PENNSYLVANIA – To say 2020 was a brutal year for brick and mortar retailers and restaurants across America is a huge understatement. Due to the worst domestic health crisis in a century, corporate bankruptcies in these industries rose significantly from 17 in 2019 to 30 this year.
When the coronavirus outbreak began in March, shops and restaurants closed for weeks and those left have not recovered. Retailers saw the increasing consumer shift to online shopping as the preferred option for shopping in potentially virus-filled malls. Restaurants in the state had banned indoor dining for an extended period of time and will be banned again by early January.
The financial bleeding from retailers and restaurants was badly felt in Pennsylvania, where the following chains went bankrupt that year:
JC Penney
After JC Penney filed for bankruptcy in May, he announced that he would close more than 200 of its 846 stores over the next two years. In Pennsylvania, where there are 27 JC Penney stores left, none have closed yet, but the company has not disclosed if any are on the chopping block. Simon Property Group, one of the largest shopping center owners in America, led a partnership that bought the chain in September.
Pier 1
The bankrupt chain of establishments announced in May that it would seek court approval “to begin a proper operation of the company’s retail business as soon as possible.” Pier 1 has closed all shops and is still online.
The party and takeaway chain’s 20 locations in Pennsylvania closed after the popular kids ’restaurant’s parent company filed for bankruptcy in June.
J. Crew
The J.Crew Group filed for bankruptcy in May. J.Crew Group, which also operates apparel brand Madewell, estimated in a Chapter 11 bankruptcy filing in the US Bankruptcy Court for the Eastern District of Virginia that it had assets and liabilities of between $ 1 billion and $ 10 billion.
GNC
Health and wellness retailer GNC filed for Chapter 11 bankruptcy in June and announced plans to close up to 1,200 stores. The Pittsburgh-based company plans to get out of bankruptcy this fall. It is in the process of being sold to a Chinese pharmaceutical company.
Tuesday morning
The discount housewares retailer filed for bankruptcy Tuesday morning in May and announced plans to permanently close around 230 of its nearly 700 stores. The chain, which currently has 10 locations in Pennsylvania, blamed the coronavirus outbreak for the bankruptcy.
Model
Shortly before the pandemic broke out, Modells Sporting Goods filed for Chapter 11 bankruptcy and announced it would close all locations.
Bar Louie
Almost half of the 90 locations of the casual restaurant chain closed after filing for bankruptcy. The lenders bought the rest of the restaurants in a bankruptcy sale.
Stone mart
The discounter, which was under financial pressure from the pandemic, announced that it would close its 300 stores across the country. The retailer with six locations in Pennsylvania sold its name to a company looking to relaunch the brand online.
Tailored brands (Men’s clothing, Jos.A. Banks)
The menswear retailer stated in its bankruptcy filing that it wanted to close 500 stores. The chain was bought by its lenders and creditors; It is scheduled to apply for judicial approval of a restructuring plan in early 2021.
Neiman Marcus
The upscale department store emerged from bankruptcy in September after shedding billions in debts and closing five stores. The only location in Pennsylvania is on the King of Prussia Mall near Philadelphia.
Lord & Taylor
The upscale retailer filed for bankruptcy in August, barely a year after it was bought for $ 75 million. The chain announced that it would close all stores after nearly 200 years of retail running.
NPC International
This large franchisee, which operates 1,200 Pizza Hut and 400 Wendy’s, has filed for bankruptcy because of a $ 1 billion debt burden and rising food and labor costs. NPC then announced plans to close up to 25 percent of its Pizza Hut locations.
Brooks Brothers
The 200-year-old menswear retailer filed for bankruptcy and was bought by mall operator Simon Property Group, which also owns JC Penney, in September. Simon plans to keep around 125 branches in the chain. Brooks Brothers had around 425 stores prior to the pandemic.
On the table
The upscale kitchenware chain closed about half of its 120 stores nationwide after filing for bankruptcy and selling it to an investment firm for $ 90 million in August. The only remaining location in Pennsylvania is on the King of Prussia Mall.
RTW Retailwinds (New York & Company)
The company announced on bankruptcy in July that it plans to close nearly all of its 400 stores. According to the company’s website, the Camp Hill and Tannersville locations in Pennsylvania are still open.
Ascena Retail Group (Justice, Ann Taylor, LOFT, Lane Bryant and other women’s clothing stores)
Ascena closed hundreds of its stores, including all of approximately 200 Catherine locations. A private equity firm buys the company.
California pizza kitchen
The pizza chain declared bankruptcy in July. The company reduced its debt and closed multiple locations before going bankrupt in November.
Ruby Tuesday
Citing the pandemic, the casual dining chain has closed about 200 locations in recent years but is still opening about 300 – including 21 in Pennsylvania.
friendly
After two bankruptcies in the past decade, Friendly’s number of restaurants has dropped from about 400 to about 130 – 29 of which remain in Pennsylvania.
Guitar center
The nation’s largest musical instrument retailer tried to offer virtual music lessons during the outbreak, but that didn’t generate enough revenue to prevent bankruptcy. Nine guitar centers are open in Pennsylvania.
Francesca
After the latest bankruptcy filing, the women’s boutique will close around 25 percent of its 700 stores. There are currently 27 locations in the state, according to the chain’s website.
Retailers whose bankruptcies had little impact on Pennsylvania consumers in 2020 included:
- Papyrus stationery and greeting card chain that has closed its business.
- True Religion denim clothing store that emerged from bankruptcy in the fall after dozens of stores closed.
- Krystal fast food chain
- All-you-can-eat buffet chain Souplantation and sweet tomatoes
- Japanese retailer Muji USA
- Lucky Brand denim company
- Century 21 department store chain
- Sizzler restaurants.
Contributor: Kara Seymour / Patch
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