Collective Brands Inc., the operator of Payless ShoeSource, announced that during the second quarter of 2009 it closed a net of 17 Payless stores. For the fiscal year 2009, the net store closing for Payless will be 67.
(Editor's Note: We have updated the Payless store closing numbers to reflect the "net store closings" which takes into account store openings as well.)
The struggling video rental chain said they may shut down up to 20% of their stores before 2011 as competition from Netflix, Redbox and others have hurt its business. The move would mean closing between 810 and 960 of its 4,356 U.S. stores. Instead, the company plans to shift its focus to DVD-rental kiosks in the stores of other merchants. As of the end of August, it had just 500 kiosks, but hopes to have 10,000 by the middle of 2010.
The upscale garden store said it will shut down all of its 56 stores, currently located in 22 states and D.C. The 30-year old chain tried to find a buyer for over a year. The CEO said "While this is a sad outcome, the combination of a weak economy and the lack of scale proved too great to overcome."
According to CoStar Group, Mobile, AL-based Big 10 Tire Stores filed chapter 11 bankruptcy in April. At the time of the filing, the 104-store chain announced no intention to close stores but said it would attempt to obtain rent relief from its landlords. Through bankruptcy reorganization, Big 10 is now requesting lease cancellations on eight stores in Alabama, 14 in Florida and 10 in Georgia.
Citigroup announced that it is going to lower the number of U.S. retail outlets, limiting the banks to six major metropolitan areas. It is likely the bank will be a presence mainly in New York, Washington D.C., Miami, Chicago, San Francisco, and Los Angeles. It will release its plans in October.
In its most recent quarterly report, PacSun said it expects it will close a total of 40 stores during 2009 -- it closed 16 of them during the first half of this year. As of August 1, PacSun leased and operated 916 U.S. stores. (Source: CoStar Group)
Borders Group Inc (plans to close most of its Waldenbooks stores as it cuts costs and strives to pay down debt amid a bleak environment for U.S. book retailers. It sees only 50-60 Waldenbooks in the future, down from 300.
During the first quarter of fiscal 2010, the company opened 11 large-format stores and one small-format store and closed one large-format store and 12 small-format stores. For fiscal 2010, the company expects to open approximately 20 new stores and close approximately 30 stores.
Rite Aid Corp. plans to close as many as 117 stores over the next year, according to an Associated Press report. Reporting that its loss doubled in its fourth quarter, the drugstore operator said the closings will be scattered around the country, targeting those with weak sales or close to another Rite Aid.
Talbots sale of J.Jill will result in 75 closures. Talbots Inc. agreed to sell almost all the assets of its J. Jill brand to an affiliate of private-equity firm Golden Gate Capital for about $75 million. J. Jill will continue to operate from Quincy, Massachusetts. The buyer will retain a distribution center in New Hampshire and keep open 204 of the existing 279 J. Jill stores.
Jones Apparel Group Inc. said its first-quarter profit tumbled 98%, hurt by restructuring charges and lower demand for most product categories as consumers cut discretionary spending. To bolster profit, Jones plans to shut 225 single-branded underperforming stores, or about 20% of its store base, over the next two years even as it continues to test and evaluate new concepts.
Whataburger closed 14 Florida company-owned restaurants May 31, including two each in Gainesville and Ocala, citing low sales. The company will have 38 remaining locations from Pensacola to Jacksonville, among more than 700 across 10 Southern states. Whataburger was founded in Corpus Christi, Texas, in 1950, and was known for its white and orange-striped A-frames, of which 20 remain.
The company said that during the first quarter it examined all its stores based on profit, cash flow, store sales potential and lease rates. That prompted it to close four stores during the quarter, and it expects to sell off 40 to 55 unprofitable stores this year "that are delivering unacceptable strategic or financial results," the company said.
During the first quarter of 2009, the Company closed 60 centers in 15 different states and 1 center in the United Kingdom. In addition, the Company expects to close approximately 130 additional centers due to under-performance or where consolidation opportunities exist.
Despite 2008 sales of almost $1 billion, parent company Ritz Camera Centers said in its petition in February the recession and consumer’s transition to digital photography left the company no choice but to cut loose its Boater’s World division. It will close 129 Boater’s World stores in 27 states and liquidate its inventory.
After years of ambitious expansion, coffee retailer Starbucks announced in July 2008 that it would close 600 U.S. stores, most of which were opened only in the last two years. On Jan. 28, Starbucks said that it would close an additional 300 stores.
On Jan. 8, after one of the worst holiday seasons in decades, Macy's announced it will close 11 stores. The department store operator, which runs more than 810 Macy's stores and also operates the Bloomingdale's chain, had reported a $30 million loss in the first nine months of 2008, with sales dropping 4.3 percent.
Circuit City, the second-biggest U.S. electronics retailer reached an agreement with liquidators Jan. 16 to sell the merchandise in its remaining stores. The company filed for bankruptcy protection in November.
Ruby Tuesday Inc. announced that it plans to close about 70 corporate-owned locations nationwide over the next several years, resulting in restructuring and other charges of $40 million to $55 million over the next two quarters.
Outdoor retailer Sportsman's Warehouse, which sells gear for hunting, camping, fishing and other outdoor activities in 29 states, said that it would close 23 stores and sell another 15 as sales tumble.
Luxury jeweler Tiffany & Co. said it plans to close its unprofitable Iridesse pearl jewelry chain, partly because of a tough economy that has hindered demand for jewelry. There are 16 Iridesse locations nationwide, located mostly on the East and West coasts.
In an effort to slash costs, Phillips-Van Heusen, the parent company of Calvin Klein, Izod and Van Heusen clothing brands, said Jan. 21 that it would close 175 stores, reduce its warehouse capacity and cut travel, marketing and administrative expenses. The restructuring is expected to save the company about $40 million per year before taxes.
Tennessee-based Goody's, which just emerged from bankruptcy protection in October, announced Jan. 14 that it was again filing for Chapter 11 bankruptcy protection. The company also said that it would liquidate its remaining 282 stores.
Less than a month after the Feb. 9 Chapter 11 bankruptcy filing, Richmond, Va.-based S&K Famous Brands Inc. and Hilco Merchant Resources LLC have started liquidating the merchandise at 22 percent of its 136 stores. 30 stores in the chain will shut their doors as part of the parent company's Chapter 11 reorganization bankruptcy.
Kira Plastinina filed for bankruptcy protection within the first days of 2009. The Russian-based teenage designer, who just broke into the US market mid-2008, reportedly owes creditors over $54 million and will close all 12 U.S. stores.
Retailer Gottschalks announced Jan. 14 that it had put itself up for sale and filed to reorganize in a Chapter 11 bankruptcy. But as of the end of March, it had not found a buyer and announced it will liquidate its 58 department stores and three specialty clothing stores in California, Washington, Alaska, Oregon, Nevada and Idaho.
Costco one of the world's largest wholesale club chains, said April 2 that it would close its two furnishing stores store in July. Home furnishing stores have been hard hit during the recession as consumers cut back on spending, forcing many to shutter operations
As it looks to reorganize under bankruptcy protection, Ritz Camera will be closing 300 of its nationwide retail locations. Approximately 400 Ritz camera locations will remain in operation. Ritz was one of the first camera chains, but has fallen on hard times recently.