Century 21 Department Stores LLC grabbed headlines last week when it confirmed plans to close all 13 of its stores and liquidate assets as part of a chapter 11 process.In doing so, the New York-based company became just the latest in a string of major retailers to file for bankruptcy in 2020 — a year
Century 21 Department Stores LLC grabbed headlines last week when it confirmed plans to close all 13 of its stores and liquidate assets as part of a chapter 11 process.
In doing so, the New York-based company became just the latest in a string of major retailers to file for bankruptcy in 2020 — a year where virtually every type of brick-and-mortar business suffered due to the coronavirus pandemic.
But not all stores have to close due to bankruptcy. J.C. Penney Co. Inc., for example, was just sold to two of the country’s largest mall owners: Simon Property Group and Brookfield Property Partners. The deal wound up saving about 70,000 jobs and allowed the 118-year-old business to avoid liquidation.
Another M&A scenario saved J. Crew Group, which this week shed most of its debt via a deal with Anchorage Capital Group.
Per RetailDive.com, over two dozen retailers have filed for bankruptcy in 2020 so far and more are on the way.
Z score creator Edward I. Altman told the New York Times in June that this year will set a record for companies saddled with at least $1 billion in debt. And the number of bankrupt companies with debt of at least $100 million will be comparable to the record set in 2009 on the heels of the economic crisis.
Here’s a look at the other companies that went bankrupt in 2020:
Aldo Group: The shoe retailer, which has a chain of 700 stores and employed some 8,000 people, went bankrupt in May.
Art Van Furniture: The metro Detroit-based furniture and mattress retailer liquidated all company-owned stores before filing Capter 11.
Ascena: The company behind clothing chains Ann Taylor and Lane Bryant filed Chapter 11 in July.
Bluestem Brands: The owner of the Fingerhut catalog went bankrupt and sold assets to lenders led by Cerberus Capital.
Brooks Brothers: The retailer, founded in 1818, filed for bankruptcy in July and was sold for $325 million to mall operator Simon Property Group and Authentic Brands Group in August.
Centric Brands: The company behind licensed brands like Calvin Klein, Tommy Hilfiger and Nautica filed for bankruptcy in May with $435 million of DIP financing.
G-Star Raw: The denim company, with more than 30 stores in its portfolio, filed for Chapter 11…
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