Find Out The Retail Stores That Went Bankrupt in 2017

Advisor January 4, 2018

Nobody can say whether an innovation is a blessing or a curse. For most times, it is both! One example of this is the way we shop, as for decades, shopping has always been an outdoor thing. People had to go out and drive to a shopping center. They had to personally try on their clothes and hand cashiers the payments. But everything changed when the world started to go digital where transactions can now be done online, exams, booking tickets, and even shopping. This has been a blessing for the independent e-commerce but a curse to those brands with physical stores. Fewer people are going out to shop and instead, they do it at the comforts of their own home to have it delivered door-to-door.

Because of this transition, brands are forced to close down stores and file for bankruptcy. This is for the reason that the traffic is getting slower because of shopping website competitors like Amazon and eBay. Here are the companies that have filed for bankruptcy over the year 2017.

With the sudden development of technology, more and more stores are closing down.

Toys ‘R’ Us

Toys ‘R’ Us is an icon of the toy industry. It is the biggest toy retailing company in the 80s and 90s. But what used to be an empire now crumbled down when they could no longer compete with the e-commerce. They are also the latest company to file for bankruptcy before the year 2017 ended. Aside from underperformance, the company’s debts also sealed their future. The company is set to pay $400 million of interests in 2018 and a whopping $1.7 billion for the year 2019.

Radio Shack

Just like Toys ‘R’ Us, Radio Shack was also the big shark in the electronics department back in the days. They have been leading the industry for years, but 2017 was sadly their last. About 1,430 Radio Shack stores have been closed after filing two bankruptcy protection for 2017 and 2015. There are only 70 stores that are said to be left out of the thousands.

Payless ShoeSource

Payless ShoeSource is one of many companies that had to declare bankruptcy.

The giant shoe company is 2017’s one of the biggest retailing bankruptcy. With other 4,400 stores, worldwide, the company is said to close about 900 stores in different parts of the world. They even had clearance sales and discounts to some of the stores that are included in those 900 that are closing. Just like the other brands, debt and underperformance are the main cause of the cutback. The company filed their papers in August of this year. They were also able to slash $400 million off of their debt after closing 900 stores.

Teavana

The tea company owned by Starbucks Coffee Corporation is set to close all its 379 stores. This is after failing to revive the company. They have tried coming up with new recipes and redesigning stores to make it more appealing. But the sales they are getting is just not enough to fund its operation and keep stores open. Teavana stores will start closing next year, so better get those drinks before they’re all gone.

Perfumania

Perfumania declared bankruptcy in August 2017.

The perfume-retailing company has already filed for Chapter 11 in August 2017. Perfumania Holdings have 226 stores but it is set to close almost 60 of it. The company is trying to save the remainder of the company from debt that’s why they arrived at such decision. They are still trying to negotiate their leases and debts. Just in October, the company managed to pay its shareholders $2 per share. They remain hopeful for the future and they see the current financial crisis as temporary. The management is planning to further their business by bringing their products online and would give e-commerce a chance.

Other brands

There are many retail brands that are scheduled to close some of their stores during this year. These stores range from fashion to pharmacy, from affordable to high-end. There are also stores that are just closing to save operations money but are not bankrupt. Such stores include Macy’s, Michael Kors, Guess, and Crocs. These companies are trying to bring more in by letting go of the stores that are not hitting the target. Some are also considering to develop a fully-functioning e-commerce branch, the one that doesn’t involve sites such as Amazon.

The world of shopping has truly evolved. And along with it are the necessary cutbacks and expansions every company must deal with.