A massive retailer now permanently closes and begins a liquidation sale citing the decision was not made lightly, sources report.
The Salvation Army has confirmed the closure of one of its major thrift store locations, and customers are preparing for a liquidation sale.
The organization confirmed Friday that the store in Hopkinsville, Kentucky, about 22 miles from the state’s southwestern border with Tennessee, would shut down indefinitely next month.
Corps Officer Lieutenant Lindsey Galabeas said that the closure came after lengthy deliberation in an effort to transform the building to better serve residents, per Christian County Now.
“While the decision to close the store was not made lightly, we believe it is a responsible step forward in enhancing our ability to serve the community more effectively,” Galabeas told the outlet.
Financial struggles were also noted as a cause of the Salvation Army thrift store closing, including “sales and operational challenges.”
Galabeas stressed that the closing presented a better opportunity for the Salvation Army to do more, promising a clothing closet with free access to “gently used” items from community members who might need them.
“We plan to repurpose the store space to better meet the evolving needs of our community,” the lieutenant continued.
“Plans include establishing a clothing closet where our neighbors in need can access gently used clothing items.”
The official closure date is set for March 8, reports The-Sun.
It was noted in the press release from the Salvation Army that up until the final day of business, the Hopkinsville thrift store will operate on Mondays, Wednesdays, and Fridays from 11:00 am to 4:00 pm, per radio station WHOP.
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Also Read: A Popular Essential Retailer Is Now Closing 72 Locations
Other Economy News Today
Another mall clothing retailer is now at high risk of bankruptcy as it prepares for debt restructuring, The Wall Street Journal reports.
Apparel retailer Express Inc. is preparing for a possible debt restructuring that could include a bankruptcy filing “within weeks,” The Wall Street Journal reported Monday, citing sources familiar with the matter.
According to the report, Express has hired M3 Partners and law firm Kirkland & Ellis.
Both entities specialize in debt restructuring, reports Retail Dive.
The retailer is looking to avoid a Chapter 11 filing by restructuring its debt outside the bankruptcy process, the report said.
Express reported total debt of about $275 million at the end of the third quarter, an increase from $235.4 million a year before.
During the company’s last earnings call in November, recently appointed CEO Stewart Glendinning acknowledged the company made some missteps: Among other factors, there was a misalignment between its assortment and customer demand.
Express took a hit during the pandemic as its core offering — business casual — fell out of favor as work-from-home surged.
“Unfortunately, my previous assessment of Express’ fragile financial situation leading to a possible bankruptcy due to declining revenue, gross margin profits and ballooning debt of $280 million is a foregone conclusion,” Shawn Grain Carter, a retail industry consultant and professor at the Fashion Institute of Technology at the State University, said in an email to Retail Dive.
“With high-interest rates, the retail company must decide between the ‘lesser of two evils.’
Moreover, until they fix the waning consumer demand for their merchandise and elevate the brand and product mix, financial wizardry will not resolve their retail woes.”
And after the New York Stock Exchange warned of a potential delisting in late March, Express executed a 1-for-20 reverse stock split, which decreased outstanding shares to 3.7 million from 74.9 million.
That stock split enabled Express to regain listing compliance with the New York Stock Exchange.
Around the same time, Express said it planned to cut 150 jobs by the end of the third quarter.
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Also Read: A US Company Now Declares An Unexpected Bankruptcy
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