A huge maternity retailer also had exec shakeups when things turned sour for them. Save. Everyone’s favorite guitar supplier might have a better chance to rebound. This extra space was available as Walgreens tried to get a deal with Rite Aid but that fell through. CheatSheet says one of these was the youthful Canvas brand aimed at fashion-forward consumers. Tops Market might benefit from observing customers’ preference for e-commerce. The new CEO, Scott Key, might do some debt refinancing. Everyone needs a mattress but you might not get a new mattress from Mattress Firm anymore, however. The shoe retailer filed for Chapter 11 bankruptcy protection, laid off employees and shuttered over 600 of its stores in 2017. Every financial services company has a coronavirus relief page on its website right now, filled with reassuring language about the assistance on offer. Company in financial trouble. Hopefully, it’ll make a turnaround? In 2018, 1,000 employees were laid off and a distribution center closed. This latter option will require an application to the UK Court (and the incurring of legal costs) and will not be relevant to everyone. If you’re struggling to meet debt payments and cash flow is suffering, don’t panic! Negative Outlook. The private-equity group Charlesbank Capital Partners also has stakes in many other businesses like the Princeton Review, Shoppers Drug Mart and Papa Murphy’s Take ‘N’ Bake Pizza stores. Things aren’t looking too good for the department store chain, but it has been performing better than Sears. We’ll discuss another shoe company filing Chapter 11. After suffering under $2 billion debt, a debt exchange in June offered the company some relief. CheatSheet says its electric guitar sales dropped 36 percent from 2005 to 2016. With this in mind below are five things you can do if your business is in financial trouble: 1. Ouch! Based in Wisconsin, this retailer filed for Chapter 11 bankruptcy on January 16, 2019, says Business Insider. The Jacksonville-based discount department store has struggled with its sales but is seeing some glimmers of hope! It’s a possibility that Imerys’ talc may not appear in Johnson & Johnson’s baby powder product anymore. This bankruptcy announcement comes after reports indicated Forever 21 had to hire advisers to seek out private-equity support to refinance and restructure the company, says a September report in Business Insider. Companies already in financial trouble face insolvency reckoning. Bloomberg reports that this includes Chapter 11 bankruptcy and selling off parts of the company. On the face they might look fine — the clerks still have smiling faces when you walk in and the clothing is still folded neatly on the shelves. When any company is in trouble, they tend to show consistent signs regardless of the niche. Sears Holdings has undergone trouble for a decade, with their sales continuing to decline. However, financial services company Moody’s said in May that Ascena “is on a path to developing a strong ‘backbone’ of retail capabilities.” Stein Mart has struggled too but is also on a good path. A March 5 article in Retail Dive indicated Diesel’s plans for reorganization includes relocating specific stores to locations “with a smaller footprint,” opening a Miami pop-up shop, opening new stores in strategic locations, and rebranding. Why choose one option over another? All good things must come to an end, however — or do they? Gump’s Holdings, based in San Francisco, is a department store operator and also sells Gump’s Corp and Gump’s By Mail. Like Gump’s, Brookstone is also looking for a buyer but just for its airport locations, e-commerce businesses and wholesale operations. They also sell things to keep your personalized keepsakes in, like jewelry boxes. Also… The Washington Post reports Nine West Holdings will be shifting its focus from shoes to its jewelry and clothing lines (some include Anne Klein, Kasper Grouper, One Jeanswear Group). In an attempt to try and avoid bankruptcy, CEO Eddie Lampert’s hedge fund has loaned hundreds of millions of dollars to Sears Holdings (with interest, of course). As we all know, malls have been experiencing lower foot traffic. THE CANADIAN PRESS/Graham Hughes. Innovative Mattress Solutions might close 142 stores, said USA Today January 2019. This is definitely a common reason retailers have linked to finance problems. The pharma company will manufacture, market, sell and distribute products in China. Lowe’s reported it will be closing locations including 26 Ronas, 6 Lowe’s, and 2 Reno-Depots between January and February of 2020. Marvin Ellison left his post as board chairman in May 2018 to lead Lowe’s. Permanent employees are expensive to remove. The company filed for Chapter 11 bankruptcy on February 6, 2019, says Business Insider. Does the company seem to be constantly in a cash crunch? That same year, S&P Global downgraded the retailer’s credit rating. They project that by maintaining those stores and pulling out of the larger locations, they should be able to turn things around. RetailDive attributes the struggles seen by Vitamin Shoppe and GNC to lessening popularity of malls and supplement store competition. Its CEO left during a quarter last year when top-line sales fell over 7 percent. Payless was able to come back successfully reorganized in August 2017 but S&P Capital Markets says it is still in danger of default. A common cause of bankruptcy is companies not keeping up with changing consumer habits. Share Share Tweet Email Comment. Its net sales were $381.1 million. It also got itself a new CEO, Jack Sinclair, who replaced Geoffrey Covert. Companies already in financial trouble face CCAA reckoning as COVID-19 drags on. Other claims cite mesothelioma brought on by asbestos in the talc powder that Imerys makes, says Bloomberg. Its Gump’s By Mail was an attempt to sell goods online but perhaps it couldn’t compete with e-commerce giant Amazon? It moved into strictly e-commerce only by paying out $65 million to get rid of its physical retail stores. Zynga. Those are all very different companies. The Paris unit of Imerys Talc America Inc. and two of its other subsidiaries (Vermont and Canada units) filed for Chapter 11 bankruptcy February, 2019, says Bloomberg. Rockport Group is a shoe company with retailers in more than 60 countries selling their products. It filed for bankruptcy in May 2018, joining fellow bankrupt shoe makers Payless and Nine West. In a press release, the company said an “overwhelmingly difficult retail environment” has made it challenging for its business to function. For example, they like to have the option of exiting an arrangement with a business that has run into financial difficulties – so that they can avoid any related obligations and risks. S&P Global analysts also downgraded Pier 1’s credit rating. A bankruptcy judge in Delaware had declared Bernstein, who originally launched Beauty, the “stalking horse bidder,” meaning he’s in a position to purchase Beauty Brands’ assets unless a better offer comes along. Last Updated May 14, 2020 at 9:42 am MDT. However, an imminent change to UK law means that this will not always be an option in the future. Bon-Ton, an online retailer and department store, filed for bankruptcy in 2018 and was sold and liquidated. Working with companies in financial trouble – ipso facto clauses may be terminated. CheatSheet said this indicated a 2018 bankruptcy might happen — and it did. All its online, direct mail, B2B retail operations, and 176 of its brick and mortars will retain the Things Remembered name. However, also in Q2 2018, GNC said it had declines in top-line and comparable sales as well as profits. Uber: Uber’s meteoric rise has secured its place as one of the most successful businesses in the world. Read on…. Canadian company Hudson’s Bay considered buying the luxury retailer Neiman Marcus. Its bankruptcy filing had put in limbo claims from wildfire victims and its creditors. Bluestem Brands provides apparel, appliances, electronics, health, and beauty products. It closed about 15 of its store in April, the Associated Press reports. Here are some items to consider when performing diligence on a company and search for those signs of a company in trouble: Cash Shortfall . This mattress company based in Kentucky filed for Chapter 11 bankruptcy on January 14, 2019, says Business Insider. There was some light at the end of the tunnel — it saw a 40 percent increase in e-commerce comps. 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