This Week In Retail: Retailers Close More Stores While Bankruptcy Looms For Others

This week in retail, more companies announced that they would be closing stores amid the coronavirus pandemic. This adds to the financial woes of other retailers that are teetering on the brink of bankruptcy.

As retailers across the globe were forced to close their stores because of the pandemic, many are feeling the financial impact and looking for ways to mitigate their losses. Signet Jewelers announced on Tuesday that it would be closing 380 stores by the end of 2020. The company owns the Kay Jewelers, Zales, and Jared retail brands, among others.

On Wednesday, the parent company of Zara, Inditex said it would close 1,000 to 1,200 stores over the next two years. While the Spanish retailer did not specify exactly which locations would be closing, it has about 100 Zara stores in the U.S. It also owns the brands Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, and Uterque.

Also occurring on Wednesday, was an announcement from Guess that said it would close 100 stores over the next 18 months in the North America and China as leases expire, Bloomberg reported. The next day, Children’s Place announced it would be an additional closing 300 stores or about one-third of its retail portfolio through 2021. The company previously announced that it would be closing 200 locations in 2020.

Store closings are not the only way that retailers are looking to cut their losses, as Tailored Brands, the parent company of Jos. A. Bank and Men’s Wearhouse, is reportedly weighing its financial options, which could include filing for bankruptcy protection. Brooks Brothers is also reportedly looking to secure debtor-in-possession financing and could file for Chapter 11 as soon as July.

The news of retail store closings and possible bankruptcies comes on the heels of Chapter 11 filings by JC Penney, Neiman Marcus, J. Crew, Tuesday Morning, and Stage Stores – all during the coronavirus pandemic.