Business & Tech
The PA Chains That Declared Bankruptcy, Closed Stores In 2020
The coronavirus outbreak made 2020 a devastating year for retailers and restaurant chains.
PENNSYLVANIA — To say that 2020 was a brutal year for brick-and-mortar retailers and restaurants across America is an enormous understatement. Owing to the worst domestic public health crisis in a century, corporate bankruptcies in those industries increased significantly from 17 in 2019 to 30 this year.
When the coronavirus outbreak began out in March, stores and eateries closed for weeks and those that remain still haven't recovered. Retailers saw consumers increasingly shift to online purchases as the preferred option to shopping at potentially virus-filled malls; restaurants in the state had indoor dining prohibited for a prolonged period and are operating under such a ban again until early January.
The financial hemorrhaging of retailers and restaurants was felt strongly in Pennsylvania, where the following chains filed for bankruptcy this year:
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After filing for bankruptcy in May, J.C. Penney said it would close more than 200 of its 846 stores over the next two years. None have closed yet in Pennsylvania, where 27 J.C. Penney stores remain, but the company has not disclosed whether any are on the chopping block. Simon Property Group, one of America's largest mall owners, led a partnership that purchased the chain in September.
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The bankrupt home furnishing chain announced in May that it was seeking court approval "to begin an orderly wind-down of the company's retail operations as soon as reasonably possible." While closing all of its stores, Pier 1 has retained an online presence.
The party and entrainment chain's 20 Pennsylvania locations closed after the parent company of the popular children's-themed restaurant filed for bankruptcy in June.
The J.Crew Group filed for bankruptcy in May. J.Crew Group, which also operates the Madewell brand of clothing, estimated in a Chapter 11 bankruptcy filing in the U.S. Bankruptcy Court for the Eastern District of Virginia that it had assets and liabilities of between $1 billion and $10 billion.
Health and wellness retailer GNC filed for Chapter 11 bankruptcy in June and announced plans to close as many as 1,200 stores. The Pittsburgh-based company plans to emerge from bankruptcy in the fall. It's in the process of selling itself to a Chinese pharmaceutical company.
Tuesday Morning
Discount home goods retailer Tuesday Morning filed for bankruptcy in May and announced plans to permanently close about 230 of its nearly 700 stores. The chain, which currently has 10 Pennsylvania locations, blamed the coronavirus outbreak for pushing it into bankruptcy.
Modell's
Just before the onset of the pandemic, Modell's Sporting Goods filed for Chapter 11 bankruptcy and announced it would be closing all locations.
Nearly half of the casual restaurant chain's 90 locations closed after it filed for bankruptcy. Its lenders purchased the remaining restaurants at a bankruptcy sale.
The discount retailer, facing financial pressure caused by the pandemic, announced it would close its 300 locations nationwide. The retailer, which had six Pennsylvania locations, sold its name to a company that hopes to re-launch the brand online.
Tailored Brands (Men's Wearhouse, Jos. A. Banks)
The men's fashion retailer said in its bankruptcy filing that it planned to close 500 locations. The chain was purchased by its lenders and creditors; it's supposed to ask for court approval of a reorganization plan in early 2021.
The upscale department store emerged from bankruptcy in September after shedding billions of dollars in debt and closing five stores. Its lone Pennsylvania location is in the King of Prussia Mall near Philadelphia.
The upscale retailer filed for bankruptcy in August, barely a year after it was purchased for $75 million. The chain announced it was closing all of its stores after a nearly 200-year retail run.
This large franchisee, which operates 1,200 Pizza Hut and 400 Wendy's filed for bankruptcy because of a $1 billion debt load and rising food and labor costs. NPC then announced plans to close up to 25 percent of its Pizza Hut locations.
The 200-year-old menswear retailer filed for bankruptcy and was purchased in September by mall operator Simon Property Group, which also now co-owns J.C. Penney. Simon plans to keep about 125 stores in the chain operating; Brooks Brothers had about 425 stores before the pandemic.
The upscale kitchenware chain closed roughly half of its 120 stores nationwide after filing for bankruptcy and being sold to an investment firm in August for $90 million. Its only remaining Pennsylvania location is in King of Prussia Mall.
RTW Retailwinds (New York & Company)
The company announced when it declared bankruptcy in July that it planned to shutter nearly all of its 400 stores. According to the company's website, Pennsylvania locations in Camp Hill and Tannersville remain open.
Ascena Retail Group (Justice, Ann Taylor, LOFT, Lane Bryant and other women's clothing stores)
Ascena closed hundreds of its stores, including all of its approximately 200 Catherine's locations. A private equity firm is buying the company.
Blaming restrictions on indoor dining, the pizza chain declared bankruptcy in July. The company reduced its debt and closed several locations before exiting bankruptcy in November.
Citing the pandemic as a reason, the casual dining chain has closed about 200 locations in recent years but still has about 300 open - including 21 in Pennsylvania.
After two bankruptcies in the past decade, the number of Friendly's restaurants has declined from about 400 to about 130 - but 29 of them remain in Pennsylvania.
The nation's largest musical instrument retailer attempted to offer virtual music lessons during the outbreak, but that didn't generate enough revenue to keep it out of bankruptcy. Nine Guitar Centers are open in Pennsylvania.
After its recent bankruptcy filing, the women's boutique will close about 25 percent of its 700 stores. There currently are 27 locations in the state, according to the chain's website.
Retailers whose 2020 bankruptcies had little impact on Pennsylvania consumers included:
- Stationery and greeting card chain Papyrus, which went out of business.
- Denim clothing store True Religion, which emerged from bankruptcy in the fall after closing dozens of locations.
- Fast food chain Krystal
- All-you-can-eat buffet chain Souplantation and Sweet Tomatoes
- Japanese retailer Muji USA
- Denim company Lucky Brand
- Department store chain Century 21
- Sizzler restaurants.
Contributing: Kara Seymour/Patch
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