Latest news with #Chapter7
Miami Herald
14 hours ago
- Business
- Miami Herald
Iconic retail chain closes over 100 stores in bankruptcy
The pharmaceutical industry's leading drugstore chains have restructured and reorganized their businesses out of court and in bankruptcy cases over the last five years as they strive to survive fierce competition. As the Covid pandemic subsided in 2020, drugstore retailers began to reevaluate their businesses, which included closing hundreds of stores. Don't miss the move: Subscribe to TheStreet's free daily newsletter Once retailers began to fully reopen after the pandemic, many began to close stores, blaming shrinkage, or loss of inventory, on rampant retail theft. Other economic challenges cited by retailers included rising costs of labor and products driven by inflation, locations that no longer made economic sense to remain open, and increased interest rates on debt obligations. Related: Popular vision care chain files for Chapter 11 bankruptcy Competition from big-box retail chains like Walmart, Target, and Costco, as well as internet drug providers like Amazon and Mark Cuban's CostPlus Drug Company, reduced store foot traffic and led retailers to shut underperforming locations. Walgreens, which operates about 8,600 stores with 6,000 profitable locations, evaluated 2,000 stores for potential closure and identified 1,200 locations to shutter, with 500 set to close in fiscal year 2025. Drugstore chain CVS in 2021 revealed it would close 900 of its nearly 9,900 stores to reduce costs and cut losses, closing 300 locations each year in 2022, 2023, and 2024. The company expanded the store closing campaign in 2025, revealing in its annual report in February that it would close 271 more stores this year. Competition for the pharmacy dollar will be significantly reduced as a major drugstore chain will soon close its doors forever, unless an investor swoops in to reopen the retailer, which plans to go out of business. Rite Aid filed for Chapter 11 bankruptcy for the first time on Oct. 15, 2023, and closed about 800 of its 2,100 stores as part of a reorganization plan. The drugstore chain filed for Chapter 11 protection a second time on May 5, 2025, as New Rite Aid LLC, and has begun closing all of its stores, consisting of about 1,240 locations. Image source: Elconin/Bloomberg via Getty Images Rite Aid filed its ninth notice of additional store closing locations with the U.S. Bankruptcy Court for the District of New Jersey on June 27, seeking approval to close 123 additional stores and liquidate their assets, which adds to previously designated locations for closing, for a total of 1,070 of its stores. Related: Largest fast-food chain's franchisee files for Chapter 11 bankruptcy The debtor's ninth additional closing notice consists of store closures in 8 states, including California (42), Pennsylvania (41), New York (18), New Jersey (9), Washington (6), New Hampshire (4), Connecticut (2), and Maryland (1). More bankruptcy: Iconic auto repair chain franchise files Chapter 11 bankruptcyPopular beer brand closes down and files Chapter 7 bankruptcyPopular vodka and gin brand files for Chapter 11 bankruptcy Rite Aid already filed nine notices of store closing locations with the original notice and an additional closing notice on May 9, a second additional closing notice on May 15, a third additional notice on May 23, a fourth additional notice on May 30, fifth and sixth additional notices on June 6, a seventh additional notice on June 13, and an eighth additional notice on June 20. The first nine groups of store closings listed 947 locations in 15 states, including California (277), Pennsylvania (263), New York (141), Washington (59), New Hampshire (41), New Jersey (39), Oregon (32), Virginia (25), Delaware (26), Maryland (19), Connecticut (11), Idaho (6), Massachusetts (4), Vermont (2), and Ohio (2). Rite Aid will likely file one or two more additional store closing notices before its bankruptcy case closes, since it plans to close all of its stores, estimated at about 1,240. Related: Major shipping company files for Chapter 11 bankruptcy The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Miami Herald
2 days ago
- Business
- Miami Herald
Fashion giant expands to new US markets
The past few years have been brutal for retail. And with the potential for tariff-related upheaval, things aren't looking too rosy in the near term. Although retail was sluggish before the Covid pandemic, the events of 2020 made things exponentially worse. Don't miss the move: Subscribe to TheStreet's free daily newsletter Forcing consumers to stay out of stores and limit themselves to online shopping drove a lot of retailers into the ground. And even those that survived the pandemic didn't necessarily have it easy. Related: Fashion giant files for Chapter 7 bankruptcy to liquidate Once society opened back up, retailers were hit with inventory challenges and labor shortages. And by the time those issues resolved themselves, inflation was already surging. That put a strain on retailers with tight margins, forcing many to close their doors. Not only has inflation driven costs up for retailers, but it's also taken away a lot of their business. Many consumers have had to change the way they spend their money to cope with inflation. A lot of people have cut back on nonessential and even essential purchases, driving a wave of bankruptcies across the retail sector. Related: Walmart makes bold move to help inflation-battered consumers In April of 2024, popular mall retailer Express filed for bankruptcy. The company cited a decline in sales and changing consumer preferences as big factors in that decision. And earlier this year, Forever 21 filed for bankruptcy for the second time. The company said it was struggling to attract customers given increased competition from budget online retailers like Temu and Shein. Things got so dire for Forever 21 that the company wound up liquidating. At a time when so many retailers are filing for bankruptcy and closing their doors, Primark is thriving. And now, it's making plans to expand its U.S. footprint. In late July, Primark is scheduled to open its first store in Memphis, Tennessee. Once that location opens, it will mark the company's 31st store. Related: Costco brings back huge perk members have missed Following that, Primark has plans to open a second store in Franklin, Tennessee. The Memphis location will span over 35,000 feet and feature the inventory Primark is known for, including budget-friendly apparel, beauty products, and housewares. "Bringing Primark to Tennessee is a proud and exciting milestone for us," said Primark U.S. President Kevin Tulip. "As we grow our footprint across the Southern U.S., we're thrilled to open our doors at Wolfchase Galleria and introduce Memphis shoppers to the incredible value and style that has made Primark a go-to destination for families and fashion lovers around the world." Although Primark has a limited footprint in the U.S., it boasts a total of 450 stores, mostly in Europe. But the fact that Primark is expanding is a clear indication that there's still a strong appetite for budget-friendly retail here in the U.S. 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 Even during the pandemic, when people were staying at home most of the time, consumers were still spending money on clothing. With the right strategy, Primark could position itself to thrive at a time when so many retailers are floundering. If the company can continue to offer appealing, trendy products at prices consumers like, it might easily take business away from more established retailers and carve out a name for itself as a leader in affordable fashion. Related: Key retailer tries new store concept after Chapter 11 bankruptcy The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Miami Herald
2 days ago
- Business
- Miami Herald
Struggling online retailer makes surprising change
The retail world has been rocked by store closures in the past few years. 2024 was especially grim. There were 7,325 store closures in 2024, the highest since 2020, when there were nearly 10,000 closures. according to data from Coresight Research. Even with 5,970 store openings in 2024-the highest since 2012, when CR first began tracking - that's still a net loss of 1,355 stores. Don't miss the move: Subscribe to TheStreet's free daily newsletter If the brand survives despite brick-and-mortar locations shuttering, it often goes all-in with its digital storefront. But sometimes the opposite occurs: an online-only retailer decides to take the plunge and open up physical locations. It's a risky move for sure, given that physical stores cost a lot more to run. But as the saying goes, no risk, no reward-or at least that's the hope of one struggling home retail brand. Wayfair's (W) luxury home brand Perigold is celebrating the opening of its first physical store in Houston. The company's headquarters might be in Boston, but Houston's Highland Village, an upscale shopping destination, was picked for the inaugural brick-and-mortar location. "Opening our first physical store is a transformative step for Perigold, and there's no better city to begin this journey in than Houston," said Global Head of Perigold Rebecca Ginns in a company statement. "This is a market where design is celebrated and our customers are deeply engaged. We're excited to create a space that reflects our commitment to excellence in both product and experience." Related: Fashion giant files for Chapter 7 bankruptcy to liquidate It's an interesting time for a home retailer to open a physical store. It was just announced that DTC home linens brand Parachute is set to close 19 stores this year in favor of focusing on partnerships with retailers, including Target and Nordstrom. The company will be keeping seven stores open. Perigold is taking inspiration from its parent company. Last year, Wayfair opened its first store in Wilmette, IL, with plans for other locations, albeit amid struggling sales. In March, the company laid off 340 tech workers due to a decline in sales. So why would an online retailer take the risk and open a physical store? When it comes to home furnishings, especially luxury items, many people want to see things in person before they commit to a purchase. Perigold now offers that opportunity in its nearly 20,000-square-foot store, where it will feature more than 150 luxury brands, including Visual Comfort, Century Furniture, and Oly. There will also be immersive displays from designers like Marie Flanigan, Julie Neill, and Even Millard. ≈"This store is more than a retail location–it's an invitation into the world of Perigold. We're creating a resource for customers and designers to explore, collaborate, and access brands that are rarely found under one roof," Ginns said. Related: Target unveils Amazon-style revival plan to win back customers In addition to an upscale shopping experience, the Perigold store will offer exclusive events, workshops, and personalized service for both home design lovers and professionals. The company hopes that the store will be a hub for the design community in Houston. And Houston is just the start. The company confirmed that a second location in West Palm Beach, Florida, will open later this year. 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 Perigold's Grand Opening Weekend is June 27 through June 29. Guests will be treated to free refreshments and music while they shop, plus there's a 15% discount on any in-store purchase (up to $500 in savings). The store is open 10 AM to 8 PM Monday through Saturday and 12 PM to 6 PM on Sunday. Related: Analyst sounds alarm after S&P 500 hits all-time high The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Miami Herald
2 days ago
- Business
- Miami Herald
Bankrupt ice cream chain sold to popular beverage owners
Retailers often cite economic challenges, including rising costs of labor and products driven by inflation and increased interest rates on debt obligations, as well as retail theft, as reasons for closing store locations, filing for bankruptcy, selling assets, and sometimes closing down their businesses. Several iconic retail chains have closed hundreds of stores over the last year, with some filing for bankruptcy and others going out of business. Don't miss the move: Subscribe to TheStreet's free daily newsletter Beloved party retailer Party City filed for Chapter 11 bankruptcy protection for the second time in December 2024, about 14 months after exiting its first bankruptcy. Related: Largest fast-food chain's franchisee files for Chapter 11 bankruptcy The retail chain has closed all but 26 remaining locations across the country, according to its website. Forever 21 in March 2025 filed for Chapter 11 bankruptcy, shut down all of its stores, liquidated, and ceased its business in May 2025. Joann Fabrics filed its second Chapter 11 bankruptcy in January 2025 and closed all of its stores and went out of business, also in May. Home goods retailer At Home filed for Chapter 11 bankruptcy on June 16 in the U.S. Bankruptcy Court for the District of Delaware, citing unsustainable costs due to tariffs and a slowdown in consumer spending. The retailer asserted that it will close 26 underperforming stores by Sept. 30. Major drugstore chain Rite Aid filed for Chapter 11 bankruptcy for the first time on Oct. 15, 2023, and closed about 800 of its 2,100 stores as part of a reorganization plan. The retail chain filed for Chapter 11 protection a second time on May 5, 2025, as New Rite Aid LLC, and has begun closing hundreds of its remaining stores. Rite Aid filed for its second bankruptcy after failing to find a buyer for its assets and being unable to secure financing to continue operating. The retail chain has filed eight notices of additional store closing locations with the U.S. Bankruptcy Court for the District of New Jersey, designating 947 of its nearly 1,240 locations for closing. As part of its bankruptcy case, Rite Aid is selling its Thrifty Ice Cream brand for $19.2 million to Hilrod Holdings LP, whose general partner, Hilton Schlosberg, is also co-founder and CEO of Monster Beverage Corporation. Related: Popular vision care chain files for Chapter 11 bankruptcy The debtor filed a notice of successful bidders in the U.S. Bankruptcy Court for the District of New Jersey on June 26, after Hilrod Holdings prevailed at an auction for the Thrifty Ice Cream assets held on June 24. More bankruptcy: Iconic auto repair chain franchise files Chapter 11 bankruptcyPopular beer brand closes down and files Chapter 7 bankruptcyPopular vodka and gin brand files for Chapter 11 bankruptcy The notice asserted that Hilrod would pay a $4 million deposit on June 26 and pay the remainder of the sale price of $15.2 million by July 2. Optimal Investment Group Inc. was named the back-up bidder for the Thrifty assets at the auction with a bid of $19.126 million to purchase the ice cream brand if Hilrod's acquisition falls through. A sale hearing will be held on June 30 to approve the sale transaction. Objections to the sale were due by 5 p.m. Eastern time on June 27. The notice calls for a sale closing date of July 22, 2025, or a date agreed to in writing by the buyer and seller. Related: Major shipping company files for Chapter 11 bankruptcy The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Associated Press
4 days 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.
