2019 has been a financial nightmare for several well-known companies in the retail industry who have enjoyed decades of success. The changing landscape of the retail industry has forced established household brands to close their doors. Our bankruptcy attorneys highlighted some of the well-known businesses that have operations in the Kansas City metro that have recently filed for bankruptcy.
Payless Holdings LLC
The Topeka based company filed for Chapter 11 bankruptcy last February in the Eastern District of Missouri, making this the second bankruptcy filing in the past two years. The company closed all 2,500 Payless ShoeSource stores, and an estimated 16,000 workers lost their jobs as a result. Other businesses now occupy several of the locations in the Kansas City area that closed their doors.
Forever 21 is one of the most recent retailers to file for Chapter 11 bankruptcy. The company, who reported over $3 billion in revenue in 2016, operates around 800 stores globally. Reports indicate that the company, which has operations in over 40 countries, is planning to close more than 170 stores in the US and another 180 stores outside of the US. All the locations in the Kansas City area are still open and no announcement has been made to close them.
Beauty Brands filed for Chapter 11 bankruptcy back in January. Most of their stores in the Kansas City metro remain open for business.
The restaurant chain filed for Chapter 11 bankruptcy at the beginning of the year and is now down to 27 restaurants, compared to 46 in 2017. The Kona Grill on the Country Club Plaza remains open for business and is not expected to close as a result of the bankrupt filing from earlier this year.
Ecommerce and online shopping are cited to be the primary cause of the “retail apocalypse.” Concerns for employees in the retail industry have grown after thousands of jobs have been lost without much notice. The list of retailers who are at risk of bankruptcy is expected to grow and many other popular brands could join the list in 2020.
We understand that every bankruptcy case is different, and will work hard to help you put together a plan so that you can get back on your feet and one step closer to a debt-free life. If you are thinking about filing bankruptcy, Castle Law Office provides a free consultation for Missouri and Kansas residents. You can call us at 816-842-6200 or you can email us and set an appointment with a Castle Law Office attorney to discuss your options.