These Big Companies Run The Risk Of Bankruptcy This Year

Published on 07/15/2019
ADVERTISEMENT

These Big Companies Run The Risk Of Bankruptcy In 2019

It isn’t rare for businesses to shut down. As we all know, companies come and go. Sometimes, this happens because people are no longer interested in their offerings. The rise of internet shopping has also rendered certain brick-and-mortar stores useless. In this day and age, one needs to adapt and adjust to stay relevant to their customers. Are you ready to find out which shops are shutting down? Keep your fingers crossed that you won’t find your favorites on this list.

J. Crew

This is a clothing retailer that has received the approval of Michelle Obama, the former FLOTUS. Sadly, this did not do anything about the fact that its sales have not been doing so well in the past couple of years. On top of that, the retailer had to shut down its bridal store and say goodbye to CEO Millard Drexler and creative director Jenna Lyons. According to the former, raising prices caused problems.

J. Crew

J. Crew

Sears Holdings

For about ten years now, Sears Holdings has been struggling to stay afloat. With declining sales, the company tried to counter by resorting to cost-cutting, asset sales, store closings, and employee layoffs. Unfortunately, RetailDive said these measures are not enough to keep its head above water. In October 2018, the company filed for Chapter 11 and shut down 142 stores. Eddie Lampert, the CEO, tried to avoid this by taking out hundreds of millions in loans from the hedge fund he owns. Things have not looked up, however.

Sears

Sears Holdings

99 Cents Only

99 Cents Only is a discount product company that has been facing difficulties after suffering from competitors such as Dollar Tree, Walmart, and Dollar General. It actually reported having lost a net total of $27.1 million in December 2017. This is on top of an $8.8 million loss in Q1 and a $33.6 million loss in Q2. The 35-year-old retailer has tried various things to improve the situation. Ares Management bought it out then Canada Pension Plan, then a private family. Jack Sinclair even replaced former CEO Geoffrey Covert. While it reported positive same-store sales, it could afford to do even better.

99

99 Cents Only

GNC

RetailDrive said that GNC experienced a revenue decline of 3.4 percent each year until it reached $2.5 billion. This has yet to include the $13 billion it has in debt. The chief executive of the company, however, reported that the company was doing fine in China during the 2018 Q2. It also received a decline in profits and sales in the same period, however. This might be the reason that GNC is planning to sell 40 percent of the company shares to a Chinese pharma retailer, who would then take over the products’ sale, production, promotion, and distribution.

GNC

GNC

Fred’s Pharmacy

In May 2018, the company report4ed that it saw a 4.3 percent decline from when it comes to gross sales. Aside from that, the bottom-line loss was reported at $139.3 million. Fred’s Pharmacy hoped to establish a thousand stores in the United States, which is significantly more than its 600 stores. This did not happen, however. In February 2018, its CFO left and got replaced by a media exec instead. Fred’s also decided to sell CVS for the price of $40 million.

Fred's

Fred’s Pharmacy

Destination Maternity

According to RetailDrive, Destination Maternity has a large presence in the industry of maternity apparel, which makes sense with the thousand stores it has. The CEO left the previous year when the gross sales decline reached 7 percent. When it was on the second interim CEO, it sought the guidance of the Berkeley Research Group, who said the problems were caused by the broken relationship with Kohls. In 2017, the year over year sales experienced a sales decline of $406.2 million, which is 6 percent.

Destination Maternity

Destination Maternity

Ascena Retail

Ascena Retail is the company behind retail lines such as Dress Barn, LOFT, Lou & Grey, and Ann Taylor. RetailDive reported that not much even though it found a new person to take over Dress Barn. In an attempt to keep the brand afloat, the company shuttered a quarter of the stores by 2019. According to the same source, Ascena expected sales worth $1.7 billion during the 2017 fiscal year. Sadly, the top-line sales only went down year over year. However, the financial services company Moody’s reported that Ascena “is on a path to developing a strong ‘backbone’ of retail capabilities.”

Ascena Retail

Ascena Retail

Stein Mart

Stein Mart is a Jacksonville-based discount department store that has been having sales problems, although things have been looking up. It has been able to put balance in sales and increase digital revenue by 47 percent in the second half of 2017. The company reported a bottom-line loss of $23.4 million but said the loss has gone down by 10 percent. It seems like there is little reason to worry now.

Stein Mart

Stein Mart

JC Penney

JC Penney is yet another company that has not been doing so well, although its performance is better than Sears. In 2018, the company fired 1,000 employees and shuttered a distribution center. In 2017, the top-line sales went down by 0.3 percent when the net income was $116 million. RetailDive said that the company is having problems going back to the way things were. The $4.2 billion debt of the company does not help matters, of course. Investors are allegedly feeling impatient with its progress. Only time will tell if changing the executive lineup will do anything for it.

JC Penney

JC Penney

Office Depot

Office Depot did not have an easy time in 2017. Around this time, its sales went down by 7 percent to $10.2 billion! Its CEO, Gerry Smith, said that the company plans to offer services too. RetailDive speculates that this move was meant to improve its top-line sales. According to Office Depot, the office supplies retailer has its eyes set on offering a subscription program called “BizBox”. On top of that, it acquired CompuCom, an IT firm.

Office Depot

Office Depot

Vitamin Shoppe

Vitamin Shoppe also shifted its focus on a subscription service and an e-commerce model. Despite these efforts, it still saw a decline of 8.5 percent when it comes to top-line sales back in 2017. RetailDive reports that this can be attributed to the declining popularity of malls and the rise in competition. The retailer stays hopeful that they can improve the tide with events, delivery services, and more categories.

Vitamin Shoppe

Vitamin Shoppe

Neiman Marcus

Neiman Marcus witnessed a 5 percent decline in top-line sales during the 2017 fiscal year. The luxury clothes retailer attempted to improve the situation, and it seems to be working. Still, the company is suffering from its interest expenses. It has been suggested that they cut over 200 jobs and focus on a “Digital First” customer engagement plan.

Neiman Marcus

Neiman Marcus

Bebe

Bebe is a fashion retailer that been in the industry since 1979. Things went downhill after creative director Neda Mashouf divorced founder Manny Mashouf in 2007. RetailDive also claims that its losses come from the declining mall foot traffic. In fact, it experienced an operating loss of $4.6 million in 2017. The company has started moving away from regular retail space. It shelled out $65 million to close down stores and shift its focus to e-commerce. Bebe had 180 locations in 2016, said Forbes.

Bebe

Bebe

Pier 1 Imports

Jeffries is a research and strategy company that previously claimed Jeffries was going to experience a “heavy investment year” in 2018 as it was going to take care of its “sourcing, merchandising, pricing, marketing, store ops, e-com, and supply chain.” During the Q1 of 2018, it experienced a 9.2 percent slip in net sales or $371.9 million year over year. The company’s credit ratings also dropped. If that’s not enough, they also suffered a blow after Trump put a tariff on products made in China!

Pier 1

Pier 1

Lands’ End

Land’s End is a retailer that specializes in home furnishings, luggage, and clothing. CheatSheet claims that things went downhill because of its association with Sears. The website claims that catalog sales continue to be strong, although that did not stop former CEO Federica Marchionni from making terrible mistakes. Its youthful Canvas line targeted fashion-forward consumers with its clothes made in the “designer styles to relaxed looks” style. It failed to attract a lot of people, however.

Lands' End

Lands’ End

Guitar Center

In 2018, the rock n’ roll instruments supplier only had one more year to pay off its debt worth $900 million. It has been in the industry for over five decades by now. CheatSheet claimed that it has seen a 36 percent drop in its electric guitars sales between 2005 and 2016. It still managed to launch new stores even though it is facing financial problems. It has been temporarily relieved of its problems by an emergency loan. The company claims it is in a transition period but there is no need to worry.

Guitar Center

Guitar Center

Southeastern Grocers

Southeastern Grocers is the operator of grocery chain Winn-Dixie. It filed for Chapter 11 bankruptcy protection to restructure its debt. It has since closed about a hundred stores and paid debt worth $600 million. The company hopes this will be the start of big changes. It has been working on rebranding and remodeling the stores that have remained open. CNBC says it is hurt by competition from Amazon and big-box stores.

Southeastern Grocers

Southeastern Grocers

Nine West

CheatSheet said Nine West has a $1.5 billion debt that it is currently trying to restructure. According to Bloomberg, it involves selling parts of the shoe retailer as well as filing for bankruptcy. In an attempt to keep its head above water, it sold Easy Spirit and stopped operations in nearly all its stores. The Washington Post says it will now focus more on clothing and jewelry. It seems like there is a decreasing demand for ballet flats, sandals, and heels.

Nine West

Nine West

David’s Bridal

In this day and age, people seem to prefer casual events and less formal attire for weddings. This shift can be blamed for the decline in sales that David’s Bridal is currently experiencing. CheatSheet reported that it has a $520 million debt due in 2019 on top of $270 million in unsecured notes due in 2020. The credit rating of the company also went down. Scott Key, the new CEO, might be able to fix this mess.

David's Bridal

David’s Bridal

Bon-Ton

It is remarkable that Bon-Ton has been in the industry for a century already! This department store filed for bankruptcy in the previous year. It was sold and liquidated afterward. In October 2018, it launched its e-commerce site again and then announced its plans to relaunch its stores. USA Today precited, “The reinvented Bon-Ton would be sleeker, more e-commerce focused business.” We hope it can cope with the competition the next time around.

Bon-Ton

Bon-Ton

Tops Market

Tops Market filed for bankruptcy because of its failure to cope with the changing interests and demands of the consumers. Shoppers now more interested in its competitors, low food prices, and non-traditional food sellers than ever before. However, it is not the end for this grocery chain. In fact, the Buffalo News reported last year that it managed to free itself from annual interest worth $80 million due last 2017.

Tops

Tops

Cole Haan

Cole Haan joined the list made by USA Today. It was about companies in danger in 2018! This luxury footwear brand has attempted to ride the athletic shoe craze by diving into sporty shoes. Now owned by Apax Partners, it was once owned by athletic shoe giant Nike. Now, it has to deal with competing against its former parent company. USA Today says that things have yet to improve for the brand.

Cole Haan

Cole Haan

Charlotte Russe

Charlotte Russe is busy with liquidation and store closings. In February 2019, it applied for Chapter 11 bankruptcy protection and planned to shut down 94 stores. However, this number soon grew to 500 stores across the States, which CNBC reports is the result of a liquidator winning the court auction. Its stores were primarily situated in malls, which is yet another factor in its poor performance.

Charlotte Russe

Charlotte Russe

Claire’s

If you spent your girlhood in the United States, we bet you have spent some time at Claire’s. This store was the place people went for piercings, accessories, and jewelry. It is sad to think that it might not be around for long since it has ceased IPO. CheatSheet said that bankruptcy was inevitable, and it was right. The company applied for Chapter 11 in March 2018 and closed 130 stores only two months later.

Claire's

Claire’s

FullBeauty Brands Holdings Corp

FullBeauty is the owner of several plus-size brands, but even it could not compete with e-commerce giant Amazon. Apax Partners, its parent company, gave that same reason when they delivered a message to its lenders. It also said that the revenue went down by 30 percent during 2017’s Q1. FullBeauty has recently changed its exec lineup, so we will soon find out if they can fix the problem.

FullBeauty

FullBeauty

Eddie Bauer

The outdoor company has been in trouble for its debt issues. In 2017, its Bellevue-based parent company Golden State Capital had been hoping to sell Eddie Bauer to fix financial problems. It is not exactly new since the company also made a comeback after suffering from bankruptcy and then getting bought out by its current owners. Nasdaq reported that its Achilles heel lies in its failure to cope with trends. According to the stock exchange, a merger with Pacific Sunwear seems to be the plan.

Eddie Bauer

Eddie Bauer

Bluestem Brands

This apparel, beauty, appliances, health product, and electronic retailer owns 13 e-commerce sites. Sadly, it made its way to a Business Insider list of companies in danger. In a press release back in 2017, figures revealed that its sales have been going down. It is interesting to note that the adjusted net sales did not yet include the businesses that have exited, so the decrease in net sales totals 5.1 percent.

Bluestem

Bluestem

PetSmart Inc.

The pet product company has more than 1,500 shops in Puerto Rico, Canada, and the United States. PetSmart deemed it important to restructure its advisors so that the team can handle its $8 billion debt. Reuters has said that the debts would not reach maturity until 2022. The company has suffered from e-commerce competitors. It recently joined the game by shelling out $3.35 billion for an e-commerce site.

More and more consumers are turning to e-commerce these days as it is more convenient and it sometimes offers cheaper prices. PetSmart is also affected by this trend and experienced some difficulties because of it. PetSmart did buy Chewy, an e-commerce site, but the $3.35 billion expense for the site added another burden to its existing debt. Reuters reported that it was the highest amount a company ever spent on an e-commerce site.

PetSmart

PetSmart

Payless

Payless filed for bankruptcy in 2017, which led to laying off employees and closing down 600 stores. Luckily, it made a comeback after going through a reorganization in August 2017. S&P Capital Markets reported it is still at risk of nonpayment. In 2017, CEO Paul Jones said, “We have accomplished our goals of strengthening our balance sheet and restructuring our debt load, positioning Payless to create substantial value for our stakeholders.”

Payless

Payless

BKH Acquisition Corp.

BKH Acquisition Corp. operates over a hundred Burger King locations in Puerto Rico through its subsidiary by the name of Caribbean Restaurants. The company was on the New Generation Research’s Distressed Company Alert list, which claimed it had a “low rating”. Its credit rating also dropped down from B- to CCC+ in January 2017. The economic weakness of Puerto Rico is to be blamed for this.

BKH Acquisition Corp.

BKH Acquisition Corp.

Mattress Firm

Mattresses are important in a household, but it seems people are choosing to patronize other brands. It filed for Chapter 11 in October 2018. The monetary problems rolled in after “an onerous store footprint” and an accounting scandal. Only a few days after making it public, it planned to halt operations in 200 stores and sell 700 stores. Mattress Firm hopes to get out of leases and undergo restructuring.

Mattress Firm

Mattress Firm

National Stores

National Stores filed for Chapter 11 in August 2018 after it stated that it was planning to cease operations in 74 stores across the United States and Puerto Rico. CNBC also reported that it has earned significant debts after its multiple brand acquisitions. What makes things even worse is that locations are in stand-alone shopping centers.

National Stores

National Stores

Gump’s Holdings

Gump’s Holdings did not find a buyer, so it opted to file for Chapter 11 in August 2018. It released a press release that said it was hard to do business thanks to an “overwhelmingly difficult retail environment”. Its attempt to go online was Gump’s By Mail, but it could not compete against Amazon. The company is still holding out for a buyer, but it will continue to operate. At this point, it has asked the help of liquidators to deal with credit repayment and merchandise.

Gump's

Gump’s

Brookstone

Brookstone filed for bankruptcy in August 2018 and hoped to shutter 101 stores in the States. It is best known for its home items and tech products. It has also been on the lookout for a buyer, although it is limiting the sale to its airport stores, wholesale operations, and e-commerce businesses.

Brookstone

Brookstone

Rockport

Shoe retailer Rockport Group is active in over 60 countries! It applied for bankruptcy in May 2018, but Charlesbank Capital Partners bought it soon after this. The acquisition was considered completed in July of the same year. Let us hope the company bounces back!

Rockport

Rockport

The Walking Company

The Walking Company also filed for bankruptcy fairly recently. It did this in March 2018, but this was not anything new for the company. This has also happened ten years ago. We are glad to hear that it got a happy ending! It managed to come out of bankruptcy four months later.

The Walking Company

The Walking Company

Kiko USA

The cosmetic product company Kiko USA is a subsidiary of Kiko Milano. The smaller company has applied for bankruptcy, which it hopes will solve its financial problems by shutting down stores across the country. We hope you like your ears than the ones will the halls during our youth!

Kiko USA

Kiko USA

A’gaci

In January 2018, womenswear retailer A’gaci applied for Chapter 11. It had been trying to renegotiate 49 of its leases when it happened. During the press release, it said that two-thirds of its expenses went to high leases. A’gaci was able to emerge from bankruptcy after it received a $12 million loan during the summer of the same year. It claimed that it would keep 55 stores as well as 1,500 employees.

A’gaci

A’gaci

Toys R Us

Toys R Us filed for bankruptcy in 2018. It announced that it was going to liquidate all its stores. It held clearance sales in its 735 stores in the US. According to Business Insider, it wanted to close shop as soon as possible to avoid paying its leases. The toy retailer canceled its bankruptcy action in the same year.

Toys R Us

Toys R Us

Bertucci’s

Bertucci’s is an Italian restaurant chain that filed for bankruptcy in the spring last year. It shut down 15 stores in April. Eventually, Earl Enterprises acquired it for the price of $20 million. Biz Journals reported that it can be further divided into $3 million cash, $4 million credit, and $13 million debt.

Bertucci's

Bertucci’s

Gymboree

Gymboree applied for bankruptcy in January 2019. It was planning to shut down all of its Gymboree and Crazy 8 stores until something else happened. Children’s Place ended up acquiring it two months later. That aside, the Gap paid for intellectual property rights over customer data, website, and Janie and Jack.

Gymboree

Gymboree

Diesel USA

On March 5, 2019, Diesel USA applied for Chapter 11. It said it had lower wholesale orders thanks to a “general downturn in the brick-and-mortar retail industry”. This is in addition to fraud, theft, expensive leases, and lower net sales. It hoped to close some stores and move others to places “with a smaller footprint”.

Diesel

Diesel

Imerys Talc America Inc.

Imerys Talc America Inc. is the supplier of talc powder for Johnson & Johnson’s. In February 2019, its Paris, Canada, and Vermont units have applied for bankruptcy. This happened because of its struggle with over 14,000 claims made by women who claimed that the talc caused their ovarian cancer.

Imerys

Imerys

Pacific Gas and Electric (PG&E)

Pacific Gas and Electric suffered from the California wildfires that struck in 2017 and 2018. It filed for Chapter 11 on January 29, 2019. Oddly enough, it hopes to approve $236 million for employee bonuses. Senator Jerry Hill even said, “$235 million would go a long way to support the victims of last year’s wildfires.” Perhaps it should get its priorities sorted out.

PG&E

PG&E

Things Remembered

We hope no one forgets about Things Remembered even if it filed for bankruptcy on February 6, 2019. The gift shop remains open, however. It was successfully purchased by gift and home décor retailer Enesco on March 11, 2019. Even so, it will be retaining its company name. What a relief!

Things Remembered

Things Remembered

Innovative Mattress Solutions

Innovative Mattress Solutions applied for Chapter 11 on January 14, 2019. It also hoped to shut down 142 stores. It is interesting to hear that a different retailer had to give a press release the day after. Mattress Warehouse had to explain that it had nothing to do with the bankruptcy even though it had the same name as a subsidiary: “This filing of Chapter 11 bankruptcy has no bearing on the Mattress Warehouse (sleephappens.com) organization or their relationships with their vendors.”

Innovative Mattress Solutions

Innovative Mattress Solutions

Z Gallerie

On March 11, 2019, Z Gallerie applied for bankruptcy. It planned to shutter 17 stores and seek a buyer to avoid liquidation from happening. It probably should have invested more in e-commerce instead of distribution centers. It failed to do well after its failure to meet performance goals after so much expansion.

Z Gallerie

Z Gallerie

Beauty Brands

Beauty Brands ended up filing for Chapter 11 on January 4, 2019. Advertising icon Bob Bernstein founded the company and has expressed interest in buying it. He became the “stalking horse bidder” after replacing Hilco Merchant Resources for the position.

Beauty Brands

Beauty Brands

Shopko

Shopko filed for bankruptcy on January 16, 2019. It hoped to shut down 70 percent of its stores from February to May 2019 while it reorganized at the same time. The company wanted to close 251 stores and leave 110 in operations. Spokesperson Michelle Hansen explained, “Through our conversations with the potential buyers, it has become clear that it is in our best interest to operate with a significantly smaller store footprint.”

Shopko

Shopko

The Weinstein Company

The first sexual misconduct allegations against Harvey Weinstein came to light in October 2017. The film exec was on the receiving end of a number of various claims after the New Yorker published an article. The Weinstein Company ended up filing for bankruptcy in March 2018. However, it was bought out by The Lantern Capital Partners in May 2018.

Weinstein

Weinstein

Macy’s

When Macy’s announces store closings, it usually comes after the holiday season rush. However, this year, they already announced that a handful of stores will be closing. In 2018, twelve locations shut down, and so far in 2019, more than four locations are closing their doors. Despite the fact that Macy’s is still making good money overall, they need to be careful about how they’re spending it.

Macy's

Macy’s

Nordstrom

This might be surprising to a lot of people, especially those Nordstrom fans. Instead of investing money in saving its storefronts, Nordstrom is using more time and energy into their Nordstrom Rack locations as well as their online site. However, Nordstrom is opening a flagship store in New York City that will take up seven floors! While you might not have noticed a lot of Nordstrom stores closing, they are, just quietly.

Nordstrom

Nordstrom

Target

Before you start getting worried, Target isn’t going anywhere. However, six Target locations have closed so far in 2019. By the end of the year, the company is planning on closing another six locations. In 2018, the store lost 13 locations and 12 during 2017. Just because stores are closing doesn’t mean the whole chain is in danger of shutting down. Meanwhile, Target is opening 30 new, but smaller, locations this year and is remodeling around 300 of its large locations over the next few years.

Target

Target

Lord & Taylor

America’s oldest department store, Lord & Taylor, has also been among the stores shutting locations down recently. Just because it’s been around for a while doesn’t mean it has immunity from failure and financial trouble. In 2019, they will be closing 9 of their stores, including their famous flagship store on Fifth Avenue in New York. A lot of people reckon that the main issue is that most of Lord & Taylor’s locations are in shopping malls which are struggling throughout the whole country. As a last-ditch effort to save their name, Lord & Taylor is partnering with Walmart.

Lord & Taylor

Lord & Taylor

Topshop

The British fashion chain Topshop made its way to America in 2009 and was warmly welcomed. After only 10 years in the States, the company is closing all of its stores, even in cities like Chicago, Los Angeles, Houston, Miami, and San Diego. While they won’t have any more walk-in stores in the United States, you can still shop online as well as in most Nordstrom locations for the brand.

Topshop

Topshop

Barneys New York

Believe it or not, Barneys New York filed for bankruptcy and will be closing over 15 stores by the end of 2019. Similar to a lot of retail stores, Barneys claims that their profits have taken a serious hit due to the decrease of in-store customers lately. This is true, especially for high-end items. For the time being, Barneys will keep its New York locations open, but no one can know what’s in store for the company in the future.

Barneys New York

Barneys New York

Walmart

Even Walmart is feeling the strain lately. In 2019, they’re shutting down at least 18 locations. Because of this, there are hundreds of employees who are now unemployed. Out of the 18 stores, 10 include neighborhood market stores, 2 include stores on college campuses, and 6 are full-sized Walmart locations.

Walmart

Walmart

Francesca’s

A woman’s clothing and accessories chain, Francesca’s has been struggling for a while now. The store’s prices aren’t all that great, which has been one of their biggest problems to date. Since that’s the case, not many people come in at all, and getting people in the door is only the first step. If they aren’t managing with that, it isn’t very surprising that their sales are so low. In 2019, they’re closing as many as 40 of its locations across the country.

Francesca's

Francesca’s

CVS

When you hear that CVS is shutting down 46 stores this year, that can sound rather alarming. That is until you hear that they’re shutting down 46 of their 9,600 stores! CVS made the decision to shut down some of their “underperforming” stores, which makes sense. One of these stores includes the largest CVS in the country, which is a 64,000 square-foot location in Springfield, Missouri. Seeing as the average CVS is 13,000 square feet, it’s hard to imagine how large this store was. Even though 46 stores are closing, CVS is still going strong for now.

CVS

CVS

Kmart

Target, Walmart, and Kmart all opened their chains at about the same time in the 1960s and were seen as three retail giants. However, soon there might be only two competitors in the game. Kmart closed more than 150 locations in 2018 and has no plans of stopping in 2019, with at least 53 closings planned already. Back in 2000, Kmart had over 2,200 stores open in the United States, and today, less than 200 stores are still open.

Kmart

Kmart

Party City

In a normal year, Party City closes between 10 and 15 stores across the country, but this year is different. They’re closing 55 stores in the United States. The world is currently facing its third helium shortage in only 14 years, which obviously wasn’t helpful for Party City’s business when most of their customers come to buy balloons. Party City claims that the helium shortage isn’t their full reason for closing all those stores, rather that they are trying to focus on improving their more profitable stores instead of helping failing ones.

Party City

Party City

Bed Bath & Beyond

In April 2019, the home store announced they would close down 40 stores this year. However, soon after, they upped the number to 60 stores. Don’t worry too much, though, because they also announced that they might open 15 new stores soon!

Bed Bath & Beyond

Bed Bath & Beyond

Signet Jewelers

Have you ever wondered who was the face behind Kay Jewelers, Jared The Galleria of Jewelry, and Zales was? It turns out that is Signet Jewelers, who plans on shutting down 150 locations this year alone. This huge shut down is part of their three-year plan to shut down 13% of their 3,500 stores around the world. The company hopes to pull their stores out of shopping malls and revamp their e-commerce which has increased sales by 10% this year.

Signet Jewelers

Signet Jewelers

Forever 21

For as long as we can remember, teens and young adults have been fawning over Forever 21, but they might be disappointed to hear that as many as 178 locations of the affordable clothing store will be closing by the end of 2019. Recently, the company filed for bankruptcy which caused some of their loyal customers to get worried, but they reassured everyone that they’re doing what they can to be set up for success in the future. Despite their clothing being cheap and trendy, they’re known for not being the highest quality.

Forever 21

Forever 21

GameStop

Just as online shopping has become more and more popular for clothing and food these days, the same is happening for video games. Recently, people aren’t taking the time to physically go into a video game store to buy something. Rather, they can just purchase it online and download it. GameStop has over 5,700 locations in 14 countries, but in 2019, they will be closing as many as 200 of those locations as a result of the company’s 14.3% drop in sales this year.

GameStop

GameStop

Walgreens

Worse than the fate of CVS, Walgreens is closing 200 of its stores in 2019. Even though this is less than 3% of its overall stores, it still seems like a hefty amount, and there’s no doubt that a lot of people will be losing their jobs. Due to low generic drug costs, Walgreens is struggling to keep its cash flow high enough to stay open. As a result, Walgreens is now partnering with stores like Urban Outfitters to allow customers to come to pick up their shipments from a Walgreens location.

Walgreens

Walgreens

Charming Charlie

If you’ve noticed less and less Charming Charlie locations near you recently, it’s because the company filed for bankruptcy twice in just two years, so the store shut down all its locations in all 38 states they were in. Even though the company went out of business, the founder of the store says he hopes to bring the store back one day, and even paid $1.1 million to secure the name and intellectual property of the store.

Charming Charlie

Charming Charlie

Chico’s

The once-popular women’s clothing chain made a statement in March that it would close as many as 100 Chico’s locations, 90 White House Black Market stores, and 60 Soma retail shops over the country over the next 3 years. While a lot of their stores are closing, they’re quickly realizing that the e-commerce world is where they want to be, so they have started selling their clothing and accessories on Amazon.

Chico's

Chico’s

Lowe’s

In 2019, this home improvement store will be closing down 51 of its locations in the United States and Canada. They will still have over 2,000 stores open, but they have definitely started to downsize visibly. The company states that a lot of the closures are simply because some stores are so close to each other that they both couldn’t successfully survive.

Lowe's

Lowe’s

Michael Kors

The upscale accessories brand plans on closing up to 125 of its retail locations soon since they aren’t making as much of a profit as they used to. Michael Kors is trying to adapt to a difficult sales environment, but eventually, you need to face the music and do what you need to in order to keep your company afloat.

Michael Kors

Michael Kors

Foot Locker

After they reported fourth-quarter earnings that were much better than expected, Foot Locker said it will be closing 165 stores in 2019 and spend millions to upgrade the remaining locations. The reason for this is to boost and improve their customer experience.

Foot Locker

Foot Locker

Wet Seal

After filing for bankruptcy in 2015, the teen fashion brand shut down all 171 of its locations. Seeing as there is less foot traffic at malls along with rising pressure from competitors like Zara and H&M, Wet Seal didn’t stand a chance.

Wet Seal

Wet Seal

Starbucks

One of the many chains being hit with a rough patch is the coffee giant, Starbucks. This isn’t as alarming since the chain tends to open and close a huge amount of stores every year to constantly movie into the most profitable markets and leave the rest behind. However, this year, they’re closing 150 stores. The company actually announced this plan back in 2017 and said it’s because of poor growth rates.

Starbucks

Starbucks

Avenue

Another chain that’s completely disappearing by the end of 2019 is the plus-size women’s clothing, Avenue. The chain, which began as Sizes Unlimited back in 1983, decided to shut down all its stores in the United States. The chain had been looking for a buyer and warned employees that if it couldn’t find one, it would have to shut down.

Avenue

Avenue

Gap

In February, Gap said it would close 230 stores over the next two years as it reported that the brand-name stores had a 7% sales decrease during the holiday quarter. While the Gap was a huge hit at one point, that isn’t the case anymore seeing as younger shoppers seem to gravitate towards trendier and cheaper clothing at Target or “fast-fashion” chains like H&M.

Gap

Gap

ADVERTISEMENT