A Home Improvement Store Now Makes An Unexpected Closure

A home improvement store now makes an unexpected closure, affecting all 6 of its locations in just one state, sources confirm.

The Roomplace announced that it will be shutting down all of its stores in Indiana, as part of the final liquidation process.

“What was once viewed as taboo is now a strategic way to realign and strengthen a business,” CEO Bruce Berman said in a statement to Furniture Today.

“We’re making the tough decisions now to ensure we’re around for another 100 years.”

The Chicago-based retailer, which has been around since 1912, will be shutting down eight of its stores as part of the Chapter 11 restructuring.

This will include all of its locations in Indiana, one location in Wisconsin, and another in Illinois to “align its costs with its projected sales and economic realities.”

The shutdown will affect 83 employees who will be laid off due to the closings

“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,” said Berman.

However, a spokesperson for the business indicated to Furniture Today, that the closure will positively affect the store’s profitability.

The Roomplace is now looking to shift its focus to its 18 remaining Chicagoland locations.

“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,” Berman said.

“This is not an end; it’s a new beginning for Chicagoland.”

Starting April 4, all of the closing stores will feature “once-in-a-lifetime” furniture sale prices ahead of its shutdown.

“The permanent closure of these retail locations means The RoomPlace is offering remarkably deep discounts across all showrooms for a complete sell-off of merchandise and inventory,” the company revealed in a press release.

“Quality mattresses and furniture are available for purchase including sectionals, recliners, dining sets, outdoor furniture, home accessories and much more.”

The furniture store vowed to complete all existing orders regardless of the shutdown.

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Also Read: A Grocery Outlet with 479 Locations Now Makes Unexpected Closure

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Market News Today - A Home Improvement Store Now Makes An Unexpected Closure.
Market News Today – A Home Improvement Store Now Makes An Unexpected Closure.

A massive discount retailer is now closing all 371 stores and wind down its business operations after more than four decades.

99 Cents Only Stores will close all of 371 stores according to the City of Commerce discount chain.

“This was an extremely difficult decision and is not the outcome we expected or hoped to achieve,” interim Chief Executive Mike Simoncic said in a statement.

“Unfortunately, the last several years have presented significant and lasting challenges in the retail environment.”

He cited multiple factors, including the “unprecedented impact” of the COVID-19 pandemic, shifting consumer demand, persistent inflationary pressures and rising levels of shrink — an industry term that refers to loss of inventory attributed to reasons such as shoplifting, employee theft and administrative errors.

Combined, those issues “have greatly hindered the company’s ability to operate,” Simoncic said.

99 Cents Only has stores in California, Arizona, Nevada and Texas and has about 14,000 employees. The privately held company said it had reached an agreement with Hilco Global to liquidate all of its merchandise and dispose of fixtures, furnishings and equipment at its stores. Sales are expected to begin Friday.

Hilco Real Estate is managing the sale of the company’s real estate assets, which are owned or leased, reports The LA Times.

The announcement by 99 Cents Only reflects a larger weakness in the dollar-store category, said Brad Thomas, equity research analyst at KeyBanc Capital Markets.

Dollar Tree, a Chesapeake, Va.-based retailer, announced last month that it was closing 600 of its Family Dollar stores this year and an additional 370 in the next few years, he noted.

“It’s been trying times for many, many retailers,” he said.

“What’s interesting is that what started out as a boon to retailers in the pandemic, with all those stimulus checks, quickly turned into a very troublesome time.”

Rising wages, inflation and higher losses due to shrinkage have reduced profits for retailers in a deep-discount sector where margins are already extremely low.

99 Cents Only, with its large base of California stores, has been under particular wage pressure, he said.

And it’s at a disadvantage compared with larger chains such as market leader Dollar General, which has a store count close to 20,000 — “a sales base and a store base that is multiple times larger than 99 Cents,” Thomas said.

Last week, Bloomberg reported that 99 Cents Only was considering a bankruptcy filing as it contended with a liquidity shortfall.

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Market News Today - A Home Improvement Store Now Makes An Unexpected Closure.
Market News Today – A Home Improvement Store Now Makes An Unexpected Closure.

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