Retail store bankruptes are a growing category in the industry.
A number of retailers are being restructured, or even shut down altogether, in an effort to avoid bankruptcy.
However, these restructurings and closures don’t always lead to the kind of long-term economic pain that’s been seen in the retail industry in recent years.
In some cases, these stores could go back into business.
Here are the five retail bankruptcies that have affected retail stores across the United States this year:The first retail bankrupt occurred in January of 2019, when Macy’s (NYSE:M) announced that it was closing its doors.
The news was widely met with relief and optimism from the retail community.
In February, Target (NYSE :TGT) closed its doors and Macy’s rebranded itself as the Nordstroms of retail.
In March, Macy’s filed for Chapter 11 bankruptcy protection in the United Kingdom.
In April, Sears Holdings (NYSE:,SHLD) filed for bankruptcy protection and was sold to a group of private equity firms.
This was followed by a number of other retailers in the sector, including the Gap, Neiman Marcus, Macys, and TJ Maxx.
The next bankruptcy filing came in May of 2019.
Sears Holdings filed for a Chapter 11 reorganization in the U.K. Sears had been struggling with debt, and it was believed that a bankruptcy filing could help it balance its books.
However that hasn’t happened yet.
In June, Sears filed for the first time for Chapter 9 bankruptcy protection.
In August, Walmart (NYSE:-P) filed a Chapter 9 reorganization and was also sold to private equity.
In September, the retailer filed for another bankruptcy filing, which would have seen it split into a new company, and closed its stores and stores of its competitors.
In November, Walmart filed for and was granted Chapter 9 protection, and the retailer is now in Chapter 11.
The retailer is also going to need to restructure its supply chain, as it is expected to lose tens of millions of dollars in revenue and $1.2 billion in profit.
A final bankruptcy filing in January, 2018, was for Target (Nasdaq:TGT), which was sold in 2018 to private-equity group Kohlberg Kravis Roberts (KKR).
Kohlenberg Kravis is currently owned by Kohlborn Group (NYSE:(NYSE:KLB), which also owns Target).
In April of 2019 a bankrupt Sears Holdings opened its doors, and in October of that year, Walmart was purchased by KKR for $6.2bn.
In November of that same year, a bankruptcy court in New Jersey ordered KKR to liquidate its assets.
In December of 2019 Walmart filed bankruptcy protection for its remaining stores and operations in the state of Ohio.
In December of 2020, a federal judge ordered that KKR’s assets be liquidated.
In January, a second bankruptcy filing was filed for Target, and KKR announced that they would close the remaining stores, with an eye to eventually relocating them to other states.
In May of 2020 a third bankruptcy filing had been filed for Macy’s, which closed its outlets.
The last retail bankruptcy filing occurred in June of 2020 for Sears Holdings, which was purchased for $8.7bn.
The retail giant also reported a $1 billion loss.
The following retailers have filed for or will file for Chapter 10 bankruptcy protection this year, including:H&M (NYSE:#H) is expected in bankruptcy for the second time this year.
This is expected due to the high cost of its stores in terms of staff and facilities.
The bankruptcy filing will also likely affect other retailers that have been restructured or have closed their doors in recent months.