Full list of retailers that have filed for bankruptcy as shoppers go online to find deals… – The US Sun

FOUR stores have filed for bankruptcy amid a nationwide retail apocalypse, as shoppers have been shifting their buying habits.

With consumer spending being cramped by high inflation, many brick-and-mortar shops are feeling the pressure.

Even once high performing top brands like Bed Bath & Beyond and Tuesday Morning have struggled to stay afloat during the current economic conditions.

One expert said, despite inflation, consumer spending has not deflated entirely, but the trends behind it are changing.

Consumers continue to spend, but how and where they spend is evolving, Bankrates chief financial analyst Greg McBride told The U.S. Sun.

More retail spending occurs digitally and less in a physical store location, he added.

Foot traffic has dramatically declined with the rise of work-from-home situations.

This shift, alongside the increase of consumer spending toward services and away from goods, has seen brick and mortars suffer, according to McBride.

The rise in credit card balances and the number of cardholders carrying balances is a byproduct of inflation that has stretched many household budgets beyond the breaking point, the expert said.

How much consumers are spending needs to be viewed through the lens of inflation - consumers are spending more but not getting more. Millions are using credit cards just to get by.

As shoppers look for any way to make their dollar count, the once-thriving brick-and-mortar stores just cant keep up.

The U.S. Sun compiled a full list of companies that declared bankruptcy in the past few years.

Home goods store Tuesday Morning filed for bankruptcy in February and shortly after announced the closure of half of their retail locations.

At least 860 stores have reported their upcoming closures in 2023, but thats likely just the start of the burgeoning retail ice age.

Stores in states including but not limited to California, Florida, Georgia, Maryland, Nevada, and Nebraska will be shuttering this year.

The first hit of closures for the chain arrived in May 2020 after its initial bankruptcy protection filing. Back then, the retailer lost 230 locations.

While Tuesday Morning did eventually make its way out of bankruptcy in December of that year, it has still struggled since then.

In the fiscal year ending July 2, 2022, the furnishings store had lost $59million, followed by another $28.1million more in the first quarter of its current fiscal year.

The company said filing for bankruptcy will "enable the company to reduce its outstanding liabilities, obtain the significant and necessary capital, and ultimately transform into a nimbler retailer that serves heritage markets in a profitable manner."

Party supply store Party City may have flourished pre-pandemic, but the coronavirus outbreak put a hit on both in-person events and the stores financial performance.

Since filing for bankruptcy, the store has placed 12 locations up for auction so far.

Under a $150 bankruptcy loan, the chain said it will continue operating while restructuring its debt load.

In September 2022, Party City held $1.7billion in debt but was working to achieve a smaller and more successful fleet of stores.

The popular department store declared bankruptcy in May 2020 and announced it would close over 800 stores.

Unfortunately, the company had acquired $4.5billion in net losses since 2010.

Only 670 JCPenney locations exist today, and more stores are slated to close this spring, including those in Oswego, New York, and Elkhart, Indiana.

Simon Property Group and Brookfield Property Group have agreed to acquire the chain for $1.75billion.

Company leaders at Bed Bath & Beyond said the home goods giant is closing all 360 stores after filing for bankruptcy in April.

In addition, all the companys 120 buybuyBABY locations will be going under as well.

However, theres one silver lining for shoppers.

As Bed Bath & Beyond stores close, products will be marked down to reduced rates.

In Bradenton, Florida, a Bed Bath & Beyond storefront advertises 10 to 40 percent off on all merchandise.

This includes all home, baby, beauty, and wellness products, according to The Bradenton Herald.

Up to 30,000 jobs could be lost due to the store closures.

The company originally had hoped to avoid store closures, saying it would pivot away from any store closures if a buyer was found.

Bed Bath & Beyond had debts of around $5.2billion when it filed for bankruptcy.

As well-known national chains and mom and pops alike struggle in the current retail environment, another finance expert has predicted which stores are likely to be hit hardest next.

Andrew Lokenauth, a Tampa-based financial analyst who is now the founder of personal finance media platform Fluent in Finance, said there are several reasons driving the perfect storm of closures hitting retailers across the country.

It was amplified by the excess of money that we printed during the recession, Lokenauth told The U.S. Sun.

"When you're printing that much money, it has to be absorbed back into the economy.

The smaller businesses are not able to keep up with the price hikes, and its inevitable many are forced to close their doors, Lokenauth said.

However, some chains are likely to do better than others even amid the harsh environment in the months to come.

Some retailers could remain essentially unaffected by the closure trends, especially if they have created a market appeal based on their discounts.

Lokenauth said places like Dollar General and Five Below will continue to do well, as will stores selling high-luxury goods like Nordstrom.

This is because their customers will continue their spending habits no matter if theres a recession or not.

The ones most at risk are the stores that have built brands catering to the everyday middle-class American, the expert explained.

I think the stores that fall within the middle for the middle-class Americans, those might not tend to do well because people will try to cut back, Lokenauth said.

A huge chain with 1,200 locations and a major Hooters rival shut down a store after a streak of other closures.

Meanwhile, a beloved Italian restaurant and Olive Garden competitor is also closing its doors after 15 years.

Here is the original post:

Full list of retailers that have filed for bankruptcy as shoppers go online to find deals... - The US Sun