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Industry News

Retail bankruptcy seldom means a chain’s demise, report shows

Only a fraction of the retailers that file for bankruptcy protection end up going out of business, a report in The Wall Street Journal observes. Of the 17 retailers with more than 100 stores that filed for Chapter 11 last year, only HHGregg, Inc.; Limited Stores Co.; Vanity Shop; and Wet Seal, LLC, ended up closing all their units.

Others used their bankruptcy protection to reorganize, and in some cases to reopen stores. Outdoors-gear retailer Gander Mountain closed all 160 of its stores last March, but under new owner Camping World, Inc., 69 of those stores are to reopen under the Gander Outdoors name.

Payless ShoeSource initially said it planned to close 800 of its roughly 4,000 stores when it went into bankruptcy last April, but the company ended up closing only 673, the newspaper notes. Teen-apparel retailer Rue21 and children’s apparel retailer Gymboree closed only some of their stores after having declared bankruptcy.

By Edmund Mander

Director, Editor-In-Chief/SCT

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