This massive department store will now close 150 stores for good as the company battles with plunging sales, sources report.
Macy’s has announced that 150 stores are set to close over the next three years.
The company said the closures are part of efforts to reshape the chain’s retail strategy and ‘boost growth’.
Around 50 stores are set to close by the end of this year, per The New York Times.
By the end of 2026, the company expects to shutter 150 outlets in total.
Once the closures have taken place, there will be 350 outlets remaining across the United States.
The stores are underperforming, executives said, but the company expects to rake in between $600 and $750 million by selling the stores.
Macy’s has seen a dip in sales compared to last year, but Tony Spring, who became the chain’s new CEO on February 4, said the closures would help drive growth.
“This isn’t just about shrinking,” he told The Wall Street Journal.
“This is about resizing the portfolio to make sure we are giving people an opportunity to shop the way they want.”
Spring hopes up to 30 small Macy’s outlets will open within the next two years.
The raft of pending shutdowns comes just years after Macy’s chiefs announced 125 store closures, reports The-Sun.
“More than 2,000 jobs were cut in the process of the major overhaul.”
News of the closures comes just weeks after it was reported that five Macy’s stores would shutter soon.
Two stores in California, one in Hawaii, Tallahassee, Florida, and Arlington, Virginia, are set to close.
Liquidation sales started in January and these are expected to run for eight to 12 weeks.
Chiefs at the time announced that management roles would also be cut to improve the decision-making process.
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Also Read: This Massive Restaurant Is Now Closing 41 Locations
Other Economy News Today
A big appliance company now files an unexpected bankruptcy after racking up a whopping $832 million in debt, sources report.
Appliance component manufacturer Robertshaw U.S. Holdings filed for Chapter 11 bankruptcy protection on Thursday, seeking to cut $670 million in debt and resolve litigation between its lenders, reports Reuters.
Robertshaw manufactures more than 10,000 sophisticated controls for commercial and home appliances, per its website.
Primary applications include controls for clothes washers and dryers, dishwashers, refrigerators, electric and gas cooking, ice makers, fluid dispensing, storage water heaters, gas valves for space/central heating, and automotive/off road temperature and fluid controls.
The company, owned by private equity firm One Rock Capital Partners, entered bankruptcy with a restructuring agreement supported by a majority of its lenders, according to documents filed in Houston, Texas bankruptcy court.
The company will also explore a bankruptcy sale as an alternative to its debt restructuring.
“Robertshaw may not be a household name, but its products appear in almost every household,” attorney George Klidonas said at a Thursday court hearing in Houston.
The company blames the pandemic for its struggles.
Robertshaw said it was unable to sustain its high debt level in the face of rising interest rates and lingering supply chain challenges that arose during the COVID-19 pandemic.
The Itasca, Illinois-based company said it has $832 million in debt.
In the last nine months of 2023, Robertshaw generated a gross profit of $58.8 million.
The company’s efforts to address its debt outside of bankruptcy spurred litigation between its lenders in 2023.
Robertshaw will seek to resolve that dispute in bankruptcy, either through mediation or litigation in bankruptcy court, according to court documents.
The company has lined up a $56 million bankruptcy loan funded by its majority lender group, according to court filings, and will seek bankruptcy court approval for that loan at a later date.
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Also Read: A US Company Now Declares An Unexpected Bankruptcy
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