Lord & Taylor, Men’s Wearhouse, Jos. A. Bank, Moores Clothing for Men, K&G Fashion Superstore parent companies file for bankruptcy

August 2, 2020

by Daphne Sorenson

(Photo courtesy of Men’s Wearhouse)

On August 2, 2020, two major retail companies filed for bankruptcy: Le Tote Inc. (the San Francisco-based parent company of department store Lord & Taylor) and Tailored Brands Inc. (the Fremont, California-based parent company of Men’s Wearhouse, Jos. A Bank, Moores Clothing for Men and K&G Fashion Superstore). Hundreds of stores will be shuttered and thousands of employees will be laid off as a result of these bankruptcies.

In 2019, Le Tote purchased Lord & Taylor from Saks Fifth Avenue owner Hudson’s Bay Co. for $71 million. Lord & Taylor was founded in New York City in 1826, reported $137.9 million of debt obligations in the bankruptcy. At the time of the bankruptcy filing, Lord & Taylor had 38 stores and 651 employees

According to Bloomberg: “Under the deal with Hudson’s Bay, the seller agreed to cover Lord & Taylor’s rent for three years, saving Le Tote $58 million annually. Le Tote said in a court filing Sunday that its companies reported revenue of about $253.5 million in 2019 … Executives at the company have planned to cut the number of Lord & Taylor stores and target younger women with luxury try-on studios, beauty subscriptions and rental drop-off points.”

Tailored Brands was founded in the Houston are in 1973 by George Zimmer, under the name Men’s Wearhouse. Zimmer famously appeared in TV ads for Men’s Wearhouse for several years in the 1980s and 1990s, with the slogan: “You’re going to like the way you look. I guarantee it.” The company went public in 1992, and Zimmer was ousted from the company in 2013, reportedly because he had difficulty adjusting to the company being public instead of private.

At the time of the bankruptcy filing, Tailored Brands had about  1,274 retail and apparel rental stores in the U.S. and 125 in Canada, and employed approximately 18,000 people. As of this writing, it’s unknown how many of these store locations will be permanently closed, but analysts estimate that it will be hundreds.

According to Bloomberg: “The plan calls for a $500 million bankruptcy loan backed by the company’s existing revolving credit facility lenders. Tailored Brands will ask the court’s permission to access the loan combined with cash on hand, including $90 million of previously restricted cash made available to fund operations throughout the restructuring. The bankruptcy loan will then convert to a $400 million revolving credit facility upon emergence from Chapter 11 … The company’s term loan holders will receive their portion of an exit term loan of between $325 million to $425 million and 100% of the reorganized equity, according to court documents. Shareholders will be wiped out, with no recovery from the plan.”

Even before the coronavirus pandemic (when LeTote and Tailored Brands temporarily closed all of retail locations on mid-March 2020), the companies were already headed toward financial disaster, since they had been closing an increasing number of stores since 2018. Depending on the state, county or city in the United States, some clothing retail stores have re-opened since the pandemic, while others have not, as of this writing. The re-opening policies vary.

Le Tote and Tailored Brands are among the growing list of fashion retailers that have declared bankruptcy since 2018. Barney’s filed for Chapter 11 bankruptcy in 2019, while Nieman Marcus did the same in May 2020. J. Crew declared Chapter 11 bankruptcy in May 2020. Low-end clothing retailers that shuttered in 2019 included Gymboree and Payless ShoeSource.

Other fashion retailers that had a massive percentage of store closures in 2018 and 2019 included Victoria’s Secret, Gap, Kohl’s, Abercrombie & Fitch, Foot Locker, Children’s Place and David’s Bridal. A few fashion retailers (such as Charlotte Russe and Bebe) have emerged from bankruptcy and are slowly trying to build back their business under new ownership. Department stores that carry fashion (such as Macy’s, JC Penney, Kmart and Sears) have also been closing stores.

 

Ascena Retail Group files for bankruptcy; parent company of Ann Taylor, Loft, Lane Bryant, Justice, Lou & Grey, and Catherines and more will close hundreds of stores

July 23, 2020

by Daphne Sorenson

Ascena Retail Group—the Mahwah, New Jersey-based corporation that owns several major women’s fashion retail stores—filed for Chapter 11 bankruptcy on July 23, 2020. Ascena is the parent company of the retail stores Ann Taylor, Factory Ann Taylor, Loft, Loft Outlet, Lane Bryant, Justice, Lou & Grey and Catherines. According to Bloomberg, Ascena expects to shut down about 1,600 of its 2,800 stores worldwide. All of the Catherines stores will be shuttered.

Bloomberg also reports: “The company listed about $12.5 billion of liabilities, including $1.6 billion of funded debt. More than two-thirds of its secured term lenders support its restructuring plan, and they’ll wind up owning most of the new equity, Ascena said in a statement and court papers. Almost $1 billion in debt will be erased, and Ascena will get $150 million in fresh funds from existing lenders.”

The company was founded in 1962, in Stamford, Connecticut, under the name Dressbarn and then changed its named to Ascena Retail Group in 2011. Ann Taylor and its lower-priced spinoff Factory Ann Taylor cater to career women on the go, while Loft and its lower-priced spinoff Loft Outlet target a younger customer base. Lou & Grey offered mostly casual clothing for women. Lane Bryant and Catherines were launched as clothing stores for plus-sized women. Justice has fashion for girls ages 7 to 14.

Even before the coronavirus pandemic (when Ascena temporarily closed all of retail locations on March 18, 2020), the company was already headed toward financial disaster, since it had been closing an increasing number of stores since 2018. Ascena Retail Group closed all Dressbarn locations in 2019. Depending on the state, county or city in the United States, some clothing retail stores have re-opened since the pandemic, while others have not, as of this writing. The re-opening policies vary.

Ascena Retail Group is among the growing list of fashion retailers that have declared bankruptcy since 2018. On the high-end retail spectrum, Henri Bendel completely shuttered its stores in 2019. Barney’s filed for Chapter 11 bankruptcy in 2019, while Nieman Marcus did the same in May 2020. Lord & Taylor is reportedly close to Chapter 11 bankruptcy as well.

Non-luxury fashion retailers have also been victims of the “retail apocalypse,” which has been largely blamed on the rise of online shopping. J. Crew declared Chapter 11 bankruptcy in May 2020. Low-end clothing retailers that shuttered in 2019 included Gymboree and Payless ShoeSource.

Other fashion retailers that had a massive percentage of store closures in 2018 and 2019 included Victoria’s Secret, Gap, Kohl’s, Abercrombie & Fitch, Foot Locker, Children’s Place and David’s Bridal. A few fashion retailers (such as Charlotte Russe and Bebe) have emerged from bankruptcy and are slowly trying to build back their business under new ownership. Department stores that carry fashion (such as Macy’s, JC Penney, Kmart and Sears) have also been closing stores.

24 Hour Fitness files for bankruptcy, announces about 130 gym closures

June 15, 2020

by Ken Bradley

On June 15, 2020, gym company 24 Hour Fitness Worldwide Inc. filed for Chapter 11 bankruptcy and announced the permanent closures of about 130 locations in the United States, mostly in California and Texas. The company was forced to close its locations nationwide in March 2020, due to the COVID-19 pandemic. Approximately 400 of the remaining 24 Hour Fitness locations are expected to re-open by the end of June or early July 2020, depending on gym re-opening policies of the state, county or city where each gym is located.

The re-opening of these 24 Hour Fitness gyms includes new policies for health precautions during the COVID-19 pandemic, such as requiring appointments, with each appointment limiting gym use to one hour per person; social distancing of people and equipment (at least 6 feet apart) throughout each location; no longer providing childcare and fitness done in groups; and discontinuing the use of showers, swimming pools, saunas and basketball courts.

Customer complaints about 24 Hour Fitness are flooding social media, with people claiming that they have not been able to obtain refunds for pre-paid or automatically paid gym membership during the period of time that 24 Hour Fitness locations have been closed. There are also concerns about getting refunds for locations that will be permanently closed. 24 Hour Fitness has not publicly addressed these complaints.

In a statement on the 24 Hour Fitness website and social-media accounts, the company announced the bankruptcy and restructuring:

“On June 15, 2020, we announced an important step to strengthen 24 Hour Fitness for the long-term. We are implementing a financial restructuring, through a voluntary Chapter 11 filing. This process gives us the opportunity to reposition 24 Hour Fitness by eliminating debt and closing clubs that were either out-of-date or in close proximity with other 24 Hour Fitness clubs.

“Removing these financial and operational constraints allows us to focus entirely on transforming our business and the club experience for the better. We will have the financial flexibility and resources to upgrade equipment and expand and improve our fitness offerings to best serve our members and continue our transformational journey.

“We have refreshed the club environment for the health and safety of our club members. As we continue to reopen clubs in a phased approach, you can learn more about the club environment here.

“While we reopen clubs, all members will have access to any available 24 Hour Fitness club through the end of 2020, regardless of membership level. For updates and further news about our phased club reopenings and locations, please visit us at https://www.24hourfitness.com/health_clubs/gyms-open-near-me.

“We are deeply grateful for your continued loyalty to 24 Hour Fitness. You provide the inspiration for what we do, and we are excited to continue supporting you along your fitness journey well into the future.”

Here is the list of 24 Hour Fitness locations that will be permanently closed:

California

  • 850 Tennant Station, Morgan Hill, CA 95037
  • 1519 Gateway Blvd, Fairfield, CA 94533
  • 4300 Sonoma Blvd, Vallejo, CA 94589
  • 140A Alamo Plaza, Alamo, CA 94507
  • 3951 Alemany Blvd, San Francisco, CA 94132
  • 1775 Solano Avenue, Berkeley, CA 94707
  • 375A North Capitol Avenue, San Jose, CA 95133
  • 35630 Fremont Boulevard, Fremont, CA 94536
  • 2145 Market Street, San Francisco, CA 94114
  • 301 Jacklin Road, Milpitas, CA 95035
  • 3800 24th Street, San Francisco, CA 94114
  • 350 Bay Street, San Francisco, CA 94133
  • 2033 N. Main Street, Walnut Creek, CA 94596
  • 3633 Rosedale Highway, Bakersfield, CA 93308
  • 4302 Gosford Road, Bakersfield, CA 93313
  • 505 S. Flower Street, Los Angeles, CA 90071
  • 240 North Brand Blvd, Glendale, CA 91203
  • 12120 Carson Street, Hawaiian Gardens, CA 90716
  • 9750 Central Avenue, Montclair, CA 91763
  • 23750 Alessandro Blvd, Moreno Valley, CA 92553
  • 1335 Rancho Vista Blvd, Palmdale, CA 93551
  • 465 North Halstead Street, Pasadena, CA 91107
  • 2350 Tapo Street, Simi Valley, CA 93063
  • 1422 Azusa Avenue, West Covina, CA 91791
  • 1417 Second Street, Santa Monica, CA 90401
  • 16200 Bear Valley Road, Victorville, CA 92395
  • 400 W. Disney Way, Suite 94, Anaheim, CA 92802
  • 1600 Adams Avenue, Costa Mesa, CA 92626
  • 18305 Brookhurst Street, Fountain Valley, CA 92708
  • 517 Spectrum Center Drive, Irvine, CA 92618
  • 25252 McIntyre Street, Suite A, Laguna Hills, CA 92653
  • 18007 Von Karman Avenue, Irvine, CA 92612
  • 6731 Westminster Blvd., Westminster, CA 92683
  • 3137 West Benjamin Holt Drive, Stockton, CA 95219
  • 1090 North Main Street, Manteca, CA 95336
  • 5114 Arden Way, Carmichael, CA 95608
  • 40396 Murrieta Hot Springs Road, Murrieta, CA 92563
  • 27520 Ynez Road, Temecula, CA 92591
  • 320 Third Avenue, Chula Vista, CA 91910
  • 7680 Girard Avenue, La Jolla, CA 92037
  • 641 S. Rancho Sante Fe Road, San Marcos, CA 92078
  • 324 Sycamore Avenue, Vista, CA 92083

Colorado

  • 7720 N. Academy Blvd., Colorado Springs, CO 80920
  • 3001 South 23rd Avenue, Greeley, CO 80631
  • 4100 South Parker Road, Aurora, CO 80014
  • 1450 South Abilene Street, Aurora, CO 80012
  • 360 South Teller Street, Lakewood, CO 80226
  • 4650 W 120th Avenue, Broomfield, CO 80020
  • 2770 South Colorado Blvd, Denver, CO 80222
  • 3435 S. Inca Street, Englewood, CO 80110
  • 460 South College Avenue, Fort Collins, CO 80524
  • 333 Dad Clark Drive, Highlands Ranch, CO 80126
  • 2650 W. Belleview Avenue, Suite #100, Littleton, CO 80123
  • 11798 Oswego Street, Englewood, CO 80112
  • 6839 South Vine Street, Centennial, CO 80122

Florida

  • 1775 North Congress Avenue, Boynton Beach, FL 33426
  • 6846 Forest Hills Blvd., Greenacres, FL 33413
  • 20851 Dixie Drive Highway, Miami, FL 33189
  • 8400 Mills Drive, Miami, FL 33183
  • 2982 Grand Avenue, Miami, FL 33133
  • 8333 Pines Blvd., Pembroke Pines, FL 33024
  • 15 West Crystal Lake Street, Orlando, FL 32806

Hawaii

  • 150 Hana Highway, Kahului, HI 96732

Illinois

  • 560 S. Schmale Road, Carol Stream, IL 60188
  • 141 N Barrington Road Schaumburg, Schaumburg, IL 60194

Maryland

  • 200 Harker Place, Annapolis, MD 21401
  • 9450 Ruby Lockhart Blvd, Lanham, MD 20706

New Jersey

  • 918 Bergen Avenue, Jersey City, NJ 7306
  • 459 Route 17, Hasbrouck Heights, NJ 7604
  • 1327 Centennial Avenue, Piscataway, NJ 8854
  • 189 US Highway 46, Saddle Brook, NJ 7663
  • 133 Route 23, Wayne, NJ 7470
  • 30 Sylvan Way, Parsippany, NJ 7054
  • 1624 Saint Georges Avenue, Avenel, NJ 7001

Nevada

  • 4480 E. Charleston Blvd., Las Vegas, NV 89104
  • 2893 North Green Valley Parkway, Henderson, NV 89014
  • 4440 E. Tropicana Avenue, Las Vegas, NV 89121
  • 100 City Parkway, Las Vegas, NV 89106
  • 2106 W. Craig Road, North Las Vegas, NV 89032
  • 601 S. Rainbow Blvd., Las Vegas, NV 89145
  • 9875 S. Maryland Parkway, Las Vegas, NV 89183
  • 5035 W. Tropicana Avenue, Las Vegas, NV 89103
  • 6155 Neil Road, Reno, NV 89511

New York

  • 1675 Sunrise Hwy, Bay Shore, NY 11706
  • 1921 86th Street, Brooklyn, NY 11214
  • 945 Kings Highway, Brooklyn, NY 11223
  • 225 Fifth Avenue, New York, NY 10010
  • 941 Carmans Road, Massapequa, NY 11758
  • 153 East 53rd Street, New York, NY 10022
  • 1728 Sheepshead Bay Road, Brooklyn, NY 11235
  • 2503 Grand Concourse, Bronx, NY 10468
  • 298 West 231st, Bronx, NY 10463
  • 589 Tuckahoe Road, Yonkers, NY 10710

Oregon

  • 4145 SW Watson Ave, Beaverton, OR 97005

Texas

  • 13802 N Hwy 183, Austin, TX 78750
  • 12400 N IH- 35 Svc. Road Southbound, Austin, TX 78753
  • 1208 N Interstate 35 Ste 300, Round Rock, TX 7868
  • 213 North Highway 67, Cedar Hill, TX 75104
  • 2100 Plaza Parkway, Bedford, TX 76021
  • 3050 North Josey Lane, Suite 110, Carrollton, TX 75007
  • 7622 Campbell Road, Dallas, TX 75248
  • 3865 Preston Road, Frisco, TX 75034
  • 2407 West Airport Freeway, Irving, TX 75062
  • 5901 Golden Triangle, Fort Worth, TX 76244
  • 724 West Main Street, Lewisville, TX 75067
  • 5706 E. Mockingbird Lane, Dallas, TX 75206
  • 6601 Northeast Loop 820, North Richland Hills, TX 76180
  • 4600 West Park Blvd., Plano, TX 75093
  • 7068 FM-1960 East, Humble, TX 77346
  • 12708 Northwest Freeway, Houston, TX 77092
  • 130 West Parkwood Avenue, Friendswood, TX 77546
  • 19734 Saums Road, Houston, TX 77084
  • 21614 Tomball Parkway, Houston, TX 77070
  • 4425 FM 1960 West, Houston, TX 77068
  • 1550 S. Mason Road, Katy, TX 77450
  • 2765 Gulf Freeway South, League City, TX 77573
  • 5946 Fairmont Parkway, Pasadena, TX 77505
  • 5721 Westheimer Road, Houston, TX 77057
  • 25632 Highway 290, Cypress, TX 77429
  • 10860 Kuykendahl Road, The Woodlands, TX 77381

Utah

  • 1121 East Ashton Ave, Salt Lake City, UT 84106
  • 5684 South 900 East, Murray, UT 84121
  • 5766 South 1900 West, Taylorsville, UT 84129
  • 10365 South 1300 East, Sandy, UT 84094

J. Crew files for bankruptcy, joins growing list of fashion retailers in financial downward spirals

May 4, 2020

by Daphne Sorenson

J. Crew, the New York City-based fashion brand known for making the “preppy look” popular in the 1980s, has filed for Chapter 11 bankruptcy, while its stores remain closed during the coronavirus pandemic. According to Bloomberg: “Anchorage Capital Group, Blackstone Group Inc.’s GSO Capital Partners and Davidson Kempner Capital Management will be among J. Crew’s new owners and will shape the board of directors once it exits bankruptcy, according to court papers. Those firms are leading a $400 million bankruptcy loan to keep J. Crew operating.”

The company was founded in 1947 under the name Popular Merchandise, Inc., and then changed its named to J. Crew in 1983. J. Crew became known for selling upscale “preppy” clothes for the type of customers who wanted to project an image that they have the money to belong to a country club or to have their own boats.

J. Crew has approximately 500 stores, including the brands Madewell and the lower-priced J. Crew Factory. Even before the coronavirus pandemic (when J. Crew closed all of its factories and retail locations, as of March 17, 2020), the company was already headed toward financial disaster, since it had been closing an increasing number of stores since 2018.

J. Crew is among the growing list of fashion retailers that have declared bankruptcy since 2018. Barney’s filed for bankruptcy in 2019, and Nieman Marcus is reportedly close to bankruptcy as well. Casualties in the high-end fashion retail business that have completely shuttered in the past year have included Lord & Taylor and Henri Bendel.

Non-luxury fashion retailers have also been victims of the “retail apocalypse,” which has been largely blamed on the rise of online shopping. Low-end clothing retailers that shuttered in 2019 included Gymboree and Payless ShoeSource. Fashion retailers that had a massive percentage of store closures in 2018 and 2019 included Ann Taylor, Dressbarn, Victoria’s Secret, Gap, Kohl’s, Abercrombie & Fitch,  Foot Locker, Children’s Place and David’s Bridal. A few fashion retailers (such as Charlotte Russe and Bebe) have emerged from bankruptcy and are slowly trying to build back their business under new ownership. Department stores that carry fashion (such as Macy’s, JC Penney, Kmart and Sears) have also been closing stores.

Barneys declares bankruptcy, joins growing list of fashion retailers in financial crisis

August 7, 2019

by Daphne Sorenson

Barneys New York logo

Barneys New York (also known as Barneys), one of fashion’s best-known luxury retailers, has filed for bankruptcy, and has announced plans to close 15 of its 22 stores in the United States. According to Bloomberg, “Barneys said it secured $218 million in financing and will continue to operate until it finds a buyer.”

Three of the cities that will continue to have brick-and-mortar Barneys stores are New York, Los Angeles and San Francisco. Barneys will close its stores in Chicago, Seattle and Las Vegas.

Barneys, which opened its first store Manhattan in 1923, has joined the growing list of fashion retailers on a steep financial decline, with store closures and bankruptcy filings. Casualties in the luxury retail business in the past year have included Lord & Taylor and Henri Bendel.

Non-luxury fashion retailers have also been victims of the “retail apocalypse,” which has been largely blamed on the rise of online shopping. Fashion retailers that have announced a massive percentage of store closures in 2018 and 2019 include Ann Taylor, Dressbarn, Victoria’s Secret, Gap, Kohl’s, Abercrombie & Fitch, Children’s Place, Gymboree, Foot Locker, David’s Bridal and Payless ShoeSource. A few fashion retailers (such as Charlotte Russe and Bebe) have emerged from bankruptcy and are slowly trying to build back their business under new ownership. Department stores that carry fashion (such as Macy’s, JC Penney and Sears) have also been closing stores.