Yet another popular company is attempting to find its financial footing amid the fallout of the COVID-19 pandemic. Beloved snack company Peeled Snacks filed for bankruptcy in Wilmington, Delaware on March 3, The Wall Street Journal reports. The brand, known for its dried fruit and fruit crisps, had experienced a significant dip in sales related to lower traffic in airports and fewer children in schools, two places essential to the company’s sales figures prior to COVID, according to the brand’s bankruptcy filing.
Peeled Snacks' bankruptcy filing comes just one year after the brand announced plans to expand. After becoming a B Corporation—a certification that indicates the brand’s legal transparency and commitment to ethical practices—Peeled announced in Feb. 2020 that it would be growing its product offerings after receiving a multimillion-dollar investment from Decathlon Capital Partners. “Peeled Snacks is well-positioned in the high-growth market for healthier snacks,” said Decathlon’s Co-Founder and Managing Director John Borchers in a statement regarding the investment. “Their products are not only popular with consumers but start with fair labor policies and sustainable farming practices. Their business ethos and growth potential make us proud to invest in the Peeled Snack vision.”
But unfortunately, COVID changed Peeled Snacks' plans, just as it has for many other businesses. Read on to discover which other brands are closing up shop amid COVID. And for more brands making major changes, This Iconic Chain Is Closing Up to 50 Stores.
1 | Alamo Drafthouse
ShutterstockAlamo Drafthouse, a movie chain known for its food and cocktail service, filed for Chapter 11 bankruptcy protection on March 3. The chain announced that it plans to close three of its 41 total locations as part of the bankruptcy process, including theaters in Kansas City, Missouri, and two locations in Texas: the famous The Ritz in Austin and another theater in New Braunfels.
However, in a statement, the brand expressed optimism about the future. “Post-COVID, we’ll make certain that all of our signature series will find a new home at another Austin Alamo Drafthouse Cinema and that the spirit and personality of The Ritz will continue,” the company said on their website. And for the latest news on your favorite brands delivered straight to your inbox, sign up for our daily newsletter.
2 | The Disney Store
BCFC / ShutterstockThe Disney Store, which sells everything from Disney-branded toys to character costumes to housewares, announced on March 3 that it would shuttering 60 of its 300 stores in the near future, CNBC reported.
"Over the past few years, we've been focused on meeting consumers where they are already spending their time, such as the expansion of Disney store shop-in-shops around the world," Stephanie Young, president of Consumer Products, Games and Publishing at Disney, said in a statement (via People). "We now plan to create a more flexible, interconnected e-commerce experience that gives consumers easy access to unique, high-quality products across all our franchises.” And for some shopping experiences you’ll never have again, This Fan Favorite Chain Is Closing All Its Stores.
3 | Paper Source
Susan Montgomery / ShutterstockPaper Source, a beloved card and gift shop, filed its petition for Chapter 11 bankruptcy protection on March 2. The nearly 40-year-old brand, which currently operates 158 retail locations and an e-commerce business, will close a minimum of 11 stores to help offload debt.
“As with many other retail brands, [Paper Source has] sustained deep damage to their finances and operations as a result of the ongoing COVID-19 pandemic,” explained Paper Source CFO Ronald Kruczynski in the company’s bankruptcy filing, via Retail Dive. And for another company in trouble, check out This Popular Pizza Chain Just Filed for Bankruptcy.
4 | Solstice
dennizn/ShutterstockSunglass retailer Solstice filed for Chapter 11 bankruptcy on Feb. 18, announcing that it would making “necessary changes” to its business model in the near future.
The chain didn’t announce any store closures at the time of its filing, and, in fact, the company’s CEO, Mikey Rosenberg, said that there may still be good things coming for the mall staple. “We are optimistic about reorganization as we continue to see increasing business in our stores as COVID restrictions are lifted and in the new fashions that our vendors are providing," Rosenberg said in a statement. And for more stores in serious financial trouble, This Popular Department Store Just Filed for Bankruptcy.
