Category: Bankruptcy News (Page 1 of 3)

Clothing Retailer with 400 Stores Now Makes An Unexpected Closure

A clothing retailer with 400 stores now makes an unexpected closure after abruptly announcing the shutter to staff last minute.

J.Crew plans to close its location in SouthPark in Charlotte, North Carolina, according to Axios.

A spokesperson told the outlet that it would be closing on May 25.

They did not give a reason for the closure and are uncertain if it will reopen in a new location.

However, employees told the outlet that a new store will open in South End which is 16 minutes north of the closing location.

Though the SouthPark location is J.Crew’s flagship store in Charlotte, there are four other factory locations in the area.

As of March 2020, J. Crew had 492 stores worldwide, according to Statista.

In May of the same year, the owners of J.Crew, Chinos Holdings, filed for Chapter 11 bankruptcy.

It was partially because of the pandemic, but also because of its $1.7 billion of debt.

A few months after the filing, the company announced that it was successful in its financial restructuring process leaving it well-positioned for long-term growth.

“Looking forward, our strategy is focused on three core pillars: delivering a focused selection of iconic, timeless products; elevating the brand experience to deepen our relationship with customers; and prioritizing frictionless shopping,” said Jan Singer, Chief Executive Officer of J.Crew Group.

“As a reinvigorated company, we are committed to serving the changing life and style of today’s multifaceted consumer and to delivering long-term, sustainable results.”

In January, the J.Crew location at The San Francisco Centre shut its doors.

An anonymous employee claimed the lease was due to expire and the retailer didn’t want to renew it.

No reason was given for the decision not to renew though other retailers in the area have closed due to crime and decreased foot traffic.

Around 30 staffers were affected by the downtown San Francisco closure with some planning to transfer, but others were forced to find new work.

Stores including Nordstrom and Holister have also left the mall in the last year with theft and crime being a major factor.

Around 40 other stores have also closed their downtown locations due to the excessive amount of theft, violence, and verbal abuse.

Recently, American Eagle announced its June 12 closure at the Emporium Centre San Francisco.

For more store closure news and updates like this, opt-in for push notifications.

Also Read: An Unexpected Retailer Is Now Closing All Stores in Illinois

Other Economy News Today

Market News Today - Clothing Retailer with 400 Stores Now Makes An Unexpected Closure.
Market News Today – Clothing Retailer with 400 Stores Now Makes An Unexpected Closure.

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

Market News Published Daily 📰

Market News Today - Clothing Retailer with 400 Stores Now Makes An Unexpected Closure.
Market News Today – Clothing Retailer with 400 Stores Now Makes An Unexpected Closure.

Don’t forget to opt-in for push notifications so you don’t miss a single article!

Also, thank you to all of our blog sponsors.

This year we’ve been able to increase push notifications slots making it more convenient than ever for new readers to receive their daily market news and updates.

Scroll below to view my stock purchases this month!

You can also follow me on X (Twitter)InstagramFacebook, or LinkedIn for daily news and updates on your favorite stories.


Frank Nez’s Stock Portfolio

Wondering which stocks Frank Nez is holding? Which stocks is Frank Nez buying?

Frank Nez is now sharing his exclusive and personal stock portfolio with readers, only on the Patreon.

11/16/2023 – Today I invested $1,000 in two different stocks for a brand new stock dividend portfolio I am creating for 2024.



An Essential Company Now Files A Surprising Bankruptcy

An essential company now files a surprising bankruptcy after miscalculating demand for its inventory after the Covid-19 pandemic.

Supply Source Enterprises, a leading provider of branded and private label cleaning products and personal protective equipment, on May 21 filed for Chapter 11 protection to seek a sale of its assets.

Supply Source brands include The Safety Zone and Impact Products.

The Guilford, Connecticut debtor listed $50 million to $100 million in assets in its petition and $180 million in funded debt, which includes $80 million owed on a term loan credit facility, $60 million owed on an asset-based loan, and about $40 million in unsecured debt.

Before the Covid-19 pandemic, which generated huge demand for cleaning supplies and personal protective equipment in 2020, Supply Source had been consistently profitable with stable single-digit growth, according to a declaration from the debtor’s Chief Restructuring Officer Thomas Studebaker.

Once the pandemic hit in 2020, the debtor had substantial growth due to high demand for safety, hygiene and sanitation products

The debtor reported adjusted Ebitda of $93 million in 2020 which was nearly a 300% increase over the previous year.

However, the company’s financial performance deteriorated in subsequent years.

Based on the unprecedented demand in 2020, the company commissioned an industry study in early 2021 that concluded that the Covid-19 pandemic would fundamentally change the cleaning supplies and protective equipment industry and market for its products.

The study also estimated that the company’s Covid-related growth would likely be sustained through 2024.

In contemplation of continued customer demand at elevated prices, based on the study’s data, the debtor increased purchases of inventory even though the costs were higher due to supply chain constraints during the pandemic.

Despite the study’s assurance that growth would be sustained for years, the pandemic’s positive effect on the market faded by the end of 2021 and demand for PPE decreased to normal rates, reports TheStreet.

The reduction in demand led to large amounts of excess inventory that the company could not sell in the same quantities and prices.

The excess inventory forced the debtor to secure additional storage space, which increased storage costs.

These factors tightened the company’s liquidity and led to a decline in annual revenue in 2023 by 26% from 2022, resulting in a negative 2023 Ebitda of $13 million.

The debtor’s liquidity issues led to it being overdrawn on its asset-based loan facility by $30 million.

The ABL lender in February 2024 swept the debtor’s bank accounts, further impacting the company’s financial distress.

For more bankruptcy news and updates like this, opt-in for push notifications.

Also Read: Another Mall Clothing Retailer Now At High Risk of Bankruptcy

Other Economy News Today

Market News Today - An Essential Company Now Files A Surprising Bankruptcy.
Market News Today – An Essential Company Now Files A Surprising Bankruptcy.

Another unexpected fashion company now files for bankruptcy citing “extremely high costs due to inflation”, and other troubles.

Fashion brand Esprit has filed for insolvency in Europe citing “extremely high costs due to inflation, interest rates and energy prices, the after-effects of the coronavirus pandemic and the consequences of international conflicts.”

The insolvency filing, which was submitted to a court in Germany, applies only to the company’s European businesses.

All stores and online operations will continue as normal throughout the proceedings, during which the company said it will undergo a “transformation program” to reorganize its finances and business in Europe.

However, the company did note that high rents and an “overly bloated workforce” were some of factors contributing to its financial woes, foreshadowing potential cuts in both areas.

Founded in the U.S. in 1968, the company is now headquartered in Germany and Hong Kong and is listed on the Hong Kong stock exchange.

This is the second time Esprit has entered bankruptcy in the past four years.

Esprit currently has a presence in 40 countries around the globe, with the company’s Asia-Pacific and North and South America divisions unaffected by the European proceedings.

Each group within Esprit’s European business will be tasked with proposing and executing its own restructuring plan tailored to its region “allowing for more creative solutions and potentially better outcomes,” said the company in a statement.

The group also said it is exploring new funding opportunities and that a number of “potential investors have expressed their interest for a strategic partnership.”

“The self-administration proceedings have been initiated with the primary objective of not only restoring the economic stability of the company but also retaining the strength of the Esprit brand name,” said the statement.

“By taking proactive steps to address the disproportionate operating costs and streamline the business, the company demonstrates its commitment to maintaining a strong and competitive brand presence in the market.”

This second European bankruptcy comes as the Esprit works to reestablish its presence in North America, an effort that kicked off last year with a series of pop-ups across the U.S.

For more news and updates like this, opt-in for push notifications.

Also Read: This Massive Mall Retailer Is Now Closing In California

Market News Published Daily 📰

Market News Today - An Essential Company Now Files A Surprising Bankruptcy.
Market News Today – An Essential Company Now Files A Surprising Bankruptcy.

Don’t forget to opt-in for push notifications so you don’t miss a single article!

Also, thank you to all of our blog sponsors.

This year we’ve been able to increase push notifications slots making it more convenient than ever for new readers to receive their daily market news and updates.

Scroll below to view my stock purchases this month!

You can also follow me on X (Twitter)InstagramFacebook, or LinkedIn for daily news and updates on your favorite stories.


Frank Nez’s Stock Portfolio

Wondering which stocks Frank Nez is holding? Which stocks is Frank Nez buying?

Frank Nez is now sharing his exclusive and personal stock portfolio with readers, only on the Patreon.

11/16/2023 – Today I invested $1,000 in two different stocks for a brand new stock dividend portfolio I am creating for 2024.



An Unexpected Tennessee Company Now Files For Bankruptcy

An unexpected Tennessee company now files for bankruptcy after defaulting on debt it had owed to its creditors.

Canadian boat manufacturer Limestone Boat Co.’s subsidiary Ebbtide Holdings, doing business as Limestone US and TN Composites, on Feb. 22, 2023, filed for Chapter 7 liquidation in the U.S. Bankruptcy Court for the Middle District of Tennessee.

The filing triggered a default on debt owed to TSX Trust Co.

The industry has seen a chain reaction of bankruptcies worldwide.

In Europe, Swedish boat maker Ryds Boats in November 2023 filed for bankruptcy and was purchased by Norwegian manufacturer Cormate.

And In January 2024, German boat builder SAY Carbon Yachts filed for insolvency.

The most recent significant boat-related bankruptcy involved ski and wake boat dealer Tommy’s Fort Worth and 16 affiliates, which operate nationwide as Tommy’s Boats dealerships.

Debtors on March 20 filed for Chapter 11 bankruptcy to restructure their debts and obligations after defaulting on about $105 million of secured debt owed to M&T Bank.

The Fort Worth, Texas-based debtors listed $1 million to $10 million in assets and $100 million to $500 million in debts in its petition.

The debtor listed over $123 million in secured and unsecured debts in its petition.

Unfortunately, several customers nationwide have been unable to get Tommy’s to return their deposits, including a Colorado customer whose $7,350 deposit check was cashed by the company, but no boat was delivered and the deposit has not been returned, ABC television affiliate Denver7 reported.

Tommy Boats is also involved in other litigation as it filed a lawsuit on April 10 in the U.S. District Court for the Eastern District of Tennessee against one of its dealer partners, Loudon, Tenn.-based Malibu Boats.

“The company intends to vigorously defend itself against the claims made by Tommy’s,” Malibu Boats said in an April 11 statement.

“Tommy’s was formerly a longtime dealer partner of ours, and we ended our relationship due to concerns about Tommy’s own conduct and its financial soundness.

Indeed, Tommy’s lender is also suing it for violating the agreements Tommy’s used to finance the purchase of our boats.

We will always act to protect our business, our customers and our shareholders.”

For more bankruptcy news and updates like this, opt-in for push notifications.

Also Read: Another Mall Clothing Retailer Now At High Risk of Bankruptcy

Other Economy News Today

Market News Today - An Unexpected Tennessee Company Now Files For Bankruptcy.
Market News Today – An Unexpected Tennessee Company Now Files For Bankruptcy.

Another unexpected fashion company now files for bankruptcy citing “extremely high costs due to inflation”, and other troubles.

Fashion brand Esprit has filed for insolvency in Europe citing “extremely high costs due to inflation, interest rates and energy prices, the after-effects of the coronavirus pandemic and the consequences of international conflicts.”

The insolvency filing, which was submitted to a court in Germany, applies only to the company’s European businesses.

All stores and online operations will continue as normal throughout the proceedings, during which the company said it will undergo a “transformation program” to reorganize its finances and business in Europe.

However, the company did note that high rents and an “overly bloated workforce” were some of factors contributing to its financial woes, foreshadowing potential cuts in both areas.

Founded in the U.S. in 1968, the company is now headquartered in Germany and Hong Kong and is listed on the Hong Kong stock exchange.

This is the second time Esprit has entered bankruptcy in the past four years.

Esprit currently has a presence in 40 countries around the globe, with the company’s Asia-Pacific and North and South America divisions unaffected by the European proceedings.

Each group within Esprit’s European business will be tasked with proposing and executing its own restructuring plan tailored to its region “allowing for more creative solutions and potentially better outcomes,” said the company in a statement.

The group also said it is exploring new funding opportunities and that a number of “potential investors have expressed their interest for a strategic partnership.”

“The self-administration proceedings have been initiated with the primary objective of not only restoring the economic stability of the company but also retaining the strength of the Esprit brand name,” said the statement.

“By taking proactive steps to address the disproportionate operating costs and streamline the business, the company demonstrates its commitment to maintaining a strong and competitive brand presence in the market.”

This second European bankruptcy comes as the Esprit works to reestablish its presence in North America, an effort that kicked off last year with a series of pop-ups across the U.S.

For more news and updates like this, opt-in for push notifications.

Also Read: This Massive Mall Retailer Is Now Closing In California

Market News Published Daily 📰

Market News Today - An Unexpected Tennessee Company Now Files For Bankruptcy.
Market News Today – An Unexpected Tennessee Company Now Files For Bankruptcy.

Don’t forget to opt-in for push notifications so you don’t miss a single article!

Also, thank you to all of our blog sponsors.

This year we’ve been able to increase push notifications slots making it more convenient than ever for new readers to receive their daily market news and updates.

Scroll below to view my stock purchases this month!

You can also follow me on X (Twitter)InstagramFacebook, or LinkedIn for daily news and updates on your favorite stories.


Frank Nez’s Stock Portfolio

Wondering which stocks Frank Nez is holding? Which stocks is Frank Nez buying?

Frank Nez is now sharing his exclusive and personal stock portfolio with readers, only on the Patreon.

11/16/2023 – Today I invested $1,000 in two different stocks for a brand new stock dividend portfolio I am creating for 2024.



An Unexpected Brewery Now Files For Chapter 11 Bankruptcy

An unexpected brewery now files for chapter 11 bankruptcy after disclosing debts and assets between $1 million and $10 million.

Schoffstall Farm LLC, the Harrisburg. Pa., owner of SpringGate, has filed for Chapter 11 bankruptcy protection in U.S. Bankruptcy Court for the Middle District of Pennsylvania.

In the May 14 filing, the company disclosed that it had between 1 and 49 creditors, and debts and assets between $1 million and $10 million.

SpringGate Vineyard began as a winery, then expanded to become a destination that also brews craft beer and holds many special events.

In its 10-year history, SpringGate has grown rapidly.

However, the company says that it plans to remain open and operate as it has been.

No financial plan has been submitted to the court, but the company did post a message on its Facebook page.

“SpringGate is open and will remain open operating as it has been, and we thank our many customers, partners, and supporters from the past, present, and for the future,” the company said in the post.

“SpringGate has filed for financial reorganization which entails a sale,” it said.

“This is a necessary action for an orderly transition to what we believe will be a better future.

We ask for you to continue to visit us, bringing friends and family, and enjoying our products and unique gathering places which will help support us during this transition.”

Owner Marty Schoffstall did not respond to a request for comment from PennLive.com.

In addition to its on-site activities, SpringGate distributes wine and beer to a number of grocery and convenience stores across Pennsylvania.

For more bankruptcy news and updates like this, opt-in for push notifications.

Also Read: Another Mall Clothing Retailer Now At High Risk of Bankruptcy

Other Economy News Today

Market News Today - An Unexpected Brewery Now Files For Chapter 11 Bankruptcy.
Market News Today – An Unexpected Brewery Now Files For Chapter 11 Bankruptcy.

Another unexpected fashion company now files for bankruptcy citing “extremely high costs due to inflation”, and other troubles.

Fashion brand Esprit has filed for insolvency in Europe citing “extremely high costs due to inflation, interest rates and energy prices, the after-effects of the coronavirus pandemic and the consequences of international conflicts.”

The insolvency filing, which was submitted to a court in Germany, applies only to the company’s European businesses.

All stores and online operations will continue as normal throughout the proceedings, during which the company said it will undergo a “transformation program” to reorganize its finances and business in Europe.

However, the company did note that high rents and an “overly bloated workforce” were some of factors contributing to its financial woes, foreshadowing potential cuts in both areas.

Founded in the U.S. in 1968, the company is now headquartered in Germany and Hong Kong and is listed on the Hong Kong stock exchange.

This is the second time Esprit has entered bankruptcy in the past four years.

Esprit currently has a presence in 40 countries around the globe, with the company’s Asia-Pacific and North and South America divisions unaffected by the European proceedings.

Each group within Esprit’s European business will be tasked with proposing and executing its own restructuring plan tailored to its region “allowing for more creative solutions and potentially better outcomes,” said the company in a statement.

The group also said it is exploring new funding opportunities and that a number of “potential investors have expressed their interest for a strategic partnership.”

“The self-administration proceedings have been initiated with the primary objective of not only restoring the economic stability of the company but also retaining the strength of the Esprit brand name,” said the statement.

“By taking proactive steps to address the disproportionate operating costs and streamline the business, the company demonstrates its commitment to maintaining a strong and competitive brand presence in the market.”

This second European bankruptcy comes as the Esprit works to reestablish its presence in North America, an effort that kicked off last year with a series of pop-ups across the U.S.

For more news and updates like this, opt-in for push notifications.

Also Read: This Massive Mall Retailer Is Now Closing In California

Market News Published Daily 📰

Market News Today - An Unexpected Brewery Now Files For Chapter 11 Bankruptcy.
Market News Today – An Unexpected Brewery Now Files For Chapter 11 Bankruptcy.

Don’t forget to opt-in for push notifications so you don’t miss a single article!

Also, thank you to all of our blog sponsors.

This year we’ve been able to increase push notifications slots making it more convenient than ever for new readers to receive their daily market news and updates.

Scroll below to view my stock purchases this month!

You can also follow me on X (Twitter)InstagramFacebook, or LinkedIn for daily news and updates on your favorite stories.


Frank Nez’s Stock Portfolio

Wondering which stocks Frank Nez is holding? Which stocks is Frank Nez buying?

Frank Nez is now sharing his exclusive and personal stock portfolio with readers, only on the Patreon.

11/16/2023 – Today I invested $1,000 in two different stocks for a brand new stock dividend portfolio I am creating for 2024.



« Older posts

© 2024 Franknez.com

Theme by Anders NorenUp ↑