Fashion to Figure Closing All Stores
Year in Review: More 11,000 Manner-Related Doors Shutter in 2020
Covid-19 has accelerated a retail apocalypse years in the making.
Retailers accept been purging their store base since the Great Recession. Fifty-fifty after all those closures, they still take too many doors for electric current needs, especially in a world where fifty-fifty more consumers—newbies, if you volition, to online shopping—have been forced to migrate to digital commerce during the coronavirus pandemic.
And with customers staying home in a world where social distancing remains the mandate, retailers have fifty-fifty less need for their mall-based stores. After all, why bother when those locations go nonproductive due to pes traffic shortfalls. And for retailers who were teetering on the financial cliff at the outset of 2020, high debt levels and nonexistent cash flow from temporary store closures certainly didn't help. Style wasn't exactly top-of-mind as consumers initially shifted their focus to purchases of essential items. Fifty-fifty when stores reopened, express capacity was just one challenge. Many fashion firms had the incorrect merchandise as consumers shifted their fashion focus to athleisure and more comfy clothes.
Every bit a result, retailers in 2020 were forced to realign their shop network and cull doors that no longer fit strategies for 2021 and beyond, while those with too much debt on the books had no choice but to either close downward operations or file for Chapter 11 bankruptcy court protection.
And then where are we at present?
So far, in that location were more 11,000 reported fashion store closures—11,060 to exist exact—in 2020 by mid-December, and that's just for the banners that fabricated news. That total surpassed the 9,300-plus stores that closed just in the U.S. beyond all retail categories in 2019. And there are many other nameplates globally that accept not been deemed for. If the forecast of 100,000 retail doors that's been projected to disappear past 2025 comes to fruition, shopping centers and strip malls could look very different in the almost future. That's peculiarly truthful if we get close to the 20,000-25,000 stores that are projected to go dark this year.
Here are the way retail and apparel companies that announced store closures in 2020:
DSW
Number: 50 to 78
Backstory: Pointing to pes traffic challenges that may not reverse course for some time, DSW's parent Designer Brands said it plans a ten to 15 pct reduction of its shop base. With a current store network of 524 U.Due south. stores, that would mean closing fifty to 78 doors. Information technology likewise operates 145 stores in Canada.
Francesca's
Number: 234
Backstory: The women'due south budget concatenation filed its Chapter 11 petition on Dec. four to sell the business to TerraMar Capital. The company operated 558 stores at the time of its filing, but had already closed 137 stores last month. Days after its filing, Francesca'southward said it would shutter some other 97 stores.
Abercrombie & Fitch Co.
Number: vii flagships
Backstory: The specialty concatenation, which includes its teen Hollister brand, began the year with 15 tourist-driven locations and decided to skin down to eight flagship stores dorsum in 2018 as part of its store optimization strategy fifty-fifty earlier the pandemic began in 2020. As for its mall-based locations, information technology has about 50 percent of its shop leases upward for renewal over the adjacent two years, and then even more locations are likely to close.
Caleres
Number: 133
Backstory: The visitor said it will close 133 Naturalizer-branded stores by the end of fiscal 2020. On a conference call later on reporting third-quarter results last calendar month, executives said the brand had been revamped and that this was a good time to exit some locations because those doors were tied to a now outdated positioning strategy.
Furla USA
Number: iv, including one outlet location
Backstory: The U.S. subsidiary of luxury brand Furla SpA saw its wholesale accounts get impacted by the closure of nonessential retailers, too as a slowdown in consumer purchases at its stores. Luxury brand have been hit hard as tourism declined because of the pandemic. The company filed its Chapter 11 petition to get rid of leases and lower its debt. Before the filing, it operated six full-price freestanding stores and eight outlet locations.
Chico's FAS
Number: 63 to 88, including 10 locations in Canada
Backstory: The women'south specialty chain operates the nameplates Chico's, White House|Black Marketplace and intimates concept Soma. In November, it said it closed 28 stores thus far and planned to close some other 25 to 50 locations. The visitor's Canadian operations in August filed for defalcation, according to a regulatory filing with the Securities and Commutation Commission. The bankruptcy will result in Chico'south exit from Canada, also as the closure of four Chico's stores and six White|House Black Market doors in the Canadian market.
Gap Inc.
Number: 350
Backstory: The visitor'due south 3 main nameplates are its core Gap chain, Banana Republic and Old Navy. In October, it said it would close 220 Gap stores and 130 Banana Republic locations by 2023. The plan is to accept 200 stores closed past the end of this year and some other 75 locations in 2021. The balance of the targeted locations will close by the cease of fiscal twelvemonth 2023.
Carter'southward
Number: 200
The children'south apparel chain is closing at least 200 doors, or 25 percent of its store fleet. Almost 60 percent will exist close by the finish of 2021, and 80 percent by the terminate of 2022.
Century 21
Number: 13
Backstory: This off-pricer has been a long-fourth dimension fan favorite of New Yorkers and tourists. The retailer said it was forced to shut down operations afterward insurance providers elected not to pay $175 meg under policies to protect against business disruptions during the pandemic. The retailer operated 13 stores.
American Hawkeye Outfitters
Number: xl to fifty
Backstory: The company, which too operates the Aerie intimates nameplate, plans to shutter twoscore to 50 locations for the year, with most 250 leases set to elapse. Information technology also has another 250 shop leases that will come up for renewal next year, which means that more store closures could be on the agenda in 2021.
Stein Mart
Number: 281
Backstory: The 281-door section store operator had already let become of most of its employees when it filed for Chapter 11 bankruptcy courtroom protection. It had been on the watch list of credit analysts for a number of years. The visitor's intellectual belongings assets were sold to Retail Ecommerce Ventures for $6 one thousand thousand, a company that specialized in asset-light operations past owning retail business organization that sell online but. Recent acquisitions include Dressbarn and Pier one.
Rent the Track
Number: five
Backstory: The company in August said it would close its five store locations to focus on online operations. It as well plans to increase the number of drop-off locations.
Frye Visitor
Number: 16
Backstory: The company said it was closing all sixteen stores, choosing to focus on its digital business.
Tailored Brands
Number: 500
Backstory: Too much debt on the books from its $1.8 billion acquisition of competitor Jos. A. Banks Clothiers Inc. in 2014 was a huge problem, exacerbated by a lack of cash flow when stores closed temporarily to aid curb the spread of Covid. The plan was to close up to 500 stores, leaving it with a shop base of 775 doors. The visitor exited bankruptcy on Dec. 1.
Sometime Ann Taylor parent Ascena Retail Group closed ane.623 doors beyond multiple banners when it filed its Chapter eleven petition.
Ascena Retail Group
Number: one,623
Backstory: The company had been struggling for several quarters, and had already sold a bulk stake in Maurices and completed a wind-down of its Clothes Barn operations. It denied that defalcation was even being considered, but then the impact of Covid and mandatory store closures concluded upwardly pushing the company into Chapter 11. At the time, the company said it would shut 1,600 doors, with many locations connected to its decision to shutter its plus-size Catherines nameplate. Ascena later closed 23 more Justice doors.
The company has since sold its nameplates Catherines to FullBeauty Brands Operations LLC for $twoscore.eight meg in September and Justice to Bluestar Alliance for $90 1000000 in November. On Dec. viii, the defalcation court gave its approval for Ascena to sell its remaining brands—Ann Taylor, Loft, Lane Bryant and Lou & Grey—to private equity business firm Sycamore Partners for $540 1000000.
Coldwater Creek
Number: 13
Backstory: The women's chain filed its Chapter 11 petition in Delaware, and was later acquired in September by Newtimes Group for $12.ii one thousand thousand. Information technology'south xiii stores closed due to Covid in mid-March and never reopened. The online site was relaunched on December. 17.
RTW Retailwinds Inc.
Number: 378, including outlet locations
Backstory: The company, which operates women'due south apparel chains under the nameplates New York & Co., Fashion to Figure and Happy x Nature, filed a voluntary Chapter 11 petition for defalcation court protection in 2020. Saadia Group caused the New York & Co. and Way to Figure nameplates for $40 meg, and will operate them solely as online businesses.
Heritage Brands Outlet Stores
Number: 162
Backstory: PVH Corp. operates the outlet stores for its Van Heusen, Izod, Arrow, Warner's, Olga and Geoffrey Beene brands. The visitor in July said it would close all locations.
Brooks Brothers
Number: 51
Backstory: The storied seller of American dress and accessories filed for defalcation courtroom protection in July, and was caused a month later by a articulation venture between Simon Property Group and Authentic Brands Grouping for $305 million.
J. Jill
Number: 11
Backstory: The women's specialty concatenation said in July that information technology would close 11 locations, with plans to have 275 doors by the end of the yr.
H&M
Number: 420, with 170 locations to close in 2020 and 250 in 2021
Backstory: The Swedish fast-manner chain decided to increment the number of stores it plans to shut to 170 from 130 later posting a 23 percent drop in first-half revenues, and in Oct said it would shutter 250 doors in 2021. But the 250 locations represent just vi percent of full doors.
Lucky Brand Dungarees
Number: 200
Backstory: The visitor closed the stores every bit part of its Chapter eleven restructuring. The brand was later acquired out of bankruptcy past Sparc, a joint venture between brand management firm Authentic Brands Group and mall operator Simon Property Group.
G-Star Raw
Number: 57
Backstory: The denim style brand, based in Los Angeles, institute its business disrupted by the Covid pandemic and filed for bankruptcy protection so its could reassess and restructure its store portfolio. Information technology's defalcation filing in Australia saw the shutdown of all 57 stores in Baronial after failing to find a buyer.
Michael Kors
Number: 170
Backstory: Capri Holdings Ltd., which also owns the Versace and Jimmy Choo brands, is rightsizing its Kors shop base of operations over the next 2 years.
The Children'south Place
Number: 300
Backstory: The store closures are projected to be completed by the end of financial year 2021, although 200 of those doors are expected to take place in the electric current fiscal year, equally the retailer places a greater focus on digital commerce. The rest of 100 doors will shut in 2021.
TM Lewin
Number: 71, comprised of 66 doors in the U.K. and v in Australia
Backstory: The visitor fell into administration on June 30 and shuttered all stores.
Guess
Number: 100 stores globally, primarily across North America and China
Backstory: Sales productivity across its shop network has fallen during the pandemic, and lease expirations give the company flexibility to downsize its retail footprint.
Zara'due south parent Inditex is closing 1,200 doors over a two-year period.
Inditex
Number: 1,200, or up to 600 stores annually in 2020 and 2021
Backstory: After reporting its kickoff-ever quarterly loss in Q1, the Zara owner is focusing on store optimization every bit it works to integrate its store and online business. It'south too taking a closer focus on its supply chain to goose egg in on inventory management, and its using existing store networ to assistance with the fulfillment of online orders.
Grand-III Apparel Grouping Ltd.
Number: 199, comprised of 110 Wilson's stores and 89 G.H. Bass locations
Backstory: The company restructured its retail operations after deciding to focus on its wholesale functioning and its DKNY and Karl Lagerfeld Paris businesses.
Tuesday Morning
Number: 230
Backstory: The visitor filed for bankruptcy court protection in May, and shuttered 230 locations. Information technology plans go out Affiliate 11 before the end of the twelvemonth with 500 stores still in operation.
J.C. Penney
Number: 175
Backstory: The mass merchant airtight half dozen section stores earlier it filed its Chapter 11 petition and and so airtight 154 during its tour of defalcation court. It recently exited bankruptcy proceedings when the operating business organisation was sold to its 2 largest landlords, Simon Property Group and Brookfield Asset Management. On Dec. 17, the visitor confirmed the boosted closure of 15 more doors.
J. Crew
Number: 67
Backstory: The preppy chain, along with its Madewell concept, filed a bankruptcy petition in May. While it plans to reopen nearly 500 doors afterwards temporary COVID-xix shutdowns, the retailer is looking to get out of 67 store leases over time. It already closed eight stores during its bout of bankruptcy proceedings.
Diane von Furstenberg
Number: 18
Backstory: The fashion brand is closing 18 of its stores, leaving but one open in New York City's Meatpacking Commune. The brand is refocusing its business to an e-commerce model in the U.S. and Europe, and volition keep with wholesale operations in Communist china. The DVF Studio sectionalisation in the U.1000. in May filed for administration, the equivalent of a Chapter eleven bankruptcy petition in the U.S.
Nordstrom
Number: nineteen, comprised of 16 full-line doors and all 3 Jeffrey stores
Backstory: The retailer is restructuring its business organisation following the impact from the coronavirus, with the closures "based on the needs of each market place." The company has also been reducing expenses by restructuring regions, support roles and its corporate arrangement.
Victoria's Secret
Number: 250 locations across the U.S. and Canada, including 238 in the U.South.
Backstory: L Brands is restructuring the brand later Sycamore Partners backed out of a deal to learn a 55 percent bulk stake in the lingerie chain.
Stage Stores Inc.
Number: 738
Backstory: A bankruptcy in May had the company liquidating 550 reopened stores. The retailer, which plans to liquidate its remaining stores equally they are able to reopen, was in the middle of converting its department stores to its off-toll nameplate Gordmans. The visitor is likewise in the process of selling its assets.
Lord & Taylor
Number: 40
Backstory: The retailer initially airtight 2 locations earlier in the twelvemonth, merely rumblings in April indicated that could be trouble ahead following a reduction in headcount. Lord & Taylor, and its parent Le Tote, afterward filed for bankruptcy in August and the initial programme was to liquidate 19 stores as the company tried to find a buyer for America'south first department store. It afterwards upped the number of doors to close to 24, hoping to keep 14 in operation. Failing to find a buyer, a decision was made to liquidate and shutter all doors.
Another 142 stores could close in a liquidation if last minute rescue attempts come to zilch.
Debenhams
Number: 61, including eleven in Ireland
Backstory: Subsequently closing 22 stores in the outset of the year, the retailer declared insolvency in April, representing its 2d bout of insolvency in ane yr. It has liquidated all 11 doors in Ireland, and some other 28 locations in the U.K. have been airtight.
However, the visitor failed to find a buyer and is slated to shut downwardly its remaining 142 stores in the U.Chiliad. Whether that actually happens is unclear. Mike Ashley's Frasers Group is in concluding infinitesimal talks to rescue the broke section store chain. This calendar week, word surfaced that American brand direction business firm Accurate Brands Group is also in talks to possibly take over the ailing chain.
Cath Kidston
Number: sixty
Backstory: Another early victim of the coronavirus, this British style and homeware brand shut downward all 60 stores in the U.G. Its Japanese counterpart besides filed for bankruptcy protection shortly thereafter.
Galeria Karstadt Kaufhof
Number: forty
Backstory: Germany's biggest section store retailer filed for administrative insolvency, a victim of the Covid pandemic following mandatory store closures to assistance curb the virus. The visitor, which operated 172 stores at the time it filed, exited insolvency proceedings on Sept. 30.
Oasis and Warehouse
Number: 92 freestanding stores and 400 concessions
Backstory: Some other early victim of the coronavirus, the U.K. high fashion brands fell into assistants. Hilco Capital agreed to a bargain to buy its intellectual property assets, but ii months later on the IP and related assets were sold to Boohoo.
Laura Ashley
Number: 18
Backstory: The British lifestyle make filed for administration in the U.K. in mid-March. In April, certain avails including the brand's intellectual holding were caused past Gordon Brothers, which is exploring the concatenation's options.
Esprit
Number: 56
Backstory: Esprit said it would close all of its stores in Asia outside of Mainland china. The total store count for the stores in Malaysia, Singapore and Taiwan, plus Hong Kong and Macau, is 56.
Neiman Marcus
Number: 28
Backstory: The luxury department store said in March that it will close twenty of its 22 off-price Last Telephone call concepts. It volition keep 2 to motility inventory from the full-price stores. Neiman'due south later on filed for defalcation court protection and closed about 8 doors, including its massive N.Y.C. flagship that opened in Hudson Yards in Manhattan in March 2019.
Modell's Sporting Goods
Number: 153
Backstory: The visitor closed some stores and and so filed a petition for Chapter xi bankruptcy court protection in March, but to close down due to the pandemic. In June, the remaining 107 stores reopened to begin going-out-of business sales.
The home decor concatenation has liquidated, endmost 936 shop locations.
Pier I Imports
Number: 936
Backstory: The domicile furnishings retailer filed for Chapter 11 bankruptcy court protection and concluded upward liquidating when it couldn't find a going-concern buyer. Information technology initially planned to close 450 stores before filing for defalcation, simply then the coronavirus pandemic hit, and so stores were put on pause equally nonessential retailers temporarily airtight to help curb the spread of the virus. But Covid besides impacted its ability to find a buyer, and the retailer decided to conduct a winding down of operations.
Sears
Number: 51
Backstory: The retailer, a nameplate operating nether the umbrella of corporate parent Transform Holdco, said in November 2019 that information technology was closing 51 stores in February.
Kmart
Number: 45
Backstory: The discounter is part of the corporate belongings of Transform Holdco, which said in November 2019 that it would shutter 45 locations in February.
Macy's Inc.
Number: 125
Backstory: The shop closures are function of a routine review of the Macy'due south brick-and-mortar base of operations. Another 95 ,and possibly even hundreds, are expected to close.
Walmart Inc.
Number: 3
Backstory: The mass discounter has closed iii stores, one in Michigan and two in North Carolina.
Express
Number: 100
Backstory: Virtually 31 stores are already closed and it plans another 35 past the stop of January. The company's armada rationalization includes the nine doors closed in 2019. Another 25 doors could close in 2022, bringing the total number to 100 locations.
Opening Ceremony
Number: 4
Backstory: Caused in mid-January past streetwear platform New Guards Group, the label will cultivate its brand instead of operating equally a multibrand retailer.
Beales
Number: 23
Backstory: The U.K. department store declared insolvency in January. A month later, it shuttered 12 of its 23 locations. Even so, the chain couldn't find a buyer and the coronavirus outbreak forced the remaining 11 locations closed.
Bloomingdale's
Number: one
Backstory: The retailer closed its store at The Falls, a mall in south Miami-Dade, in January after 35 years in operation.
Christopher & Banks
Number: xl
Backstory: The company said concluding yr that it plans to shutter upwardly to forty doors in 2020, role of a renewed focus on e-commerce. The visitor is now seeking strategic alternatives as their is incertitude as to its viability every bit a going concern.
Olympia Sports
Number: 76
Backstory: The struggling athletic footwear and clothes chain was sold to sports retailer JackRabbit terminal twelvemonth, which elected to keep simply 75 Olympia Sports store locations open. That meant that the balance of 76 stores will close this year.
Forever 21
Number: 207 stores globally, including 101 locations in the U.Southward.
Backstory: The mall-based fast-fashion chain filed its Chapter xi petition in September 2019. It had initially planned to shutter 350 stores globally, including 178 doors in the U.S. At the time, the chain had 549 U.S. stores and 251 overseas. Most of those locations were slated to close in 2020, post-obit the holiday season that ended February. ii. The company was acquired for $81 million in February by a joint venture comprised of Accurate Brands Group and Simon Belongings Group–each owning 37.5 percent of the intellectual belongings and operating business–and Brookfield Belongings Partners, which has a 25 per centum stake in the IP and operating visitor. The new owners said they programme to save about 450 doors that remain open.
Destination Motherhood
Number: 90
Backstory: The motherhood clothing retailer filed a Chapter xi petition in October 2019 and was slated to shutter 183 of its 436 doors. It was subsequently acquired past brand management firm Marquee Brands in December for $50 million. Part of that transaction included the closure of the retailer'south remaining 235 stores betwixt January and March.
0 Response to "Fashion to Figure Closing All Stores"
Post a Comment