Tuesday Morning Corporation, the discount, closeout home retailer, could be filing for Chapter 11 bankruptcy, reports both Bloomberg and Seeking Alpha.
Shares of the company fell nearly 30% last week. The company has struggled with supply chain bottlenecks.
Continue Reading Is a Tuesday Morning Chapter 22 Bankruptcy Imminent?
The last half of 2021 was virtually a ghost town for filing retail bankruptcies. However, the rise of the Omicron variant has significantly delayed a full return to normal for shopping centers. The good news is that the vaccines work, people are cautiously resuming activities, and the economy is running well. Still, with the end of both COVID-related relief and eviction moratoriums, there are a number of “problem tenants” that may not be able to recover or adapt, forcing them to use the bankruptcy process to stay viable.
Continue Reading 10 Retailers to Watch for a Bankruptcy Filing in 2022
The road for the last year and a half has been bumpy, to say the least. The Pandemic, the election, and the supply chain have been challenging. Yet, despite these challenges, the shopping center industry continues to grow. Demand for retail space is surging back to pre-Pandemic levels. Tenants have generally stayed current with rents, working out agreements for abatements and deferrals. Further, despite a record number of bankruptcies in 2020, retail bankruptcy filings have been virtually silent in 2021. With vaccinations slowly inching upward, it appears that life is starting to get back to a new sense of normal (although with a mask in your back pocket).
Continue Reading The Road Ahead – Four (4) “Mile Markers” to Watch in the Year Ahead
The “Back-to-School” shopping season has begun! The season accounts for a significant portion of sales for retailers in the US, as households buy school supplies, clothes, and student decor. As of June 2021, it looked as though the pandemic was possibly coming to a close, or at least manageable, in the United States. However, the rise of the Delta variant has changed that outlook with mask mandates going into effect to protect the vulnerable and slow the infection rates. Regardless of these ongoing developments, everyone needs to purchase new items and supplies. As such, back-to-school numbers will be a true barometer for the economy as many people return to pre-pandemic routines, including full days in school and returns to the office.
According to U.S. News & World Reports, consumer confidence stayed unchanged from June to July 2021, surprising many economists who were expecting a decline. CNBC notes that this steadiness and consumer conference may have been spurred by the continued monthly payments for the child tax credits which will continue for about 39 million households (nearly 90% of children in the U.S.) through December 2021. Bloomberg cites a Deloitte LLP forecast that spending reach $32.5 billion, up 16% from 2020 and 17% from 2019.
The tide has turned from last year! Slowly, the global Pandemic is coming to an end. In its wake, the retail industry has been forever changed with technological innovations and advancements, including online ordering and delivery/pickup, warehousing, automation, and mobile self-check-out. Although most landlords and tenants have worked together during the adversity, there are still a number of problem tenants that may not be able to recover or who may now use the bankruptcy process to get rid of debt and actually restructure.
Continue Reading 10 Retailers to Watch for a Bankruptcy Filing in the Second Half of 2021
Old Country Buffet’s parent corporation, Fresh Acquisitions, LLC, filed for Chapter 11 bankruptcy protection on Tuesday, April 20, 2021, in the Northern District of Texas, docket # 21-30721. The San Antonio-based company operates six (6) restaurant chains in 27 states – Ryan’s, Old Country Buffet, Tahoe Joe’s Famous Steakhouse, Fire Mountain, Furr’s Fresh Buffet, and HomeTown Buffet. According to Restaurant Business, this is the fifth time that the company’s various chains have filed for bankruptcy protection since 2008.
Continue Reading Old Country Buffet’s Parent, Fresh Acquisitions, Files for Chapter 11 Bankruptcy in Northern District of Texas
The global pandemic has upended retail across the country. In most cases landlords and tenants are working together to get through this adversity. Although vaccines are expected before the end of the year, the distribution will not likely be available to everyone until at least mid-2021. As such, the retail industry is expected to have a tough slog through at least the first part of the year.
Continue Reading 20 Retailers to Watch for a Bankruptcy Filing in the First Half of 2021
Youfit Health Clubs filed for Chapter 11 bankruptcy this morning in the District of Delaware, docket #20-12853 MFW. The club with more than 80 locations in Alabama, Arizona, Florida, Georgia, Louisiana, Maryland, Pennsylvania, Rhode Island, Texas and Virginia, follows in the footsteps of other health clubs that have filed for Chapter11 protection in the last few months, including New York Sports Clubs and 24-Hour Fitness.
Continue Reading Youfit Health Clubs Files for Chapter 11 Bankruptcy in Delaware
Ascena Retail Group, Inc., the parent of the Ann Taylor, Lane Bryant, Lou & Grey and LOFT retail chains, filed for Chapter 11 bankruptcy on Thursday, July 23, 2020 in the Eastern District of Virginia, docket # 20-33113. According to MarketWatch, the New Jersey-based company expects to reduce debt to become profitable. Ann Taylor, Loft, Lane Bryant and other chains will continue to operate through the restructuring with about 95% of stores open, while the company reduces its footprint.
Continue Reading Ascena Files for Chapter 11 Bankruptcy in Virginia
The unprecedented global pandemic has created a limbo for most retail tenants, and in some cases, left landlords without payment of rents. Further, some states have placed moratoriums on eviction actions, allowing tenant to stay and not pay. However, as states begin to open back up for business there appears to be light at the end of this tunnel. Still, expect a host of retailers to file for protection in July and August to eliminate stores and try to renegotiate rents.
Although we normally provide a list of 10 retailers to watch, we have increased the list to 20 given the current state of affairs. Following are the top 20 to retailers to watch for possible Chapter 11 filing(s) in the remaining year:
Continue Reading 20 Retailers to Watch for a Bankruptcy Filing in the Second Half of 2020