11 Household-Name Brands Filing for Bankruptcy or Closing

J.Crew

On May 4, the popular preppy label worn by everyone from Meghan Markle to Michelle Obama announced it filed for Chapter 11 bankruptcy in a Virginia federal court.

Slide 1 of 12: From iconic stores to famous chain restaurants, a growing number of beloved brands are filing for bankruptcy, shifting their focus to e-commerce, or shutting down operations entirely as they face unprecedented financial stress

Neiman Marcus

Days after furloughing many of its 14,000 employees, Neiman Marcus officially announced its decision to file for bankruptcy on May 7, according to NBC News.

The Children’s Place

The children’s clothing chain, founded in 1969, is set to shutter 300 brick-and-mortar locations by the end of 2021.

Diane von Fürstenberg

Prolific designer Diane von Fürstenberg’s fashion empire is shrinking significantly. The New York-based label laid off 75 percent of its 400-person staff, and is set to close 18 of its 19 retail stores. Its new focus will be centered on a “digital-only, China-focused” business model, according to Business of Fashion‘s latest report published on June 15. 

True Religion

On April 13, the designer denim brand filed for Chapter 11 bankruptcy protection for the second time in three years, according to a report from Forbes.

24 Hour Fitness

The fitness chain, which closed its gyms in March due to the ongoing pandemic, announced on June 15 that it was “implementing a financial restructuring, through a voluntary Chapter 11 filing.”

Chuck E. Cheese

The show may not go on for Chuck E. Cheese after COVID-19. The brand behind the popular kid’s restaurant, CEC Entertainment, is nearly $1 billion in debt and is looking for a $200 million loan to keep the business afloat, according to the Wall Street Journal.

Pier 1 Imports

Pier 1 filed a motion with a bankruptcy court seeking to close its stores “as soon as reasonably possible,” the company announced in a press release on May 19.

J.C. Penney

The department store chain announced on May 15 that it filed for Chapter 11 bankruptcy protection from its creditors as part of a restructuring plan that would eliminate “several billion dollars of indebtedness” and “provide increased financial flexibility to help navigate” the health crisis. The company also said that it plans to close stores, but did not disclose specific locations or timing.

Souplantation & Sweet Tomatoes

The buffet chains’ parent company Garden Fresh Restaurants has decided to permanently shutter all 97 locations of Souplantation — also known as Sweet Tomatoes outside of Southern California — and lay off its workforce, CEO John Haywood confirmed to the San Diego Union-Tribune on May 7.

Le Pain Quotidien

The fast-casual bakery chain announced it would close all 98 of its U.S. locations after filing for Chapter 11 bankruptcy protection in May. However, at least 35 stores will potentially be reopened at a future date following a partial buyout by Aurify Brands.

Just a few of what many experts believe is just the beginning.

Article by Lindy Segal for People Magazine

https://www.msn.com/en-us/money/companies/11-household-name-brands-filing-for-bankruptcy-or-closing-amid-the-coronavirus-pandemic/ss-BB15F8A8?ocid=msedgntp#image=1

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Author: Dennis Hickey

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