An unexpected apparel company is now closing all stores after failing to secure the financing necessary to continue operating.
Bob’s Stores was “unable to secure the finances needed to maintain operations,” now the chain plans to close all 21 locations and liquidate all inventory.
On June 18, Bob’s Stores and Eastern Mountain Sports, both owned by GoDigital Media Group, filed for Chapter 11 bankruptcy protection.
Neither Eastern Mountain Sports nor GoDigital Media Group immediately returned requests for comment on plans for the EMS banner, which runs about 20 stores.
Loyal shoppers at Bob’s, a fixture in New England for several decades, can use any gift cards or merchandise credits they have through July 14.
Going-out-of-business sales began last week, with discounts of up to 70%, according to a company press release.
The retailer will be closing all locations, which are found in Connecticut, Massachusetts, New Hampshire, New Jersey, New York and Rhode Island.
The assortment includes workwear, footwear, team wear and casual clothing for men, women and children.
Some store fixtures, furniture and equipment will also be available during the liquidation, which is being managed by Hilco Merchant Resources in a joint venture with Gordon Brothers.
In a statement, Bob’s Stores President Dave Barton expressed gratitude to the company’s “vendors, suppliers, customers and employees for all of their support over the years.”
The company said it made “swift and aggressive changes to the company’s structure and operations,” but that Bob’s Stores was unable to secure the funds it needed to carry on.
Together EMS and Bob’s generated $131.9 million in net revenue last year, per court filings.
Earlier this year their bank declared a default under their loan agreement, took control over their cash and receivables, and would only fund certain expenses.
On June 12, after discussions broke down, the bank stopped funding their operations.
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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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