What Retailers In the United States Are In Jeopardy?
Global Data Retail states that nearly 190,000 stores around the United States are closed due to the coronavirus pandemic. Some stores have been offering curbside pickup services or home delivery while their locations are closed. But there is a genuine worry as to whether these stores will survive the pandemic.
The American consumer will dictate which retailers are going to survive the coronavirus pandemic. But some retailers are going to be in even more trouble than others, as this listing shows.
The high-end Neiman Marcus retail chain has more than $4 billion in debt. The most troubling point about the company is that people may not be willing to support the luxury sector after the pandemic ends. The company sells high-end fashions and accessories, and its annual gift catalog highlights many products that are even more valuable. The products may not be in demand as people watch their money.
JCPenney has nearly $4 billion in debt. The company has enough liquidity to last for a few months, but it is anticipated that the company will close some of its 850 stores. The decision to get out of the appliance business is a sign that JCPenney is in danger. There have been rumors that the chain might declare bankruptcy.
Sears Holdings has been trying to get out of bankruptcy since 2018. There are a little over 180 Sears and Kmart stores remaining. The fear right now is that the extended closure due to the pandemic may be the final death knell for Sears and Kmart. The move comes after years of closures and the company selling off many famous brands like Craftsman, Kenmore, and DieHard.
Forever 21 declared for bankruptcy last year and was going to close off about a hundred locations to try and save the company. With there being nothing open, there’s a chance the fashion retailer could go under.
David’s Bridal got out of bankruptcy last year, but the company has furloughed most of its employees and dropped many of its commitments. The long-term picture for the wedding fashion store is grim, as weddings and receptions are being indefinitely delayed or restricted. There’s also a fear that people might not be willing to spend as much on their weddings in the future.
The popularity of other drugstore chains like Walgreens and CVS could hurt Rite Aid, which has more than $3 billion in liabilities. The chain’s failed attempt to merge with the Albertsons grocery company only makes matters worse.
- Crew has been trying to stop the bleeding by spinning off its Madewell women’s apparel brand into a separate company. But the plan to spin off its most popular brand has been put on hold. There are concerns that J. Crew could shut down while Madewell gets sold to another company.
The nutrition supplement chain closed will close about three hundred locations this year. The company has been unable to repay its debts, a problem that could be compounded further.