As September draws to an end, several retailers have announced that they will be closing stores by the end of 2020. These retailers have cited the financial wrath of the coronavirus pandemic on their business, causing them to reduce their retail footprint and, in some cases, file for bankruptcy on top of closing stores. Here’s a look at all the retailers that announced they were closing stores in September.
Century 21 said it was liquidating all 13 of its stores after filing for Chapter 11 bankruptcy protection in early September. The 60-year-old retailer has locations in New York, New Jersey, Pennsylvania, and Florida.
Century 21 filed for bankruptcy after incurring $175 million in losses from the pandemic. The company started liquidation sales immediately, offering discounts on designer apparel, home goods, and beauty products.
Bed Bath & Beyond
Home goods retailer Bed Bath & Beyond announced that it would be closing 63 stores under its restructuring plan. The company, which also owns the buybuy BABY, Harmon Face Values, and World Market brands, said the store closures will save it between $250 and $350 million annually.
The store closure announcement follows the layoff of 2,800 workers in August, in another cost-cutting move that is expected to save the retailer $150 million a year.
During an earnings call, American Eagle said it would be closing from 40 to 50 stores in 2020 with the possibility of shuttering as many as 500 locations over the course of the next two years, CNN reported. The reason for the closures was an increase in digital sales for the company, which rose by 48% for the second quarter of 2020 compared to the same timeframe a year earlier.
Mike Mathias, chief financial officer for the retailer, said on the call (via CNN), “Our flexible lease portfolio will allow us to quickly exit locations that no longer makes sense.”
Sur La Table
After filing for bankruptcy protection and announcing that it would close 56 stores in July, Sur La Table added another 17 locations to close in September. The closures are part of its restructuring plan as it looks to optimize its retail footprint.
Liquidations sales began immediately at stores, with initial discounts up to 30%. The company said that liquidation sales are expected to last about five weeks or until all merchandise is sold.
GameStop said it would close about 100 additional stores, adding to the 320 locations it announced would shutter in March, CNN reported. The company, which has struggled with game sales as streaming services gain in popularity, also plans to close more stores in 2021.
The retailer saw its net sales fall by 26.7% to $942 million in Q2 2020 compared to the second quarter of 2019 as stores were temporarily closed due to the coronavirus pandemic.
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