Many moons ago, when across this great nation, retail shopping centers did not yet exist outside of large cities, Americans depended on the new-fangled Sears Catalogue. Sears invented the order-by-mail catalog version of Amazon one hundred and thirty-three years ago. It was in 1886 the company began driving rural general stores out of business. It seems the cycle has gone full circle. Sears is but one in the growing list of retailers struggling to exist.
In fact, as a department store retail chain, it has been clinging to its existence the longest. Blaming Amazon for the Retail Apocalypse beats the alternative reason—the “R” word—a Recession. In October 2018, Sears filed for Chapter 11 bankruptcy with $11.3 billion in liabilities and $6.9 billion in assets. At least 200 stores closed. The company also ceased selling its flagship Whirlpool appliances, a product the store carried since 1916.
Gump’s Holdings
Gump’s is gone. Like a gaping void in San Francisco’s vibrant retail center, the flagship store, along with its massive, iconic Buddha sculpture that has greeted customers of Gump’s for 157 years, simply does not exist anymore. Gump’s: Established in 1861, liquidated in 2018. The luxury department store had searched for a buyer to save it, but with no takers, it succumbed to bankruptcy in August of 2018 instead.
The store, which was around during the California Gold Rush and was rebuilt after damage from the 1906 earthquake, closed for good on December 23, 2018. All is lost. In the past, while online and catalog sales were still humming, the website and Gump’s By Mail accumulated north of 75% of its sales. It’s an unusual case. The online competition was not a problem, but it was liquidated anyway after bankruptcy protection fell through. It was a unique store. Gump’s is gone, and it’s irreplaceable.
Stein Mart
Like TJ Maxx and Ross, Stein Mart is an off-price retailer that bargain hunters love to haunt. The chain of 290 stores carried brands at value prices and looked for ways to boost sales in order to add value to its bottom line. Surprisingly, in 2018 the store was able to raise sales in spite of the year-end holiday let-down totals.
At around $1 per share (or less), it was either a lucrative investment or a loss into liquidation. The final nail in that retail coffin was the global health crisis of 2020. In August of the same year, the chain store filed for bankruptcy, and all of its branches were closed by October.
Nine West
Alas, Nine West is gone. In 2018 Nine West buckled under its heavy $1.6 billion debt and filed for Chapter 11 bankruptcy. The courts approved the sale of its $340 million shoe business to Authentic Brands Group, owner of the Juicy Couture and Aéropostale brands. But, though the storefronts are gone forever, Nine West, which owns brands like Anne Klein and Gloria Vanderbilt, maintained the operation of its jewelry and apparel businesses, including Anne Klein.
It seems the 1970-established shoe manufacturer got swept up in the retail end-times that are decimating malls all over the nation. Due to the bankruptcy proceedings, all 70 Nine West stores were forced to close, but the agreement allowed Nine West wholesale sales to continue, as well as online sales. It’s sad to see one of the best shoe brands ever go by the wayside.
Ascena Retail
According to Macroaxis, Ascena Retail had a 42% chance of going into bankruptcy. Ascena Retail covered more retail shops than you might expect. The company owned Justice, Lane Bryant, Ann Taylor, Lou & Grey, LOFT, Dress Barn, Catherine, Cacique, and Maurice stores. All told, they ran 4,500 stores nationally, with shops in Canada and Puerto Rico too.
To help Ascena’s bottom line, the company sold 943 Maurice “value” stores to OpCapita, a London-based private equity, for $300 million. The New Jersey-based company planned to use the proceeds to pay down debt and reinvest in Ascena. This went pear-shaped in 2021, and the brand closed down completely following the world's health crisis.