Covid Pandemic has created worldwide emergency like situation. Major Brick-and-mortar retailers are facing the heat. They are either shutting their doors permanently or are on the verge of closure. Sales have spiraled down, thanks to people being forced to stay indoors.
Some retailers were already under huge pressure due to online stores like, Amazon. Others blame the continued debt build-up, inability to match ever-changing consumer tastes, and lacking customer service.
In short, we’re being informed that these decades and even centuries-old retailers weren’t doing great even before the pandemic. And Pandemic is like the last nail in the coffin. They’re certainly not doing any better even as vaccines become available for the masses.
Governments’ control measures like six-foot spacing, limits on crowds, and continuing general concern about transmission is keeping the shoppers away from the once-thriving retail stores. Therefore, it’s only expected some of our favorite and long-lasting companies are now facing bankruptcy and liquidation. Has your favorite mall-mainstay survived the pandemic?
Some of the Major Retailers that have either closed their gates or are expected to close are:
Ascend Retail – Lane Bryant & Ann Taylor
Ascend Retail is known for its clothing-based subsidiaries, has filed for bankruptcy on July 23, 2020. To reduce about $1 billion in debt during its Chapter 11 restructuring process, plus-sized chain Lane Bryant and premium chains Ann Taylor, Loft, and Lou & Greg have had various, under performing stores sold.
Executive fashion brand Brooks Brothers filed for bankruptcy in July 2020. Younger generations are transitioning into a more casual office workspace, leading to a fall in customer base of Brooks Brothers.
In August, Authentic Brands Group, bought the bankrupt clothing brand for $325 million in a joint effort by Simon Property (the giant mall developer). 125 stores are expected to remain open.
CEC (Chuck E. Cheese) Entertainment
The 43-year-old chain, which drew kids with pizza, video games and a singing mouse mascot, was struggling even before the corona virus pandemic. But it said the prolonged closure of many outlets due to coronavirus restrictions led to Chapter 11 filing.
Last Year CEC saw 90% Revenue fall.
Major Discount retailer Century 21 sought Chapter 11 bankruptcy protection Thursday and plans to close all of its remaining stores.
The decision to “wind down its retail operations” was made after the company’s insurance providers failed to pay $175 million that was due under policies put in place to protect them from losses resulting from the COVID-19 pandemic.
However, in a recent development, the retailer is planning to re-launch with international debut.