A massive retailer has now closed a location after 16 years of business, triggering several more layoffs, sources report.
A Best Buy in Centennial, Colorado, closed its doors on March 2nd.
It had been a constant in the local area for more than a decade after opening in 2008, per The Denver Post.
Best Buy is the latest chain to leave the popular SouthGlenn shopping mall, reports The-Sun.
The shopping center was previously home to a Macy’s outlet and a Sears store as well.
However, the Best Buy’s Centennial location was not just the chain’s only outlet to close this past weekend.
At least two other Best Buy stores closed on March 2.
The closures come just months after chiefs revealed they expected to close between 15 and 20 outlets.
Best Buy’s Apple Valley, Minnesota, outlet also shut up shop for the final time on March 2.
At least 20 full-time staffers have been impacted by the closure of the store, located less than 20 miles from Minneapolis.
Chiefs revealed they were hoping to keep as many workers employed.
They said they would work with them to try and find a new role within the company.
“This was a part of our regular and ongoing review process of stores as leases come up for renewal,” a spokesperson told the Kansas City Star.
The decision to close the outlet has left fans mourning.
“Going to miss the geek squad,” one shopper lamented.
“Too many things leaving the Northland,” another said.
Like its Centennial location, the store had been open since 2008.
Best Buy chiefs have closed up to 100 stores over the past five years.
But bosses have converted some into discount outlets, reports The-Sun.
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Also Read: Clothing Retailer Now Makes Painful Decision To Close All Stores
Other Economy News Today
A beloved crafts retailer is now at high risk of bankruptcy after a filing revealed the company owes over $2 billion in debt.
Joann Fabrics (JOAN) has been a favorite arts and crafts retailer for 80 years, operating 831 stores in 49 states.
However, like many retail store chains, it has struggled to overcome shifting sales trends toward online retailers like Amazon and larger superstores like Walmart while managing rising interest payments on billions of dollars in debt, reports TheStreet.
Sales at the arts and crafts store fell 4% to $540 million in its most recently reported quarter ending October, while its loss per share ballooned to $0.21 from a six-cent per-share profit in the same quarter the previous year.
Given the losses, Joann embarked on a cost-cutting plan to get itself back into the black by reducing costs by up to $225 million.
However, those efforts may not be enough. Behind the scenes, management has been discussing whether bankruptcy will be necessary to get its financial house in order, according to Bloomberg.
As of October 31, the company owed over $2 billion, including $181 million in current debt, and had just $28 million in cash and cash equivalents.
The company’s debt has become increasingly harder to manage since interest rates have risen since early 2022, reports TheStreet.
Joann’s quarterly interest expense ballooned to $28 million in October from $22 million exiting January 2023.
The company’s financial situation is a major reason its shares have dropped 85% in the past year to $0.51 per share.
“A Chapter 11 bankruptcy could provide Joann with wiggle room necessary to reshape its business and better align costs with sales,” says the outlet.
“Retailers often seek out Chapter 11 bankruptcy protection to restructure because it gives them the necessary cover to renegotiate debts with lenders and landlords, exit leases, and close stores.”
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Also Read: This Massive Mall Retailer Is Now Closing In California
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