20 Stores That Are Closing Locations In 2020
Everyone is going through hard times in all different ways in 2020. Even though companies have tried to save themselves by any means, many could not survive through the winter and have decided to close their stores. Have a look at these stores that are on the at-risk list.
1. Forever 21
Despite having sought out refinanciation and restructuring, fast-fashion company Forever 21 had to file for bankruptcy in 2019. It decided to close 350 stores worldwide and cease operations in 50 countries.
2. Office Depot
After sales fell 7% in 2017, office supply company Office Depot went through some tough times. Having shuttered plenty of stores in 2019, it revealed plans to close another 90 stores in the next two years.
3. J. Crew
With continuous price rises coupled with increasingly frugal customers, even the former first lady's favorite clothing company is suffering. J.Crew has $2 billion in debt, and had to close its bridal store and other locations to make ends meet.
After noticing that their stores located inside and near malls didn't make much profit, Kohl's Corporation decided to close four stores in New York, Kansas, Los Angeles, and one major operation center. They claimed that it was possible to pull out of larger stores and still be successful.
GNC has been carrying debt of around $1.3 billion, and in 2017 alone, its top-line fell 3.4%. In 2018, the company decided to sell 40% of the shares to a Chinese pharma company, which will continue GNC's business in China.
JCPenney has been struggling since 2017 and has dismissed 1,000 staff and closed one distribution center. Having a total debt of $4.2 billion the investors' patience wore thin and they forced the company to change its CEO.
7. National Stores
National Stores filed for Chapter 11 bankruptcy in 2018 and planned to close 74 stores in the U.S. and Puerto Rico. The reason for its bankruptcy may have been caused by bringing too many brands, such as Fallas and Weiner's, under the company umbrella over the years.
Since 2018, Lowe's has closed 31 locations in the U.S. and Canada, and will also be closing 6 Lowe's, 26 Ronas, and 2 Reno-Depots. The CEO stated that they would focus on the Canadian market to improve their growth prospects.
9. Sears Holdings
For over a decade, Sear Holdings has been in financial trouble, and not even a hundred million dollar hedge fund could save the day. After having tried to cut costs and boost sales, the company finally filed for bankruptcy and closed 142 stores in 2018.
10. Vitamin Shoppe
Like GNC, Vitamin Shoppe is struggling with its sales as well. It has enhanced its e-commerce business, but its sales still dropped by 8.5% in 2017. Although they tried to change the trend with special events and delivery services, it doesn't seem to have improved the situation too much.
11. The Weinstein Company
The allegations of Harvey Weinstein's sexual misconduct dealt the Weinstein Company a fatal blow. It has filed for bankruptcy and found a buyer in 2018. Despite having no Hollywood experience, the Dallas-based private equity firm Lantern Capital Partners offered $310 million to buy The Weinstein Company.
12. Guitar Center
The public has long adored the rock'n'roll supplier Guitar Center, but it is going through the same struggles. Its electric guitar sales had dropped 36% from 2005 to 2016, and it had plans to refinance a debt of $900 million. However, the CEO has voiced his faith in the brand and even plans to open new stores.
Claire's, a store offering affordable accessories, has accompanied many women through their childhood. However, the 59-year-old store may not do the same for girls in the future. Unfortunately it has filed for bankruptcy, closed 130 stores, and is looking for potential buyers.
The shoe company Rockport Group once had retailers in more than 60 countries, but it eventually filed for Chapter 11 bankruptcy in 2018. It was then sold to Charlesbank Capital Partners, a private equity firm with stakes in many different businesses.
15. Kiko USA
As a subsidiary of Kiko Milano, Kiko USA filed for Chapter 11 bankruptcy in January 2018. The company decided to negotiate with landlords for lower rent or close more than 30 stores to overcome its financial troubles.
16. Neiman Marcus
Although Neiman Marcus has tried different ways to turn the tide, the luxury clothing retailer has finally completed its Chapter 11 bankruptcy. Now it is permanently closing 22 locations around the U.S., including the Hudson Yards location in NYC.
17. Tops Market
Under the threat of non-traditional food retailers' competitions and falling food prices, Tops eventually filed for Chapter 11 bankruptcy. However, The grocery chain has paid off its $80 million annual interest, and decided to keep most of its stores open in New York, Pennsylvania, and Vermont.
18. Diesel USA
Diesel, the denim apparel retailer, has recently filed for bankruptcy because of the general downturn in the brick-and-mortar retail industry and instances of fraud. Although Diesel will close some stores, it has made some changes, such as a reorganization and new pop-up shops.
19. Cole Haan
Since 2018, the luxury footwear company Cole Haan has been on the 26 retailers most at-risk list. Although the company was sold to Apax Partner and tried to change its range from dress shoes to sneakers, its business did not improve all that much.
20. Mattress Firm
Mattress Firm also filed for bankruptcy protection in 2018 because of an accounting scandal and its overwhelming number of stores. The company decided to sell 700 stores with 200 of them to be closed permanently.