Last year we told you about Sears and Kmart stores declaring bankruptcy and about a host of other stores that were closing. And, now some more very prominent U.S. retailers have announced store closings or declared bankruptcy. Are there more to come? Moody’s says there might be. Keep reading to find which ones could be next.
14. David’s Bridal
Sales started falling for this company after women began opting for casual wedding dresses over traditional wedding gowns. As a result, David’s Bridal filed for Chapter 11 bankruptcy protection back in November. At the time, they vowed to keep all stores open during this restructuring period. Fortunately, the company reduced its debt by about $450 million and was able to emerge from bankruptcy in January. The problem, however, is that David’s Bridal is struggling to evolve and build an online presence. They’re also faced with the fact that many millennials aren’t in any rush to get married.
A couple of years ago, PetSmart acquired Chewy.com–an online retailer of pet food and other pet-related products–for $3.4 billion, but has since struggled to pay down its nearly $8 billion debt, as its online competition–Amazon, Target, Walmart, etc.–continues to thrive. In fact, Amazon is a big reason why the company is struggling. That’s because the e-commerce giant launched Wag–a brand of pet products–in 2018. Unlike PetSmart, “Amazon’s pet food sales are likely to experience a lot more growth before leveling off,” Mike Corry, vice president of sales at data and advisory firm Edge by Ascential, said last year, according to Kiplinger.com.
12. Dollar Tree
After acquiring Family Dollar in 2015, Dollar Tree has seen a decrease in its earnings. It’s “clear that Family Dollar is underperforming, both as a division and within the wider market,” Neil Saunders, managing director at GlobalData Retail, wrote in a note to clients early last month, according to Business Insider. “The continued problems at the Family Dollar division have resulted in an impairment of its brand value to the tune of $2.73 billion. Such a deterioration undermines some of the economics on which the acquisition and integration of Family Dollar were based,” he added.
Last month, Dollar Tree announced that it was closing nearly 400 Family Dollar stores in 2019. This comes on the heels of 85 closings during the fourth quarter of 2018.