Retail mogul Philip Green, whose Arcadia group asked for protection from creditors on Monday, admitted that 13,000 employees of the British clothing empire are also at risk. A few days ago, for example, the American brand Abercrombie & Fitch also announced that it would reduce the number of its stores.
Many analysts already predict that the coronavirus crisis will be one of the most difficult to date for the fashionable retail market. “Whatever happens now, I will not be surprised if other large department stores soon find themselves in a similar situation due to a pandemic,” he wrote in the first spring wave of the pandemic for Forbes analytik Warren Shoulberg.
His words are now being confirmed. Browse the list of the largest retailers that have failed to meet their debts due to the coronavirus pandemic.
United States
NEIMAN MARCUS
The American chain of luxury department stores, Neiman Marcus Holding, has applied for protection from creditors. The icon in the field with more than a century of tradition went bankrupt in September. Its restructuring plan envisages a debt forgiveness of four billion dollars, ie almost 90 billion crowns.
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J.C. PENNEY
In November, Neiman Marcus was joined by one of his biggest American rivals – JC Penney. According to the company, liquidating the company would endanger thousands of jobs.
J. CREW
Another financial problem plagued by an American retailer is the J. Crew Group, which went into insolvency as early as May. The New York chain subsequently agreed to convert a portion of the $ 1.65 billion debt into shares in the group’s creditors. At the same time, however, the chain had to close some stores.
LORD & TAYLOR
One of the world’s oldest retail chains, Lord & Taylor, was no longer in debt in May. The network, which has its flagship on 5th Avenue in New York, was founded in 1826.
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BROOKS BROTHERS
The Brooks Brothers filed for bankruptcy in July to help it retain enough funding to continue selling. Brooks Brothers, which has a two-hundred-year history, became famous in the past, for example, the first polo shirt on the market.
TAILORED BRANDS
The male clothing brand Tailored Brands from the United States applied for protection from creditors in August.
STAGE STORES
The discount clothing chain Stage Stores announced in May after the bankruptcy that it would examine offers to take over all or part of its business. At the same time, he promised to cut operating costs.
ANN TAYLOR
The American retail group Ascena, which owns Ann Taylor or Lane Bryant retailers, went bankrupt in the summer. As with others, the coronavirus pandemic caused financial difficulties.
Great Britain
DEBENHAMS
The British retail network Debenhams went into insolvency for the second time in the last year. Now the entry of a new investor is at stake. Debenhams is now negotiating a rescue with JD Sports.
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LAURA ASHLEY
Fashion salesman Laura Ashley Holdings announced in March that she would close 70 stores and lay off hundreds of employees after the change of management. The brand will continue to be sold in Next under stores.
OASIS, WAREHOUSE
The debts were also absorbed by the British fashion brands Oasis and Warehouse, which are owned by the Icelandic bank Kaupthing. However, the online clothing store Boohoo subsequently announced that it would buy these brands for 5.3 million pounds, in terms of 154 million crowns. Even so, they had to close stores.
EDINBURGH WOOLLEN MILL, PEACOCKS, JAEGER
In November, the investment group EWP Group went bankrupt in three of its British clothing chains, Edinburgh Woolen Mill, Peacocks and Jaeger. Thus, almost five thousand jobs are at risk.
MONSOON, ACCESSORIZE
The British fashion networks Monsoon and Accessorize also filed for bankruptcy after the lockdown. The founder later unveiled a restructuring plan to close 35 stores and lay off 545 workers.
Canada
GO OUTDOORS
The insolvency administrator also had to join the British chain Go Outdoors of the JD Sports group. At the same time, it bought the network four years ago for 112 million pounds, almost 3.3 billion crowns. In this case, the coronavirus only accelerated the problems of the chain, which had been struggling with a drop in sales for a long time.
REITMANS
The Canadian retailer Reitmans, which has 576 stores in its country of origin, applied for protection from creditors in May. At the same time, the company announced that it will permanently cancel two of its fashion brands, Thyme Maternity and Addition Elle brands.
THE CASTLE
The Canadian retailer Le Chateau, which sells clothing for festive occasions, did not bear the pressure of creditors.
The rest of the world
NOT GROUP
Australian clothing chain PAS Group declared bankruptcy in May after failing to bear the effects of the coronavirus pandemic.
EDCON
Edcon, one of South Africa’s oldest retail groups, applied for protection from creditors in April. Part of the group has been sold and part will be restructured.
SQM
After declines in sales, the Swedish fashion chain MQ also went into insolvency.
Czechia
Men’s fashion is one of the largest companies that reported financial problems in Čeks Blazek. Society is also facing growing debts Pietro Filipi.
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