Many large retailers and restaurant chains that have filed for bankruptcy and permanently closed their stores.
May 26, 2020
Not even halfway into 2020 and already a long list of corporate retail stores and restaurant franchises have either filed for bankruptcy or permanently closed some stores.
Granted, many of these companies were already in enormous financial debt even prior to government enforced lockdown orders.
Here is a list of 15 companies that got knocked out during the coronavirus pandemic:
1. Papyrus store (Schurman Retail Group)
At the peak of its success, this stationery and greeting card retailer operated over 450 stores throughout the United States and Canada.
Papyrus specialized in greeting cards, stationery, gift wraps, and specialty gifts. It was one of the largest greeting card retailers in the U.S.
It was announced on January 16, 2020, that all more than 250 of their remaining stores will be closing. The company began liquidating all stores the following day.
As of March 2020, at least 30 of their closed stores had been acquired up by Paper Source.
According to company, a combination of financial struggles, a general downturn in the retail industry, higher product costs were some of the reasons for file bankruptcy.
Source: Retail Dive
2. Lucky’s Market
This organic food supermarket chain, which was partly owned by the Kroger supermarket chain, was founded in 2003. By 2019, it had 39 stores in ten states.
But on January 21, 2020, the company announced that it was closing 20 of its 21 locations in Florida, leaving only the store in West Melbourne open.
Less than a week later, on January 27, it was announced that Lucky’s Market had filed for Chapter 11 Bankruptcy, largely due to an approximate $100 million net loss combined with significant drop in sales.
Several Lucky’s Market locations have been acquired by new owners.
3. Noah’s Event Venue
Noah’s Event Venue specialized in event venue services for weddings, corporate functions, and special occasions. Prior to accusations of fraud in 2019, the company had at least 39 locations across the United States during the height of its success.
However, with a large debt of $53 million, a bankruptcy judge in Utah issued an order that forced the company to close all of its locations in February 2020.
4. Pier 1 Imports
This home furnishings and decor chain at one time operated some 973 stores in the U.S. and Canada. But with a net income of nearly $200 million, the company decided in April of 2019 to close up to 145 stores.
On January 6, 2020, the company announced plans of closing up to 450 locations, including several distribution centers.
By May 19, 2020, the company asked the bankruptcy court to cease its retail citing the COVID-19 pandemic and failure to find a buyer as contributing reasons. All remaining locations will be liquidated.
5. Art Van Furniture
With over 3,700 employees and nearly 200 stores across several states that included Michigan, Ohio, Illinois, Indiana, Iowa, and Missouri, this Michigan-based furniture retail chain has announced on March 5. That it will filing for Chapter 11 bankruptcy with a debt of $63 million.
Some 3,100 employees, were scheduled to lose their jobs with all stores originally expected to be closed by May 31.
However, a Dallas-owned company has purchased several former Art Van Furniture stores and will reopen them under the name Loves Furniture. The company expects to hire over 1,000 people, many whom lost their jobs after Art Van Furniture filed for bankruptcy.