A retail chain now makes unexpected closures and layoffs amidst high inflation and the rise of online shopping.
Bob’s Stores have announced the closure of 10 locations amidst high inflation and the rise of online shopping.
Due to the shutdowns, the stores are having a blowout sale with up to 50% off items.
In May, Bob’s Stores and sister-brand Eastern Mountain Sports laid off 150 people at their headquarters in Meriden, Connecticut, and decided to close 10 locations across the northeast, according to CT Insider.
The layoffs were scheduled to start on June 14.
CEO David Barton said the company was trying to secure different financing in a letter to the state Department of Labor.
“We would like to have given you more notice of this action but were unable to do so because the bank has informed us within the last week that it will refuse to fund the employee health insurance premiums, 401K administration, payroll, as well as other critical financial obligations,” CEO David Barton wrote to the Department of Labor about the abrupt lay-offs.
“As of this date, they remain firm on their position despite our continuing best efforts to convince them otherwise.”
For the business to survive the drought that is in-person shopping and the woes of rising inflation, they need to lean on their loyal customers to prove they still have a promising business model.
“Bob’s and EMS know how to run good, profitable, and productive stores that offer great merchandise with great value,” Burt Flickinger III, managing director of the Manhattan-based retail and consumer goods consulting firm Strategic Resource Group said, according to CT Insider.
“But they’re facing an accelerating retail ice age.”
Locations across the East Coast are preparing for their impending closure.
No specific closing dates have been released.
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Also Read: An Unexpected Retailer Is Now Closing All Stores in Illinois
Other Economy News Today
An unexpected restaurant now abruptly closes 7 locations in one state after revealing plans to shutter a total of 36.
TGI Fridays is closing a total of seven restaurants in one state as part of the company’s ongoing growth strategy.
This comes after the chain abruptly closed 36 locations across 12 states in at the beginning of the year, per The-Sun.
The restaurant chain will pull the plug on seven locations across the state of New Jersey in the coming weeks.
Today, Fridays will welcome in famished diners at its location in Brick for the final time.
“As we continue along our path of transformation to revitalize the Fridays brand and implement a long-term growth strategy, we see a bright future for TGI Fridays,” said Weldon Spangler, CEO of TGI Fridays earlier this week.
“We are at the helm of a pivotal moment that will allow us to explore boundless advancement, expansion, and innovation to keep delivering ‘That Fridays Feeling’ that our fans know and love.”
Before the closures, TGI Fridays had about 270 US locations, according to the company’s website.
“As part of the store closures, TGI Fridays is offering more than 1,000 transfer opportunities, which represents over 80% of total impacted employees,” the company previously said in a statement.
“Our top priority has always been delivering a superior experience for each and every TGI Fridays guest, and we’ve identified opportunities to optimize and streamline our operations to ensure we are best positioned to meet – and exceed – on that brand promise,” said Ray Risley, US president and chief operating officer, in the release.
Eight other locations were sold to former CEO Ray Blanchette, a longtime stakeholder who will acquire the previously corporate-owned restaurants.
The sale comes as major changes have been made to the brand’s leadership, including the news of Weldon Spangler being made CEO.
“As we continue along our path of transformation to revitalize the Fridays brand and implement a long-term growth strategy, we see a bright future for TGI Fridays,” said Spangler in a statement.
Also Read: Retirees Will Now Receive More Money For Social Security
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