Numerous Big-Name Retailers Have Filed for Bankruptcy in 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.