Lifestyle brands closing down or filing bankruptcy due to Coronavirus
Is it goodbye to retail as we know it?
We all know that global economies have peaks and dips, that’s just a fact of life. But most of us have never seen a global pandemic such as this, meaning sadly, we have never seen the extent of the economic fallout of one. With Coronavirus still running its deadly course, many sectors most closely affected by social distancing and closures have been feeling the pinch and some more than others. Here are some big names who have either shut shop or are filing bankruptcy to re-asses their options.
Well J.Crew’s decision to file for Chapter 11 bankruptcy didn’t really surprise many of us who have been following their story. With a revolving door of management and creative leadership, the once it-brand’s star has been in decline for some time now. Speaking earlier this month, CEO Jan Singer claimed that the brand had taken the decision to take time for a financial restructuring and was: “A critical milestone in the ongoing process to transform our business with the goal of driving long-term, sustainable growth for J.Crew and to further enhance Madewell’s growth momentum.”
Upscale US mainstay, Neiman Marcus filed for Chapter 11 bankruptcy earlier this month also claiming to have a whopping US$4.8 billion in debts. According to court documents, they claim to expect to be debt free by Winter.
Once a headliner in the denim game, True Religion also filed for Chapter 11 bankruptcy in April, but they were less hopeful than Neiman Marcus saying they are looking at either selling or restructuring.
Did you know that global modest fashion market was valued at US$480 Billion last year? With such an enormous pool to plunge in, you would have thought that Dubai based online luxury retailer, The Modist would be safe but sadly, not so. On April 2nd they closed their doors saying they were too badly hit by the impact of the global pandemic to recover.
The Aldo Group
Great for non-expensive footwear but not so great for surviving a global pandemic; Canadian Aldo Group who have shops in over 100 locations filed for bankruptcy last month.
With locations worldwide and a strong army of fans of their quick fix Italian food, Carluccio’s has closed their 73 doors permanently as of March.
Dean & DeLuca
Let’s hope Dean & DeLuca emerge from their April bankruptcy filing to bring us back our favourite cakes and coffee
Perhaps one of the biggest dominos to fall, Virgin Australia had no choice but to file for bankruptcy after the Australian government refused the company’s calls for a public bailout.
The chain that started it all – sadly Gold’s Gym’s future now hangs in the balance with 700 of its fitness centres closing due to the lockdown and 30 outlets closing for good. What happens with the franchise in Asia remains to be seen.
End of content
No more pages to load