Iconic bankrupt retailer headed for a brick-and-mortar comeback
Chapter 11 can quickly become Chapter 7 but some chains have managed to avoid that fate even when the situation appears bleak.
You can build a pretty impressive mall with all the retailers that have closed in the 2000s.
Bon-Ton and Lord & Taylor could serve as anchor stores while Borders and Circuit City would draw crowds who like to browse. Sports fans would also be well-served as your mall could offer Sports Authority and Modell’s.
People who like a discount would also be well served as recent bankruptcy victims Tuesday Morning and Christmas Tree Shops could be featured as could their predecessors Century 21 and Ames. Kids would also be well-served as your mall of departed retailers would be able to offer both Toys R Us and KB Toys.
That’s actually a pretty small sampling of the dozens of retailers that have gone out of business just in the past few decades. The covid pandemic, of course, did not help matters nor has higher interest rates which makes it harder for chains that file Chapter 11 with the intention of reorganizing to get the money they need to make changes.
There are success stories. David’s Bridal was recently rescued from almost-certain liquidation at the last minute. Party City which filed for Chapter 11 in January hopes to become one of those happy survival tales.
The chain has plans to be taken private but while it works on making that deal, the popular store has a new model that might help it breathe some new life.
https://www.thestreet.com/retailers/popular-bankrupt-retailer-has-a-new-survival-plan
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