The Biggest U.S. Retail Bankruptcies in 5 Years

Conservative News DailyJanuary 11, 2023

Below are the top 5 largest bankruptcies of the last five years, sorted by assets and liabilities as of the time they were filed:

Ascena Retail Group

Assets: $13.69 Billion

Liabilities: $12.52 Billion

Superstores: Over 2,800

Ann Taylor, Lane Bryant, and Loft are the owners.https://www.theepochtimes.com/t-bankruptcy”>bankruptcy protection in July 2020, then sold off its Justice children’s apparel unit and closed all Catherines stores. After being purchased for $540 million in November 2019, the company now belongs to Premium Apparel LLC.

Sears Holdings Corp.

Assets: $7.26 Billion

Liabilities: $19.99 billion

About 700 stores

Once the nation’s largest retailer, the 125-year-old chain filed for bankruptcy in October 2018, following a decade of revenue declines, hundreds of store closures. It hadn’t made a profit in 10 years and was able to stay afloat thanks to the billions of dollar provided by Eddie Lampert, its billionaire CEO. It succumbed eventually to stiff competition from Walmart.

J.C. Penney

Assets: $7.99Billion

Liabilities $7.16 billion

Stores: 846

After over a century of business, the department store chain filed bankruptcy protection in May 2020. The company was burdened by mounting debt.

After months of bankruptcy proceedings, the company averted liquidation, after a U.S. judge ruled in November that year to let it continue under new owners—Simon Property Group and Brookfield Asset Management—in a bid to save over 60,000 jobs.

Toys “R” Use

Assets: $1-$10 Billion

8.07 billion in liabilities

More than 1,600 Stores

Babies USA is the owner of Babies, America’s largest toy store chain “R” Us, a company with a $2.5 million debt pile, filed for bankruptcy protection in the latter part of 2017. The bankruptcy of the company was the worst U.S. retailer failure since Kmart in 2002.

Neiman Marcus

Assets: $7.55Billion

Liabilities: $6.79 Billion

Close to 70 stores

After a private equity takeover, the U.S. luxury department stores chain was encumbered with debt and filed for bankruptcy protection in May 2020. The nearly 113-year old chain’s CEO blamed the “unprecedented disruption” The pandemic caused the following.

After restructuring, which eliminated more than $4B of debt, it emerged from bankruptcy several months later.

J. Crew Group Inc.

Assets: $1.59 Billion

Liabilities: 2.95 billion

Stores: 491

Chinos Holdings (parent of the apparel company) filed for bankruptcy protection in May 2020. The plan was to eliminate $1.65billion of debt and give ownership to lenders. J Crew, a brand known for its fashionable, preppy clothes, which was loved by Michelle Obama, was the first retail victim of the pandemic. It quickly emerged from bankruptcy, retaining a large portion of its stores and receiving $400 million in financial aid.

Brands that are unique

Assets: $2.48 Billion

Liabilities: $2.84 Billion

Stores: Over 1,400

The owner of tuxedo and business suit chain Men’s Wearhouse filed for bankruptcy in August 2020. After eliminating $686million of debt, the company emerged from bankruptcy on December 1, 2020.

Claire’s Stores

Assets: $2 Billion

Liabilities: $2.52 Billion

There are approximately 1,600 stores. In March 2018, the jewelry retailer filed Chapter 11 after experiencing a dramatic drop in mall traffic due to shoppers shifting online. After eliminating $1.9 Billion in debt, the company filed for Chapter 11, which allowed it to go public. It was then backed by Goldman Sachs.

Nine West Holdings Inc.

Assets: $988 millions

Liabilities: $1.94 Billion

About 70 stores

Online competition forced the U.S. fashion giant, Gloria Vanderbilt’s owner, to file for bankruptcy in April 2018. It emerged from bankruptcy only days after filing for bankruptcy under Premier Brands, a new name.