At Home, a home goods retailer with 260 stores, filed for Chapter 11 bankruptcy due to high debt levels and challenging market conditions. The restructuring plan will eliminate nearly $2 billion in debt and provide $200 million in new funding to allow continued operations. The company cited tariffs and decreased consumer spending as contributing factors to its financial struggles, mirroring difficulties faced by other home goods retailers. While most stores will remain open, some closures are anticipated as part of the reorganization.
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Facing another bankruptcy filing, Rite Aid will close or sell all 1,245 of its stores within the next few months. The company plans to sell assets, including prescription files and inventory, while ceasing new inventory purchases, leading to increasingly bare shelves. Although prescriptions and other services will remain available until closure, Rite Aid will soon discontinue rewards points, gift cards, returns, and exchanges. The transfer of prescription files to other pharmacies is underway, but customers may experience challenges finding nearby alternatives, particularly in rural areas.
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Joann Fabric and Craft Stores, after filing for bankruptcy twice in less than a year, is liquidating its assets. This week, 255 locations will begin closing their doors permanently, followed by the remaining 500+ stores in May. Going-out-of-business sales are currently underway at the initially closing stores. The closures mark the end of a significant presence in the fabric and craft retail industry.
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Forever 21, a pioneer of fast fashion, has filed for bankruptcy and will close its remaining US stores. The company cites intense competition from foreign fast-fashion retailers, leveraging pricing advantages, as a major factor in its demise. Rising costs, economic headwinds, and shifting consumer trends also contributed to the decision. While US stores will close, international locations and the company’s website will remain operational.
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Following a failed attempt to secure a buyer willing to maintain its operations, Joann Fabrics will close all 800 of its stores nationwide. A nationwide going-out-of-business sale will commence immediately, as mandated by the winning bidder in the asset auction. Despite exploring all options to remain operational, the company will now wind down its operations after more than 80 years. Founded during World War II, Joann experienced periods of both success and financial struggles, ultimately succumbing to declining sales and filing for Chapter 11 bankruptcy protection twice. The company will work to minimize the impact on its 19,000 employees and customers during this closure.
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To facilitate a sale of the business, Joann, a fabric and craft retailer, will close approximately 500 stores—over half its current locations—due to ongoing operational challenges and sluggish consumer demand. This follows the company’s second Chapter 11 bankruptcy filing in less than a year, attributed to inventory shortages and a weak retail economy. The closures, subject to court approval, aim to streamline operations and enhance the company’s viability. The company anticipates the sale will be facilitated by Gordon Brothers Retail Partners.
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Party City, the largest US party supply store, is immediately ceasing operations after nearly four decades in business. CEO Barry Litwin cited insurmountable financial challenges, including inflation’s impact on costs and consumer spending, as the reason for the closure. The company, which recently emerged from bankruptcy, failed to overcome its substantial debt burden despite efforts to restructure. All employees, including both corporate and store staff, were terminated without severance pay.
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Big Lots’ anticipated sale to Nexus Capital Management has failed, leading the retailer to initiate going-out-of-business sales across all its stores. Despite this action, the company remains optimistic about securing an alternative sale by early January. Efforts to complete a transaction with Nexus or another buyer are ongoing. Until then, Big Lots will continue normal operations in stores and online.
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John Q. Hosedrinker