A double-whammy. In April 2017, Payless filed for bankruptcy and attempted to salvage the chain by getting rid of 700 stores and $435 million in debt. Its efforts tanked. By April 2019, all stores closed, as per a second bankruptcy ruling filed in February 2019. Two bankruptcies in less than two years.
What’s left of the company is $470 million in debt and 2,500 vacant shoe shops. Of note, the liquidation of all its stores is the largest liquidation event in U.S. retail history. E-commerce options for Payless Shoes also disappeared. The Topeka, Kansas, company had been selling shoes since 1956.
Mattress Firm
Mattress Firm almost closed its doors. In addition to the Retail Apocalypse statistics, Mattress Firm is the nation’s largest mattress company to file for Chapter 11 bankruptcy protection. Nevertheless, the Houston-based sleep chain made short work of it. Filing on October 5, 2018, just over a month later, all proceedings were in line.
To be exact, by November 11, 2018, executive chair and CEO Steve Stagner announced, “This is an exciting day for Mattress Firm as we emerge a stronger and more competitive company.” Its reorganization includes shuttering 700 underperforming stores, leaving a remaining 2,600 in operation. The company also secured a $525 million cushion for operations and growth within the agreement. Back to the business of beds.
Brookstone
Brookstone survived a 2014 bankruptcy filing after a Chinese conglomerate, Sanpower, purchased it at auction for $173 million. But it didn’t survive the 2018 retail apocalypse. Or, as the company says, it could not overcome an “extremely challenging retail environment at malls.” Except for its 35 airport stores and Brookstone.com, the entire chain of 101 mall stores closed. The mall stop that gave shoppers a break to gawk over Brookstone’s quirky gadgets, or check out the massage chairs, is sorely missed. Brookstone helped launch brands like iRobot and Fitbit.
The novelty of the store’s originality has been made somewhat obsolete by the vast array of online products. The first store opening was in 1973. In the ‘90s Bain Capital, led by Mitt Romney, took the company public. In keeping the more profitable airport stores running, they were able to secure a buyer. BlueStar Alliance bought it out of bankruptcy for $72 million. The company plans to continue selling Brookstone gadgets on shelves at stores such as Macy’s, Bloomingdales, and Bed Bath & Beyond.
Destination Maternity
Pregnant women, those who are planning on pregnancy, or any of you who just dabbles in maternity clothes for recreational reasons, this one's for you. If your destination is Destination Maternity, it may not be there when you arrive. The chain shut 67 of its stores in 2019. Destination Maternity is the umbrella maternity store.
It now includes Motherhood Maternity and A Pea in the Pod shops. All of these mall stores have been unable to compete against online retailers. Destination Maternity developed a new Amazon Marketplace storefront and offered same-day delivery in N.Y.C. The company is calling its restructuring efforts “Destination Forward.”
Bertucci’s
This Boston-based Italian restaurant filed for Chapter 11 bankruptcy in April 2018. Luckily, 58 of Bertucci’s wood-fired pizzerias are still open. Since 2011, the restaurant had seen declining sales year after year. It was not alone. Most mid-priced sit-down eateries have been struggling to make ends meet nationwide. Rescued from the brink of bankruptcy, Earl Enterprises picked Bertucci’s up for $20 million.
Bertucci’s is now in the company of Planet Hollywood, Buca di Beppo, Earl of Sandwich, and Tequila Taqueria. Whew. You can almost hear the collective sigh of New England and East Coast diners. Maybe founder, Bostonian Joey Crugnale, an emigrant of Sulmona, Italy, is relieved too. Bertucci’s isn’t going away. Why not Crugnale’s? I guess Bertucci’s just sounded better.