A popular retailer is now permanently closing its doors for good after it moved from Chapter 11 bankruptcy to liquidation.
“Retail bankruptcies have jumped through the first nine months of 2023 with over 4,500 U.S. businesses filing for Chapter 11.
That’s a 61% increase over the same period last year and some big names including Bed Bath & Beyond, Christmas Tree Shops, and Tuesday Morning have all been liquidated this year,” reports TheStreet.
“Two other big names, David’s Bridal and Party City managed to survive Chapter 11 and return to mostly normal operations.
You can blame the covid pandemic on creating a hole for many retailers that proved impossible to dig out of, but that’s not the only factor driving retailers out of business.
Supply chain issues have driven prices higher and labor shortages have led to increased wages. In addition, consumers remain wary about the economy which has led to some pullback when it comes to bigger ticket and discretionary purchases.“
Upscale furniture maker Mitchell Gold + Bob Williams first shared that it was having financial trouble in late August.
The company unexpectedly closed its 27 stores across 14 states and multiple Canadian provinces over the weekend of Aug. 26-27, reports The Street.
“The retailer shut down when it was “unable to secure critical financing to continue business operations,” according to a Worker Adjustment and Retraining Notification Act (or WARN) notice filed in North Carolina.”
Mitchell Gold + Bob Williams immediately let go of 500 workers amidst its Chapter 11 bankruptcy filing.
A judge removed the option of further funding after it became clear the company would not be able to reach a deal.
The judge declared that Chapter 7 was in the best interest of the debtors, their estates, creditors and all other interested parties, Furniture Today reported.
Other Economy News Today
A new wave of massive layoffs is now hitting Texas again as the state prepares for more job cuts this year.
Six more businesses have announced layoffs in Texas for the month of October, November, and December.
“So far this year, over 18,000 job cuts in Texas have been lodged with the Texas Workforce Commission across more than 160 businesses,” reports Ash Jurberg.
“Under the Worker Adjustment and Retraining Notification Act, an employer with more than 100 full-time workers must provide a 60-day notice before laying off 50 or more people at a single site.”
California remains the #1 state with the most layoffs in the country.
In second place is Colorado followed by Illinois, Washington, New York, Texas, New Jersey, Florida, Michigan, and Massachusetts.
The following businesses have filed a WARN act advising of upcoming layoffs in Texas this year:
- American Medical Response has cut 156 employees in Fort Worth.
- Accenture has filed a notice advising that 351 staff members in Austin will lose their positions on December 8.
- L3Harris Technologies is cutting 268 staff in Rockwall on November 30.
- Raytheon Technologies will cut 39 staff in Dallas on December 9
- Mittera Group will be cutting 136 staff in Carrolton on December 9.
- Invista Nylon Chemicals will be cutting 239 staff in Orange on October 27
Massive layoffs in Texas have now mounted as a car dealership filed for bankruptcy, affecting several hundreds of employees August – September.
The announcement comes after the dealership had laid off a whopping 466 employees in Florida.
Off Lease LLC, a subsidiary of the renowned used vehicle dealer Off Lease Only LLC declared its intention to permanently close its operations in Katy, Texas, laying off 116 employees due to mounting financial difficulties.
Related: Unexpected Layoffs in California Now Rise This Month
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