Destination Maternity closing 183 stores following bankruptcy filing
Thredup.com CEO James Reinhart discusses the drop in retail sales and his online consignment business.
Destination Maternity is shuttering 183 retail locations – nearly 20 percent of its North American brick-and-mortar presence – after filing for bankruptcy earlier this week.
The closures will affect the company’s namesake Destination Maternity stores as well as its other brands, Motherhood Maternity and A Pea in the Pod.
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The latest victim of the “retail apocalypse,” Destination Maternity filed for Chapter 11 bankruptcy protection on Monday. Lisa Gavales, chair of the office of the CEO, said “a challenging retail environment” required the company to “make some very tough choices.” A dozen stores were already slated to close before the bankruptcy filing
Court documents list locations across 39 states and 12 Canadian cities that the company expects to shut down as part of its restructuring. States hit the hardest include California, which will see 27 locations shut their doors, Florida (16, including five outlets) and Texas (15).
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The New Jersey-based company’s stock is down a staggering 93 percent from where it began 2019, currently trading at around 20 cents per share. At the time of publication, the stock is down roughly 35 percent from the announcement time.
Destination Maternity currently operates 937 retail locations across the United States, Puerto Rico and Canada, including 446 standalone stores and 491 leased department store locations. Open locations will continue to operate as normal throughout the bankruptcy proceedings.