What Major Stores Went Bankrupt in 2020?

Mish

We are on a record pace for retail store bankruptcies in 2020. How many can you name?

U.S. Retail Bankruptcies and Store Closures in 2020

Please consider An Overview of U.S. Retail Bankruptcies and Store Closures in the first half of 2020

In the first six months of 2020, 18 retailers filed for Chapter 11 bankruptcy, with an additional 11 filing in July through mid-August . These defaults were concentrated in apparel and footwear, home furnishings, food and department stores, with many prominent retailers filing during this time period, including Pier 1, J. Crew, Neiman Marcus, Stage Stores, J.C. Penney, Tuesday Morning, GNC, Lucky Brand, RTW Retailwinds (New York & Co.), Brooks Brothers, Ascena (Ann Taylor, LOFT, Lane Bryant, Justice, Catherines), Le Tote (Lord & Taylor), Tailored Brands (Men’s Wearhouse, Jos. A. Bank, Moores Clothing, K&G) and Stein Mart.

From January through mid-August, there have been more store closure announcements in 2020 than the record 9,500 stores that closed throughout 2019. The majority of store closures have taken place in malls, which have seen far less foot traffic due to sustained COVID-19 disruption.

2020 is on track to set the record for the highest number of retail bankruptcies and store closings in a single year. Based on the trends set through mid-August, our expectation is that more retailers will struggle to navigate the effects of the pandemic—particularly those that are highly levered and mall-based.

Bankruptcy Filings July and August 2020

Bankruptcy Filings July and August 2020

Bankruptcy Filings Second Quarter 2020

Bankruptcy Filings Second Quarter 2020

Bankruptcy Filings First Quarter 2020

Bankruptcy Filings First Quarter 2020

Not Just Bankruptcies

Retailers on the brink of bankruptcy are not the only ones looking to shed their brick-and-mortar locations. In fact, there are more than 15 retailers that have not filed for bankruptcy—including Macy’s, Bed Bath & Beyond and Gap—that have announced the closing of 50 or more stores, totaling a combined 4,200+ stores.

Lord & Taylor, Brooks Brothers, Pier 1, J. Crew, Neiman Marcus, J.C. Penney, Tuesday Morning, GNC, Ascena (Ann Taylor, LOFT, Lane Bryant, Tailored Brands (Men’s Wearhouse, Jos. A. Bank, Moores Clothing, K&G) and Stein Mart are among the prominent bankruptcies.

Anchor Stores 

JCPenney, Neiman Marcus, Lord & Taylor, and Sears are (or were) examples of mall anchor stores. 

Nordstrom and Macy's are struggling. 

Consider this July 1 headline: Nordstrom cuts 6,000 jobs, reduces workforce nationwide amid 40% decrease in sales.

Malls are not what they used to be and never will be again.

Mish

Comments (38)
No. 1-13
PecuniaNonOlet
PecuniaNonOlet

There was a great article by Charles Hugh Smith entitled, “Goodbye To All That: Are Our Rituals of "Prosperity" Increasingly Meaningless?” It is a great read about our current state of “keeping up with the Joneses.”

I highly recommend. And where are movie theaters on the list?

Rocky Raccoon
Rocky Raccoon

It's a real shame when you see a company like Nordstrom is on the list--which in reality is one of the last retail outlets that really push old-fashioned customer service that makes you feel wanted as a consumer. Those skills are being lost.

Eddie_T
Eddie_T

I thought JC Penney cut a deal with the Simon Group to stay in business. They have been going out of business slowly for what? Decades, it seems like.

Malls were already in trouble....COVID is just the nail in the coffin, the co-morbidity factor being Amazon.

My guess is that malls will be missed after they're gone...maybe they can still do okay in some special markets, but the days of every big city having half a dozen or more drive-to-and-park malls is close to being over, I think.

It has been a mixed bag, malls. It resulted in all the homogenization of American culture.......with people everywhere having access to the exact same retail goods...but not much besides what was in every mall everywhere.

Sechel
Sechel

Yes brick and mortar are suffering and Covid is speeding up the process. For a brick and mortar operation to succeed it can't compete on price but on service and needs to focus on niche markets and customers in my view. Mass market electronics where margins are small or discount men's suits will be the domain of the internet

magoomba
magoomba

Most of us despised malls from the first time we saw one, and NO they will not be missed.

magoomba
magoomba

Most of us despised malls from the first time we saw one, and NO they will not be missed.

magoomba
magoomba

Those abandoned mall, stores, and offices will make dandy homeless shelters.

magoomba
magoomba

Our county offices moved into a dead mall, and wouldn't you know it, they went under too.

magoomba
magoomba

The biggest, oldest, most famous flea market in my state moved into an abandoned mall and what do you think happened in just 6 months? That's right. IT DIED.

lol
lol

Obama sold the country out to Wall Street and this is the result,a dead rotting 3rd world economy,Trump is just finishing it off with the leaf blower!

Realist
Realist

Brick and Mortar Retail is going to be in trouble for a long time for 3 reasons:

Pandemic not going away anytime soon

High unemployment and economic misery

Trend to online shopping

Casual_Observer2020
Casual_Observer2020

I think Trump went bankrupt tonight.


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