RadioShack, Payless and more retailers file for bankruptcy

Retailers of all kinds are facing challenges staying open in recent years. Electronic stores like RadioShack have been deduced to Amazon showrooms. Fast fashion retailers are dealing with even cheaper competition due to online stores. The following list is a continuation of stores filing for bankruptcy from last week.

RadioShack

  • Closed 200 stores
  • Filed Chapter 11 in 2015 and March 2017

RadioShack attempted a buy out from Sprint but that proved to be futile. Sprint’s own challenges got in the way of them being a crutch for RadioShack. The electronics store is trying to hold on with its private label offerings.

Gordmans

  • Closing all stores
  • Filed for bankruptcy in March

Gordmans is a discount department store that had over 100 stores during its peak. Now Gordmans is forced to liquidate all of their assets after filing for bankruptcy. 

Gander Mountain

  • 32 stores closed
  • Filed for Chapter 11 bankruptcy in March

Gander Mountain’s boating service was bought by Camping World Holdings in a bankruptcy auction. Gander Mountain stores have rebranded and plan to open 15-20 by 2018.

Payless Shoe Source

  • 400 stores closed
  • Filed Chapter 11 in April

The international discount shoe retailer sought Chapter 11 for the purpose of restructuring. Payless Shoe Source has 4,400 stores in 30 countries and recently emerged successfully.

Rue 21

  • 400 planned store closures
  • Filed Chapter 11 in May

Rue 21 is the self-proclaimed American specialty retailer that has stores across 48 states. The retailer emerged successfully from bankruptcy in 2003. Finally, for a second time, their restructuring process will allow them to avoid liquidation, a fate met by others on this list.

Gymboree

  • closing 375 stores
  • Filed Chapter 11 in June

Gymboree, the children’s clothing retailer, missed a June 1 payment resulting in their filing. They struggled to compete with Gap, a retailer with a similar style and lower price point. CEO, Daniel Griesemer, says the restructuring is a way to “more strongly position the business for long-term growth and success”.

Papaya

  • 22 stores closing
  • Filed Chapter 11 in June

Papaya attributes their filing to expanding too quickly in a time when e-commerce began to dominate the market. The teen retailer asked to cancel eight leases as well as close 22 stores. 

Alfred Angelo

  • closing all stores
  • Filed Chapter 7 liquidation

Alfred Angelo is a bridal company that faced fierce competition with a discount dress retailer, David’s Bridal. Unlike others on this list, Angelo filed for Chapter 7 and decided to liquidate all assets. The 75% sale gave brides a chance to get the dress of their dreams for a very low cost.

Aerosoles

  • plans to close most stores
  • Filed for Chapter 11 in September

The women’s shoe retailer wants to close most brick and mortar locations and focus on e-commerce. Aerosoles’ sales also largely come from wholesale deals making their physical locations nearly obsolete.

Perfumania

  • closing 64 stores
  • Filed Chapter 11 in August

Perfumania has closed over 100 stores over the past three years and recently closed 64 more. With the ability to buy perfumes in beauty stores Perfumania has a lot of competition and sells only one type of product. The company wants to focus on its online store sales as part of the restructuring process.

Whether filing for Chapter 7 or Chapter 11, stores nationwide are looking for debt relief. Consumers want a more convenient and inexpensive shopping experience that brick and mortar locations have been lacking. The future of retail stores looks bleak if companies are unable to adapt to changing consumer needs. Let’s hope there is not another article of closing retailers for a while.