A look-back at the year 2020 reveals how fashion brands and retailers suffered the most due to dwindling sales, low footfall, high debts, high rentals, inefficient operations, out-dated merchandise assortment and high inventories, among other such issues. The coronavirus pandemic added to the woes of these already troubled retailers leading them to file for Chapter 11 bankruptcy protection.
FashionUnited highlights some of the companies that failed to survive the tide during 2020.
The end of Topshop and Arcadia would be the biggest UK collapse of the pandemic
Once the king of the high street, Topshop parent company Arcadia would be the biggest corporate collapse during the time of the pandemic if it goes into administration.
With its 500 store portfolio its closure would create giant craters in the high street leaving unfillable gaps.
CBL files for bankruptcy
CBL & Associates Properties Inc, a U.S. shopping mall operator, has voluntarily filed for Chapter 11 bankruptcy. The news was reported by Reuters. This makes CBL another casualty of mall operator bankruptcies as coronavirus put a major dent in some already struggling mall businesses.
Canada’s Le Chateau Inc. seeks bankruptcy protection after 60 years in trade
New York – Montreal-based Le Chateau Inc. stores announced earlier this week it would seek court protection from creditors and shut down its stores. The party gear retailer has been 60 years in the trade.
Le Chateau has spent much of the COVID-19 pandemic trying to refinance or sell its business to a third party that would keep it in operation, but the attempts were unsuccessful, reported the Canadian edition of Yahoo Finance.
Canadian boutique Tristan seeks creditor protection
New York – Canada’s Tristan & Iseut Inc., a fashion brand founded in 1973, filed a notice of intention on July, 21 to seek protection under the Bankruptcy and Insolvency Act.
The file was made publicly available by the company’s trustee MNP Ltd. According to MNP, this notice is often the first stage of a restructuring process, and protects companies from creditors until they can create a plan to reorganise.
US department store chain Lord & Taylor files for bankruptcy
US luxury department store chain Lord & Taylor has filed for bankruptcy, becoming the latest retail casualty of the Covid-19 pandemic.
The company filed for Chapter 11 protection on Sunday, according to documents from the US Bankruptcy Court for the Eastern District of Virginia, along with its owner, French fashion rental subscription service Le Tote.
Tailored Brands files for bankruptcy
Tailored Brands, Inc., parent company of Men’s Wearhouse and Jos. A. Bank, has entered into a restructuring support agreement (RSA) with more than 75 percent of its senior lenders. The company said in a statement that to implement the terms of the RSA, the company has filed voluntary Chapter 11 petitions in the United States Bankruptcy Court for the Southern District of Texas. New York & Co. begins liquidating stores after parent company files for bankruptcy
New York – Fashion chain New York & Co. has already begun liquidating all its stores, two weeks after its parent company, RTW Retailwinds Inc., filed for Chapter 11 bankruptcy protection on July, 13.
According to the filing, RTW Retailwinds is planning to close most of its brick-and-mortar stores, as well as possibly sell its e-commerce business and related intellectual property.
Ann Taylor owner Ascena files for bankruptcy protection
Ascena Retail Group, inc. has entered into a restructuring support agreement (RSA) with over 68 percent of its secured term lenders. The company said in a statement that the plan is expected to reduce Ascena’s debt by approximately 1 billion dollars and provide increased financial flexibility to enable the company to continue its focus on generating profitable growth. The company has filed voluntary Chapter 11 petitions in the United States Bankruptcy Court for the Eastern District of Virginia.
Brooks Brothers files for bankruptcy protection
Brooks Brothers, a collegiate menswear brand founded in 1818, is the latest retail victim filing for bankruptcy protection.
The 200 year-old company is hoping to keep creditors at bay while it searches for a buyer. The upmarket retailer is owned by Luxottica founder Claudio Del Vecchio, who bought the company from Marks & Spencer in 2001.
The British arm of Victoria’s Secret files for creditor protection
New York – The filing for creditor protection covering their UK’s business is a wrap to quite a hectic week for Victoria’s Secret. The lingerie brand’s parent group, L Brands Inc. is facing a lawsuit for records of “a toxic culture”, as it emerged on Thursday. Prior to that, L Brands saw their deal to spin off Victoria’s Secret cancelled amidst the major closures prompted by the global health pandemic.
G-Star Raw's Australian arm enters administration
Denim company G-Star Raw has put the Australian extension of their company into administration putting 57 stores and 200 jobs at risk. G-Star Raw, which is based in The Netherlands, has named Ernst & Young's Justin Walsh, Stewart McCallum and Sam Freeman as administrators.
JCPenney files for bankruptcy to reduce debt
J. C. Penney Company, Inc. becomes the latest retail giant to enter into Chapter 11 bankruptcy. The company said in a statement that the restructuring support agreement (RSA) with lenders holding approximately 70 percent of JCPenney’s first lien debt is expected to reduce several billion dollars of indebtedness and provide increased financial flexibility to help navigate through the coronavirus pandemic.
Aldo Group files for bankruptcy protection
Canadian footwear retail chain Aldo has filed for protection under the Companies’ Creditors Arrangement Act (CCAA) in Canada to stabilise the business.
The court restructuring process began last week in Canada, explained Aldo, and it was seeking similar protections in the United States and in Switzerland, to help it stabilise the company in response to the ongoing Covid-19 pandemic that has shut its retail outlets.
Neiman Marcus files for bankruptcy amid Covid-19 pandemic
After J.Crew, Neiman Marcus Group Ltd LLC has commenced voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division. As part of the process, the company said in a statement, Neiman Marcus Group has secured debtor-in-possession (DIP) financing of 675 million dollars from creditors to enable business continuity throughout proceedings.
John Varvatos files for bankruptcy
Menswear designer John Varvatos has filed for bankruptcy. The company listed assets of as much as 50 million dollars and liabilities of 100 million dollars. John Varvatos Inc is fully owned by Lion/Hendrix Corp, which also filed for bankruptcy according to Bloomberg Law.
End of an era: J. Crew to file for bankruptcy protection
J.Crew, the upmarket preppy retailer that once was the king of America’s mall brands, is preparing to file for bankruptcy protection according to multiple media sources. The struggling retailer is one of several high-profile U.S. chains including Neiman Marcus and J.C. Penney, that are on the verge of unraveling during the coronavirus pandemic.
True Religion files for Chapter 11 amid economic struggle
True Religion filed for Chapter 11 bankruptcy protection in a Delaware court this week. The denim brand attributed its financial struggle to store closures caused by the pandemic, on top of existing liquidity constraints. This is the second time in less than three years that True Religion has filed for Chapter 11.
Picture credit: FashionUnited
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