Thursday, June 22, 2017
Decelerating Retail News
Payless ShoeSource is seeking bankruptcy court approval to close up to 408 more stores. The chain, which filed for Chapter 11 bankruptcy protection in April, had originally said it planned to close nearly 400 underperforming locations. Payless currently has 4,000 stores in 30+ countries…Michael Kors will close more than 100 full-price retail stores in the next two years...RadioShack closed more than 1,000 stores since Memorial Day weekend and will only have 72 company-owned stores and about 500 dealer-owned stores remaining by mid-June...Central Grocers filed for Chapter 11 bankruptcy. Central Grocers is a grocery cooperative that operates as wholesaler for more than 400 independent grocery stores in the Chicago area. It’s also the parent company of Strack & Van Til and Ultra Foods stores in Illinois and Indiana, which are included in the bankruptcy filing. Last month, Central Grocers announced plans to sell 22 Strack & Van Til stores while closing 9 underperforming stores. The company said it expects to enter into a sales agreement for 19 of the Strack & Van Til stores...Sears is closing 72 more stores, in addition to the more than 180 closings already announced this year. The list includes 16 Sears stores, 49 Kmart stores, and 7 auto centers. The closings will bring Sears’ store count to about 1,200, down from 2,073 five years ago... Ascena Retail Group, operators of Ann Taylor, Lane Bryant and Dressbarn, is planning to close more than 250 locations by July. An additional 400 stores could close if the company can’t negotiate reduced rent with landlords. No particular brand is being targeted for the closures…Gymboree has filed for Chapter 11 bankruptcy protection. The retailer expects to operate its overall business and its stores as usual during restructuring. As of April, Gymboree operated a total of 1,281 retail stores…Bebe Stores, Inc. has made a series of deals that will leave it with no stores. Additionally, it turned over intellectual property rights, international wholesale agreements and e-commerce URLs to BB Brand Holdings LLC, the joint venture it has with brand management company Blue Star Alliance. The deals allow bebe to wind down operations and keep its brand alive without declaring bankruptcy...Teen apparel retailer Papaya Clothing has filed for Chapter 11 bankruptcy protection. Papaya asked the court for the ability to exit leases for 8 stores it is currently operating and another 22 it has already shut down.