Perkins & Marie Callender’s LLC, filed for Chapter 11 bankruptcy this morning in Delaware under docket number 19-11743.
The Memphis, Tenn. family-dining chain previously filed in 2011. Prior to filing, the company operated more than 400 locations in the two brands, including 400 Perkins Restaurant & Bakery locations (134 company and 266 franchised) and 38 Marie Callender’s restaurants (8 company and 30 franchised.
Charming Charlie, the teen jeweler and accessory retailer, filed its second Chapter 11 bankruptcy case in less than two (2) years this morning in Delaware under docket number 19-11534.
This Chapter 22, which is the filing of two (2) Chapter 11 bankruptcies in a short period of time, appears to mark the end of the retailer. It lists in its filings that it has plans to close all 261 stores. The company emerged from its prior Chapter 11 bankruptcy, where it shed about 100 stores, only 14 months ago. According to USA Today, the company expects to vacate its stores by August 31, 2019.
Earlier this year we noted 10 potential retailer bankruptcies to watch in 2019. Four (4) of those retailers, Payless, Gymboree, Charlotte Russe, and Things Remembered, filed within months of our report.
The following is a revised list of potential Chapter 11 retailer bankruptcy filings to watch for during the second half of the year.
ICSC’s RECon 2019 in Las Vegas provided a very good vibe for new deals and excitement not seen since before 2007. Unofficial statistics noted that attendance was up, likely above 37,000 with more than 12,000 exhibitors. Low interest rates, heightened consumer demand and an overall positive national economic outlook provided the backdrop for the increased optimism. Here are a few take-aways from this year’s show.
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About a year after filing for Chapter 11 bankruptcy, Toys “R” Us appears to be making a return to the retail market as a national chain.
After the former toy retail giant liquidated its business last year, its lenders took control of the company’s intellectual property, which includes the Toys “R” Us, Babies “R” Us, and Geoffrey brand names.
In late January 2019, several former Toys “R” Us executives started running a new company called “Tru Kids” to manage those brands.
53 –year old gift engraver and retailer, Things Remembered Inc., filed on Wednesday for Chapter 11 bankruptcy protection in the District of Delaware docket #19-10234. The chain operates more than 400 locations, nationally, and expects to close about 250 stores in its initial efforts to reorganize under the Bankruptcy Code.
Enesco, the giftware and home and garden décor company, is the stalking horse bidder to take approximately 130 of Things Remembered leases in the bankruptcy case with court approval. The stalking horse bid is $17.3 million.
Charlotte Russe Holding, Inc. (“Charlotte Russe”), the women’s fashion retailer filed for Chapter 11 bankruptcy protection in the District of Delaware docket #19-10201. The chain operates more than 500 locations, nationally, and is closing about 90 stores in its initial efforts to reorganize under the Bankruptcy Code.
CNN reports that it secured $50 million for initial bankruptcy funding to continue running about 400 Charlotte Russe and Peek Children’s stores for the next few months.
2018 represented another busy year for Chapter 11 retail bankruptcy filings, with Sears dominating the headlines in the last quarter of 2018 and Toys “R” Us closing all of its US stores before the third quarter.
As the New Year unfolds, there could be companies in trouble in 2019. The following are retailers to watch for a possible Chapter 11 filing this year:
David’s Bridal, Inc., the country’s largest wedding dress retailer, filed for Chapter 11 bankruptcy protection in the District of Delaware this morning, under case Number 18-12635 (LSS). According to reports from USA Today, the company plans to operate its 300 stores and stay in business.
Unlike its competitor, Alfred Angelo, which filed for bankruptcy protection in 2017 and left brides and grooms standing at the altar without their garb, David’s Bridal has assured customers that all orders will arrive on time and that any bridal appointments will not be impacted.
Reuters reports that Houston-based Mattress Firm, Inc. the largest U.S. mattress retailer with 3,000 stores is preparing to file for Chapter 11 bankruptcy protection by the end of this week. Additionally, Reuters cites that its South African parent company, Steinhoff International Holdings NV, is encountering debt challenges, as well.
It is expected that the filing would be a shedding of unprofitable stores to attempt to secure the company, much like Payless did in its Chapter 11 filing. A filing at the end of this week would likely mean that Mattress Firm does not pay its October rents on time, as it moves to reject a number of leases.
If you have a Mattress Firm lease, it is important to know your rights now. Stark & Stark’s Shopping Center & Retail Development Group can help.