These Are The 11 Biggest Retail Bankruptcies Of 2017
The past year brought a number of changes to the retail sector as the rise of e-commerce and dominant brands such as Amazon took a larger portion of the market. As such, many retailers have struggled to stay afloat amid the shifting retail climate, with more than 30 filing for bankruptcy in the last 11 months, Trepp reports.
Bisnow assembled a list of the top retail bankruptcies filed so far this year, according to Trepp data.
1. The Limited
Total Debt Exposed — $14.7B
One of the earliest filings of the year was The Limited, a woman’s apparel chain that declared bankruptcy in the middle of January. After closing 250 stores across the U.S. and selling its e-commerce domain and brand name, it relaunched an e-commerce site in October.
2. Toys R Us
Total Debt Exposed — $5.6B
The retailer filed for Chapter 11 bankruptcy in September in an effort to restructure its $4.9B debt load before the holidays. Its stores have remained open during the bankruptcy proceedings.
3. Gymboree
Total Debt Exposed — $5.4B
The San Francisco-based children’s clothing retailer filed for bankruptcy in June with plans to reduce its $1.4B debt load in time for a restructuring plan in September. The company has intentions to continue business operations but will close approximately 450 of its 1,281 stores.
4. Payless ShoeSource
Total Debt Exposed — $3.9B
Payless filed for bankruptcy in April with plans to shutter 400 of its 4,000 stores. In total, the footwear store closed about 700, but it was also one of the first to emerge from bankruptcy in August after ridding itself of more than $435M in debt.
5. RadioShack
Total Debt Exposed — $2.4B
Electronics retailer RadioShack filed for bankruptcy in March. It was the second filing since February 2015. RadioShack has since closed 1,000 of its stores and has only 70 remaining across the U.S., along with 500 dealer-owned stores.
6. HHGregg
Total Debt Exposed — $1.8B
Following two years of struggle, the electronics and appliance company filed for Chapter 11 bankruptcy protection in March. The bankruptcy was announced mere days after announcing the closure of 88 of its stores. After failing to find a buyer in bankruptcy court, HHGregg announced the liquidation of 220 stores.
7. Rue21
Total Debt Exposed — $1.7B
In April, the teen clothing retailer announced the closure of 400 of its 1,218 stores. Rue21 was able to emerge from bankruptcy shortly after Payless ShoeSource in September, maintaining 758 stores across 45 U.S. states.
8. Gordmans
Total Debt Exposed — $944.3M
The Nebraska-based department store chain filed for bankruptcy in March, with plans to shutter 48 stores. Another 57 would be kept open under Sage Stores, which had acquired the locations and Gordmans’ warehouse for approximately $40M.
9. Gander Mountain
Total Debt Exposed — $432.6M
Gander Mountain filed for bankruptcy in March and was acquired only two months later by Camping World Holdings Inc., which announced its intentions to rebrand the outdoor goods retailer to Gander Outdoors and Overton’s stores.
10. MC Sports
Total Debt Exposed — $417.2M
Poor sales performance led MC Sports to declare bankruptcy in February. The sporting goods chain currently has an estimated $14M in trade debt and will be holding liquidation sales throughout its portfolio of 68 stores.
11. BCBG
Total Debt Exposed — $164.9M
BCBG filed for bankruptcy in March, several months after announcing the shuttering of 120 of its stores. It was the third filing in two years. Marquee Brands and Global Brands Group Holding Limited have since acquired the company’s inventory and have retained the right to keep 22 stores open for approximately $23M.
