27 clothing brands that have announced major store closures
- Many clothing retailers have announced store closures in the past year, and the coronavirus pandemic has led to even more.
- Legacy department stores Century 21, Lord & Taylor, and Neiman Marcus are all facing store closures.
- In October, Gap Inc. announced it would begin exiting malls and shutter 350 stores by 2024.
- Francesca's announced plans to close 140 of the retailer's remaining 700 stores by January 2021.
- Visit Business Insider's homepage for more stories.
Once highly popular clothing stores are facing mass closures. Though some retailers were already struggling due to a rise in online shopping, the coronavirus pandemic ground in-store shopping to a halt, leaving those without well-developed e-commerce businesses in serious trouble, according to Forbes.
Victoria's Secret was already in decline before the pandemic and announced in May 2020 that it plans to close up to 250 stores in the US and Canada. Lord & Taylor announced in August that it had filed for bankruptcy and would begin liquidating its 38 remaining stores. And most recently, Macy's confirmed it would be closing 37 more of its stores by the end of 2021.
Take a look at all the clothing brands and stores you'll see less of in the future.
The women's apparel and accessories chain is currently seeking "authorization to pursue an auction and sale process" expected to close on January 20, according to CNBC.
Business Insider reported that Francesca's sales fell 29% over the quarter despite rising online sales, according to the retailer's second-quarter earnings.
As a result, 80% of remaining Gap stores will be located in off-mall locations, according to AP.
Gap closed 40 stores globally in early 2020 as part of a plan to close 230 stores over the course of two years. Twenty-nine of the closings were in the United States.
A statement on the company's website said, "We are committed to quickly, thoughtfully, and decisively addressing stores that are underperforming or don't fit our vision for the future of Gap."
According to a previous report by Business Insider, the company plans to open more stores under other banners including Old Navy and Athleta.
A previous article from Business Insider reported earlier this year that net sales at the fashion retailer were down 52%.
"Banana Republic continues to focus on taking action to adjust to consumer preferences and improve inventory mix as the shift to casual fashion during the stay-at-home requirements has left the brand's workwear assortment disadvantaged," the company said in its August earnings release.
Century 21 announced on September 10 that the retailer would close all 13 of its locations in New York, New Jersey, Pennsylvania, and Florida, after failing to receive money from its insurers, according to the New York Times.
"While retailers across the board have suffered greatly due to Covid-19, and Century 21 is no exception, we are confident that had we received any meaningful portion of the insurance proceeds, we would have been able to save thousands of jobs and weather the storm, in hopes of another incredible recovery," Raymond Gindi, a co-chief executive at Century 21, said in a press release, referencing Century 21's comeback after the September 11 attacks which devastated downtown Manhattan, where the chain's famous New York City location is found.
According to an investor press release, net revenue from American Eagle and Aerie fell 15% to $884 million in the second quarter.
The first department store established in the United States, Lord & Taylor announced on August 27, 2020, that it had filed for bankruptcy and would begin liquidating its 38 remaining stores.
"While we are still entertaining various opportunities, we believe it is prudent to simultaneously put the remainder of the stores into liquidation to maximize value of inventory for the estate while pursuing options for the company's brands," Ed Kremer, Lord & Taylor's chief restructuring officer, said in a press statement.
L Brands, which owns Victoria's Secret, announced in May that it would close 251 stores in the US and Canada. In the US, 235 Victoria's Secret and three Pink stores will close, and the rest will be in Canada. According to Forbes, Victoria's Secret's net sales fell 46% in the first fiscal quarter of 2020.
According to CNN Business, JCPenney missed debt payments and is nearly $4 billion in debt. CEO Jill Soltau said in a press release, "The closure of our stores due to the pandemic necessitated a more fulsome review to include the elimination of outstanding debt."
JCPenney plans to close a total of 242 stores between this fiscal year and the next.
According to a previous Business Insider report, the closings account for about one-fifth of the company's total stores. The retailer also said at the time it was planning to cut 2,000 corporate jobs and closing several offices.
Macy's CEO Jeff Gennette said in a statement, "We are taking the organization through significant structural change to lower costs, bring teams closer together, and reduce duplicative work."
According to CNBC, 37 stores are expected to shutter by the end of 2021.
As Business Insider previously reported, the stores will close over the next two years. The company plans to shift its focus to online sales.
Inditex hasn't announced which locations will close, but said in a statement it will be "stores at the end of their useful life."
CEO Pablo Isla said in an Inditex report, "The overriding goal between now and 2022 is to speed up full implementation of our integrated store concept, driven by the notion of being able to offer our customers uninterrupted service no matter where they find themselves, on any device and at any time of the day."
Chico's operates Chico's, White House Black Market, and Soma, and will close 100 Chico's locations, 90 White House Black Market stores, and 60 Soma locations, Business Insider previously reported.
Chico's announced closures in early 2019 and had closed 49 locations by the end of that year.
According to the New York Post, "The chain, which sold mid-priced activewear brands, faced increasing competition from Dick's Sporting Goods, the only national sporting goods chain left. Dick's recently pulled out of a sales slump by focusing on service at the stores and catering more to women."
Chief Executive Officer Carlos Alberini told Bloomberg analysts, "The recent stock performance and expected demand under our new-normal model made very clear that our store portfolios around the world could be optimized to increase profitability."
Express closed nine stores in 2019 and closed 31 stores in 22 states in January. Thirty-five stores are expected to close by January 2021, leaving 25 to shut down by the end of 2022, according to Business Insider.
CEO Tim Baxter said in a statement, "My expectation is that we will return to a mid-single-digit operating margin through a combination of low-single-digit comp sales growth, margin expansion and cost reductions. This will of course take some time, but we have a clear path."
Among the list of closed locations is Neiman Marcus' Hudson Yards location in New York City, which opened a little over a year ago to "significant fanfare," according to a previous article by Business Insider.
Following the bankruptcy filing, Neiman Marcus CEO Geoffroy van Raemdonck said in a statement, "Like most businesses today, we are facing unprecedented disruption caused by the COVID-19 pandemic, which has placed inexorable pressure on our business."
The company announced in early May that it would close 16 stores in Arizona, California, Colorado, Florida, New Jersey, Maryland, Oregon, Virginia, Texas, and Puerto Rico, according to Business Insider.
A few weeks later, the company announced additional closures of its luxury apparel Jeffrey stores in Atlanta, New York City, and Palo Alto.
The kids' clothing company said it would close 200 stores this year and 100 more in 2021.
In a press release, CEO Jane Elfers said, "In an effort to structurally position the company for continued success, we are significantly accelerating our fleet optimization initiative, and focusing our resources on accelerating our digital sales, both key elements of our long-standing transformation strategy."
Destination Maternity saw several closures in Wisconsin in March, continuing its plan to shutter a total of 183 locations.
According to USA Today, "The company, in a court document, blamed the retail industry's turmoil, declining birth rates, high rents and leadership turnover for faltering. The company has had five CEOs in the last five years."
G-III Apparel Group, which also owns DKNY, Donna Karan, Calvin Klein, and Tommy Hilfiger, said in June that it plans to close all of its 110 Wilson's Leather and 89 G.H. Bass stores, according to a previous Business Insider report.
Chairman and CEO Morris Goldfarb said in a statement, "With a focus on enhancing shareholder value, we have made the difficult decision to close all of the Wilsons Leather and G.H. Bass stores and have entered into agreements for the early lease termination of a significant majority of these stores."
According to BizJournals, the company lost $8.8 million in one 2018 quarter but saw online sales increase by 10.7%.
In April 2019, Star Tribune reported that Christopher & Banks was delisted from the New York Stock Exchange after failing to meet a minimum $15 million market cap.
Lucky Brand currently has about 200 locations in the United States and said it plans to close at least 13 stores. The locations closing will be in Arkansas, California, Connecticut, Florida, Illinois, Michigan, Mississippi, Nevada, and Puerto Rico.
Interim CEO Matthew Kaness said in a statement, "While we are optimistic about the reopening of stores and our customers' return, the business has yet to recover fully."
According to CNBC, a spokesperson for the retailer said, "Over the past year, Brooks Brothers' board, leadership team, and financial and legal advisors have been evaluating various strategic options to position the company for future success, including a potential sale of the business," and added, "During this strategic review, Covid-19 became immensely disruptive and took a toll on our business."
On July 8, Business Insider reported that 38 Brooks Brothers stores had permanently closed.
Business Insider reported that a list of eight stores that are set to close in August was released in a bankruptcy filing on July 10. The closing locations are in Nashville, Tennessee; Emeryville, California; Chicago, Illinois; Washington, DC; Southampton, New York; St. Paul, Minnesota; Carlsbad, California; and Deer Park, Illinois.
However, J. Crew has since released a statement that the company has re-opened 458 stores, representing approximately 95% of its total store fleet, after a series of temporary closures due to the coronavirus pandemic.
Parent company RTW Retailwinds announced in July that the company had filed for bankruptcy and planned to close most, "if not all," of its brick-and-mortar stores.
In August, the parent company filed for Chapter 11 bankruptcy protection.
According to Business Insider, the company said in a news release that it has "reevaluated the forecasted profitability and strategic value of every store in its fleet relative to current and anticipated trends in consumer demand and has identified up to 500 stores for closure over time."
According to Business Insider, the parent company of Sears and Kmart, Transform Holdco, announced it would close 51 Sears stores and 45 KMart stores — 182 Sears and KMart stores will remain following the closures.
The retailer explained it would be fulfilling orders that were already placed but would be closing its stores and website.
"The challenging issues brought on by COVID-19 have led us down a path we were not expecting," Coldwater Creek said on its website. "Coldwater Creek's retail locations and website are closed and we are unable to take any orders. Thank you for being a valued part of our family and story. Please check back now and then for any updates."
In September, it was announced that Coldwater Creek was acquired by Hong Kong firm Newtimes Group, though nothing has been announced as to whether the brand will return or be restructured.
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