Latest news with #Chapter11
Miami Herald
a day ago
- Business
- Miami Herald
Luxury retail brand closing most of its stores, no bankruptcy
Many newer retail brands have struggled with how to mix stores and digital sales. Many online only companies ultimately had to open brick and mortar locations because shoppers won't buy certain things if they can't touch them. The challenge, is that physical stores cost a lot of money. That tends to cause problems with the digital only model which is at least partially based on pricing. Related: Popular vision care chain files for Chapter 11 bankruptcy Multiple mattress companies that had intended to be digital only brands ultimately had to open stores. That's because people aren't about to spend thousands of dollars on a mattress without knowing if it's comfortable. Yes, can have a good return policy, but nobody wants to deal with having to return a mattress. It's very similar with things like eyeglasses and even clothes. There's a reason why digital sales have hovered about 15% of total retail sales. People still like shopping in person. Don't miss the move: Subscribe to TheStreet's free daily newsletter Even when it comes to easily returnable items, it's still easier to see the item in the store, be able to touch it, or otherwise experience it, and then buy it. Sure, there might still be buyers remorse, but in person sales for bigger ticket items are much less likely to have a return. One luxury retailer has decided to close the majority of its retail locations to focus on wholesale and its website. Parachute may not be that well-known a retailer, but the chain (which does not sell the beloved 80s pants) has carved out a space for itself. It's a luxury linens and bedding brand that the company describes as "Linens for easy living." That somewhat meaningless, so it offers a little more detail. "Originators of laid-back elegance in the bed and bath. Experts in softness. Our cult-favorite linens are designed in Los Angeles and made with love by craftspeople around the world," it shared on its website. Basically, it's a higher store that tries to wrap itself in a wellness model. More retail: Walmart CEO sounds alarm on a big problem for customersTarget makes a change that might scare Walmart, CostcoTop investor takes firm stance on troubled retail brandWalmart and Costco making major change affecting all customers "We believe that sleep is the truest form of wellness. That everything's better after a hot shower. And hitting snooze isn't lazy – it's self care. So we've spent years perfecting the basic white sheet, the everyday fluffy towel, the life-changing mattress. To get back to the basics of relaxed wellness. To be your key to better days ahead," it added. So, pricey towels, sheets, and mattresses that you would think would benefit from people being able to touch them. While Bed Bath & Beyond and Linens and Things were mass market, not luxury chains, both companies failed pretty miserably. Both use very large "box" stores to show off their merchandise and both ended up being liquidated after a bankruptcy filing with all of their stores closed down. Parachute was using a similar model, but has decided to make a major change in course. The retailer is closing 19 stores which will leave it with 7 still open, according to a report from RetailDive. The chain began quietly closing locations earlier this year and its new focus will be deepening its ties to partners including Target. Parachute offered an exclusive collection with the mass market retail chain earlier this year. Related: Fashion giant files for Chapter 7 bankruptcy to liquidate Target trumpeted the deal before it launched in April. "Get ready to sleep in softness and towel off in style. Parachute, the beloved home brand known for its luxurious bedding and bath items, has created a new, exclusive collection just for Target guests. Parachute for Target launches April 27 with more than 200 cloud-like bedding and bath linens. Prices range from $12-$199, with most items under $90 - a value that can only be found at Target," the company shared at the time. Parachute also has distribution with Nordstrom and it used to work with Crate and Barrel. The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Fast Company
a day ago
- Business
- Fast Company
Rite Aid's Thrifty ice cream brand gets sold to a business entity linked to Monster Energy executives
Rite Aid has selected a successful bidder for its Thrifty Payless subsidiary, which includes the beloved Thrifty ice cream brand, according to a bankruptcy court filing on Thursday. The buyer was identified as Hilrod Holdings, a limited partnership linked to Hilton Schlosberg and Rodney Sacks, top executives at the energy drink company Monster Beverage Corporation. Hilrod is seeking to pay $19.2 million for Thrifty's assets, the filing revealed. The partnership is mostly known for its real estate investments Thrifty ice cream is available at scoop counters located inside many Rite Aid locations in addition to being sold by third-party retailers. It was not immediately clear what Hilrod plans to do with Thrifty should the sale be approved by the court. A hearing on the matter is scheduled for June 30. Fast Company reached out to a lawyer for Hilrod Holdings, and representatives for Monster Beverage and Rite Aid for comment. We will update this story if we hear back. Schlosberg and Sacks had until recently been co-CEOs of Monster Beverage. A filing with the Securities and Exchange Commission (SEC) revealed that Sacks planned to retire this month, while Schlosberg would continue to lead the company. Thrifty Ice Cream caught up in Rite Aid's bankruptcy The fate of Thrifty ice cream has been uncertain since Rite Aid announced in early May that it would see Chapter 11 bankruptcy protection for a second time. The embattled pharmacy chain is winding down its operations, closing or selling its physical stores, and has sold off most of its prescription files to competitors, including CVS and Walgreens. The Thrifty brand stretches back decades in Los Angeles, where it was sold at soda fountain counters inside the Thrifty Drug Store chain. It became part of Rite Aid through Rite Aid's purchase of Thrifty Payless in 1996.
Associated Press
a day ago
- Business
- Associated Press
Small Business Owners Urged to Seek Legal Counsel Before Considering Bankruptcy
'Bankruptcy is a scary process, and individuals need legal counsel to help navigate it safely and effectively and to avoid any further turmoil.'— Ken LaMance, LegalMatch's General Counsel. RENO, NV, UNITED STATES, June 27, 2025 / / -- It's no secret that the economy is challenging, especially right now. Lately, small businesses, in particular, are really struggling to make ends meet and avoid bankruptcy. There are two different kinds of bankruptcy, chapter 7 and chapter 11. Chapter 7 bankruptcy is the option that allows for a complete liquidation of assets to repay creditors, while Chapter 11 bankruptcy focuses on reorganization, enabling the business to develop a repayment plan and potentially retain ownership of said business. Key factors to consider before filing bankruptcy include, but are not limited to, the following: - Exploring Alternatives: A bankruptcy attorney can also help someone explore other options apart from bankruptcy in the hopes of avoiding it and its -repercussions. - Negotiating with creditors: Bankruptcy attorneys can negotiate with creditors to potentially reach favorable agreements. - Ensuring compliance with legal requirements: The process of bankruptcy has complex laws and regulations that an attorney should review with an individual or small business prior to making any decisions or moving forward. - Assessing assets and liabilities: An attorney can help you assess your business's assets and liabilities to ensure everything is accurate and complete for filing. - Protecting personal assets: Some small business structures may put personal assets at risk in a business bankruptcy, and an attorney can strategize with an individual on how to protect them. Individuals and small businesses who are facing bankruptcy and need to know what options are available to them can find hope with online legal resources like the nation's most esteemed attorney-client matching platform. Individuals can get matched for free with a bankruptcy attorney and receive expert guidance throughout the process. The platform also boasts an extensive online Law Library with informative articles about various legal matters. Users can research the type of legal trouble they are in, what steps should be taken to move forward, and the attorney recommended for said legal situations. About LegalMatch is the nation's oldest and largest online legal lead-generation service. Headquartered in Reno, Nevada, LegalMatch helps people find the right lawyer and helps attorneys find new clients. LegalMatch's service is free to individuals and small businesses looking for legal help. For more information about LegalMatch, please visit our website or contact us directly. Ken LaMance LegalMatch +1 415-946-0856 email us here Visit us on social media: LinkedIn Facebook YouTube X Legal Disclaimer: EIN Presswire provides this news content 'as is' without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
Yahoo
a day ago
- Business
- Yahoo
Red Lobster expands alliance with Olo
US seafood restaurant chain Red Lobster has broadened its collaboration with Olo, a technology solutions provider for eateries. Having left Olo in 2023 to create its own digital ordering platform, Red Lobster is now returning to Olo's framework. The chain acknowledged the difficulties of sustaining cutting-edge digital systems in-house as the reason for this shift. As digital ordering, customer interaction, and data analysis grow increasingly complex, many companies opt to work with expert technology partners. Red Lobster highlighted Olo's improved functionality, cost-efficiency, and capacity to stay aligned with emerging tech trends as reasons for the renewed alliance. This decision mirrors a wider industry trend towards outsourcing advanced digital solutions. The collaboration will be implemented in stages to enhance the chain's operational performance. A primary focus is the rollout of Olo's feedback management tool, Sentiment, currently being deployed across all the chain's outlets. Sentiment collates customer reviews from various platforms and delivers AI-driven insights to improve guest satisfaction. Red Lobster will also launch Catering+, Olo's comprehensive catering solution, marking its debut in direct catering services. Catering+ provides tools for managing capacity and simplifies operations through seamless point-of-sale integration. This introduction represents a significant step forward for the brand's service expansion. By the close of 2025, the chain aims to adopt Olo's complete Order suite, including its Borderless network. The move will further strengthen the chain's digital ordering capabilities and streamline operations. The phased strategy reflects the chain's dedication to smooth technological integration. Headquartered in Orlando, Florida, Red Lobster focuses on serving freshly prepared seafood that is traceable, sustainable, and responsibly sourced. In September 2024, Red Lobster exited Chapter 11 bankruptcy restructuring after completion of its acquisition by RL Investor Holdings. "Red Lobster expands alliance with Olo" was originally created and published by Verdict Food Service, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Miami Herald
a day ago
- Business
- Miami Herald
Struggling burger chain closing restaurants, won't raise prices
The line between success and failure in fast-casual sit-down restaurants seems unbelievably narrow. Chili's, for example, has been flying high based on offering low prices and delivering good value. Applebee's has struggled overall, but had success when country singer Walker Hayes name checked the brand in his song "Fancy Like." Related: Starbucks menu leak reveals an exciting new drink Many other chains in this space have struggled. Hooters remains under Chapter 11 bankruptcy protection while TGI Fridays and Red Lobster went through that process and came out the other side. In some cases, like Hooters and TGI Fridays, you can blame the product. Hooters offers a dated business model that's more than a little sexist. Fridays let its menu get stale and lost its feeling of being a step ahead of other players in the same space. Don't miss the move: Subscribe to TheStreet's free daily newsletter Consumers have also gotten a little more careful with their cash. They might trade down from sit-down to fast casual or even opt for a fast-food meal deal. It's a tough market and surviving requires an aggressive plan of action. While no business wants to get smaller, it's important to be decisive in cutting locations that don't contribute to the bottom line. It's more a situation of cutting out the cancer so the rest of the body can be healthy. Along those lines. Red Robin will close up to 15 underperforming restaurants in 2025. The chain could close up to 70 locations over the next several years. Red Robin has been closing stores on an efficient basis, largely waiting until their leases expire. That minimizes the financial hit the company takes when it shuts down a restaurant. Closing unprofitable locations is only part of the chain's turnaround plan. It's also doing two big things improve its relationship with its customers. More Retail News: McDonald's brings back unexpected breakfast item after 6 yearsIconic fast-food burger chain announces late-night hours expansionMcDonalds' menu brings back breakfast items Chick-fil-A fans love First, it's making a key pricing promise. "We've also included a cost headwind based on current tariff policies. I would note, we are not planning any menu price increases in the remainder of 2025. We anticipate absorbing the current expected impact of tariffs as we prioritize maintaining value for our guests. The great work of our operators to capture cost savings greater than we initially planned supports this approach," CFO Todd Wilson said during Red Robin's first-quarter earnings call. Holding prices level, after they increased by about 6% in the previous year, should help Red Robin's relationship with its customers. The chain has also made meaningful improvements to its loyalty program. That has already produced some meaningful results. "I would tell you that we are seeing the same kind of increase that we talked about last quarter. And I'll also tell you that some of these numbers, like 22% of our visits are from lapsed users, that's a really good number in terms of our visits overall. And we're holding fairly close to new guests being 20% of our visits. So this program is really working," Wilson said. He also expects the momentum to continue. "And I think as we dial this thing up further, there's further opportunity here," he added. Related: Largest fast-food chain's franchisee files for Chapter 11 bankruptcy CEO David Pace agrees with his CFO. "I think there's still significant opportunity in the program, the strength of it to grow it and also to how we use it. I think there's an opportunity for us to be smarter about how we implement and use pieces of the program. Not that we've been bad at it, I think we're just learning and we're getting better as we go. So I think there's still significant upside there," he shared. The revamped loyalty program allows members to earn rewards faster in order to encourage more frequent visits. Membership crossed 15.3 million people at the end of the first quarter. The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
