As November draws to a close, three more retailers have announced that they will be closing their brick-and-mortar stores, citing the impact of the coronavirus pandemic.

Retailers across the globe have shored up their portfolios as they look to reign in their expanses amid the COVID crisis, cutting down on rent payments and capital expenditures as consumers opt to stay home and shop online.

Here are three more retailers that have joined the growing list of shutter stores during the pandemic.

Pet Valu

Pet food and supplies retailer Pet Valu announced in early November that it would close all 358 of its stores and warehouse locations in the U.S. due to the ongoing impact of the COVID-19 pandemic. The company stores were located in Connecticut, Delaware, Indiana, Massachusetts, Maryland, Michigan, New York, New Jersey, Ohio, Pennsylvania, Rhode Island, Virginia and West Virginia.

Liquidation sales began at Pet Valu stores on Nov. 5, with all online sales ceasing at the time of the wind-down announcement. Gift cards and loyalty rewards were still being accepted for purchases, according to the company.

In a statement, Chief Restructuring Officer, Jamie Gould, said: “The Pet Valu U.S. team is proud to have met the needs of our devoted pet lover customers in the U.S. for more than 25 years. However, the company's stores have been significantly impacted by the protracted COVID-19-related restrictions. After a thorough review of all available alternatives, we made the difficult but necessary decision to commence this orderly wind down.”

Francesca’s

Apparel and accessories retailer Francesca’s announced in mid-November that it would be closing 140 stores by the end of January 2021 and warned at the same time that it may file for bankruptcy. The company said bankruptcy was possible as it continues to struggle amid the coronavirus pandemic.

The retailer said in a Securities and Exchange Commission filing that it was “evaluating various alternatives to improve its liquidity and financial position.” This included drastically cutting operating expenses, raising liquidity, reducing lease costs through concessions and deferrals, the SEC filing said.

If Francesca’s is unable to “raise sufficient additional capital to continue to fund its operations and pay it obligations,” it said it would likely need to seek restructuring through bankruptcy, the company wrote in the filing.

The retailer also said the number of stores that are slated to close may change and it expects to take about a $29 million to $33 million charge for the closures in the weeks leading up to Oct. 31.

Justice

After its parent company, Ascena Retail Group, filed for bankruptcy, tween fashion retailer Justice will be closing another 85 stores in November as well as its e-commerce website. The announcement was made by SB360 Capital Partners, which is assisting in the liquidation process.

Justice announced at the time of Ascena’s bankruptcy filing that it would be closing about 600 stores, which was followed by an announcement in September that another 23 locations would be shuttered.

The 85 locations that Justice is closing are holding liquidation sales now, along with an inventory blowout sale on its e-commerce site with discounts up to 50% off. SB360 said that “inventory will move quickly.”

storeclosing
The Alliance for Main Street Fairness, a retailer group, has launched ads warning that online sellers such as Alibaba will force small businesses to close unless Congress grants states the authority to tax Internet retailers. Alliance for Main Street Fairness
RELATED STORIES
Coronavirus