12 Biggest Retail Bankruptcies of the Last 15 Years
Retail can be volatile, and even the most familiar names can face financial hardships. Over the past two decades, several well-known stores have filed for bankruptcy for several reasons, ranging from shifts in consumer behavior to economic downturns. Let's take a look at 12 popular retail stores that have had to file for bankruptcy in the 21st century.
1. Blockbuster®
Blockbuster, a brand once synonymous with video rentals, declared bankruptcy in 2010 amidst the rise of streaming services like Netflix® and rental kiosks like Redbox®. With just one store remaining in Bend, Oregon, Blockbuster's decline mirrors the shift from physical media to digital entertainment.
2. Tuesday Morning®
Familiar for its discounted home goods, Tuesday Morning filed for Chapter 11 bankruptcy in February 2023. Initially planning to restructure, the company later announced the closure of all its stores due to insurmountable challenges heightened by the pandemic.
3. Bed Bath & Beyond®
This household name filed for bankruptcy in April 2023, struggling to keep up amidst declining sales and unsuccessful attempts to secure funding. Despite efforts to reorganize, all remaining stores were destined for closure.
4. JCPenney®
Hit hard by pandemic closures and dwindling mall foot traffic, JCPenney filed for bankruptcy in May 2020. The chain struggled to compete with changing consumer preferences even after being purchased by mall giants Simon Property Group and Brookfield Asset Management.
5. Brooks Brothers®
A longstanding symbol of business fashion, Brooks Brothers succumbed to bankruptcy in September 2020, reflecting a shift in consumer habits towards casual wear and online shopping. The brand was later acquired by Authentic Brands Group, whose portfolio includes retail giants Aéropostale®, Eddie Bauer®, and Forever 21®.
6. Belk®
The North Carolina-based department store chain sought Chapter 11 bankruptcy protection in February 2021. With aims to reduce debt, Belk emerged from bankruptcy the next day, hoping to stabilize its operations across nearly 300 Southeastern U.S. stores.
7. Neiman Marcus®
Luxury retailer Neiman Marcus filed for Chapter 11 bankruptcy in May 2020, citing relentless pressures from the pandemic. Emerging from bankruptcy in September, the company underwent significant restructuring to alleviate its substantial debt.
8. Toys 'R' Us®
Toys "R" Us, a beloved toy retailer, filed for Chapter 11 bankruptcy protection in September 2017. Despite attempts at revival, all U.S. and U.K. stores closed by 2018, marking the end of an era for generations of children and parents. In 2019, Macy's® unveiled plans to open Toys "R" Us shops in over 400 stores.
9. RadioShack™
Facing bankruptcy for the second time in two years, RadioShack closed 1,000 stores in 2017. Although the brand resurfaced with "RadioShack Express" locations in HobbyTown® stores, its glory days as a leading electronics retailer have passed.
10. J. Crew®
In May 2020, J. Crew became one of the first major retailers to file for bankruptcy during the pandemic. Following restructuring, the company experienced a change in ownership, with hedge fund Anchorage Capital Group taking the reins.
11. Sears®
Once a cornerstone of American retail, Sears filed for bankruptcy in October 2018, a far cry from its peak with 2,000 stores. Despite efforts at rejuvenation, the company's footprint diminished significantly, with only a few stores remaining by late 2022.
12. Payless® Shoes
Known for its affordable footwear, Payless filed for bankruptcy in February 2019, closing all its U.S. stores. While the company continues to operate internationally, its bankruptcy marked the end of an era for budget-conscious shoe shoppers in the U.S.
These 12 retailers encountered various challenges, from changing consumer preferences to economic downturns and heightened competition. While some managed to navigate bankruptcy and emerge with restructured operations, others could not overcome their financial woes, leaving nothing but nostalgia in their wake.
