10 Retailers nationwide file Chapter 11 and closed stores

E-commerce has changed the way consumers shop in a radical way. Brick and mortar locations around the nation are restructuring or closing down entirely. The only retail sector that seems to be doing okay is beauty stores. Below is a list of just a few of the retailers who have filed for Chapter 11 bankruptcy recently.

The Limited

  • 250 stores closed
  • Filed Chapter 11 in early January

Sycamore Partners acquired The Limited’s intellectual properties to use for its other retailers, Nine West and Coldwater Creek. This includes all social media and online domains.

Wet Seal

  • 171 stores closed
  • Filed Chapter 11 in 2015

Since filing for Chapter 11 restructuring in 2015, the California-based teen retailer has shut its doors. Unable to keep up with other competing fast fashion brands like Forever 21, Wet Seal was forced to close all stores.

Eastern Outfitters

  • 48 locations closed
  • Filed Chapter 11 in early February

Sports direct is a U.K. sports chain that acquired Eastern Outfitters in April. The two companies are working together to decide which stores to keep open.

BCBG Max Azria

  • 118 stores closed
  • Filed Chapter 11 in early February

Run by Tunisian fashion designer, Max Azria, BCBG is closing over a hundred stores. Freestanding stores have been closed as well as the restructuring of operations in countries in Europe. The company hopes that closing select stores will help the brand as a whole.

Vanity

  • 140 stores closed
  • Filed Chapter 11 in early March

Vanity is a casual clothing brand that originated in Fargo, North Dakota. They plan to be strictly an online brand to compete in the e-commerce dominated retail sector.

Hhgregg

  • 220 stores closed
  • Filed Chapter 11 in early March

Hhgregg has announced it is closing its doors after failing to find a buyer. The electronics superstore asked 50 prospective buyers but no one was biting. Brick and mortar electronic and appliance stores have turned into Amazon showrooms.

True Religion

  • Undisclosed number stores will close
  • Filed Chapter 11 in early July

True Religion is a denim brand with a cult following, but not one that is big enough. Hoping that a restructuring will revive their brand, the True Religion team seems hopeful. Leases of 27 different stores will be terminated to help the company restructure.

Vitamin World

  • Plans to close 50 stores
  • Filed chapter 11 in early September

Vitam World is planning to close 50 of the 330 stores. High rent and low performance are to blame for their bankruptcy. CEO Michael Madden hopes to end pre-existing lease agreements that are too expensive for the company. The vitamin and supplement retailer also has competition from Vitamin Shoppe and GNC.

Toys “R” Us

  • no stores closed
  • Filed chapter 11 in early September

Unlike other stores on this list the toy retailer has no plans on closing any U.S. stores. Any stores closed outside of the U.S. and Canada are not part of the filing deal. The 1,600 stores in the U.S. was operate as usual and hopes the filing will help it pay off its $4.9 billion of debt.

Where do retailers go from here?  Forever 21 and similar brands have turned to heavy reliance on social media for consumer engagement. Wal-Mart is a retailer that has begun added interconnectivity with their online store for added customer convenience. If brick and mortar stores want to survive they are going to have to adapt to the changing retail climate.