In 2018 the niche-import big-box retailer of unique home goods announced it would close 25 stores. Pier 1 then brought in new CEO Cheryl Bachelder by the 2018 fourth quarter and said goodbye to former CEO Alasdair James. Noting, at the time, that the store is missing on style, value, and selection for their shoppers, Bachelder added, now it’s all about “taking the bold actions needed to restore the health and promise of the business.”
Moody’s, a leading investment analyst firm, however, altered its Pier 1 outlook to “negative” once Bachelder took the helm. On the other hand, Moody’s recognized the company’s relatively light debt load but then worried about the $251 million worth of debt that was left. If Pier 1 is going to turn around, it better be soon!
Target
Target is one of America’s most popular stores. It's so popular it almost has a ritual-like aura for some shoppers. And yet it's here on our list. With $72 billion in revenue for 2018, an increase of 3.48% over the year before, it’s easy to see why Target is the eighth-largest retailer in the U.S.
And, even if shoppers are getting tired of the Target brand, it got away with clothing only six stores. Additionally, the company is opening small-format stores in downtown areas and on college campuses. In Santa Barbara, Cape Cod, Washington, D.C., and Seattle will all boast of mini-Targets.
Claire’s
Fashion and fun have come together at Claire’s for countless years. Many girls will fondly recall shopping with friends or getting their ears pierced for the very first time at the mall accessory shop. Sadly, for all those memories, Claire's filed for bankruptcy in 2018. On the upside, the store is yet holding onto its chain. Out of its 1,570 stores, only 170 closed.
This was an effort to manage its $2 billion worth of debt. Most of the $2 billion debt traces back to 2007 when a private equity firm, Apollo Global Management, purchased Claire’s, buying it out for $3.1 billion. Struggling to repay that debt, the company shelved 150 stores in 2016.
Victoria’s Secret
According to Forbes, Victoria’s Secret has lost its touch. And, try as it may regain it, the financial numbers are not adding up. The store hasn’t seen a significant gain since 2015 and has been in a morbid decline since 2018. Victoria’s Secret operates under parent-company L Brands. Together with Bath & Body Works and PINK, L Brands, headquartered in Columbus, Ohio, sells women’s apparel exclusively. The company premiered with Victoria’s Secret in 1977.
This happened when Roy Raymond, after becoming frustrated with the limited lingerie options at department stores while shopping for his wife, decided to open a “Victorian-boudoir” themed lingerie store in Palo Alto. He named his new lingerie alternative Victoria’s Secret. It became a worldwide sensation known for fashioning a chic club of the world’s top supermodels. The closure of 30 stores in 2018 was dismal news. 2019 almost doubles it.
Cole Haan
Cole Haan, a chic shoe brand that found itself under threat of doom, has not gone the way of Nine West. It operated over 70 of its own worldwide locations. Its new owners, private equity firm Apax Partners Worldwide LLP, have taken the company in a new direction.
Apax Partners purchased Cole Haan from sportswear giant Nike in 2012 for $570 million. Cole Haan, known for its dressy stylish look, has navigated its product toward premium, comfy casual shoes like sneakers and other lifestyle footwear. While some customers do not like the shift, it seems to keep the brand afloat.