Notably, the company initially survived the onset of the pandemic - however, like others in its space, it ultimately succumbed to decreased foot traffic and supply chain disruption. Companies that filed for bankruptcy in 2021: ABC Carpet & HomeĪfter 124 years in business, the high-end home goods retailer filed for Chapter 11 protection with around $80M in unsecured debt and $8M in secured debt. The company has agreed to close 5 of its 10 US locations as part of the bankruptcy process, and it plans to reorganize and repay its creditors. This mismanagement trickled down to its subsidiaries, including Escada America, which left the company ill-equipped to endure the pandemic. Escada America was born out of the previous bankruptcy of Escada USA in 2009, and the global Escada organization grappled with overexpansion, deficient leadership, and overpriced leases in the years that followed. While the pandemic played a key role in driving Escada America to bankruptcy, the branch had been struggling with a myriad of issues in the years prior. The company’s attempt to find a buyer provider proved to be successful - Frasers Group bought Missguided out of administration for nearly $24M at the start of June.Įscada America - the US face of Germany-based luxury women’s apparel brand Escada - filed for Chapter 11 bankruptcy in mid-January 2022. While the online fashion company initially experienced great success capitalizing on the rise of fast fashion, increased supply chain costs and inflation hampered its continued growth. UK-based Missguided fell into administration at the end of May, as it owed more money than it was making and had a number of suppliers that had not been paid for orders. While the company set up a restructuring committee, its plans to reorganize have not moved forward and could be challenged by ongoing litigation stemming from the 2020 Citi fiasco. At the time Revlon filed for bankruptcy, more than half of that sum had still not been returned. However, while the bank originally intended to send $8M in interest payments to Revlon’s lenders, it accidentally wired $900M. The company had previously tried to prevent bankruptcy by taking on Citigroup as its loan agent. In addition to macro pressures, Revlon had also been finding it increasingly difficult to capture younger consumers amid the growing popularity of beauty startups like Glossier. Covid-induced supply chain disruption proved to further compound the issue, making it more difficult for the company to manage its debt load. The filing came at the end of a tough few years for the company, which had already been combatting declining sales when the pandemic arose. * Denotes a company’s second or third bankruptcy Companies that filed for bankruptcy in 2022 so far: RevlonĬosmetics giant Revlon filed for Chapter 11 bankruptcy halfway through June 2022. Companies that filed for bankruptcy in 2015.Companies that filed for bankruptcy in 2016.Companies that filed for bankruptcy in 2017.Companies that filed for bankruptcy in 2018.Companies that filed for bankruptcy in 2019.Companies that filed for bankruptcy in 2020.
Companies that filed for bankruptcy in 2021.Companies that filed for bankruptcy in 2022 so far.As we’ll see, Amazon is not the only reason that physical retail is troubled - mounting debt and retailers’ own missteps and lack of adaptability are also to blame, among other factors. In this report, we dig into 139 recent bankruptcies starting in 2015 and the reasons behind them. The first half of 2022 has already seen a few companies go under, as retailers continue facing old challenges in addition to combating newly rising prices and a potential recession. While there were 52 retail bankruptcies in 2020, 2021 saw just 21 - a 60% drop year-over-year, according to Axios.īut this doesn’t mean that retail is out of the woods just yet. Malls saw declining foot traffic even pre-pandemic, but stay-at-home orders further shifted shoppers to online shopping and spending cash on essential goods instead.Īlthough we have yet to reach a truly post-Covid reality, retail is on the rebound.
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Download The State of Retail Tech Q2 2022 reportĭepartment stores proved to be the most vulnerable, with the pandemic felling iconic names such as Neiman Marcus and JCPenney.