These Beloved Stores Could Be Next to Close in Your Town
Your favorite shopping outlets might be filing for Chapter 11 soon.
When the COVID-19 pandemic hit the United States in the spring, it delivered a one-two punch to both our healthcare and economy. Businesses around the nation shuttered due to stay-at-home orders, and even now, as regions reopen, many retail stores are slow to bounce back. Others, unfortunately, are expected to disappear forever. In fact, according to an in-depth analysis by CreditRiskMonitor, there are a handful of companies that are at risk of filing for Chapter 11 in the next year. Spanning a handful of different industries, from apparel chains to drugstores, these popular outlets could be closing in your neighborhood for good. And for more stores you won't be able to shop at anymore, This Popular Clothing Chain Just Announced It's Closing 250 Stores.
Upscale clothing shop, Express, may have reopened almost all of its locations, but it's still struggling to make up for the loss of customers. During a second quarter earnings call, the company's executives reported an operating loss of $136 million. And for more sad retail news, This 132-Year-Old Beloved Department Store Could Be Doomed.
At the end of July, the Canadian branch of Chico's officially filed for bankruptcy. This resulted in four Canadian closures as well as six White House Black Market boutiques in the country. In the United States, things aren't much better for the women's retailer as it experienced a $46.8 million loss in the second quarter of 2020.
The staple drugstore chain had its lowest point at the start of the year, when it reported a net loss of $65.5 million. However, there's hope yet as the summer proved to bring in more business and minimize the second quarter losses to $13.2 million. And for another place you'll have to say goodbye to, This Beloved Discount Store Is Closing All of Its Locations.
Francesca's is a favorite among young adult women for its fresh, fun styles. However, the retailer closed a number of branches in 2019 as foot-traffic waned, and got hit even harder by the coronavirus pandemic. In the past few months, investors were told that the brand might have to file for Chapter 11 if it continued this downward trend.
This women's clothing store has been on the rocks for a while—filing for a loss of $128.6 million in 2019—and nearly teetered on bankruptcy last month. During the pandemic, sales have seen an abysmal decrease of 50 percent year-over-year. And for more up-to-date retail info, sign up for our daily newsletter.
As a go-to option for tall and stocky men, Destination XL encountered a rather large rough patch in 2020 that it may not be able to recover from. Total sales decreased 38 percent in the second quarter compared to the same time period last year.
It's not looking good for iMedia Brands, which heads up the home-shopping network, ShopHQ. In April, the company laid off more than 100 employees. Apex Global Brands, an apparel and footwear company that owns brands such as Hi-Tec, Cherokee, and Tony Hawk, also made the at-risk list.