After greater than 37 years in business, beloved reward retailer Paper Source filed for Chapter 11 chapter safety on March 2. The model, which operates 158 shops and an e-commerce arm within the U.S., plans to shut no less than 11 of its shops, in accordance with court documents obtained by Retail Dive.
According to the Chicago-based company’s chapter submitting, Paper Source had expanded to 161 retail location after buying 27 shops from competitor Papyrus, which introduced its personal chapter submitting and started the method of closing its retail areas in Feb. 2020.
Paper Source’s resolution to file for chapter was undeniably linked to losses suffered as the results of the pandemic, the model introduced, with gross sales in 2020 coming in at $104 million, down from $153.2 million the year prior. “As with many other retail brands, [Paper Source has] sustained deep damage to their finances and operations as a result of the ongoing COVID-19 pandemic,” stated Paper Source CFO Ronald Kruczynski within the chain’s chapter submitting, calling the choice a vital a part of the model’s “comprehensive restructuring.”
Paper Source isn’t the one chain that’s suffered critical monetary fallout amid the pandemic, nonetheless; learn on to search out out which different beloved shops will not be lengthy for this world. And for extra shops shutting down, try This Beloved Chain Is Closing All Its Stores.
On Feb. 18, sun shades chain Solstice introduced that it could be submitting for Chapter 11 chapter safety after gross sales dropped greater than 50 p.c between 2019 and 2020. At this level, there have been no bulletins relating to Solstice shops closing.
In a press release, Solstice CEO Mikey Rosenberg stated, “We are optimistic about reorganization as we continue to see increasing business in our stores as COVID restrictions are lifted and in the new fashions that our vendors are providing.” And for the most recent retailer closure information delivered straight to your inbox, join for our each day e-newsletter.
Beloved magnificence model Becca introduced on Feb. 22 that the company would cease operations by Sept. 2021. “The global pandemic has had an impact on everyone around the world on many levels. It has also had a tremendous impact on so many businesses. At BECCA, an accumulation of challenges, together with the global impact of COVID-19, has sadly been more than our business can withstand,” the company stated in a press release. And for extra manufacturers struggling the monetary ramifications of the pandemic, This Legendary Fashion Brand Is Starting to Shut Down Stores.
On Feb. 24, L Brands, the mum or dad company of mall staple Victoria’s Secret, introduced that it could be shuttering as much as 50 of the lingerie model’s shops earlier than the top of 2021. Victoria’s Secret had already seen its footprint diminish over the course of the pandemic; in May 2020, CNN reported that at least 250 Victoria’s Secret stores would be closing their doorways for good.
Even Belk, a division retailer that’s been working repeatedly for 133 years, couldn’t face up to the monetary issues the pandemic introduced upon it. On Feb. 23, Belk introduced its submitting for Chapter 11 chapter safety as a method of offloading $450 million in company debt. “The COVID-19 pandemic directly resulted in drastic declines in sales, revenue, and liquidity,” defined Belk CFO William Langley in court docket paperwork, in accordance with The Charlotte Observer.
The subsequent day, Belk emerged from bankruptcy with a brand new restructuring settlement. “The infusion of cash and reduction in debt provides Belk with increased liquidity to focus on its key initiatives for growth, including further enhancements to its omnichannel capabilities and the expansion of merchandise offerings into new, relevant product categories,” the company stated in a press release, noting the house, wellness, and out of doors areas particularly. And for extra outlets that aren’t lengthy for this world, This Iconic Store Is Closing All Its U.S. Locations.