Sears, Mattress Firm lead retail bankrupt 2018 list
Retail expert Burt Flickinger discusses how Sears Chairman Eddie Lampert is trying to buy the company out of bankruptcy.
There is no doubt that 2017 was a tough year for many retailers, with industry icons such as Toys R Us, RadioShack, Gymboree and Payless shoes all filing for bankruptcy— but 2018 wasn’t much better.
Despite record holiday sales, relatively high consumer sentiment throughout the year, a strong economy and low unemployment, more than a dozen retailers had to file for bankruptcy this year.
While retailers such as Sears, Mattress Firm, David’s Bridal and Brookstone made the biggest news when announcing their liquidation, other smaller chains like Claire’s, Nine West and Bon-Ton also helped contribute to the downward spiral of some shopping malls.
Here are all the retailers that filed for bankruptcy in 2018.
In November, wedding dress retailer David’s Bridal filed for bankruptcy. The bankruptcy was part of a deal the retailer reached with its lenders to reduce its debt by more than $400 million. The chain said it would keep all of its stores open during its restructuring process.
Mattress Firm
In October, the country’s largest mattress retailer filed for Chapter 11 bankruptcy protection. Additionally, it announced it will close up to 700 of its 3,400 locations across the country. Overall, it has been a rocky few years for the Houston-based mattress chain with various lawsuits and “accounting irregularities.”
Sears
In October, Sears announced it filed for Chapter 11 bankruptcy protection after years of struggling with slowing sales and store closures. That same month, its CEO Eddie Lambert stepped down from his role but was named chairman of the company. Lambert has also been trying to keep the iconic retailer through his hedge fund, ESL Investments. Last week, ESL reportedly submitted a $4.4 billion bid to try to save Sears from liquidation. That bid, however, is still pending.
Brookstone
In August, Brookstone announced it filed for Chapter 11 bankruptcy protection. The retailer also said it plans to shutter more than 100 locations as a result.
Nine West
In April, shoe retailer Nine West announced it filed for bankruptcy and plans to shutter all 70 of its brick-and-mortar locations across the U.S.
Claire’s
In March, accessories chain Claire’s announced it has filed for Chapter 11 bankruptcy in order to trim some of its debt.
Bon-Ton
In February, department store Bon-Ton announced it filed for bankruptcy protection. After a bid to buy the retailer fell through, Bon-Ton announced it will have to close more than 200 locations across the country.
Other small retailers that filed for bankruptcy in 2018 include:
A’gaci - Filed in January
Kiko USA - Filed in January
The Walking Company - Filed in March
Rockport - Filed in May
Gump’s - Filed in August
National Stores - Filed in August