Guitar Center has been in business since the 1970s. The company’s been building and refurbishing its stores and adding brand-new Guitar Center locations. Most conspicuously, it refurbished its flagship Hollywood store, spending $5 million on the project.
In 2018 there were rumors of Guitar Center falling victim to the bulk-bankruptcy fate of so many other retailers were unfounded. The company’s $1 billion debt triggered the rumors, but it was able to renegotiate those loans. CEO Ron Japinga said there were a few years when the company was “kind of going sideways.” But, the CEO said, “We’ve got a clearer vision of what we’re here for… [and, the company has] really started to turn the corner.”
Chico’s
The trendy, upscale-fashion go-to spot for women over 30 made Fortune magazine’s “100 Fastest-Growing Companies” list in 2001. However, Chico’s FAS declined, trading at around $3 on the NYSE. Other stores under the umbrella of Chico’s FAS, Inc. include White House Black Market and Soma. Those stores were acquired in 2003 and 2004, respectively. Chico’s has an endearing founding story. The original shop in Sanibel Island, Florida, opened in 1983. The little hole-in-the-wall featured Mexican folk art and gift items.
Called Folk Art Specialties (the acronym for FAS), the store began selling sweaters which became so popular they outsold all other items. As Chico’s transformed into a women’s clothing boutique, the owner renamed it Chico’s after a friend’s pet parrot. The first chain store opened in Minnesota, and over 1,400 stores later, Chico’s had a good run. Other measures meant to enhance the company’s profitability include partnering with Amazon and QVC to bolster sales. If you can’t beat ’em, join ’em!
Party City
Plagued by helium shortage and prolonged underinflated earnings, Party City shut many of its stores. The New Jersey-based party store missed on earnings in 2019 and was looking towards the Halloween and holiday season to give it a reason to party.
In May 2019, the company announced plans to shut down 45 stores. CEO of Party City, James M. Harrison, expected a $2.4 billion rise in revenue for 2019; however, we are not sure how that expectation delivered itself. Add the fact that 2020, along with its Halloween and Holiday season, had too many people sitting at home, and you get a pretty bleak picture.
Toys “R” Us
Toys “R” Us is a vastly different story. Chock-full of doom and demise, this company dove off the precipice to a savage end, exploding in balls of fire visible from space. Toys “R” Us is the third largest retail bankruptcy ever. The mega-toy store crashed and burned under $5 billion worth of debt.
It was an ugly ending. Toys “R” Us filed for bankruptcy in 2017. All did not go well. In 2018 the company announced it would close all 800 of its stores, liquidating 33,000 jobs. We’re going to miss that adorable giraffe. In 2021 the two last remaining stores closed their doors.
JCPenney
JCPenney's revenue for 2018 was down significantly. Nine of the closures that year were of its home and furniture locations. JCPenney has been bleeding employees and stores since 2014. No word on how many jobs were lost that year. JCPenney picked up a new CEO last year, Jill Soltau.
Soltau’s efforts to turn the debt-heavy department store chain around include getting out of appliance sales and focusing on apparel. While appliances have been expected at stores like JCPenney and Sears, the $4.2 billion debt needed to be relieved somehow. Cutting 2,200 jobs and closing a total of 8 stores, as it did in 2018, also lowers costs. After 117 years of retailing, all the king’s horses and all the king’s men may not be able to restructure JCPenney again.