A unique retailer is now filing for an unexpected bankruptcy during a period where Chapter 11 filings have increased over 60% in 2023.
“The retail carnage continues as it has been a bleak year for retailers.
You can’t blame any one cause for Chapter 11 filings from companies as diverse as Bed Bath & Beyond, Tuesday Morning, and Christmas Tree Shops (which all were liquidated) to David’s Bridal and Party City (which survived),” says TheStreet.
“Customer spending changes and inflation certainly have played a part as have rising costs due to supply chain problems.
You can also broadly blame the higher cost of money making it much harder for struggling brands to find the funds needed to reinvent themselves.
Many of these problems are tied directly to the covid pandemic.
That global event forced non-essential retailers to close in many parts of the country while consumer spending patterns shifted.“
Showfields has become the latest once-popular and successful company to file Chapter 11.
Showfields calls itself “the most interesting store in the world.”
It has locations in Washington, Los Angeles, Miami, Manhattan, and Brooklyn.
The company has filed for bankruptcy protection in U.S. Bankruptcy Court’s Eastern New York branch.
The filing shared the company’s plans to focus on Brooklyn and Washington and close its Miami and Manhattan locations.
However, the L.A. store is not part of the bankruptcy filing.
Showfields has “entered into an agreement with the debt-financing company Pipe Technologies Inc. whereby the debtor sold its accounts receivable and recurring revenues to obtain operating capital for its businesses in the aggregate amount of $1.4 million,” the filing said.
The company blames its current situation on the dragging effects of the pandemic.
Also Read: Another Popular Retailer Now Declares An Unexpected Bankruptcy
Other Economy News Today
A new wave of massive layoffs is now hitting Pennsylvania according to the latest data from the Pennsylvania Department of Labor & Industry.
“Pennsylvania has experienced a wave of job cuts in 2023, with a wide range of businesses announcing layoffs across the year.
Under the Worker Adjustment and Retraining Notification Act, an employer with more than 100 full-time workers must provide a 60-day notice before laying off 50 or more people at a single site,” reports Ash Jurberg.
“So far, over 8,000 jobs have been cut in Pennsylvania across the first nine months of 2023. As a comparison, across all of 2022, there were 7044 jobs lost.”
California remains the #1 state with the most layoffs in the country.
In second place is Colorado, with approximately 26,816 layoffs and 81 WARN notices, followed by Illinois, Washington, New York, Texas, New Jersey, Florida, Michigan, and Massachusetts.
Below are the businesses that filed a WARN act with the Pennsylvania Department of Labor & Industry advising of upcoming layoffs.
View the full list of upcoming layoffs in Pennsylvania here.
Also Read: A US Bank is Now Denying Customers Access to Money
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