Covid Era Bankruptcies (46)

[MichaelB]

I wonder how many of them were owned by hedge funds.

Yes, also leveraged buy-out firms. With such an excess of square feet of retail store floor space combined with loads of debt, there probably will be more closures and bankruptcies.

We have a SteinMart within walking distance, and I always intended to go there and take a look. Over the years, other women have often told me of great bargains they got at SteinMart. Oh well. Right next to SteinMart was a K-Mart that is also closed and is now being used as a "Hallowe'en Store".

I can't say I'm even one bit sad that Chuck E Cheese is on this bankruptcy list. I went there just once, when my DD was a little girl and her little friend was having a birthday party there. I think that place is h*ll on earth for anybody over 13. The one I went to was utterly horrifying; extremely loud, totally unsupervised kids running around like maniacs, awful food, not to mention relatively expensive for the h*llhole it was. I said I'd never go back and I never did. Good riddance. I know, I am not a good sport.

I never bought anything at Neiman-Marcus, but I went there to try on clothes the last time I was my ideal weight (forty years ago). I couldn't afford any of them at that time in my life, but the clothes were beautiful and it was fun.

DW shops at Stein Mart, so I have mixed feeling about that store closing. I’ve never been inside a Chuck E Cheese and occasionally have the sense I’ve missed a part of American culture - but not one I’ll lose any sleep over.

When DD was getting married we all went out shopping - DW, DD, future son in law and me. While the ladies shopped he and I went to Neiman Marcus, just to look at the prices. They were jaw-dropping. I understand exclusivity, but not in a mall next to whatever.

 

[harllee]

Bankruptcies

There have been many restaurants that have closed in my college town--at least a dozen I can think of off the top of my head, mostly locally owned mom and pop.
I don't know if these are bankruptcies but I guess if a restaurant closes and can't pay creditors there may be a bankruptcy if there are any assets. Some of these small restaurants may not have any assets so there may not be a bankruptcy--nothing for the creditors to go after. A very sad situation.

 

[Gumby]

Usually, the only asset a restaurant has is the lease for its location. If it's a location in high demand, that may bring some money for creditors. But it is unlikely.

 

[Midpack]

Here's another link that shows 220 bankruptcies, including the 46 larger ones in the OP. I also found an article noting there have been 470 bankruptcy filings as of Sept 7, but I am sure the further you drill down the more there are. As mentioned above, most Mom & Pop businesses don't go into bankruptcy because they don't have assets, so they aren't reported/included - many more closings than bankruptcies.

https://www.bloomberg.com/graphics/2020-us-bankruptcies-coronavirus/

 

[Walt34]

I can't say I'm even one bit sad that Chuck E Cheese is on this bankruptcy list. I went there just once, when my DD was a little girl and her little friend was having a birthday party there. I think that place is h*ll on earth for anybody over 13. The one I went to was utterly horrifying; extremely loud, totally unsupervised kids running around like maniacs, awful food, not to mention relatively expensive for the h*llhole it was. I said I'd never go back and I never did. Good riddance. I know, I am not a good sport.

I couldn't have said it better myself so I'll save myself the bother and simply quote W2R's post. We were in one, once, for a relative's birthday party or something and both of us swore we'd never set foot in one again. We had roaring headaches when we left.

The only one on the list that I'll miss is JC Penny as I still have some glassware that I bought there when outfitting my first apartment, but really, the only thing I've consistently bought there over the years is underwear. Clearly I wasn't buying enough. Being the frugal type as most of the members here are, it has to have pretty big holes in it before I'll replace it. Usually DW sneaks it into the trash when I'm not looking.

 

[Moemg]

I have been to Chucky cheese a lot since between my So &I we have eight grand children . It is noisy with terrible food and very loud but kids love it . We have now moved to Dave & Buster's . Loud, expensive with awful food but pre teens love it and I enjoy the games .Plus they serve wine .

 

[Chuckanut]

I’m more interested in the little guys that will disappear forever than these had been corporate giants. I can live without Chuck E. Cheese. But I will sorely miss Pizza and Prosecco.

 

[audreyh1]

I’m more interested in the little guys that will disappear forever than these had been corporate giants. I can live without Chuck E. Cheese. But I will sorely miss Pizza and Prosecco.

Hmmm - seems like pizza and Prosecco are easy to have at home.

 

[Badger]

I couldn't have said it better myself so I'll save myself the bother and simply quote W2R's post. We were in one, once, for a relative's birthday party or something and both of us swore we'd never set foot in one again. We had roaring headaches when we left.

The only one on the list that I'll miss is JC Penny as I still have some glassware that I bought there when outfitting my first apartment, but really, the only thing I've consistently bought there over the years is underwear. Clearly I wasn't buying enough. Being the frugal type as most of the members here are, it has to have pretty big holes in it before I'll replace it. Usually DW sneaks it into the trash when I'm not looking.

+1
I stopped shopping at JCP years back. I did, however, shop there quite a bit in the 70s and 80s. They had decent sales on some clothes and I did buy a circular saw, a jigsaw, and a drill that I built a house with. I still use the saws once in awhile. The drill finally died after a lot of use over the years.

No tears for Chuckie. I went one time 14 years ago with my grandson when he was about 6 and that was enough. I couldn't even temper it with a few beers because I was driving.


Cheers!

 

[kcowan]

Many small businesses just close their doors. Others are just surviving by being creative but how long will they have to survive?

 

[jollystomper]

Here's another link that shows 220 bankruptcies, including the 46 larger ones in the OP. I also found an article noting there have been 470 bankruptcy filings as of Sept 7, but I am sure the further you drill down the more there are. As mentioned above, most Mom & Pop businesses don't go into bankruptcy because they don't have assets, so they aren't reported/included - many more closings than bankruptcies.

https://www.bloomberg.com/graphics/2020-us-bankruptcies-coronavirus/

I see they mention the Las Vegas Monorail. That is sad, but understandable. That was a great addition for making it easier getting around to the various hotels at a very low price. It would have been great if they ran it to the airport, but the taxi/limo lobby there was too strong. I hope when things get better it will be able to continue.

 

[Out of Steam]

That is why I love my local Ace Hardware. They have almost everything I need. The only thing that they did not have recently was 4 10 foot downspouts.
I went to the Lowe's website, ordered it as pickup.

I have to drive by Home Depot and Lowe's to get to my local hardware store. For just a couple of things, it is still worth the several extra miles.

I haven't tried Lowe's pickup, but have ordered things from them for home delivery, which worked OK.

From what I hear, home improvement has done quite well through the pandemic.

 

[Walt34]

From what I hear, home improvement has done quite well through the pandemic.

That's not surprising. All that money and time that used to be spent on other things is now going to all those "little projects" that homes always need but always get put off. At least that's what is happening here.

 

[Navigator]

I will miss JC Penny.

I read somewhere that a mall operator was planning to buy JC Penney because they were an anchor for so many of their malls. You may still be able to get the JC Penney experience, for a while at least.

 

[MrLoco]

Some I knew about, others I didn’t. Some surprising (to me), some not at all. And it’s not over I’m sure...

https://www.cbsnews.com/pictures/covid-bankruptcy-companies-filings-coronavirus-pandemic/

Just some of the 46:

• Pier 1
• Cirque du Soleil
• JC Penney
• SteinMart
• Pizza Hut (largest franchise)
• J Crew
• 24 Hour Fitness
• Remington Arms
• Sur la Table
• Neiman Marcus
• Aldo (shoes)
• California Pizza Kitchen
• Ann Taylor
• Lane Bryant
• Lucky Brand (jeans)
• Brooks Brothers
• Aeromexico
• Chuck E Cheese
• Hertz
• Gold’s Gym
• Dean & Deluca
• GNC
• Lord & Taylor
• Papyrus
• Libbey (glassware)
• Men’s Warehouse
• Bar Louie

The problem with this list is that it is not certain that Covid alone caused BR. Some like JC Penney have been on the brink for years. Covid may have pushed them over the edge but Covid alone did not push them (and others) into BR.

 

[Aerides]

I read somewhere that a mall operator was planning to buy JC Penney because they were an anchor for so many of their malls. You may still be able to get the JC Penney experience, for a while at least.

I have read that amazon is looking to take over vacated big box mall anchor spaces for local fulfillment.

 

[Midpack]

The problem with this list is that it is not certain that Covid alone caused BR. Some like JC Penney have been on the brink for years. Covid may have pushed them over the edge but Covid alone did not push them (and others) into BR.

It’s not a problem, no one is saying Covid-19 was the sole cause. They’re all names who’ve been in the bankruptcy news for a while, years in some cases. But it’s clear Covid pushed many over the edge.

 

[Gumby]

“How did you go bankrupt?"
Two ways. Gradually, then suddenly.”

― Ernest Hemingway, The Sun Also Rises

 

[aaronc879]

How could Pizza Hut be going bankrupt? People around here have been ordering more pizza than ever. I don't think a day goes by that I don't see a delivery on my street. I rarely saw that before Covid

 

[MichaelB]

How could Pizza Hut be going bankrupt? People around here have been ordering more pizza than ever. I don't think a day goes by that I don't see a delivery on my street. I rarely saw that before Covid

It’s not the business, just a franchise owner. Still, a good question.

 

[Midpack]

How could Pizza Hut be going bankrupt? People around here have been ordering more pizza than ever. I don't think a day goes by that I don't see a delivery on my street. I rarely saw that before Covid

It's not Pizza Hut at large, that's why the OP noted Pizza Hut (largest franchise). But it's still hard to imagine as MB noted.

 

[aaronc879]

It's not Pizza Hut at large, that's why the OP noted Pizza Hut (largest franchise). But it's still hard to imagine as MB noted.

OK. I thought he was pointing out Pizza Hut is the largest franchise pizza place. Now I understand he was saying only the largest individual location is going into bankruptcy

 

[Midpack]

OK. I thought he was pointing out Pizza Hut is the largest franchise pizza place. Now I understand he was saying only the largest individual location is going into bankruptcy

Not individual location. There are many Pizza Hut franchises and almost 7500 individual locations in the US and abroad, many franchises own/operate multiple stores. NPC is the largest US franchise, with 1,225 Pizza Hut locations - they declared bankruptcy. Evidently they took on more debt than they could manage, at least with the Covid reduction in revenue.

More than you or I probably wanted to know https://www.forbes.com/sites/karenr...-franchisee-declares-bankruptcy/#7d3762317670

 

[foxfirev5]

I read somewhere that a mall operator was planning to buy JC Penney because they were an anchor for so many of their malls. You may still be able to get the JC Penney experience, for a while at least.

Yeah the biggest one Simon and Brookfield. I'm afraid it's a case of if someone owes you own them. But if they owe you too much they own you.

 

[kgtest]

Corner Bakery Cafe restructuring debt. 3rd highest grossing bakery in 27 states. Not in ours though