Hoffman Estates, Ill. — On October 15, 2018, Sears Holdings Corporation and certain of its subsidiaries have filed voluntary petitions for Chapter 11 bankruptcy relief. Effective immediately, the company’s chairman and CEO, Edward S. Lampert, is stepping down from the CEO role. Also, the company will close 142 stores in addition to the previously announced 46 store closings.
Chapter 11 bankruptcy
Merrimack, N.H. — Brookstone Co. Inc. has filed for bankruptcy and will close its remaining 101 mall locations. The Merrimack, N.H.-based retailer filed for Chapter 11 protection on August 2, 2018, the second time it has done so in the last 5 years. The company first filed for bankruptcy in 2014 and was sold to a Chinese investment group for more than $173 million. The retailer cited the “extremely challenging” retail environment at malls as a factor in its struggles.
Wayne, N.J. — Toys ”R” Us Inc. filed for Chapter 11 bankruptcy protection on September 18, 2017. The company’s Canadian subsidiary also plans to seek protection in parallel proceedings under the Companies’ Creditors Arrangement Act (CCAA) in the Ontario Superior Court of Justice.
Topeka, Kan. — Payless ShoeSource has successfully emerged from its Chapter 11 restructuring as the Number 1 specialty footwear retailer in the U.S. and one of the largest in the world with about 3,500 brick-and-mortar stores. Following the completion of the company’s restructuring, Paul Jones will retire as CEO.
Fargo, N.D. — Vanity Shop of Grand Forks, Inc. is closing all 137 of its Vanity stores in 27 states. Tiger Capital Group, which provides asset valuation, advisory and disposition services to a broad range of retail, wholesale and industrial clients, is conducting the going-out-of-business sale, which is now underway.
Los Angeles — American Apparel, LLC, a manufacturer, distributor and retailer of branded fashion-basic apparel, has emerged from Chapter 11 as a private company after successfully implementing its plan of reorganization, approved by the Delaware bankruptcy court on January 27, 2016.