The retail apocalypse keeps claiming brands with a long history. Even though the retail market has largely recovered, stores keep filing for bankruptcy with many not making it through the Chapter 11 bankruptcy process.
Bed Bath & Beyond, Tuesday Morning, Christmas Tree Shops, and Sam Ash, the famed music chain, all reached the painful decision to liquidate. Joann, Party City, and David's Bridal all managed to make it through Chapter 11 and continue to operate.
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Popular restaurant chain eyes Chapter 11 bankruptcy as problems grow It's a challenging market because many retailers have struggled with the debt that had to take on during the Covid pandemic. It's expensive to borrow money due to higher interest rates and that has made it hard for some companies to find the cash they need to operate.
Foot traffic at malls has nearly recovered, according to a new white paper by foot traffic analytics firm Placer.ai, The Comeback of the Mall in 2024.
"The white paper finds that during 2023, visits at indoor malls were down 5.8% compared to 2019 — a dramatic improvement from being down more than 15% in 2021. Similarly, open-air shopping center foot traffic was down only 1% last year compared to 2019. The white paper notes that visits for the shopping center industry at large were down 2.3%, and foot traffic may yet pick up again in 2024,” the company shared.
That should be a positive, but it has not stopped, or even slowed, what has been a steady flow of store closures and bankruptcies.
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Ted Baker shutting down
A higher-end retail clothing chain, Ted Baker had a relatively modest origin story."Having launched as a shirt specialist of some repute in Glasgow Ted Baker quickly became the place to buy some of the very best contemporary men's shirting around," the company shared on the United Kingdom version of its website.
Related: Luxury apparel chain shuts U.S. stores in Chapter 15 bankruptcy
The United States and Canada are no longer choices on the long list of countries the company's website offers.
"From the beginning, Ted has had a very clear, unswerving, focus on quality, attention to detail, and a quirky sense of humour, so much so in fact that the first stores used to provide a laundry service for every shirt purchased – something that gained the quickly growing brand the title of ‘No Ordinary Designer Label’. Everything produced under the Ted Baker name has his personality woven into its very heart," the company added.
The popular brand, along with two other big-name brands the company licenses will be closing select locations in the U.S. and Canada under a Chapter 15 bankruptcy filing.
Ted Baker, Lucky, Brooks Brothers closing some stores
"Ted Baker Canada, which conducts business operations for Ted Baker in Canada, Ted Baker Limited in the United States, Brooks Brothers in Canada, and Lucky Brand in Canada" shared in a May press release "that it will be commencing store closing sales across select locations.
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All Ted Baker stores in the U.S. and Canada will be closing. The company has begun a liquidation sale where its 31 stores in the U.S. and nine locations in Canada will be offering 30% off sales. The chain has closed its website for sales in both countries.
"Brooks Brothers Canada is offering savings of up to 30% off original prices on the entire selection of high-end luxury apparel for men, women and children and home furnishings across all 8 retail stores in Canada," the company shared.
Lucky Brand Canada will offer the same 30% off on its entire collection of men’s and women’s casual apparel, including premium denim, graphic tees, dresses, and accessories across all 7 retail stores in Canada.
"The store closing sales will apply at retail stores only. As of May 10, 2024, online shopping is no longer available for the time being, and all sales are final across all of the company’s retail locations," it shared.
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Ted Baker Canada's bankruptcy was filed in Canada and is considered a Chapter 15 bankruptcy filing.
"This chapter of the bankruptcy code allows for the recognition in the U.S. of foreign bankruptcy proceedings and access to domestic judicial proceedings by foreign representatives," the IRS shared on its website.
