22 large company, closing the shops and restaurants in the United States because of the bankruptcy

Some shops and restaurants close permanently, says GOBankingRates.

22 крупные компании, закрывающие магазины и заведения в США из-за банкротства

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July 8, Brooks Brothers has become the latest company, declared bankruptcy during the year 2020, become financially brutal for many businesses. Retail chain announced the closure of 51 of the store by the pandemic coronavirus.

“In the past year, the Board of Directors of Brooks Brothers, management, and financial and legal advisors evaluated the various strategic options for the future of the company, including a potential sale of the business, told CNBC representative Brooks Brothers. — COVID-19 became extremely destructive and damage our business.”

Many retailers, restaurants and other large brands are already barely making ends meet before the pandemic, and the recent downturn in the economy caused by a coronavirus, it may be the last straw for some of these companies. In addition to Brooks Brothers, that’s another 21 company, which filed for bankruptcy in the year 2020.

1. 24 Hour Fitness

  • The number of closing points: 100

National sports network the 24 Hour Fitness filed for bankruptcy on 15 June after the closure due to pandemic coronavirus.

“If not for COVID-19 and its devastating consequences, we would not have applied, said CEO Tony Hubert. — We expect that we will have significant funding with the possibility of restructuring the balance sheet and operations, to ensure a sustainable future”.

In the United States still runs about 300 clubs of the company.

2. Advantage Rent A Car

  • The number of closing points: 21

In may the company declared bankruptcy and closed about 40% of the offices in the United States.

“We have suffered from the simultaneous reduction of travel, greatly increased costs and frozen credit markets”, — said the representative of John Austin.

3. Chuck E. Cheese

  • The number of closing points: 34

CEC Entertainment, the parent company of Chuck E. Cheese and Peter Piper Pizza, filed for protection from bankruptcy June 24 after the closure of pandemic and the existing debt. In its bankruptcy, the company said debt of $2 billion and $1.7 billion in liabilities. CEO David Mckillips said that the coronavirus pandemic is “the most difficult event in the history of our company.”

Mckellips expressed hope that the protection from bankruptcy will help the company to stay afloat. Finally will be closed 34 from 555 locations.

4. Dean & DeLuca

  • The number of closing points: 0

New York grocery store chain Dean & DeLuca has closed all of its offices, with no deductible to the date of filing for bankruptcy under Chapter 11. At the time of registration the company had only one employee and a commitment of $500 million filing for bankruptcy Dean & DeLuca hoped to conclude a restructuring agreement that would re-open their shops.

5. Fairway

  • The number of closing points: 0

January 23 Fairway declared bankruptcy and plans to sell the remaining outstanding 14. Strengthening local competition from Whole Foods and Trader Joe’s, as well as online stores such as Amazon and Fresh Direct, difficult to support Fairway afloat. CEO Abel porter said that he hoped that the sale of stores would lead to “long-term success under the new owner”.

6. GNC

  • The number of closing points: up to 1200

Shop vitamins and supplements have already accumulated a debt of $1 billion to pandemic, but orders about the need for isolation has violated the plans of refinancing. Now the retailer may close up to a quarter of its stores.

“The process described in Chapter 11, will allow us […] to invest in appropriate area for future growth while improving our capital structure and balance”, — said in the letter to buyers.

7. Gold’s Gym

  • The number of closing points: 30

Gold’s Gym struggling trying to recover after the closure of the gyms associated with the coronavirus. May 4 the network of fitness declared bankruptcy, “to facilitate the financial restructuring of the company. This tentative agreement will allow us to become stronger and ready for growth.”

“Pandemic COVID-19 prompted us to take immediate action, including a difficult but necessary decision to close about 30 gyms to maintain strength and growth potential of the brand, as well as to ensure the continued viability of the company for decades to come, — said in a statement. — We work with our landlords to ensure that the remaining gyms will re-open”.

8. Hertz

  • The number of closing points: N/A

Hertz Global Holdings Inc., which owns brands car rentals Dollar and Thrifty in addition to Hertz, by March, had more than $24 billion in debt, and by mid-March had lost all the income in connection with the termination of travel due to the coronavirus. Not being able to pay its creditors, Hertz declared bankruptcy on may 22. After filing bankruptcy the company was put up for sale thousands of its rental cars.

9. JC Penney

  • The number of closing points: 242

JC Penney was already in debt because of declining sales and unsuccessful strategic decisions to pandemic coronavirus, and due to the closure of shops during the quarantine, things got worse. At the time of filing for bankruptcy, the company owed $4.2 billion the company said they plan to close approximately 29% of 845 of its stores.

10. J. Crew

  • The number of closing points: 0

May 4 J. Crew Group, which manages the brands J. Crew and Madewell, became the first national U.S. retailer, sought protection from bankruptcy after closing stores associated with the pandemic coronavirus. Despite this the company said was planning to reopen all their stores J. Crew, Madewell and factory after the removal of quarantine restrictions.

11. John Varvatos

  • The number of closing points: N/A

On 6 may, the representatives of the brand men’s luxury clothing John Varvatos announced that the company voluntarily filed a petition for bankruptcy under Chapter 11 to facilitate sale of the brand to one of the existing investor, Lion Capital.

“As for the rest of the industry of retail luxury goods the company John Varvatos Enterprises was negatively impacted by the pandemic coronavirus, — stated in the message of the company. — In response to the spread of COVID-19 and Executive orders, the company management has undertaken a difficult but reasonable steps to temporarily close all stores and save money. Restructuring agreements are an attempt to preserve the heritage of the company and to change the position of the reorganized company for long-term success.”

Although the company temporarily closed all 30 of its stores due to the outbreak of coronavirus, it has not announced plans for the final closure of any sites.

12. Le Pain Quotidien

  • The number of closing points: 63

The company filed for bankruptcy under Chapter 11 in late may, citing the impact of the closure during a pandemic. In accordance with the restructuring plan Le Pain sell its 98 locations in the U.S. the company Aurify Brands, which owns the other restaurant franchises, including Five Guys Burgers. It is expected that 35 shops will remain open.

13. Lucky Brand

  • The number of closing points: 13

July 3 at Lucky Brand filed for bankruptcy under Chapter 11 the plan for the sale of all of its assets, the company SPARC Group LLC, which owns several retail brands including Aéropostale and Nautica.

“Pandemic COVID-19 has seriously affected sales across all channels, — said in a press release acting CEO and Executive Chairman, Lucky Brand, Matthew A. Canesse,. — Although we are optimistic that the opening of shops and the return of our customers, the business has not yet recovered fully. We have taken many difficult decisions to maintain the viability of the company in these unprecedented times. Having considered all the options, the Board has determined that application in accordance with Chapter 11 is the best way to optimize operations and ensure long-term success of the brand”.

In the process of bankruptcy Lucky Brand covers 13 of the 200 North American stores.

14. Modell”s Sporting Goods

  • The number of closing points: 153

Network Modell”s Sporting Goods March 11, declared bankruptcy and closed all of its 153 stores in the northeast. The bankruptcy petition was filed just before the closure of retail outlets due to the coronavirus. Instead, increasing competition and the transition to online sales are the cause of the financial problems Modell. CEO Mitchell Modell said that the decision to liquidate was caused by “extremely difficult environment for retailers”.

“It is certainly not the result I wanted, and this is one of the hardest days of my life,” he said in a statement.

15. Neiman Marcus

  • The number of closing points: 0

The company declared bankruptcy on 7 may. A retailer with 113 years of history had financial problems, and the situation worsened when it was bought by a private investment company in 2013. The inability to attract new customers only exacerbated the problem and the duty of the retailer reached $5 billion by 2019.

16. Papyrus

  • The number of closing points: 254

In Papyrus announced that it will close all of its outlets, after the parent company of Schurman Fine Papers declared bankruptcy in January. Manufacturing company of stationery and cards indicated as reasons for its bankruptcy, the General downturn in the retail sector, and rising costs.

17. Pier 1 Imports

  • The number of closing points: 541

The company Pier 1 Imports declared bankruptcy in February, expressing hope that a buyer is able to keep the business. Pandemic coronavirus disrupted these plans, and in may the company announced the closure of all 541 retail offices.

“This decision follows months of work to find a buyer who will continue our activities in the future, said Robert Risbeck, CEO and CFO of Pier 1. Unfortunately, the challenging retail environment is greatly exacerbated by the profound impact COVID-19, hampering our ability to protect such a buyer and requiring that we went out of business”.

18. Roots

  • The number of closing points: 7

Canadian clothing retailer Roots announced in April that covers 7 of the 9 stores in the US, as its us subsidiary company Roots USA Corp. filed for bankruptcy under Chapter 7. Interim CEO Megan roach said that the stores are losing money, and the pandemic only exacerbates the situation.

19. Sur La Table

  • The number of closing points: 51

On 8 July the company announced that it has applied for bankruptcy under Chapter 11 to complete the sale of several of its outlets of the company Fortress Investment Group.

“This sale process will lead to the recovery of Sur La Table, able to thrive in a retail environment after COVID-19 — said Jason Goldberger, General Manager. — The company will be optimized to balance and retail area to provide a bright future that will continue our nearly 50-year tradition to offer a high quality culinary products and experiences”.

As part of the restructuring retailer of luxury goods planned to close 51 of the 121 store.

20. True Religion

  • The number of closing points: 8

The company filed for bankruptcy under Chapter 11 in April after accumulated approximately $138,5 million in secured debt and another $44 million in debt to unsecured creditors. In June, the company announced a restructuring plan which included the closing of 8 stores, although in the end the plan was rejected.

For the company the application was the second in three years. The company said that the pandemic coronavirus and the consequent closure of shops had a negative impact on her business.

21. Tuesday Morning

  • The number of closing points: 230

At the end of may, it was announced filing for protection from bankruptcy under Chapter 11 with plans to close more than a third of shops. From a retailer was in financial trouble before the pandemic, which has exacerbated the situation.

“Before the pandemic we gained momentum, expanding the supplier base and improved the brands, range and value for our customers by investing in the team on technology and corporate leadership, — said General Director Steve Becker. — However, complete cessation of operation of the store within two months puts the company in a financial situation that can be addressed effectively only through reorganization under Chapter 11”.

The company planned to permanently close 230 of 687 stores during the summer, although it hopes eventually to stay in business.

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