NJ Chains File For Bankruptcy Amid Coronavirus Pandemic

NEW JERSEY — Retailers were expecting a difficult year even before the coronavirus outbreak. But with COVID-19 shutting malls and stores for months, coupled with record unemployment, the results have been even more devastating than anticipated in New Jersey.

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 and JoAnn Stores reportedly could be nearing bankruptcy.

The effect of the retail calamity is being felt across New Jersey, although J.C. Penney, which also filed for bankruptcy, says no stores in the Garden State are closing.

Gov. Phil Murphy also said he's planning to hit "pause" on reopening New Jersey since the state has backslid on controlling the virus. Murphy said New Jersey's coronavirus rate-of-transmission has hit its highest level in 10 weeks. Read more: NJ Coronavirus, Reopen Updates: Here's What You Need To Know

The following chains have filed for bankruptcy:

Pier 1

Pier 1 said it plans to shut all of its retail stores as soon as possible. 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.

Chuck E. Cheese's

The fate of the children's party and entrainment chain's 13 New Jersey locations is uncertain after the parent company of the popular children's-themed restaurant filed for bankruptcy. 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.

J. Crew

The J.Crew Group filed for bankruptcy in May. J.Crew Group, 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.

GNC

Health and wellness retailer GNC has filed for Chapter 11 bankruptcy and will close as many as 1,200 stores. The Pittsburgh-based company plans to emerge from bankruptcy in the fall.
GNC currently has about 5,800 stores in the U.S. and also sells products in approximately 1,200 Rite Aid stores.

Tuesday Morning

Discount home goods retailer Tuesday Morning filed for bankruptcy in May and plans to permanently close about 230 of its nearly 700 stores. The chain blamed the coronavirus outbreak for pushing it into bankruptcy.

Modell's

Just before the onset of the pandemic, Modell's Sporting Goods filed for Chapter 11 bankruptcy and announced it would be closing all locations.

Other chain retailers have announced plans to consolidate operations and close stores. The Children's Place, a clothing retailer, 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.

Pizza Hut franchisee

NPC International, the largest U.S. franchisee of Yum Brands’ Pizza Hut, has filed for Chapter 11 bankruptcy, according to CNBC. The company operates more than 1,200 Pizza Huts and almost 400 Wendy’s restaurants.

Pizza Hut said in a statement that NPC’s locations of the pizza chain will continue to operate, according to CNBC, and "we view it as an opportunity to create a better future for NPC’s Pizza Hut restaurants."

Other chains that have planned store closures include Victoria's Secret and Bath & Body Works.

Correction: An earlier version of this article reported David's Bridal was at risk for bankruptcy. However, the company said its stores have reopened following pandemic shut down orders and business is operating as usual. Patch regrets the error.