A home furniture retailer now files for unexpected bankruptcy as it moves forward with a plan to restructure its finances.
The RoomPlace revealed that it would make major changes including closing down six stores in one state following its bankruptcy filing.
This Bed Bath and Beyond rival, which opened in 1912, will shut down eight stores across the Midwest, reports The-Sun.
These will include a store in Peoria, Illinois; Kenosha; Wisconsin; and six in the Indianapolis area.
A date for the closures has not yet been announced by the company.
The RoomPlace’s CEO, Bruce Berman, was hopeful about the restructuring project and said it would allow to business to “align its costs with its projected sales and economic realities.”
“What was once viewed as taboo is now a strategic way to realign and strengthen a business,” he added.
Berman pointed out the difficult retail environment as sales decline, especially in the furniture industry.
“We’re making the tough decisions now to ensure we’re around for another 100 years,” he said.
Its restructuring program will include a focus on bettering its 18 stores in the Chicago area.
“We are determined to become better and stronger in Chicagoland by continuing to offer consumers the largest selection of stylish brands at the market’s best prices,” he said.
The other location closures will affect 83 employees in total.
Berman shared that the decision was not an easy one to make due to its staff and customers.
“As a family-run business with strong community ties, it’s not an easy decision to close stores and impact the people who work, shop and live in the affected communities,” he said.
The company also added that orders placed before February 2 at the eight affected stores will be fulfilled.
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Other Economy News Today
A massive shoe retailer is now closing locations after store employees said the business was “priced out” after a rent increase.
The Journeys in the Arnot Mall will be closing on January 20 after the company announced plans to shutter 100 stores, reports The-Sun.
Select staff will be transferred to other Journeys locations.
The store is located in Horseheads, which is about two hours south of Syracuse.
The manager said the closure was disappointing and the employees are like family.
There is no closing sale because all the merchandise will be transferred to nearby locations.
This comes after Genesco, which owns the shoe store, announced it would close 100 stores and move away from malls.
In May, it was initially estimated that only 60 locations would close after net sales dipped 7% due largely to a 13% decrease at Journeys.
Genesco expects to save up to $40 million from the closures, reports Retail Dive.
Now the company plans to shift the store’s presence away from malls.
“We still have work to do, but we are so far encouraged by the early reads and believe this initiative will represent a key element in Journeys’ growth moving forward,” said Genesco CEO Mimi Vaughn during an earnings call.
The JCPenney in the Shenango Valley Mall also fought to stay open for years but is set to close in the next few months.
The two businesses had been in a legal dispute for years because the mall wanted to evict the retailer and renovate the property, which is located in Pennsylvania.
JCPenney sued the mall and the court eventually ruled in favor of Butterfli Holdings LLC, the owners of the mall.
It was the last anchor store in the mall after Macy’s and Sears closed in 2017.
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