Dollar Tree
In the past, dollar stores have seemed resistant to recessions. But even if they're resistant doesn't mean that they can't go under. Family Dollar took over ownership of Dollar Tree back in 2014 and since then prices have risen due to constant inflation.
When a dollar store becomes unreasonable with its prices then you know it's struggling financially. We'll see if it's able to recover or not, only time will tell.
Party City
Party stores were hit quite hard by since party supplies are the first thing to go when people are in trouble financially. Party City is no different and has been struggling recently.
Recently, they've had to find a cheaper source of helium and close more than 45 stores. Party City is doing better than other similar shops but that doesn't mean it'll pull through just yet.
GAP
Another retail store in trouble, no surprises here. GAP has been finding it very difficult to stay afloat these days. So much so that they've had to split their business into two. Old Navy is now its own brand and will be separated from GAP.
We suspect this is a tactical move on GAP's part since Old Navy is their best brand. They need to keep it above the surface of the water. GAP's closed over 230 stores since 1029. We'll see if they can recover.
Overstock
Given that Overstock is an online retailer you'd think they'd be exempt from the trouble that stores have been having nationwide. You'd be mistaken, they've been trying to offload their e-commerce unit since December but no one's biting.
The disinterest is most likely due to the company's decreasing revenue and increasing debt each year.
Office Depot
Ironically, here's a business that is going under due to online stores filling its niche role. These days, if people want to get office supplies it's much more affordable to get them from an online store.
Office Depot unsuccessfully tried to merge with Staples, but their proposal was rejected for fear of the copy paper monopoly. The retailer is in a lot of debt at $1 billion and might go under one day soon.
Fred’s
In recent years, Fred’s have been closing all over the country. 185 of its pharmacies have been sold to Walgreens, This leaves only 165 Fred’s still open, under half of what they had.
Fred’s last shot in the dark is getting a new financial advisor who can hopefully take a look at their costs and turn the place around. Otherwise, they'll face bankruptcy soon.
Claire’s
Claire’s target market has always been trendy teenagers. But the retailer doesn't update their fashion and only keeps their fashion to the '90s. Bankruptcy was filed and exited in late 2018.
Even so, sales have gone down drastically. 1.6000 Claire’s have been closed nationwide and most of the ones still open are in malls. With malls closing, we think Claire’s will soon lose for good.
Macy’s
Macy’s has been left behind and been in the financial gutter for a while now. But in recent years many of its stores have closed. Their stocks have been affected and a lot of people say that they won't find a way out of this mess.
Any day now Macy’s may have to file for bankruptcy and try to avoid the inevitable slow death that a lot of retailers are facing these days.
J.C. Penny
J.C Penny is part of three department stores that have been hit really hard recently. Their CEO went to find a better position and it was a good move on his part since not long after their larger retailer filed for bankruptcy.
Part of the bankruptcy strategy was closing 240 stores over the next 3 years. With that being 30% of their stores, it seems like a huge chunk of revenue gone. They're definitely not out of the woods yet.
Kohl’s
Kohl’s sales have been decreasing ever since they started having problems with their stock. But then they got some beneficial news. Their competitor, Shopko, would be closing a lot of their stores.
This is really good news for Kohl’s, but it might just be temporary, so they need to put their best foot forward now while it counts. If they can't then they may go the same way as their competitor.
Applebee’s
Applebee’s has spent a lot of money revamping its restaurants and menus to get new people to roll in through its doors. But that strategy doesn't seem to have worked the way they wanted.
For the past 4 years, they've been closing locations all around the U.S. which means that investors just aren't interested in a declining business. This could be the end for them.
Sears
People have been predicting Sears’s fall from grace for a while now, and it’s finally here. It seems like Sears is edging closer and closer to bankruptcy with every passing month.
The company has been selling off brands in the hopes that it can survive a bit longer, but the reality of the situation is that it’s bleeding income.
Toms Shoes
Toms may have comfortable footwear, but people aren't buying. The company has had a tough time trying to pay down five years of debt.
They achieved this after scoring a $313 million investment from a private-equity firm, Bain Capital.
Quiznos
Some investors saw Quiznos as a horrible business model, and those people may have been right.
The company has been struggling to compete against big names like Subway, Firehouse Subs, and Jimmy John’s. An investment company purchased Quiznos in 2018, but we’ll have to wait and see if there’s an impact.
Pizza Hut
One of the biggest hits recently was the bankruptcy of one of the largest Pizza Hut franchisees. NPC International filed for Chapter 11 bankruptcy following the prolonged shutdown of COVID-19.
A total of 1,200 Pizza Huts are going to shut down in 27 states.
Victoria’s Secret
Victoria’s Secret may have had great success in the late ’90s and early 2000s, but things have recently changed.
The CEO made controversial comments about transgender and plus-size models, and sales have taken a huge hit. On average, Victoria’s Secret has closed around 15 stores per year.
Regal Cinemas
This year has been especially hard on movie theaters around the globe. Many of them shut down temporarily but opened once restrictions started to lax. Regal is still having a hard time, though. With most major films being postponed, parent company Cineworld has decided to shut down all theaters once again in the United States – all of them. While some closures are simply temporary, many are permanent.
This comes after a billion-dollar loss for the year. Admission dropped a whopping 65.1%, according to Hollywood Reporter. More theater closures are some to come as admission continues to decline and money is lost.
IHOP
IHOP isn’t fairing very well in today’s market. It attempted a huge marketing scheme by saying it was going to change its name to “International House of Burgers” or IHOb.
Doing this just caused a stir with Applebee’s. While IHOP deals with dropping sales, it’s now also embroiled in a lawsuit with Applebee’s.
Bed Bath & Beyond
Experts are guessing that Bed Bath & Beyond will be the next major retailer to go bankrupt. Over the last two years, the stock has dropped 61%.
Revenue has been steadily shrinking, and profits are looking even worse. Bed Bath & Beyond is iconic, but not iconic enough to save itself from bankruptcy.
Pier 1
Despite a bit of a turn-around, COVID-19 and existing debt hit Pier 1 pretty hard. The brand has been suffering from execution issues and problems from competition like Amazon and Wayfair.
In February of 2020, Pier 1 filed for bankruptcy. By May, the brand decided to shut down all of its stores. Many blame the Coronavirus, and while that had a huge hit, Pier 1 has been struggling for a while. All 540 stores will shut down.