Regional chains have suffered in the wake of the Covid pandemic.
Big names like Modell's, Olympia Sports and Christmas Tree Shops were unable to recover after social distancing closures devastated their businesses.
It's easy to blame the Internet for many of the recent retail bankruptcies, but that's not really what happened. Chains like Bed Bath & Beyond and Tuesday Morning failed because they took on too much debt in a market where high interest rates have made borrowing difficult.
Related: Another struggling vodka brand files for Chapter 11 bankruptcy
The COVID pandemic forced many retailers to close for an extended period or operate under severe restrictions. That loss of revenue was compounded by rising supply chain costs and labor prices.
Basically, companies that weren't in great financial shape lost revenue for months. When the pandemic eased, they faced higher costs in multiple areas. Add to that the fact that suppliers have become very cautious about extending credit to struggling companies, and you have a recipe for disaster.
Be the first to know about the best cruise deals, special departures and more. Sign up for the Come Cruise With Me newsletter.
Retail bankruptcies have become common, but many seem to come out of nowhere. Regular customers may notice that a chain is running out of inventory or common items, but sometimes it's not easy to see what's going on until a company files for Chapter 11 bankruptcy.
Image source: TheStreet
Bob's Stores filed for Chapter 11 bankruptcy
Bob's Stores is a New England favorite that combined discount clothing and sports team apparel. It was an unusual chain that was forced to file for bankruptcy, at least in part, due to, as you might have guessed, the Covid pandemic.
Its launch was unexpected, although it was preceded by corporate layoffs and the closure of a distribution plant.
“Bob's Stores will close all of its locations and liquidate all inventory as part of the Chapter 11 restructuring petition filed on June 18, 2024,” the company said. “Despite making swift and aggressive changes to the company's structure and operations, Bob's Stores was unable to obtain the finances necessary to maintain operations.”
The chain's sister brand, Eastern Mountain Sports, remains open and is not affected by the Chapter 11 filing.
Bob's reported in its bankruptcy filing that it had 369 creditors. The company has assets of between $50 million and $100 million and an equivalent amount of liabilities.
Sign up for the Come Cruise With Me newsletter to save money on your next (or first) cruise.
Bob's celebrates its last day of business
It's important to note that Bob's Stores is not the same as Bob's Discount Furniture. Both are chains based in New England, but the furniture company has made it very clear that it has nothing to do with the bankrupt clothing store chain.
“Bob's Discount Furniture is not affiliated with Bob's Stores, the clothing and footwear retailer that recently announced its closure. Bob's Discount Furniture is open, thriving and growing nationwide,” the furniture company posted on microblogging platform x on July 9.
Bob's Stores began closing sales on June 28, with discounts ranging from 30% to 70%. All stores in the chain will close permanently on July 14.
More retail:
- Ulta CEO sounds the alarm about a growing problem
- Lululemon launches a one-of-a-kind product
- Target introduces new policy for people over 18
- amazon launches a cool new subscription product
“This event marks one last chance for loyal customers to take advantage of huge savings on everything in-store,” the company said in a news release. “Top-selling items from the most popular brands will be discounted and will sell out very quickly. Customers are encouraged to visit their nearest Bob's store early to take full advantage of the best selection of discounted products before they sell out.”
All sales are final during this liquidation process and no refunds will be accepted. Gift cards are accepted during the closing of business liquidation.
