Every business owner knows that everything can change in the blink of an eye, regardless of the size of your company. In recent years, online shopping and other factors have had a great impact on the operation of various stores. Some have prospered, while others have struggled to stay in business. As we move into 2022, we’ve had to say goodbye to some long-standing companies that just aren’t making the same money as they used to. Profitability for big names like Bed, Bath & Beyond is no longer an exact science, and marketing strategies and expansion plans fail. Some brands are choosing to file for bankruptcy in a desperate attempt to get back on their feet financially, while others are closing multiple locations in a bid to minimize their losses.
However, the pandemic has been one of the most destructive causes of this apocalypse. The financial crash caused by COVID-19 did wipe out a few famous chains, decimated others, and prompted several to become new online-only stores. For years, major stores changed hands through majority stake acquisitions that created astronomical debts, as consumers switched from shopping in malls to shopping online. The massive shutdown of 2020 pushed some of the most iconic brands over the edge.
On the other hand, the recovery attempt that some businesses have can be seen reflected through large companies such as IRAIC, which thanks to its great potential represents large international alliances that have made possible the production, marketing, distribution of products, goods and services; In this way, it has exponentialized brands towards new markets, generating more sales, marketing, innovation, business strategies, business d evelopment, new jobs and great profits.
Here are the bankruptcies to date of well-known businesses and what the restructuring of these companies could mean.
- Starbucks
Year of foundation: 1971
Store closures: 400.
The popular chain announced the closure of more than 400 stores in the US and Canada as it focuses on pickup-only locations. Starbucks commented that they are still hopeful that this move will “improve the customer experience” and “enable profitable conditions for the future.”
- Men’s Wearhouse
Year of foundation: 1973
Store closures: 500.
Parent company Tailored Brands filed for bankruptcy in August 2020 and announced that it would close 500 of its 1,400 stores in the US and Canada. The brand still has high hopes that it can pull through, even if several thousand employees lose their jobs.
- Macy’s
Year of foundation: 1858
Store closures: 125 branches.
The company will close approximately 125 stores over the next three years. These 125 closures come on the heels of Macy’s decision to close nearly 100 total locations across the country in recent years. This represents nearly 15% of Macy’s total physical presence in the United States (the brand currently operates approximately 690 of its upscale department stores).
- Guess
Year of foundation: 1981
Store closures: 100.
In June 2020, Guess announced plans to close 100 stores worldwide in the next two years. While it amounts to just 9% of its global footprint, most of the closures will be in the US and China. The company’s stock is down 52% from last year thanks to closures due to the pandemic. With no other way to recoup its losses, Guess is doing what many other retailers are choosing to do: close its doors and hope for better days.
- Levi Strauss
Year of foundation: 1853
Store closures: unknown.
Levi laid off 15% of his corporate workforce (equivalent to around 700 employees) to try to even out the damage. It was not a good financial year for the 170-year-old brand, but because it is so well established, it stands a better chance of rebounding than many others.
- Long Tall Sally
Year of foundation: 1976
Store closings: all locations.
The retailer announced that it would close all locations in July 2020. The statement said: “The changing economics of retail, coupled with fierce competition, have hit us hard. The sudden and profound impact of COVID-19 has further weakened our position. The economic outlook is now too uncertain for our shareholders to continue to support the business, so it is with a heavy heart that I must tell you that we are closing Long Tall Sally.” Not only did the US operations close, but the entire company closed. However, at the last minute, UK-based AK Retail stepped in and bought Long Tall Sally. At the time of writing this report, the business continues to operate under new management, although some stores remain closed.
- New York & Co.
Year of foundation: 1918
Store closings: all locations.
Being a company active for more than 102 years is not something that can be easily achieved, but longevity is not always the key to success. New York & Co. has gone through many changes since it opened in 1918, but the company finally met its end in 2020 when its parent company RTW Retailwinds filed for bankruptcy. As a result, all locations began liquidation sales in order to get rid of as much remaining inventory as possible to help the company recoup some losses.
8.Tuesday Morning
Year of foundation: 1974
Store closures: 230.
Discount stores are usually incredibly popular, which is why Tuesday Morning managed to hold its own for quite some time. The company was created in 1974, but in May 2020 the retailer announced plans to close more than 200 stores after filing for Chapter 11 protection. The closures were a last-ditch attempt to get back on track after a disastrous year and, in a few words, not enough money came in.
9.Century 21
Year of foundation: 1961
Store closures: 13 (all locations).
Due to the pandemic and the severe impact on trade, Century 21 filed for bankruptcy in September 2020 after failing to obtain support from insurance companies.
10.Burberry
Year of foundation: 1856
Store closures: 85% of US locations.
When the pandemic hit in 2020, the company had no choice but to close 85% of its US stores. When some stores reopened, Burberry reported that a 40% drop in business profits was likely expected, with footfall falling sharply. Interestingly, most locations in China are currently thriving after the peak of the outbreak has passed.
- Sur la Table
Year of foundation: 1972
Store closures: 56.
Sur La Table, a kitchen and cookware chain that sells luxury chef items, revealed in the summer of 2020 that it would be undergoing some serious changes. The Seattle-based private company has filed for bankruptcy. It also announced that it would close 56 of its stores.
12.Burger King
Year of foundation: 1954
Store closings: 200-250.
Business Insider called Burger King a restaurant we can expect to “see a little less of in 2021.” The burger and fries chain is owned by RBI, and its parent company was behind the decision to close 200 to 250 Burger King restaurants in a bid to boost profitability in certain underperforming areas.
- Lucky’s Market
Year of foundation: 2003
Store closures: 32.
In early 2020, Lucky’s Market announced a long-term plan to close a total of 32 stores in ten states, leaving just seven. The organic food retailer will lay off hundreds of employees as it shrinks its business to a fraction of its original size. Boulder, Colorado-based Lucky’s has expanded across ten states in the eighteen years it’s been open.
- Christopher & Banks
Year of foundation: 1956
Store closures: 37.
In mid-January 2021, news broke that retailer Christopher & Banks, which sells women’s clothing and accessories in forty-four states, would file for bankruptcy and close 37 of its stores (with more likely to come).
- Denny’s
Year of foundation: 1953
Store closures: 15.
New Yorkers who love Denny’s will be sad to hear this. Denny’s announced in 2020 that it would permanently close fifteen of its stores, laying off more than 500 workers. They blamed “unforeseen” complications on the global situation. Denny’s restaurants were owned by the same franchisee: Feast American Diners.
- Stein Mart
Year of foundation: 1908
Store closures: 279.
After filing for bankruptcy in 2020, it announced the closure of all 279 stores in the US. The 113-year-old chain is still under the leadership of the Stein family. Started by Sam Stein in Greenville, Mississippi, its current president is Jay Stein. Sadly, after more than a century of operations and a meteoric rise to prominence, the big box retailer is closing stores.
- Versace
Year of foundation: 1978
Store closures: 170 (combined with Michael Kors). Versace, owned by the luxury retail group Capri, along with other famous names like Jimmy Choo and Michael Kors, has fallen on hard times. Still spearheaded by the inimitable Donatella Versace, the fashion label isn’t selling like it used to. Based in Milan, Italy, the brand is synonymous with luxury. Known for risk-taking bold leather goods and prints, it’s one of the most recognizable designer brands out there, with Medusa’s head readily visible as its logo.
- Godiva
Year of foundation: 1926
Store closures: 128.
In January 2021, Godiva announced the closure of all 128 brick-and-mortar stores, which saw a significant drop in sales in previous years. However, chocolate fans should not worry as the cocoa giant still plans to sell its products on the wholesale market.
19.Family Video
Year of foundation: 1978
Store closures: 250.
The video store closed all 250 stores in early 2021 and moved to an online store. With 800 stores at its peak, Family Video was a neighborhood staple for many who frequented it in search of their next movie night at home. Instead of leasing stores, Family Video was able to survive by owning the stores.
- Disney
Year of foundation: 1987
Store closures: 60.
Needless to say, Disney has been around for well over 40 years, but the first Disney store opened in 1987. Kids and families have been going crazy to visit those locations ever since, but even this titan has fallen on hard times. House of Mouse announced plans to close 60 of its North American stores during 2021. Considering that Disney has a total global presence of 300 locations, that’s a good slice of the pie. More stores could close yet.
- Francesca’s
Year of foundation: 1999
Store closures: 140.
Fashion retailer Francesca’s has a 20-year legacy, but that wasn’t enough to save it entirely. The Texas-based company filed for chapter 11 in late 2020, announcing plans to close 140 of 700 locations. While many of the popular sites remain open, it sets a worrying precedent for the company moving forward. Loyal customers hope that Francesca’s can weather the storm.
- Paper Source
Year of foundation: 1983
Store closures: 11.
Stationery and gift shop Paper Source has been around since 1983, but has been having a rough time lately. In March 2021 the company filed for bankruptcy, causing quite a stir. Suppliers expressed concern that they will not be paid for outstanding bills, some of which run into the tens of thousands. With 11 stores closed, avid stationery fans will have to shop around other stores like Walmart to get their hands on those products. The company blamed the financial difficulties on the pandemic, which certainly didn’t help matters.
- Goodwill
Year of foundation: 1902
Store closures: 8.
The company announced plans to permanently close eight Bay Area locations by March 2021. As a result, 61 employees lost their jobs, but the company was hopeful it could assign some of those affected to stores that would remain open. . CEO Michael Fox said: “COVID has taken its toll on all kinds of businesses.”
24.Walmart
Year of foundation: 1962
Store closures: 269.
As the old saying goes, “when one door closes, another one opens”. This is the case with Walmart, which announced that it would close 269 stores by the end of April 2020. Department stores had closed the exact same number a few years ago, but it’s not all bad news. Walmart said it would open 50 to 60 new Walmart SuperCenters (Walmart stores with eye care, drug stores and a restaurant), as well as 85 to 95 regular “neighborhood markets.” According to the chain, approximately 10,000 employees will be affected by the closures.
- Estee Lauder
Year of foundation: 1946
Store closings: 10-15% of all stores.
By the end of 2020, the company said it would close some of its retail locations, amounting to 10-15% of its total presence. While that’s not an ideal situation for customers, the products are still available at department stores and online.
- 24 Hour Fitness
Year of foundation: 1983
Store closures: 100.
Sadly, like many companies of this type, 2020 was a rough one, leading it to file for bankruptcy. Loyal customers shouldn’t panic: 24 Hour Fitness isn’t closing its doors entirely, but it is closing some locations. The company announced plans to close 100 of its 400 locations, which isn’t exactly ideal. It just shows that it can’t work out of thin air.
27.Brooks Brothers
Year of foundation: 1818
Store closures: 51.
Staying in business for over 200 years is an incredible feat not easily achieved. Brooks Brothers has weathered its fair share of storms since its launch in 1919, but has been struggling to keep up with the changing times for the last few years. With formal workwear taking a further hit thanks to the pandemic, Brooks Brothers had no choice but to close more than a fifth of its North American stores and look for a buyer. People just aren’t buying suits at the same rate as they used to.
- Zara
Year of foundation: 1974
Store closures: 1,200.
FastCompany.com described Zara as the latest “retail casualty” of 2020. The clothing store said it would close 1,200 locations in 2021, focusing more on online shopping. The brand, which is owned by Inditex, a Spanish company, said it is looking to take its fashion brand into 2022 with a more modern approach. Inditex made the decision to go fully digital when it saw its in-store sales fall by 44%. The parent company announced that it would invest $3 billion in Zara online stores in 2021. As Glossy put it, this is another “quick exit” from the world of physical sales.
29.Guitar Center
Year of foundation: 1959
Store Closures: Unconfirmed.
The company has yet to officially announce any closure and hopes to avoid it by going through a vigorous financial restructuring process. Coupled with an agreement from lenders to reduce debt, Guitar Center could narrowly escape without any closing, but it remains to be seen what happens.
- Ralphs
Year of foundation: 1873
Store closures: 2.
It may be hard to believe, but Ralph’s has been around since 1873. That’s a long time for any supermarket. While the Kroger-owned chain isn’t as big as other grocery stores, it’s still a well-loved name. Unfortunately for some Los Angeles residents, two locations closed in 2021. The Pico Boulevard and West Slauson Ave locations closed for good in mid-2021, much to the disappointment of locals. A spokesperson for the brand admitted that it was due to huge financial losses during 2020 and that it was essentially damage limitation.
- Microsoft Stores
Year of foundation: 1975
Store closures: 83
In late June 2020, Microsoft announced that it planned to close all 83 physical stores in favor of online-only sales. Microsoft stated that these closures would take place not only in the United States, but also around the world. Microsoft, however, is planning to open four “experience center” locations that should excite die-hard fans. Although these locations will not sell products, they will be customer-facing R&D centers. Microsoft plans to provide more details in the near future about these exciting hubs.
- Sam’s Club
Year of foundation: 1983
Store closures: 50.
In 2018, Sam’s Club, which is a subsidiary of Walmart, announced that it would close 63 stores over the next two years. There are fifty more to go, but as with its sister company, it’s not all bad news. Sam’s Club will open a few more of the branches of its wholesale department. In mid-2019, Sam’s Club was experimenting with a cashierless store. These stores are only 25% the size of a regular Sam’s Club store and, like the rest of the stores, are members-only. Everything is digital and the payment process is automatic. Forbes called Sam’s Club “the most innovative retailer” in the country.
33.Vera Wang
Year of foundation: 1990
Store closures: 50
Vera Wang announced that it would close fifty stores by the year 2021. The retailer wanted to focus more on its licenses than its physical stores. Vera Wang escaped the retail slump of 2019 virtually unscathed. 9,300 stores closed in 2019, but the luxury retailer saw few closures.
- Tiffany & Co.
Year of foundation: 1837
Store closures: 1.
Tiffany & Co. is one of the oldest jewelry stores in history, founded in the mid-19th century. The brand recently announced that it would temporarily close its flagship New York location. The Fifth Avenue store is perhaps Tiffany & Co.’s most famous location, so fans of the brand will be relieved the closures aren’t permanent.
35.Louis Vuitton
Year of foundation: 1854
Store closures: 1.
Another temporary closure is that of Louis Vuitton, which will close one of its Pennsylvania Mall stores. LV is one of the most expensive luxury brands out there, and celebrities are constantly sporting the brand. Louis Vuitton already closed stores in Hong Kong in early January.
- Dillard’s
Year of foundation: 1938
Store closures: 200.
Dillard’s is closing 200 stores and it remains to be seen whether these closures will be permanent or temporary. The clothing retailer announced the closures in the spring of 2020, but the writing was on the wall in August 2019. Dillard’s has been continuously losing money, and its second-quarter losses in 2019 were the brand’s biggest yet.
- Ann Taylor
Year of foundation: 1954
Store closures: 268.
Ann Taylor is a Connecticut-based retailer that is owned by Ascena Retail Group, the parent company of many department stores. Ascena also owns Loft (an Ann Taylor subsidiary), Dress Barn and Lane Bryant, all of which are experiencing closures. Ascena announced that it will close 667 stores in total.
- Banana Republic
Year of foundation: 1978
Store closures: 200.
In 2016, the Banana Republic store started having problems. The fashion chain closed all its stores in the UK. In 2017, it still had 700 stores, most of them in America and Asia. Banana Republic’s problems have continued and it is reported that it will close 200 stores in total over the next few years.
- Lane Bryant
Year of foundation: 1904
Store closures: 400.
Ascena, as mentioned above, owns Lane Byrant, a large retailer. Lane Bryant is doing even worse than Ann Taylor, its sister company. The retailer announced in 2019 that it would close 400 of its Lane Bryant stores (out of 731) unless it could find a buyer for the company. Ascena has been looking to sell Lane Bryant since September 2019.
40.FYE
Year of foundation: 1993
Store closures: 35.
FYE, a technology store, has undergone many changes. It is one of the newer companies on this list, as it has only really been around since the 1990s. The retailer closed 33 stores between 2018 and 2019, and had announced that they would initiate closure procedures for another 35 stores before the end of fiscal 2019.
- Rue 21
Year of foundation: 1976
Store closures: 300.
Rue 21 is a popular teen clothing retailer, but it hasn’t been immune to tough economic times. The store announced in 2017 that it would close 400 stores in total, and has so far closed around 100, leaving 300 still pending. These closures have been a long time coming.
- White House Black Market
Year of foundation: 1985
Store closures: 1.
White House Black Market closed most of its stores in 2019, when it closed 100 of them. It is an exclusive retailer and the parent company that owns it also owns Chico’s, which is closing 150 of its outlets.
43.Guitar Center
Year of foundation: 1959
Store closings: 225 (maximum).
Guitar Center is currently the largest seller of musical instruments nationwide. That status could change, however, as the New York Times revealed that the retailer filed for bankruptcy after missing a $45 million interest payment in October 2020. Guitar Center has filed for bankruptcy, but expects the things change dramatically by 2022.
- Boot Barn
Year of foundation: 1978
Store closures: 30.
As of April 2020, Boot Barn closed 30 stores out of a total of 264 locations (spread across 36 states). The clothing retailer is often seen in some of the largest malls in the country. Compared to some of the other retailers on this list, expect Boot Barn to be in better shape in 2022.
- Urban Outfitters
Year of foundation: 1970
Store closures: to be determined.
In the first quarter of 2020, shares of Urban Outfitters fell 32%. The store’s fate has only worsened in the months since, with a Barrons.com analyst saying it will sell the stock in July 2020. Store sales have fallen significantly.
- Big 5 Sporting Goods
Year of foundation: 1955
Store closures: 5.
Big 5 Sporting Goods is a West Coast sports retailer and has announced plans to permanently close five stores. These were selected for permanent closure before the pandemic, and those plans were carried out for fiscal year 2021. Big 5 also does not anticipate opening new stores any time soon.
- Dick’s Sporting Goods
Year of foundation: 1948
Store closures: 10.
In the first quarter of 2020, Dick’s Sporting Goods reported a loss of $143 million. The company still raised pay for its employees, trying to keep them afloat through 2020. Unfortunately, like the other retailers on this list, Dick’s hasn’t emerged from this rough year unscathed. The retailer has reopened some stores, but is closing ten stores.
- Muji
Year of foundation: 1980
Store closings: all of California.
Muji is part of the Ryohin Keikaku Group and sought to bring Japanese lifestyle products to the United States. The company failed to find success in the US market and filed for Chapter 11 in mid-2020. It cited $64 million in debt, listing its assets in the range of $50 million to $100 million.
- Pet Valu
Year of foundation: 1976
Store closures: 358.
One of the most surprising closings this year was that of Pet Valu, a discount pet supply store. The store announced in early November that it would close all 358 branches. Gift cards and store credit were only valid through December 13, 2020, marking a quick transition. It was estimated that by 2021 there would be no more Pet Valu stores.
50.AT&T
Year of foundation: 1983
Store closures: 320.
Earlier this year, AT&T closed 250 of its physical stores. Now, it will close another 320, according to the US Communications Workers Union. It said these closures will result in the loss of more than 1,600 jobs. AT&T has defended the 570 closures by saying it is “adjusting” its retail presence to “reflect” consumers’ “buying practices.” Reported The USA Herald, a news and information agency.