Content about Bankruptcy

January 16, 2015

Wet Seal Inc. has become the latest clothing retailer to seek bankruptcy protection as mall-based stores lose business to big-box chains and online merchants.

Wet Seal Inc. has become the latest clothing retailer to seek bankruptcy protection as mall-based stores lose business to big-box chains and online merchants.

The move by Wet Seal comes a week after the struggling teen retailer said it was closing 338 of its stores, leaving it with approximately 173 stores nationwide.

January 15, 2015

RadioShack Corp. is reportedly preparing to file for bankruptcy as early as the beginning of February. 

RadioShack Corp. is reportedly preparing to file for bankruptcy as early as the beginning of February. According to the Wall Street Journal, RadioShack is currently in talks with several private equity firms about possibly buying its assets out of bankruptcy.

RadioShack may also seek reduction and restructuring of its debt in bankruptcy court. The retailer stated in a December SEC filing that it may have to file for bankruptcy if it is unable to raise funds or receive permission from lenders to close underperforming stores.

January 15, 2015

RadioShack Corp. is reportedly preparing to file for bankruptcy as early as the beginning of February. 

RadioShack Corp. is reportedly preparing to file for bankruptcy as early as the beginning of February. According to the Wall Street Journal, RadioShack is currently in talks with several private equity firms about possibly buying its assets out of bankruptcy.

RadioShack may also seek reduction and restructuring of its debt in bankruptcy court. The retailer stated in a December SEC filing that it may have to file for bankruptcy if it is unable to raise funds or receive permission from lenders to close underperforming stores.

January 12, 2015

Apparently closing all of your stores and firing all of your employees is among the actions a retailer can take when it is “exploring strategic alternatives.”

Apparently closing all of your stores and firing all of your employees is among the actions a retailer can take when it is “exploring strategic alternatives.”

Body Central Inc., which announced early this month that it was $18 million in debt and exploring strategic alternatives, has shuttered all 265 of its stores and fired 2,500 employees.

January 9, 2015

Teens will soon have fewer choices when it comes to shopping for the latest fashions. 

Teens will soon have fewer choices when it comes to shopping for the latest fashions.

Deb Shops announced it has won court approval to launch going-out-of-business sales that will culminate with the closing of nearly 300 stores.

“We thank our many customers and dedicated employees for their tremendous loyalty over the years and are very proud of our associates’ commitment to maintaining the high level of customer service we are known for throughout this transition,” said Dawn Robertson, CEO at Deb Shops.

January 7, 2015

Things are not looking up at Wet Seal, which has announced that it will close 338 stores, or about 66% of its total portfolio, “on or about” Jan. 7, resulting in the termination of some 3,695 full- and part-time employees. 

Things are not looking up at Wet Seal, which has announced that it will close 338 stores, or about 66% of its total portfolio, “on or about” Jan. 7, resulting in the termination of some 3,695 full- and part-time employees.

The struggling teen apparel retailer said the decision to close the stores was based on its overall financial condition and an inability to negotiate meaningful concessions from its landlords.

The company said the 338 stores represented approximately 48% of its sales for the nine months ending on November 1, 2014.

January 5, 2015

Embattled teen retailer Wet Seal Inc. has defaulted on $27 million in senior convertible notes and related costs.

Embattled teen retailer Wet Seal Inc. has defaulted on $27 million in senior convertible notes and related costs.

In a regulatory filing, Wet Seal said the total amount due is equal to $28.8 million, plus costs of collection, attorneys’ fees and disbursements.

December 19, 2014

The person behind the retro marketing campaign at RadioShack is out. 

The person behind the retro marketing campaign at RadioShack is out.

Jennifer Warren, chief marketing officer at RadioShack, is the latest top executive to leave the troubled electronics retailer as it tries to stave off bankruptcy. The company recently replaced its CFO for the third time this year as it reshuffled restructuring advisers.

Warren joined RadioShack in April 2013 and was one of CEO Joe Magnacca’s first hires when he was putting together his turnaround team.

December 16, 2014

Struggling consumer electronics retailer RadioShack Corp. has named Carlin Adrianopoli, a consultant with strategic advisory and interim management services firm FTI Consulting, as its new interim CFO. 

Struggling consumer electronics retailer RadioShack Corp. has named Carlin Adrianopoli, a consultant with strategic advisory and interim management services firm FTI Consulting, as its new interim CFO.

Adrianopoli replaces Alix Partners managing director Holly Etlin, who was named interim CFO in September to replace previous CFO John Feray after he resigned.

Adrianopoli, 39, has been a senior managing director in the FTI Consulting Corporate Finance/Restructuring practice since 2010 and joined FTI in 2002.

December 11, 2014

Wet Seal may file for bankruptcy protection if it fails to immediately resolve its liquidity issues, the company said.

Wet Seal may file for bankruptcy protection if it fails to immediately resolve its liquidity issues, the company said.

December 11, 2014

Wet Seal may file for bankruptcy protection if it fails to immediately resolve its liquidity issues, the company said.

Wet Seal may file for bankruptcy protection if it fails to immediately resolve its liquidity issues, the company said.

December 8, 2014

Struggling retailer RadioShack has a new hope for the holidays: Weird Al Yankovch. 

Eighties sensation Weird Al Yankovic is offering RadioShack a new hope for the holidays.

Yankovic is appearing in the chain's holiday ad campaign called "Gift Smart.” In the ad, he sings his own unique take on the holiday song “Toyland.”

"He's tech-savvy, smart and a social media guru," said RadioShack chief marketing officer Jennifer Warren. Yankovich has more than 3.5 million Twitter followers and 1.6 million Facebook fans. "I don't think there could be a better fit for our brand right now."

December 5, 2014

Teen retailer Delia’s Inc. plans to liquidate operations and file for Chapter 11 bankruptcy protection "in the very near term."

Teen retailer Delia’s Inc. plans to liquidate operations and file for Chapter 11 bankruptcy protection "in the very near term."

The company has struggled with weak sales for years and has not reported an annual profit since 2007.

Several teen apparel retailers have been losing market share to fast-fashion brands such as H&M, Forever 21 and Zara.

December 5, 2014

Teen retailer Delia’s Inc. plans to liquidate operations and file for Chapter 11 bankruptcy protection "in the very near term."

Teen retailer Delia’s Inc. plans to liquidate operations and file for Chapter 11 bankruptcy protection "in the very near term."

The company has struggled with weak sales for years and has not reported an annual profit since 2007.

Several teen apparel retailers have been losing market share to fast-fashion brands such as H&M, Forever 21 and Zara.

November 21, 2014

Alco Stores is offering retailers a cautionary holiday tale this Christmas as going-out-of-business sales have begun at the regional discounter’s 198 locations.

Alco Stores is offering retailers a cautionary holiday tale this Christmas as going-out-of-business sales have begun at the regional discounter’s 198 locations.

November 17, 2014

A Toys “R” Us executive will take over the top post at Brookstone, the product development company and specialty retailer that emerged from bankruptcy this year after being bought by a group of Chinese investors.

A Toys“R”Us executive will take over the top post at Brookstone, the product development company and specialty retailer that emerged from bankruptcy this year after being bought by a group of Chinese investors.

“We were impressed by Tom's success at rejuvenating businesses and by his broad and deep achievements as a senior executive in the retail industry,” Piau Phang Foo, chairman of the board of directors, said. “He has demonstrated success at driving innovation and growth globally."

October 13, 2014

Regional discounter ALCO Stores succumbed to market pressures and filed for Chapter 11 bankruptcy.

Regional discounter ALCO Stores succumbed to market pressures and filed for Chapter 11 bankruptcy.

The operator of 198 stores in 23 states was founded in 1901 and sought to serve small underserved markets with a broad range of value priced merchandise.

October 13, 2014

Regional discounter ALCO Stores succumbed to market pressures and filed for Chapter 11 bankruptcy.

Regional discounter ALCO Stores succumbed to market pressures and filed for Chapter 11 bankruptcy.

The operator of 198 stores in 23 states was founded in 1901 and sought to serve small underserved markets with a broad range of value priced merchandise.

September 17, 2014

The nation’s largest wholesaler of retail returns, GENCO Marketplace, and marketing automation provider SnapRetail, have combined to bring new capabilities to those looking to efficiently and profitably liquidate merchandise.

The nation’s largest wholesaler of retail returns, GENCO Marketplace, and marketing automation provider SnapRetail, have combined to bring new capabilities to those looking to efficiently and profitably liquidate merchandise.

The companies joined forces to offer new, easy-to-use online marketing tools to retailers and resellers within the $2.5 billion GENCO Marketplace who will receive special software pricing, access to free educational resources and one-on-one consultations from SnapRetail.

September 15, 2014

Longtime RadioShack adviser Holly F. Etlin has been tapped once more as interim CFO, replacing John Feray. Citing personal reasons, Feray resigned Sept. 12, just a day after the company posted its 10th straight quarterly loss.

Longtime RadioShack adviser Holly F. Etlin has been tapped once more as interim CFO, replacing John Feray. Citing personal reasons, Feray resigned Sept. 12, just a day after the company posted its 10th straight quarterly loss.

Etlin, a managing director of AlixPartners, has already served as RadioShack's interim CFO, from July 2013 to Feb. 2014.

RadioShack warned in a regulatory filing it may seek bankruptcy protection, with a possible sale or third-party investment as other potential avenues to remedy its ongoing financial woes.

September 11, 2014

RadioShack posted a net loss of $137.2 million in its second quarter, more than double the $52.2 million loss reported in the year-ago period. It was the troubled retailer’s 10th straight quarterly loss.

RadioShack posted a net loss of $137.2 million in its second quarter, more than double the $52.2 million loss reported in the year-ago period. It was the troubled retailer’s 10th straight quarterly loss.

RadioShack warned in a regulatory filing it may seek bankruptcy protection, with a possible sale or third-party investment as other potential avenues to remedy its ongoing financial woes.

June 30, 2014

Richard Sharp, 67, the long-time CEO of Circuit City who founded used car retailer CarMax has died of Alzheimer’s disease at his home near Richmond, Va.

Richard Sharp, 67, the long-time CEO of Circuit City who founded used car retailer CarMax has died of Alzheimer’s disease at his home near Richmond, Virginia.

Sharp joined Circuit City in 1982 and served as CEO of the company from 1986 to 2000. Under his leadership, Circuit City enjoyed meteoric growth with sales that increased from $175 million in 1986 to more than $10 billion by 2000. Eight years after he had left the company, Circuit City filed for bankruptcy in 2008 and the following year was liquidated.

June 20, 2014

The U.S. economy has undergone significant financial and social upheaval over the past five years, with companies seemingly invincible to the vagaries of the financial markets disappearing overnight.

The U.S. economy has undergone significant financial and social upheaval over the past five years, with companies seemingly invincible to the vagaries of the financial markets disappearing overnight. Many companies have been forced to contract by closing unprofitable stores, laying off employees, reducing spending, deferring research and development, or have been acquired by more profitable companies. With few exceptions, those companies that have survived have done so by cutting costs to the bone.

May 20, 2014

Product lifecyle and reverse logistics leader Genco has appointed Jeremy Witte as chief operating officer for its wholly owned subsidiary, Genco Marketplace.

Product lifecyle and reverse logistics leader Genco has appointed Jeremy Witte as chief operating officer for its wholly owned subsidiary, Genco Marketplace.

April 10, 2014

Whole Foods Market might as well declare bankruptcy now judging from widespread media coverage of Walmart’s decision to sell roughly 100 organic dry grocery items under the Wild Oats brand.

Whole Foods Market might as well declare bankruptcy now judging from widespread media coverage of Walmart’s decision to sell roughly 100 organic dry grocery items under the Wild Oats brand.