More CT Chains File For Bankruptcy During Coronavirus Pandemic
CONNECTICUT — It was always going to be a bit of rough sledding for brick-and-mortar businesses in 2020, and that was the forecast before the coronavirus pandemic. After nearly four months of shuttered stores, malls become ghost towns, and record unemployment, businesses have begun reopening, but it's proven too little, too late for some familiar players.
Among the national chains that have recently filed for bankruptcy are J.Crew, Neiman Marcus, Modell's Sporting Goods, Pier 1, GNC, Chuck E. Cheese, Roots USA, True Religion, and Bluestem Brands. Sears, Kmart, JoAnn Stores and David's Bridal reportedly could be nearing bankruptcy.
The effect of the retail calamity is being felt across Connecticut, where the following chains have filed for bankruptcy this year:
J.C. Penney filed for bankruptcy on May 15. The department store giant said it will close more than 200 of its 846 stores over the next two years. The first Connecticut casualty was their Torrington store, earlier this month. That closing leaves six J.C. Penney stores open in Connecticut, and the retailer has not yet said which stores are on the chopping block. The company said its financial restructuring is due to the coronavirus pandemic and its impact on retailers.
Two months after announcing the closing of six of Connecticut's 14 Pier 1 Imports, the retailer is looking to close all of its stores for good. Pier 1 has asked a bankruptcy court to cease its retail operations, saying the temporary closures due to the coronavirus pandemic have caused financial ruin on its already shaky status.
"Unfortunately, the challenging retail environment has been significantly compounded by the profound impact of COVID-19, hindering our ability to secure such a buyer and requiring us to wind down," CEO Robert Riesbeck said in a statement.
Victoria's Secret
Victoria's Secret announced last month it plans to permanently close approximately 250 stores, USA Today reported. Currently, there are Victoria's Secret locations in Avon, Waterbury, Milford, Waterbury, Danbury, Fairfield, Meriden, Norwalk, Southbury, Stamford, Manchester, Uncasville, Trumbull, Farmington, and West Hartford. No specific locations targeted for closure have yet to be announced by Victoria's Secret.
Bath & Body Works
Bath & Body Works, also owned by Victoria's Secret parent company L Brands, plans to close 50 of those stores as well. Locations in Connecticut include: Waterbury, Plainville, Meriden, Farmington, Milford, Danbury, Trumbull, Manchester, Clinton, Enfield, Norwalk, and Stamford. No specific locations targeted for closure have yet to be announced by Bath & Body Works.
Last month the J.Crew Group filed for bankruptcy. The company, which also operates the Madewell brand of clothing, estimated in a Chapter 11 bankruptcy filing in the U.S. Bankruptcy Court for the Eastern District of Virginia that it had assets and liabilities of between $1 billion and $10 billion. J. Crew locations currently in Connecticut include: Farmington, Canton, New Haven, Westport, New Canaan, and Greenwich.
Chuck E. Cheese
The fate of the Chuck E. Cheese party and entertainment chain's four Connecticut locations (Orange, Waterbury, Newington and Manchester) is uncertain after the parent company of the popular children's-themed restaurant filed for bankruptcy on Thursday. Texas-based CEC Entertainment said it expects to continue operations throughout bankruptcy proceedings as it gradually reopens its restaurants that were closed because of the coronavirus outbreak.
"The Chapter 11 process will allow us to strengthen our financial structure as we recover from what has undoubtedly been the most challenging event in our company's history and get back to the business of delivering memories, entertainment, and pizzas for another 40 years and beyond," David McKillips, CEC Entertainment CEO, said in a news release.
GNC
Health and wellness retailer GNC has filed for Chapter 11 bankruptcy and will close as many as 1,200 stores. The company plans to emerge from bankruptcy in the fall. GNC currently has about 5,800 stores in the U.S., including dozens in Connecticut, and also sells products in approximately 1,200 Rite Aid stores.
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Just before the onset of the pandemic, Modell's Sporting Goods filed for Chapter 11 bankruptcy and announced it would be closing all locations. But even before the coronavirus outbreak, the retailer had decided it was picking up it stakes at its four Connecticut locations, and 20 more across the Northeast.
The Children's Place
Clothing retailer The Children's Place, with nine locations in Connecticut, said it will close 300 stores over the next 20 months as part of a plan to dramatically reduce its presence in shopping malls across the country.
This article originally appeared on the Across Connecticut Patch
