Retailers filing for bankruptcy protection at an alarming rate
Amazon, the lord of ecommerce, is proving to be a nemesis for mall-based retailers. Amazon sells just about everything online. Now WalMart too has taken on the digital
challenge. This digital trend is sweeping away customers from shopping malls to online shopping.
A shift away from traditional storefronts to online shopping has caused more than 300 retailers to file for chapter 11 bankruptcy. That means that they can still continue to operate while attempting to restructure their debt under bankruptcy protection.
Here is a list of a few of these major retailers that filed for Chapter 11 bankruptcy protection in 2017.
GYMBOREE
Filing date: June 11
Closed 215 and has plans to close 450 out of 1300 stores to reduce debt
PAYLESS
Filing date: April 4
Globally closed 525 out of their 4,400 stores. Proposed to their creditors to close 800 stores and reduce debt
RADIOSHACK
Filing date: March 8 | Radioshack first filed for bankruptcy in 2015
Closed most of their remaining stores and examining options with Sprint
RUE 21
Filing date: May 15
Closed 400 out of 1200 stores
THE LIMITED
Filing date: January 17
Bought by Sycamore Partners for $26.8 million
Nationwide closed all of their remaining 250 stores
TRUE RELIGION APPAREL INC.
Filing date: July 5th
Closed 28 of their stores. Has plans to reduce debt and concentrate on growing its online business.
WET SEAL
Filing date: February 2 | First filed for bankruptcy protection in 2015
Closed 171 stores and went out of business.
Bought by Gordon Brothers for $3 million