featured-image

Sometimes, the end of a retail chain comes abruptly. That's not normally the case as, in most cases, retailers sort of sputter to their death. Usually, customers start seeing the store have a limited selection, take longer to restock, and offer random sales.

The end for chains like Bed Bath & Beyond and Christmas Tree Shops usually comes after a lot of very public financial maneuvering. Vendor payments falling behind are often the first sign of financial troubles, and that can set off what becomes a slow painful death. Once your vendors no longer trust you, they either ask for cash upfront and/or stop shipping merchandise.



A chain with empty shelves can't dig its way out of financial trouble and that often leads to a Chapter 11 bankruptcy filing. It's usually a prolonged process that involves banks, vendors, and the bankruptcy court. Survival is possible in many cases because while the vendors want to get paid, they're also not looking for a big customer to go away because there's no guarantee that another player will step up and replace that sales volume.

It's possible to survive a Chapter 11 bankruptcy filing. David's Bridal and Party City both filed for Chapter 11 bankruptcy and found financial partners willing to help them exit the process and return to normal operations. Rue21 has actually survived two Chapter 11 bankruptcy filings, but it will not survive its third.

Image source: Shutterstock During the Covid pandemic, when many retailers were shrinking their store base.

Back to Fashion Page