9 Retailers That Are Closing Stores In January 2021
01/28/21 AT 8:24 AM
The coronavirus pandemic continues to negatively impact the retail sector, with several companies announcing in January that they were closing stores as foot traffic waned and sales declined.
The consumer shift to online shopping during stay-at-home orders only further compounded the financial pressure these retailers were under, making it necessary to shutter locations to stay afloat or, in some cases, file for bankruptcy protection.
According to a report from Coresight Research (via CNBC), there could be up to 10,000 store closures in the U.S. this year, setting a new record amid the pandemic as retailers realign their brick-and-mortar portfolios to remain open for business.
Loves Furniture points fingers over financial problems, bankruptcy
In new documents filed in U.S. Bankruptcy Court, Loves Furniture said warehousing and delivery problems led to bad customer experiences, canceled orders and ultimately the company s financial distress.
Before the company s Jan. 6 Chapter 11 filing, Loves public statements mostly blamed its financial challenges on industry-wide supply disruptions caused by the COVID-19 pandemic that left the company s stores with low inventory during a time of high consumer demand.
Loves Furniture is the newly created company that took over many shuttered Art Van Furniture locations last summer in the wake of Art Van s surprise March 2020 liquidation bankruptcy. Loves started off with 34 stores in Michigan, Ohio and Pennsylvania and about 500 employees. It will soon be down to 13 stores, all but one in Michigan.
Dive Brief:
Regional retailer Loves Furniture filed for Chapter 11 bankruptcy protection last week following multiple shipping problems and a dispute with a logistics provider, according to court papers.
The filing comes not long after Loves launched. The retailer was created last year to take over stores vacated by Art Van after that retailer liquidated in bankruptcy last spring.
Loves filed for Chapter 11 under an agreement with another furniture specialist to liquidate excess inventory and restructure around a smaller footprint after deciding to liquidate 13 stores in December.
Dive Insight:
Real estate veteran Jeff Love created Loves Furniture last year after two financial firms approached his company about starting up a new furniture retailer to fill spaces vacated by Art Van in its liquidation last spring.
The probable short life of Loves Furniture is an exploration in opportunity gone awry. Since its founding in May last year, after acquiring assets and inventory from bankrupt Art Van Furniture, the retailer immediately encountered a squall of operational hardships that left it running from a…