For many house enchancment and residential items shops, 2020 noticed enterprise growth with all of the nesting Americans have been doing. In truth, Statista stories a 79 p.c growth in home furnishing retail sales from April to May of 2020, and one other 37 p.c from May to June. But whereas shops like Home Depot and Lowe’s have additionally seen gross sales soar, one furnishings retailer has not been so fortunate. Loves Furniture just lately filed for Chapter 11 chapter safety, making it the most recent retailer to undergo the results of COVID-19, lockdowns, and the associated battering that the financial system has taken. Read on to be taught extra concerning the sole surviving Loves Furniture, and for an additional comparable chain closing up a number of outlets, take a look at This Beloved Home Goods Chain Is Closing More Than 40 Stores.
Loves Furniture—with its mission assertion of “Love where you live”—was a newly created firm that took over many of the places left shuttered when Art Van Furniture went bankrupt in March 2020. Originally beginning with 34 shops in Michigan, Ohio, and Pennsylvania, Loves Furniture is anticipated to scale all the way down to only one retailer in Michigan post-Chapter 11, which they filed on Jan. 6.
The firm’s CEO Mack Peters advised the Detroit Free Press that the final 12 months has seen disruptions to supply chains attributable to the COVID pandemic. “There were certainly a lot of factors involved in what happened,” Peters mentioned. “We had to delay a lot of store openings because we didn’t have goods.” Details within the chapter filings additionally clarify how the corporate was unable to realize entry to the previous Art Van warehouse till October as a result of it was nonetheless getting used for the Art Van liquidation gross sales.
Loves Furniture employed Penske Logistics Services to handle the warehousing points, with prices apparently spiraling because the model was on the hook for paying for a number of deliveries to the unsuitable shops, half-full supply vehicles, and misplaced stock. The two corporations finally sued one another in a case that’s ongoing.
With logistics and provide points persisting, Loves Furniture’s first announcement on the finish of December that they might be closing round a dozen Michigan shops led to a wave of canceled orders by clients who had been now not assured that they might obtain their delayed gadgets. “Customers’ uncertainty as to whether Loves would remain in existence led to numerous cancellations to the point where daily cancellations often exceeded daily sales,” Peters mentioned within the court docket filings.
Loves Furniture is at the moment holding round $27 million price of unsold stock. All 13 of its remaining shops are planning to carry giant gross sales to liberate money movement, and permit the reorganization of the enterprise to proceed in order that Loves Furniture can commerce on, smaller however more healthy.
Keep studying for different beloved shops in hassle, and for extra on the most recent information in retail, take a look at This Iconic Department Store Is Closing Another 40 Locations.
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Starting the 12 months off on a somber notice, Family Video, one of the final relics of the film rental scene, introduced on Jan. 5 that every one of its shops can be closing. The information got here simply three months after practically half of the 510 Family Video locations the corporate had originally of 2020 had been shut down. “While now we have confronted digital competitors from Netflix and others for years, nothing has been as devastating to our business as COVID-19,” Keith Hoogland, the CEO of Family Video’s guardian firm Highland Ventures, mentioned in an announcement. The remaining 250 Family Video shops are set to shut after their present liquidation gross sales. And for extra common retail information despatched proper to your inbox, join our every day publication.
Gym chain In-Shape, a 40-year fixture of California’s health scene, introduced on its web site that it was filing for Chapter 11 bankruptcy protection on Dec. 16. “As you know, California’s mandated shutdown of gyms has kept us closed for the better part of 2020,” the assertion learn, noting that the statewide shutdowns have “dramatically impaired [In-Shape’s] revenue.” In-Shape expects to come back out of its restructuring “with a smaller, more focused portfolio of about 45 clubs across California,” though it did not specify which places had been prone to survive. And for an additional firm in hassle, learn up on why This Iconic Chain Is Closing Over 1,000 Stores by March.
Once-ubiquitous clothes and niknaks retailer Francesca’s first introduced it was submitting for Chapter 11 chapter safety in December, and shortly, the corporate revealed that it was closing 97 shops throughout the nation. The information adopted a November announcement that 140 places would shutter, which means greater than a 3rd of Francesca’s 700 places are shutting down. And for an additional model making massive modifications, take a look at This Iconic Clothing Chain Is Closing Its Biggest Stores.
In late December, the “eatertainment” chain Punch Bowl Social, which had 20 places nationwide, introduced that it was submitting for Chapter 11 chapter. “In a now too-familiar story, the debtors’ companies had been instantly and considerably adversely affected by COVID-19,” Punch Bowl Social mentioned in its chapter court docket submitting, in accordance with Restaurant Business Online. “Unfortunately, because of restrictions limiting the number of patrons at each venue, as well as the public’s uneasiness of going out to eat or drink in public during a pandemic, each of those venues was losing money on a daily basis.” And for an additional traditional eatery that is at risk, take a look at This Beloved Restaurant Chain Just Filed for Bankruptcy.