A beloved retailer’s bankruptcy has now turned into painful liquidation as a way to generate cash flow in their going-out-of-business sales.
Bob’s Stores has been a New England favorite with the company mixing in sports apparel as well as discount clothing.
This beloved retailer was driven towards bankruptcy, along many other retail stores, thanks to the global pandemic.
The Covid pandemic had caused many retailers to suffer due to less customers, lack of funds, as well as acquiring too much debt and Bob’s Stores is no exception.
The pandemic had forced many retailers to close up shop, limit the amount of customers, or to operate with many restrictions.
Bob’s Stores bankruptcy filing was unexpected although it did proceed with corporate layoffs as well as the closure of a distribution facility, with its sister store being completely unaffected by the filing.
“Bob’s Stores will close all of its Bob’s locations and liquidate all inventory, as part of the Chapter 11 restructuring petition filed on June 18, 2024,” the company said.
“Despite making swift and aggressive changes to the company’s structure and operations, Bob’s Stores was unable to secure the finances needed to maintain operations.”
In its bankruptcy, Bob’s Stores has cited to have 369 creditors with assets between $50 million and $100 million with an equal amount in liabilities.
Bob’s Stores began their going-out-of-business sales on June 28, with discounts of 30% to 70%.
“This event marks a final opportunity for loyal customers to take advantage of massive savings on everything in store,” the company said in a news release.
“Top-selling items from the most popular brands will be discounted and will sell out very quickly.”
“Customers are encouraged to visit their nearest Bob’s location early to take full advantage of the best selection of discounted merchandise before it sells out.”
Bob’s Stores had stated, during these final hours, that all sales will be final and no returns will be available to its customers.
All Bob’s Stores chains have now officially closed for good (July 14), reports The Street.
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Also Read: Another Mall Clothing Retailer Now At High Risk of Bankruptcy
Other Economy News Today
A massive rental company with 34k locations now shuts down its operations after filing for bankruptcy and 22 years in business.
Users of movie rental company Redbox were left saddened after it was announced that it would be shutting down operations.
The announcement comes after the rental company’s parent company, Chicken Soup for the Soul Entertainment, filed for Chapter 11 bankruptcy.
According to court documents obtained by the Washington Post, the Connecticut-based company claimed to be one billion dollars in debt.
As a result, Redbox, which was a staple of many grocery stores including Walgreens, and CVS will be shuttered.
Many fans took to social media to express how upset they were with the loss.
“I knew it was coming, sadly,” UltraVada wrote in a post on X, formerly Twitter.
“It was inevitable,” a second person mourned.
“I knew this would happen when I heard they filed for Bankruptcy but its still sad to hear. I have a lot of fun memories of Redbox,” a third person lamented.
“I still don’t think this will be or ever be the end of physical media as we do still get remasters of some movies in 4k/Bluray.”
One person revealed that they had forgotten the rental service had existed.
Some users were not surprised by the announcement.
“Not surprised since nobody really rents videos anymore with the rise of streaming and what not,” one user admitted.
“Also kinda remember getting into a feud with them on here.”
One user also pointed out that the last remaining Blockbuster, located in Bend, Oregon, managed to outlive Redbox.
Redbox was acquired by Chicken Soup for the Soul Entertainment (CSSE) in 2022 and became one of the company’s flagship video-on-demand streaming services.
At its peak, CSSE operated more than 20,000 DVD rental kiosks across the country.
The company’s filing means that the company’s more than 1,000 employees will be laid off, per The Wall Street Journal.
It was also reported by Deadline that many employees at CSSE hadn’t received their paychecks and had medical benefits cut in late June.
Also Read: This Massive Mall Retailer Is Now Closing In California
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