Huge Companies That Went Bankrupt In 2017
Though there is a rise in consumers, the year 2017 has been a bad year for the retail industry. There is less foot traffic in shopping malls and more on the online stores. Because of technology, more and more people are opting for a convenient shopping experience at home. The rise of online brands like Kylie Cosmetics also impacted the brands found in physical stores. Because of this, almost 8,053 store closures were announced last year.
There are always two sides of the story, and we can never really tell if an event is a blessing or a curse. But for the following retails companies, the rise of virtual shopping has definitely been a curse. Find out our loved brands that were not able to resuscitate its sales and had to file bankruptcy.
Toys ‘R’ Us
The baby boomers and millennials sure know what it feels like to pass by a freshly-stocked Toys ‘R’ Us store. It is what a child’s dream is made of with its Lego displays and variation from cars to dolls. In the year 2017, the toy empire filed for bankruptcy after not being able to compete with the eCommerce. The company is also facing an almost $2 billion in debt and interest payments.
Payless has been quite a popular brand for those who were looking for fashionable shoes for lesser money. Their success has been evident from the 4,000 they have built, worldwide. But just like Toys ‘R’ Us, Payless lost its edge in private buyouts. They declared bankruptcy in April of 2017 and are set to close about 900 stores. The close-out officially started in some areas of the world where the company decided to host clearance sales.
Radio Shack was the king retailer of anything electronics before the eCommerce years kicked in. One of the major reasons for its bankruptcy is because they failed to adapt to the modern ways of buying goods. They remain grounded in its physical stores, not realizing that the online stores are already overtaking them by the millions worth of sales. Amazon is one of its competitors that no matter how much they try to save the company, it’s just not working anymore. RadioShack will close 1,000 stores in the next year, leaving only 70 company-owned stores that are still open for the more traditional shoppers.
Gone are the cute ads from this kid clothing line after the company filed for Chapter 11 last June. Though the brand was also affected by the online retailers, one of its major reasons for closure were the missed debt payments for the month of June. It may sound like a small thing, especially for a big brand like Gymboree, but its debt of more than $900 million is enough to shut down almost 375 stores.
Being owned by one (if not the only) of the largest coffee corporation in the world is not enough to keep this tea store’s door open. Starbucks Coffee Company has decided to close all its 379 stores due to bankruptcy. The company has tried everything, from new menus to store interiors but the sales from the tea store are just not enough to cover its expenses. The 3,300 employees that will lose their jobs from this decision are all given opportunities to work for other positions in Starbucks. The closing will start this year, so better get that favorite drink before they’re all gone.
Alfred Angelo Bridal
It’s every woman dream to find that perfect wedding dress for the big day. Unfortunately for the women who have Angelo gowns, they might not be able to walk down the aisle with their chosen gowns. The bridal company has filed liquidation bankruptcy in July. They closed down all its stores immediately that the future brides didn’t have enough time to claim their dresses.
There are many reasons why companies decide to close after years of being on top. Just like Nokia, the Cellphone Empire of the past decades, their consistent approach to things is what ended them. They were not able to see how fast the world is changing. People will forever crave a more convenient lifestyle and shopping experience so retail companies have to also adopt the changes.
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