6 Beloved Stores You May Never Shop at Again Because of Coronavirus
Neiman Marcus, J. Crew, and David's Bridal are among those in jeopardy thanks to COVID-19.
Businesses of all kinds have been hit hard by the COVID-19 pandemic. And while certain segments are better suited to weather the now months of mandated closures, others—such as retail chains and major department stores—may not be able to bounce back from the financial blow caused by the coronavirus. Unfortunately, that means that as states start to lift lockdown orders, consumers may find their favorite apparel brands in jeopardy of closing for good. With that, here are the beloved retail stores closing locations and filing for bankruptcy thanks to the financial fallout from the pandemic. And for more about how COVID-19 will change the way we live, check out the 5 Grim Realities of Life After Coronavirus You Need to Come to Terms With.
On May 4, J.Crew became the first major retail chain to declare bankruptcy in the wake of the coronavirus pandemic. Reporting on the the iconic clothing brand's financial trouble, The Wall Street Journal quoted J.Crew Chief Operating Officer Michael J. Nicholson, who said the company expects to lose $900 million in sales after forced coronavirus closures. And with the chain already struggling prior to the pandemic, it's not unlikely that it will close its doors for good. For other retail changes you can expect to see after things reopen, check out the 7 Major Ways Walmart Won't Be the Same After Coronavirus.
Just a few days after J.Crew, NPR reported the news that Neiman Marcus followed suit and became the first major department store to file for Chapter 11. The luxury retailer was already carrying a massive $4.3 billion debt incurred after a private-equity takeover in 2013. And while, according to The New York Times, the company insists this doesn't mean they are liquidating, and that they will in fact reopen stores when it is safe to do so, the future of Neiman Marcus doesn't look promising—the luxury retail space isn't expected to have an easy time bouncing back in a struggling economy.
It was evident Forever 21 was struggling to stay afloat well before COVID-19 surfaced when the fashion brand filed for bankruptcy last fall, announcing it would close more than 100 stores in the U.S. They company did, however, remain in business and was even acquired by Authentic Brands, Simon Property Group and Brookfield Property Partners, just before the pandemic struck.
Even so, the recent financial blow may prove too much to overcome. In fact, The Post and Courier, a local newspaper in Charleston, South Carolina, reported that the retailer's downtown location was closing, with liquidation signs stating that "Everything Must Go" posted throughout the store. And for more things you may not see after COVID-19, check out the 9 Things You'll Never See in Public After the Coronavirus.
With proms called off and weddings postponed indefinitely because of the coronavirus, it's no surprise that popular wedding and prom dress retailer David's Bridal would be facing some financial heat. After temporarily closing over 300 retail stores to slow the spread of COVID-19, the company was forced to reduce the salaries of the executive management team, board of directors, senior corporate, and field employees, Yahoo Finance reported. Not only that, but it also had to furlough many store and corporate employees. And for once-thriving retail giants that are no longer with us, check out the 17 Once-Beloved Department Stores That Are Now Defunct.
Following the economic hit caused by the coronavirus, CNBC reports that Nordstrom will permanently close 16 of the department store's 116 full-line locations in the U.S. While the brand hasn't released an official statement on whether or not this is an indicator of larger, company-wide closure of operations, it certainly seems that this won't be the last you hear about Nordstrom's plans to downsize its presence.
According to The Wall Street Journal, the COVID-19 pandemic is merely the final below in making J.C. Penney's impending bankruptcy a reality. Owing nearly $3.7 billion in debt, the company missed an interest payment on Apr. 15, opting to take advantage of a 30-day grace period. And while the company could technically cover the missed payment before the rapidly approaching deadline to do so, Forbes reports that J.C. Penney will most likely have to declare bankruptcy.