that puts the company in an optimal position for the future as it rides out what could be a prolonged travel and overall global economic recovery.

Pandemic accelerated the decline

According to The Wall Street Journal, the pandemic simply accelerated Hertz’s decline. It cites what it calls a series of “strategic missteps and other blunders that kept Hertz behind competitors and buried under debt.”

Specifically, it notes that Hertz focused on sedans when it recently replaced its aging fleet of automobiles, which were cheaper but weren’t the SUVs that customers wanted.

“The fleet had aged to the point that we had customer mutiny,” former Hertz Chief Executive John Tague told the Journal. “We were solving the biggest problem, but not solving all the problems.”

Hertz was founded in Chicago in 1918, and it had become the leading car rental agency in the U.S. by the mid-20th century. Rival agency Avis adopted an ad campaign that said “We’re number two, but we try harder.”

Open for business

Despite filing for bankruptcy protection, Hertz says all of its business operations, including its Hertz, Dollar, Thrifty, Firefly, Hertz Car Sales, and Donlen subsidiaries, are open and serving customers. It expects to continue all existing promotional offers, vouchers, and customer and loyalty programs, including rewards points.

Hertz CEO Paul Stone says the company entered the year with strong revenue -- but then in March, travel came to a screeching halt.

"With the severity of the COVID-19 impact on our business, and the uncertainty of when travel and the economy will rebound, we need to take further steps to weather a potentially prolonged recovery,” Stone said. 

Stone said the bankruptcy filing would give Hertz time to put in place a new, stronger financial foundation to move successfully through the pandemic.

CVS’ downsizing effort that began earlier this year will continue early next year, the company said.

CVS Health will close an additional 22 retail locations in the first quarter of 2020 in its effort to eliminate “underperforming” stores. In May, the pharmacy retailer announced that it was closing 46 retail locations.

CVS announced the additional store closings Wednesday as it reported third-quarter earnings. The company, which acquired health insurance provider Aetna last year, reported that total revenue grew more than 35 percent in the quarter, but it slightly lowered its GAAP operating income guidance going forward.

“As we approach the first anniversary of the Aetna acquisition, we are increasingly confident in the strength of our broad and differentiated assets as a combined company and our ability to deliver compelling value to our customers and the communities we serve,” said Larry Merlo, the company’s CEO. 

Stores that treat chronic health conditions

The Aetna merger and changes to CVS’ business model may be partly responsible for the company’s move to reduce its footprint. The company is on a path of opening what it calls “concept stores” to provide packages of health services.

The company says these concept stores will focus on managing chronic conditions, such as diabetes, asthma, kidney disease, and cardiovascular disease. The company may also look to add more services at its MinuteClinics to help identify and manage chronic diseases.

The move comes at a time when stand-alone retail pharmacies are under increasing pressure from online providers, big box stores, and supermarket pharmacies. It was reported this week that Walgreens has reached out to private equity investors to purchase the company and take it private.

According to CNBC, Walgreens’ stock is down about 22 percent over the past 12 months as both its retail and pharmacy businesses are under competitive pressure. Rite Aid is another pharmacy retailer dealing with a changing pharmacy retail landscape. Two years ago, it explored a merger with Walgreens before both companies backed away over regulatory concerns. 

Fitch recently downgraded Rite Aid stock, citing "continued operational challenges" at the company. Analysts pointed to “heightened questions regarding the company's longer-term market position.”

Toys “R” Us announced on Monday that, as of January 20, a new company called Tru Kids took over as the parent of Toys "R" Us, Babies "R" Us, and the company’s former mascot Geoffrey the giraffe.

The retailer, which closed all of its U.S. locations last summer after filing for Chapter 11 bankruptcy protection in March 2018, revealed that Tru Kids will be led by Richard Barry, the former chief merchandising officer of Toys “R” Us.

"Despite unprecedented efforts to capture the US market share this past holiday season, there is still a significant gap and huge consumer demand for the trusted experience that Toys R Us and Babies R Us delivers," Barry said in a statement.

Exploring different strategies

Barry told CNBC that Tru Kids is exploring several business plans, including stand-alone stores and pop-up shops. Updates on the company’s U.S. business strategy are expected soon.

"We have a once-in-a-lifetime opportunity to write the next chapter of Toys’R’Us by launching a newly imagined omni channel retail experience for our beloved brands here in the U.S. In addition, our strong global footprint is led by experienced and passionate operating teams that are 100% focused on growth,” Barry said.

Tru Kids will be opening 70 stores in 2019 in Asia, India, and Europe. The company will focus on growing the Toys “R” Us brand and e-commerce traffic, according to a statement.

"We have an incredible team focused on bringing Toys ‘R’ Us and Babies ‘R’ Us back in a completely new and reimagined way, so the U.S. doesn't have to go through another holiday without these beloved brands," said Barry.

Toys “R” Us was forced to file for bankruptcy last September in the wake of disappointing holiday sales and mounting debt, which ballooned to almost $5 billion. The toy chain fell victim to competition from online retailers like Amazon, as well as brick-and-mortar rivals like Target and Walmart.

In an effort to avoid meeting the same fate as Toys “R” Us, Tru Kids will focus on technology, in-store experiences, and customer service, Barry said.

Amid declining sales, in part stemming from the success of online mattress retailers, Mattress Firm has filed for Chapter 11 bankruptcy protection. The company plans to close as many as 700 of its 3,500 stores nationwide.

Many of the stores that are slated to be shut down are located "in certain markets where we have too many locations in close proximity to each other," CEO Steve Stagner said in a statement.

The filing and store closures are intended to help the company “strengthen its balance sheet and optimize its store footprint.”

"We intend to use the additional liquidity from these actions to improve our product offering, provide greater value to our customers, open new stores in new markets, and strategically expand in existing markets where we see the greatest opportunities to serve our customers,” Stagner said.

Restructuring package

The company, which has nearly 10,000 employees, said it filed motions to support the continued payment of employee wages and health and welfare benefits. Mattress Firm said it has financing that will allow it to keep running its business and said it expects the restructuring process to wrap up within 45 to 60 days.

Between 2012 and 2016, Mattress Firm acquired several companies – Mattress Giant, Sleep Train, and Sleepy’s. However, the acquisitions put the retailer on shaky ground. In a court filing, the company acknowledged "several well-intentioned, but ill-advised, marketing and sales promotions." Mattress Firm said it expects to lose $150 million this year.

The emergence of boxed mattress sellers like Casper haven’t helped the company find success in its effort to regain stability, either.

"I think Casper is the reason why they are in this position," Casper CEO Philip Krim told USA Today. "Casper has really pushed the industry to reinvent itself. We continue to give the customer what they want, and that’s not how the incumbents in this space operated."

Krim estimated that about 10 to 12 percent of mattress sales are online. He said he expects that figure to continue to rise over the next several years.

Mattress Firm said in its filing that it will not conduct typical liquidation sales or offer special going-out-of-business deals to customers.

Toy retailer Toys "R" Us says it will close 180 of its stores in the coming months as it tries to reorganize its business under bankruptcy protection.

The company declared bankruptcy in September 2017, saying it need space to restructure more than $5 billion in debt. At the time, company CEO Dave Brandon cited an “increasingly challenging and rapidly changing retail marketplace” as the reason for the retailer’s current woes.

Much of the challenges have come from Amazon and Walmart, retailers with lower profit margins and stronger online channels.

“The actions we are taking give us the best chance to emerge from our bankruptcy proceedings as a more viable and competitive company that will provide the level of service and experience you should expect from a market leader,” Brandon wrote in a letter to customers, announcing the store closings.

The company said about 4,500 employees will be affected by the move, either by losing their jobs or being transferred to another Toys "R" Us store.

For consumers, it means they might have to travel farther to shop at a Toys "R" Us location. Here is the list of stores that will close between February and April:

Alabama

2600 McFarland Blvd. East, Tuscaloosa AL

335 Summit Blvd., Birmingham AL

Arizona

801 W. 32nd Street, Yuma AZ

12801 North Tatum Blvd., Paradise Valley AZ

9139 Indian Bend Rd., Scottsdale 4619 N. Oracle Rd., Tucson AZ

7000 E. Mayo Blvd., Scottsdale AZ

US 60 and Signal Butte Rd., Mesa AZ

Arkansas

2616 S. Shackleford Rd., Little Rock AR

California

42500 Jackson St., Indio CA

1189 Simi Town Ctr. Way, Simi Valley CA

26573 Carl Boyer Dr., Santa Clarita CA

960 Lakes Dr., Covina CA

1600 S. Azusa Ave., Puente Hills CA

2575 E. Imperial Highway, Brea CA

530 Westminster Mall, Westminster CA

20120 Hawthorne Blvd., Torrance CA

2550 Canyon Springs Pkwy S., Riverside CA

700 “A” Onstott Rd., Yuba City CA

2785 E. Bidwell St., Folsom CA

1330 Fitzgerald, Pinole CA

4505 Century Blvd., Pittsburg CA

600 Francisco Blvd., San Rafael CA

5461 Lone Tree Way, Brentwood CA

1400 Gateway Blvd., Fairfield CA

3938 Horton, Emeryville CA

2179 Monterey Hwy., E. San Jose CA

865 Blossom Hill Rd., San Jose / Almade CA

3520 W. Shaw Ave., Fresno CA

31250 Court House Dr., Union City CA

10640 Trinity Pkwy., Stockton CA

3900 Bristol Street, Santa Ana CA

3665 Grand Oaks, Corona CA

1240 W. Morena Blvd., Mission Bay CA

8181 Mira Mesa Blvd., Mira Mesa CA

1990 University Drive, Vista CA

Colorado

1150 S. Ironton, Aurora CO

Connecticut

376 North Universal Drive, North Haven CT

275 Union St., Waterbury CT

3491 Berlin Turnpike, Newington CT

169 Hale Road, Manchester CT

Delaware

1061 N. Dupont Highway, Dover DE

Florida

1625 Apalachee Pkwy., Tallahassee FL

1900 Tyrone Blvd., St. Petersburg FL

3908 West Hillsborough Avenue, Tampa FL

6001 Argyle Forest Blvd., Orange Park FL

Spring 708 West State Rd. 436, Altamonte FL

21697 State Road #7, Boca Raton FL

10732 SW Village Pkwy., Port St. Lucie FL

450 South SR 7, Royal Palm Beach FL

2601 W.Osceola Parkway, Kissimmee FL

6001 West Sample Road, Coral Springs FL

3214 N John Young Pkwy., Kissimmee FL

Georgia

2601 Dawson Rd., Albany GA

2955 Cobb Parkway, Smyrna GA

6380 No. Point Parkway, Alpharetta GA

1155 Mt. Vernon Hwy., Dunwoody GA

6875 Douglas Boulevard, Douglasville GA

8160 Mall Parkway, Conyers GA

221 Newnan Crossing Bypass, Newnan GA

132 Pavilion Parkway, Fayetteville GA

Indiana

3928 E 82nd Street, Indianapolis IN

8800 US 31 South, Greenwood IN

Iowa

1211 E. Army Post Rd., S. Des Moines IA

8801 University Ave., Des Moines IA

Illinois

1610 Deerfield Rd., Highland Park IL

16 East Golf Rd., Schaumburg IL

295 Center Drive, Vernon Hills IL

5001 Lincoln Highway, Matteson IL

6420 W. Fullerton, Bricktown IL

7750 South Cicero Avenue, Burbank IL

5660 Touhy Avenue, Niles IL

Kansas

4646 W. Kellogg, Wichita KS

8500 W 135th Street, Overland Park KS

Kentucky

4900 Shelbyville Rd., St. Mathews KY

1155 Buck Creek Rd., Simpsonville KY

1965 Star Shoot Parkway, Lexington KY

Louisiana

137 Northshore Blvd., Slidell LA

Maine

6 Bangor Mall Blvd., Bangor ME

200 Running Hill Road, Portland ME

Maryland

8401 Mike Shapiro Drive, Clinton MD

Massachusetts

302 Providence, Dedham MA

70 Worcester Providence Tpk/Rt. 146, Millbury MA

50 Holyoke Street, Holyoke MA

217 Hartford Ave., Bellingham MA

6110 Shops Way, Northborough MA

Shoppers World Plaza, 1 Worcester Road, Framingham MA

Michigan

5363 Harvey Street, Muskegon MI

2620 Crossing Circle, Traverse City MI

5900 W. Saginaw Highway, Lansing MI

4923 28th Street South East, Grand Rapids MI

3725 Carpenter Road, Ann Arbor MI

3725 Washtenaw, Ann Arbor MI

Minnesota

14100 Wayzata Blvd., Minnetonka MN

170 89th Ave., Blaine MN

8236 Tamarack Village, Woodbury MN

900 West 78th Street South, Richfield MN

Mississippi

1003 Bonita Lakes Circle, Meridian MS

200 Bass Pro Dr., Pearl MS

Missouri

1901 Bernadette, Columbia MO

201 Silver Springs Rd., Cape Girardeau MO

5590 St. Louis Mills Blvd., Bridgeton MO

220 THF Blvd., Chesterfield MO

Nebraska

3505 S. 140th Plaza, Omaha NE

Nevada

2150 North Rainbow Blvd., Las Vegas NV

7020 Arroyo Crossing Parkway, Spring Valley NV

New Mexico

45 Hotel Circle, Albuquerque NM

North Carolina

801 Fairview Road, Asheville NC

7001 Fayetteville Road, Durham NC

3300 Westgate Drive, Durham NC

New Hampshire

29 Gusabel Avenue, Nashua NH

New Jersey

1280 Rt. 22 & St. James Ave., Phillipsburg NJ

137 Route 35, Eatontown NJ

100 Promenade Blvd., Bridgewater NJ

2700 Route 22 East., Union NJ

909 US Hwy 1 South., North Brunswick NJ

Rt. 541 & Cadillac Road, Burlington NJ

2135 Route 38, Cherry Hill NJ

7 Wayne Hills Mall, Wayne NJ

545 Route 17 South, Paramus NJ

98 Route 10 West., East Hanover NJ

Kids World 900 Center Drive, Elizabeth NJ

50 International Drive South, Mt. Olive NJ

New York

139-19 20th Ave., College Point NY

24-30 Union Square E, Union Square NY

5181 Sunrise Hwy., Sayville NY

5214 Sunrise Hwy., Massapequa NY

2335 Marketplace Drive, Henrietta NY

1569 Niagara Falls Blvd., Buffalo NY

401 Frank Sottile Boulevard, Kingston NY

708 Upper Glen St., Glens Falls NY

221 Wade Road Extension, Latham NY

2700 Central Park Ave., Yonkers NY

66 Metropolitan Ave., Middle Village NY

1350 Corporate Drive, Westbury NY

108 Veterans Memorial Highway, Commack NY

461 Lycoming Mall Cir, Williamsport NY

1530 Ridge Rd. West, Greece NY

Ohio

6251 Glenway Ave., Western Hills OH

2661 Miamisburg-Centerville Rd., Dayton OH

7841 Mentor Ave., Mentor OH

3610 West Dublin-Granville Rd., Dublin OH

Oklahoma

1119 SE 66th St., Oklahoma City OK

5609-E Rogers Ave., Fort Smith OK

560 Ed Noble Pkwy., Norman OK

Pennsylvania

100 Welsh Road, Horsham PA

6680 Peach St., Erie PA

3700 William Penn Highway, Monroeville PA

104 Bartlett Ave., Exton PA

2003 Cheryl Dr., Ross Park Mall PA

301 Oakspring Road, Washington PA

18/Valley View Dr., Beaver Valley Route PA

Rhode Island

300 Quaker Lane, Warwick RI

South Carolina

254 Harbison Boulevard, Columbia SC

South Dakota

450 E. Disk Drive, Rapid City SD

Tennessee

7676 Polo Ground Blvd., Memphis TN

5731 Nolensville Rd., Nashville TN

Texas

801 Mesa Hills Dr., West El Paso TX

9730 Katy Freeway, Houston TX

170 E. Stacy Road, Allen TX

7730 N. MacArthur Blvd, Irving TX

420 E. Round Grove Rd., Lewisville TX

13710 Dallas Parkway, Dallas Galleria TX

1309 W. Pipeline Rd., Hurst TX

5800 Overton Ridge Blvd., Hulen TX

Utah

4042 Riverdale Rd., Ogden UT

1122 Fort Union Boulevard, Midvale UT

Virginia

14173 Crossing Place, Potomac Mills VA

12153 Jefferson Ave., Newport News VA

Washington

3567 N.W. Randall Way, Silverdale WA

1325A S.E. Everett Mall Parkway, Everett WA

6104 N. Division Street, Spokane WA

Wisconsin

18550 W. Bluemound Rd., Brookfield WI

2161 Zeier Road, Madison WI

Toys “R” Us announced Monday that its U.S. and Canadian subsidiaries have voluntarily filed for Chapter 11 bankruptcy. The decision gives the company a chance to hold off its creditors and reorganize its business in an attempt to return to profitability.

The company said that it will use its court-supervised proceedings to restructure $5 billion in outstanding debt and invest in the long-term growth of the company.

“Today marks the dawn of a new era at Toys“R”Us where we expect that the financial constraints that have held us back will be addressed in a lasting and effective way,” said Toys “R” Us Chairman and CEO Dave Brandon.

Brandon cited an “increasingly challenging and rapidly changing retail marketplace” as the reason for the retailer’s current woes. He followed up by saying that filing under Chapter 11 will allow Toys “R” Us to strengthen its competitive position and improve the customer experience.

Stores still open for business

The filing comes at an especially challenging  time of year, as retailers across the U.S. are beginning preparations for what should be a busy holiday shopping season. However, the company has assured its customers that the filing will not result in mass store closures..

“As the holiday season ramps up, our physical and web stores are open for business, and our team members around the world look forward to continuing to put huge smiles on children’s faces. We thank our vendors for their ongoing support through this important season and beyond,” said Brandon.

The company said that it has thus far received over $3 billion in debtor-in-possession (DIP) financing from lenders, which it expects will aid in the restructuring process. On its restructuring informational page, the company says that the Chapter 11 filing only affects its U.S. and Canadian operations, which excludes its separate entities in Asia.

Toys “R” Us currently operates approximately 1,600 stores worldwide and employs nearly 65,000 workers.

You may notice fewer Applebee’s and IHOP restaurants in your travels over the coming year. DineEquity Inc., parent company of both chains, announced on Thursday that it will be closing up to 160 locations (up to 135 for Applebee’s and up to 25 for IHOP) over the next fiscal year.

DineEquity Chairman and Interim CEO Richard J. Dahl cited lagging sales at underperforming locations as the reason for the closings, but said that the parent company plans to open up dozens of new restaurants in an effort to improve the brands’ overall financial health and supply chain.

“We believe 2017 will be a transitional year for Applebee’s and we are making the necessary investments for overall long-term brand health and expect to see improvement over the next year,” he said.

“IHOP remains on solid ground, despite soft sales this quarter. I am optimistic about the growth in both effective franchise restaurants and system-wide sales.”

Dahl did not disclose which restaurants were being targeted to close. Currently, DineEquity operates more than 3,700 Applebee’s and IHOP restaurants in 18 different countries.

Gymboree, the bankrupt children's clothing retailer, has announced it will close 350 stores following what it calls "a comprehensive evaluation of its retail footprint."

The review was called for under its court-supervised financial restructuring. Company officials say maintaining a smaller number of stores, in the most profitable locations, will enable the retailer to get back on its feet. Gymboree filed for Chapter 11 bankruptcy protection in June.

'Right-sizing the footprint'

“Right-sizing our store footprint is a central part of our efforts to ensure Gymboree emerges from this restructuring process as a stronger and more competitive organization, with greater financial flexibility to invest in our future," company CEO Daniel Griesemer said in a statement.

Griesemer said the company will continue to operate a majority of its stores, which carry the Gymboree, Janie and Jack, and Crazy 8 brands.

"This was a difficult decision to make, but we are confident that it is in the best long-term interest of our Company, our customers and our broader employee base," he said.

The 350 Gymboree and Crazy 8 stores to be closed are scattered around the country. The company said it has retained the services of Great American Group and Tiger Group to help manage the closing sales. Those sales are scheduled to begin July 18.

Two trends

Gymboree is a victim of two related trends. It has lost business to online, discount retailers but it has also suffered from a decline in shopping mall traffic. Most of its stores are located in malls.

Gymboree launched in 1986, during a time when the Baby Boom generation was in its peak child-rearing years. It offers coordinated children's clothing from newborn to size 10.

USA Today has assembled a list of the Gymboree stores targeted for closing. You can find it here.

Back in April, Payless ShoeSource filed for Chapter 11 bankruptcy in an attempt to reorganize its business and return to profitability. Unfortunately, the company’s announced that part of that effort would involve closing many of its stores across the U.S.

“This is a difficult, but necessary, decision driven by the continued challenges of the retail environment, which will only intensify…We will build a stronger Payless for our customers, vendors and suppliers, associates, business partners and other stakeholders though this process,” said CEO Paul Jones at the time.

Now it seems the company has decided on which locations will definitely be shutting down in its second wave of closings. According to court papers, the company has asked permission to close down 112 of its stores outright and will possibly close another 296 locations if it cannot reach an agreement with landlords to lower rent prices. However, company officials are hopeful that they will be able to work out a deal.

“We remain hopeful…negotiations will result in consensual modifications and rent concessions with respect to these additional stores and that many of the 296 will remain open,” spokeswoman said in a statement to Fortune.

The company has already made some inroads towards reducing its overall debt; according to a Wall Street Journal report, Payless has already made a deal with its lenders to reduce its $838 million in funded debt by 40% by offering equity stakes in the company and promising “significant recoveries.”

The company says it hopes to emerge from bankruptcy in August.

In a recent report, we detailed how Payless was likely going to be filing for bankruptcy in the near future. Indications showed that the chain would be another in a long line of retailers who have had to close their doors due to poor performance and the dominance of online retailing.

And, on Tuesday, the company did indeed file under Chapter 11, announcing the closing of 400 of its worst-performing stores. Under Chapter 11 bankruptcy, Payless will have the opportunity to try to reorganize its business and pay back its creditors to stay afloat, but company officials predict a rough road ahead.

“This is a difficult, but necessary, decision driven by the continued challenges of the retail environment, which will only intensify. . . We will build a stronger Payless for our customers, vendors and suppliers, associates, business partners and other stakeholders through this process,” said CEO Paul Jones in a statement.

The company said that it will continue to operate its business and honor employee wages, insurance coverage, and any customer gift cards. However, the company is looking pretty down and out when it comes to their financials.

In its bankruptcy filing, Payless stated that it had no more than $1 billion in assets, but that its liabilities could be as large as $10 billion. Upon filing for bankruptcy, the company said that it will be closing 400 of its 4,000 stores across the U.S. The company has provided a full list of the stores that will be closing, as well as nearby stores that will remain open, here.

Someone soon is going to have to find a creative use for all the empty shopping mall real estate, as one retailer after another retrenches, retreats, or simply goes away.

The struggling discount shoe store chain Payless is the latest added to the critical care list. The company reportedly plans to file for bankruptcy as early as next week, according to a Bloomberg report. 

Bloomberg quotes company sources as saying Payless will initially close 400 to 500 stores as it looks for a way to keep at least some of its doors open during the bankruptcy process.

The growing dominance of online retailing is taking a heavy toll on brick-and-mortar stores, with many companies struggling to meet their first-quarter sales goals as conditions continue to deteriorate. 

Dominoes falling

Retailers have been falling right and left, the latest being Radio Shack, which earlier this month sank into bankruptcy for the second time and began closing its stores.

Earlier today, Sears, one of the most venerable names in retailing warned in an SEC filing that it may not be able to continue as a going concern.

In its filing, Sears noted that many of its competitors operate mostly online or through catalog sales and are not required to collect sales tax, putting brick-and-mortar stores at a disadvantage. Ironically, it is none other than Sears that is generally credited with popularizing the mail-order business, publishing its first catalog in 1888.

Payless would no doubt echo Sears' complaint, with an eye towards online shoe giant Zappos and other online shoe sellers that have taken a large chunk out of its market share.

Payless, founded in 1956 in Topeka, Kansas, operates more than 4,000 stores in 30 countries and has about 22,000 employees.

Electronics retailer hhgregg has long been short of capital letters and is becoming increasingly short of the kind of capital you can take to the bank, having lost money for the last three years.

The company says it is hoping to avoid a bankruptcy filing, but wise consumers will dig out any hhgregg gift cards they may have stuffed in the sock drawer and rush to redeem them, just in case.

Gift cards don't carry much weight in a bankruptcy filing. They sometimes lose all of their value and, even if they don't, consumers may find their money is tied up for months or years while other creditors pick the bones clean.

There's no official word from the company just yet. In a statement, CEO Robert Riesbeck said he was trying to keep the doors open.

“We’re focused on continuing to execute our business strategy, as planned, and returning this company to profitability,” he said in a prepared statement.

A familiar problem

The malaise affecting hhgregg is the one that retailers are all too familiar with -- too much competition from online retailers and discounters. In hhgregg's case, it's made worse by the likes of Lowe's and The Home Depot bringing their considerable muscle to appliance sales.

Even J.C. Penney recently got back into appliance sales, although today's announcement that Penney would be closing up to 140 stores may not do much to bolster its image as a giant of appliance retailing.

Earlier this month, hhgregg said that it was exploring "strategic initiatives ... to improve liquidity and return to profitability."

"We are committed to improving our results through our business strategy, including investments made to shift our focus to appliances and furniture, and additional expected cost reductions," Riesbeck said. "As the company undertakes this exploration process, we are focused on the execution of our business strategy and remain fully committed to serving our customers' needs."