5 Retail Stores With Bankruptcy Woes in 2019

With online sales making it easier and easier to make purchases, there is a real strain on brick and mortar retail stores. Not long ago, the United States lost the toy retail giant, Toys R Us to bankruptcy filings. There are ideas of a resurgence but the same can’t be said for many other companies listed here. Money is required to continue operation and obtaining it can be difficult. 

Obtaining Capital

One of the many concerns plaguing the companies on this list is their inability to gain profits and the capital they need to continue operating. Many things play a part in the demise of a retainer including rising rents, product shipping costs, and the emergence of a strong online retail presence. These companies have fallen on hard times and have declared bankruptcy in order to try and save what they can. If you own a business and are looking for help improving your financial situation, companies that offer working capital solutions can guide you and give you the knowledge needed to succeed. 

Here are five retail stores who don't have enough capital to keep going as they are.

Forever 21

The fashion store Forever 21 sells garments to younger audiences and has long depended on malls to host their stores. With the decline of these establishments, many stores nestled inside have fallen on hard times. Here are more specifics on why Forever 21 is reportedly close to bankruptcy. The combination of underperforming stores and a lack of foot traffic in the mall environment have left this company struggling. 

Gymboree

The plan here is to liquidate everything they can from both the Gymboree and Crazy 8 stores. This children’s based clothing store has had to deal with a lot of direct competition from big box stores such as Target and Walmart in addition to discount players such as TJ Maxx attracting and, in turn, taking their potential customers with lower cost clothing options. This is the company’s second time filing in just under two years, and it could be the final blow that sends the brand into the abyss. 

Payless Shoesource

This company has been a shoe store staple for many years and has been a go-to place for those looking to purchase a cheap pair of children’s shoes or lower cost adult footwear. Payless Shoes has closed down many of its stores around the nation and continues to do so in order to cut losses. With buildings in over 40 countries around the world, the company has some work to do in order to complete its bankruptcy filings. 

Barneys New York

The luxury department store has said that many of its stores have operated at a loss. They plan on closing some of their stores in major cities around the country but they will keep the New York-based store open. It’s said that raising rent has caused much of their money woes. Also a factor is their inability to liquidate, which has the company on unsure footing. The elitist reputation that Barneys New York has had for some time has soured their potential customer base, which has led to less foot traffic in their stores. Only time will tell if this department store can right the ship or if it will fall with the rise of online stores. 

Charlotte Russe

Yet another clothing store on the list, Charlotte Russe can usually be found in malls around the country. Having difficulties trying to turn around their business, the company has filed for bankruptcy due to high debt concerns. Charlotte Russe wants to try and keep their operations running after deciding to close stores and sell the company. Like many other companies using the mall to sell merchandise, it has fallen into debt due to real estate and the changing habits of their clientele, who are turning to online stores for their shopping needs. 

What can we learn from this? If you want your company to survive, it is important to maintain an online presence. Relying solely on a brick and mortar location isn’t likely to spell success for you in the long run.