Numerous Big-Name Retailers Have Filed for Bankruptcy in 2017
Martin Long • Dec 20, 2017
This has been a tough year for retailers. As of June, more than 300 have filed for bankruptcy, up 31 percent from the same period in 2016.
While most of those filings were made by small businesses with a single location, there are plenty of household names that have also filed for bankruptcy so far in 2017.
In most cases, the leading cause is the continued shift of consumers from traditional brick-and-mortar storefronts to a greater reliance on online shopping. Most of the companies filed for Chapter 11 bankruptcy, which means they will be able to continue operating while restructuring their debts. Still, the retail industry is on track for a record number of closed stores in a single year.
Some of the major retail brands that have filed for bankruptcy this year include the following:
- RadioShack: The once-ubiquitous RadioShack first filed for bankruptcy in 2015 and attempted to keep operating after coming to an agreement with Sprint, allowing the wireless provider to operate its stores within RadioShack locations. However, the company that owns RadioShack filed for bankruptcy in March, making a closure of the remaining stores across the United States a near certainty.
- hhgregg: The appliance and furniture retailer filed for bankruptcy in March and has since closed all 132 of its stores.
- • Payless ShoeSource: The shoe store, known for its discount prices, filed for bankruptcy on April 4, stating it would close approximately 400 American stores. It currently has 4,400 locations worldwide.
- • Rue21: The teen clothing specialist filed for bankruptcy on May 15 and will close approximately one-third of its 1,200 stores as part of its debt reorganization plan.
- • Gander Mountain: The hunting and outdoor retailer filed for bankruptcy earlier this year. Some of the company’s assets were purchased by Camping World, which will keep a few stores open. For the most part, Gander Mountain is getting rid of its assets through liquidation sales and will go out of business.
- • Gymboree: The children’s clothing store filed for bankruptcy June 11 and will close between 375 and 450 of its 1,300 stores. These stores are branded as Gymboree, Janie and Jack and Crazy 8.
- Gordmans Stores: Gordmans has been around for more than 100 years, operating regional department stores. Its 106 stores across 22 states in the Midwest and western parts of the United States will now all close after its bankruptcy filing.
- • Wet Seal: Another company specializing in teen clothes, Wet Seal had previously been through the bankruptcy process in 2015 and once again filed in February. Now it is out of business, having closed all its 171 stores.
If you would like to explore your options for filing for bankruptcy protection for you or your business, meet with an experienced Denver bankruptcy attorney at Long & Long, P.C.
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Bankruptcy puts your family in a better financial position
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A joint petition is when a married couple together files a single bankruptcy case. Unless noted otherwise in the statutes, if a married couple files jointly in Colorado, each spouse may claim the full amount of each exemption. The favorable effect of this is that the couple can claim twice the amount of exemptions. Unmarried couples, partnerships, and corporations must file separate petitions. If you are an individual and have a business entity, such as an LLC or a partnership, you cannot file a single petition for yourself and that business. In such a case you will note your interest in your company in your individual filing, e.g., John Doe, a member of Doe, LLC. If you are a sole proprietor, however, you may include your 100% ownership of the business in your individual bankruptcy. Once a joint petition is filed, all property and debts between the two individuals in the marriage become part of the bankruptcy filing. Sometimes it may be advisable for one spouse to file a petition alone and without the other spouse. An example is when the debts are owed only by the filing spouse, and not the non-filing spouse. Though the non-filing spouse is not part of the bankruptcy, information regarding the income of the non-filing spouse must be included in the filing spouse’s statements and schedules. Why, you ask? Because the income from the non-filing spouse given for the benefit of the filing spouse may mean the filing spouse has the means to pay some of the debt. The Bankruptcy Process You can start the bankruptcy process by filing a petition with the bankruptcy court serving your area. In addition to the petition, you must also file with the court (1) schedules of assets and liabilities; (2) a schedule of current income and expenditures; (3) a statement of financial affairs; and (4) a schedule of executory contracts and unexpired leases. In addition, you must provide the assigned trustee with a copy of the tax return or returns for the most recent year as well as tax returns filed during the case. These documents must be provided for both husband and wife. Creditors Meeting Between 21 and 40 days after the filing date, the trustee will call a meeting of your creditors. In the case of a joint petition, both husband and wife must attend the creditors’ meeting and answer questions regarding their financial status and property. Within ten days of this meeting, the trustee will communicate to the court whether the case should be presumed to be an abuse under the "means test". Benefits Of Joint Bankruptcy Filing There are benefits to filing jointly. You will save on filing fees, as the fee is the same for both as it is for one. Filing jointly will often give the couple a greater chance of keeping their property because of the “doubling” of exemption amounts; However, in Colorado the homestead exemption amount is not doubled with a total maximum at the time of writing of $75,000, or $105,000 if 60 or over or disabled. In addition, joint filing will save the married couple a lot of time. Determining whether to file together or separately, whether to file for chapter 7 or chapter 13 bankruptcy, and ensuring the protection of as much of your property as possible is a complex process. Each couple’s situation is different, so it is important that a married couple considering a joint or individual petition consult an experienced Bankruptcy Attorney. As a former trustee for the U.S. Bankruptcy Court, with over thirty years experience, Attorney Martin Long is an expert in the industry with decades of experience in Colorado . We also serve Aurora, Centennial, Highlands Ranch, Denver, Lakewood, Englewood, Littleton, Castle Rock, Colorado and the Denver metro area with three convenient locations. For help with your financial matter, call the Law Office of Long & Long for a free initial consultation at 303-832-2655 .
