Sears Holdings Corp (NASDAQ: SHLD)'s years-long struggle in a tough retail environment culminated in the department store filing for Chapter 11 bankruptcy protection this week. Yet another victim of the commodities rout, Linn Energy was once the largest energy producer operating as a partnership. Note the PE firms behind many of them: April 16, 2016: Vestis Retail Group, the operator of sporting goods retailers … A Chapter 11 bankruptcy facilitates reorganization of a company through a plan to keep its business alive and pay creditors over time. 6 spot on the Top 10 List when it filed for chapter 11 protection on April 14, 2016, in the Southern District of Texas with $4.7 billion in assets and $3.6 billion in debt. Here are a few standouts in 2016 and 2015. 3 Big Retail Bankruptcies of 2019 -- and 4 More That May Be Next A weakening retail landscape has sunk over a dozen big-name retailers so far, … Linn Energy focuses its exploration and production efforts on the Colorado Rockies, California, the Hugoton Basin, the Mid-Continent, the Permian Basin, Texas, Louisiana, Michigan, and Illinois. The bankruptcy court confirmed SandRidge’s chapter 11 plan on September 9, 2016. Does Sycamore Partners Want to Buy Ann Taylor, Loft and Lane … 5 spot on the Top 10 List for 2016 when it filed for chapter 11 protection in the Southern District of New York on May 15, 2016, with $4.8 billion in assets and $3.4 billion in debt. Breitburn, once the largest U.S. oil producer organized as a master limited partnership, acquires, exploits, and develops oil, natural gas liquids (NGLs), and natural gas properties in the Midwestern U.S., Ark-La-Tex, the Permian Basin, the Mid-Continent, the Rockies, the Southeastern U.S., and California. The company plans to close 51 stores out of the 334 total; already 45 stores have been closed since 2016. Only three months into 2017 and nine retailers in the U.S. Have already filed for bankruptcy. Commentaries, We use cookies to deliver our online services. Dex emerged from bankruptcy as a private company on July 29, 2016, after the bankruptcy court confirmed a chapter 11 plan that eliminated $1.8 billion in debt by means of a debt-for-equity swap. Dallas, Texas-based Yellow Pages publisher Dex Media, Inc. ("Dex"), which filed for chapter 11 protection for the third time in seven years on May 16, 2016, in the District of Delaware to implement a prepackaged chapter 11 plan. Through the first quarter of this year, nine major retailers have sought bankruptcy protection. Though steps like curbside pickups, shipping from store websites, furloughs and pay reductions have helped some retailers survive the crisis, the remaining have been forced to go down the bankruptcy lane. SandRidge listed $3 billion in assets and $4.4 billion in debt at the time of the filing; the company engages in the exploration, development, and production of crude oil, natural gas, and NGLs in Oklahoma and Kansas. The company emerged from bankruptcy in August 2017 with a renewed focus on the U.S., Latin America and Asia. Details of the cookies and other tracking technologies we use and instructions on how to disable them are set out in our, Singular Tradition of Client Service and Engagement with the Client, Mutual Commitment of, and Seamless Collaboration by, a True Partnership, Formidable Legal Talent Across Specialties and Jurisdictions, Shared Professional Values Focused on Addressing Client Needs. Retail Bankruptcies This Year Are on Pace to Exceed Post-Great Recession Filings. Retail decline continues with bankruptcies and closures sped up by pandemic . The filing was part of a worldwide effort (which also included legal proceedings in Canada, the U.K., Germany, Japan, Spain, Singapore, Belgium, Italy, Australia, and France, among other countries) to stop creditors from seizing Hanjin’s vessels. After filing two bankruptcies within a year’s time, American Apparel finally closed shop in November 2016. Energy XXI filed for bankruptcy to implement a prenegotiated chapter 11 plan that would eliminate substantially all of its debt by means of a debt-for-equity swap. If it continues at this rate, the industry could experience the highest number of bankruptcies in around eight years. April 7, 2016: Pacific Sunwear of California, clothing retailer with nearly 600 stores and derailed ambitions of skate-and-surf cool, filed for Chapter 11 bankruptcy. In 2012, Online fashion retailer Nasty Gal reached $100 million in sales but began experiencing declining sales in the ensuing years. Sports Authority filed for bankruptcy protection on Wednesday, becoming the latest big retailer to go down that road. In talking to a host of experts, one thing is abundantly clear: more retail bankruptcies are very likely over the next twelve months. 6 of 22. The retail sector so far this year is showing no signs that the dismal scene of bankruptcies and closings will end soon. That has led to an uptick in store closures this year. That one-two punch usually kills a wounded retailer for good. Privately held, Englewood, Colorado-based sporting goods retailer Sports Authority, Inc. ("Sports Authority"), which filed for chapter 11 protection on March 2, 2016, in the District of Delaware with $1.1 billion in debt and intentions to find a buyer after closing 140 of its 463 stores. Brazilian telecommunications company Oi SA ("Oi"), which filed the largest bankruptcy case in Brazil’s history on June 20, 2016, after a $19 billion out-of-court restructuring proposal collapsed. This year has been a challenging one for retailers. All rights reserved. already seen a greater number of major retail bankruptcies than in all of 2016. Leonard … The parent company divested itself of La Senza in January 2019, which was further affected by the retail apocalypse. "The rate of Chapter 11 filings is often an indicator of an industry's health and that's bad news for retailers," said Ian Wenik, bankruptcy reporter at The Deal. Previous. Sinking oil prices slowed Paragon’s drilling and production activities. The bankruptcy court denied confirmation of Paragon’s plan on October 28, 2016, ruling that the plan was not feasible because it drained too much cash from the company to allow it to survive the current downturn in the oil and gas industry. The previous year saw a number of well-known national and regional retailers file for both Chapter 7 and Chapter 11 bankruptcy. ITT filed a chapter 7 case on September 16, 2016, in the Southern District of Indiana after closing 136 technical schools and leaving more than 35,000 students stranded in one of the largest college shutdowns in U.S. history. Fitch: Secular Challenges Spur U.S. Retail Bankruptcies September 28, 2016 09:29 AM Eastern Daylight Time . Bankruptcies in the United States decreased to 21655 Companies in the fourth quarter of 2020 from 22391 Companies in the third quarter of 2020. 2016 US Retail Industry Overview Statistics, Types of Retailing. The Brick-and-Mortar Challenge: Meeting Customers Where They Are. Don't have a Benzinga account? One year later, BHS had collapsed, resulting in the loss of 11,000 jobs. FN recounts the biggest bankruptcies in retail history as the sector experiences one of its most cataclysmic years in modern days. Paragon filed for chapter 11 protection on February 14, 2016, in the District of Delaware to implement a prenegotiated restructuring plan that would reduce its debt by approximately $1.1 billion. Yet another company reeling from the downturn in oil prices and reduced demand for its logistic services, CHC filed for bankruptcy shortly after the company grounded much of its fleet following a crash of one of its helicopters in Norway that killed two pilots and 11 oil workers returning to the Norwegian mainland. Retail Bankruptcies: Next On the Chopping Block. As of 2016, it was the biggest collapse in the British retail industry since the demise of Woolworths in 2008, and provoked intense scrutiny from politicians keen to avoid further such incidents. Newsletters, February 2021 3 spot on the Top 10 List for 2016 when it filed for chapter 11 protection on May 11, 2016, in the Southern District of Texas after reaching the broad terms of a deal with the majority of its lenders to restructure $8.3 billion in debt and obtain $2.2 billion in fresh financing. Since the buyout, rival Dick’s Sporting Goods Inc. ("Dick’s") added hundreds of locations, but Sports Authority’s debt load hampered its ability to expand or innovate. Here is a closer look at the major retail bankruptcies of 2020 so far. In 2019, retailers in the United States announced 9,302 store closings, a 59% jump from 2018, and the highest number since tracking the data began in 2012. 9 spot on the Top 10 List for 2016 belonged to Houston, Texas-based offshore drilling rig operator Paragon Offshore PLC ("Paragon"). See Also: Sears Bankruptcy 'Another Blow' To Apparel Supplier Iconix. Oilfield helicopter services company CHC Group Ltd. ("CHC"), the parent company of Vancouver, British Columbia-based CHC Helicopter, which filed for chapter 11 protection on May 5, 2016, in the Northern District of Texas with $2.3 billion in assets and $2 billion in debt. The company couldn't survive the reorganization and had to close down for good in March 2018. Saint Louis, Missouri-based solar-energy company SunEdison Inc. ("SunEdison") flared into the No. The U.S. Securities and Exchange Commission brought fraud claims against ITT in 2015 for allegedly concealing major losses in two student loan programs. Dec. 28, 2018, 5:57 PM UTC Bankruptcies in the retail sector are piling up and chains have aggressively closed under-performing stores. Posted on October 19, 2020; by Pamela Danziger; in All, from most recent, Retailers & Retailing; Following the 2008/2009 recession, major retail bankruptcies reached historic highs in 2010, setting the record with 48 filings. Claire's emerged from bankruptcy just seven months after the filing. Unable to pay back the $5 billion in debt, retail toy chain Toys R US filed for bankruptcy in September 2017. Benzinga does not provide investment advice. Justin Ho Sep 29, 2020. Continue Reading . The State of Retail Bankruptcies in 2021. American Apparel filed for its second bankruptcy protection in just over a year in November 2016, weighed down by intense competitive pressures facing U.S. teen retailers and a rocky relationship with its founder. Sindhu Sundar. Paragon proposed a chapter 11 plan that offered bondholders cash and equity in the reorganized company and allowed existing equity holders to retain a 65 percent stake in the company. Posted-In: bankruptcy CB Insights Chapter 11 Chapter 7News Legal Media General Best of Benzinga, Thank you for subscribing! 8 position on the Top 10 List for 2016 when it filed for chapter 11 protection on July 27, 2016, in the District of Delaware to implement a prenegotiated restructuring agreement that would eliminate $1.8 billion in debt and $222 million in preferred stock by means of a debt-for-equity swap. Biggest Retail Bankruptcies Of 2020: A Complete List Of Bankrupt Retailers. 2015 Cache Chapter 11 Filing and Liquidation . The State of Retail Bankruptcies in 2021. It also sells coal to power plants, steel mills, and industrial facilities. Posted on October 19, 2020; by Pamela Danziger; in All, from most recent, Retailers & Retailing; Following the 2008/2009 recession, major retail bankruptcies reached historic highs in 2010, setting the record with 48 filings. The bankruptcy court confirmed Energy XXI’s chapter 11 plan on December 13, 2016. Neiman Marcus. Through the first quarter of this year, nine retailers have sought bankruptcy protection. Vitamin World, a retailer of vitamins and health supplements, filed for Chapter 11 bankruptcy on September 12, 2017. Indianapolis, Indiana-based short-haul carrier Republic Airways Holdings Inc. ("Republic") taxied into the No. Other notable debtors (public, private, and foreign) in 2016 included the following: Hanjin Shipping Co., Ltd. ("Hanjin"), the world’s ninth-largest container shipping company worldwide and No. Discount jewelry chain Claire's, popular for its ear piercing,, filed for bankruptcy in March 2018, aiming to reduce a ballooning debt pile that amounted to $1.9 billion. Half of the companies on the Top 10 List filed prepackaged or prenegotiated chapter 11 cases. The contents are intended for general information purposes only and may not be quoted or referred to in any other publication or proceeding without the prior written consent of the Firm, to be given or withheld at our discretion. Retail bankruptcies ‘tip of the iceberg’, ... Rivals’ bankruptcies, he said, had been caused largely by too much debt — not an underlying lack of customer demand for jeans. The second-largest coal miner in the U.S., Arch Coal filed for chapter 11 protection on January 11, 2016, in the Eastern District of Missouri to implement a restructuring to eliminate more than $4.5 billion in debt from the company’s balance sheet. These Are The 11 Biggest Retail Bankruptcies Of 2017 National Retail View count: National Retail. Despite a significant number of store closings and retail company bankruptcies in 2015, retail employment expanded every month in 2015, except for January. Privately held, Englewood, Colorado-based sporting goods retailer Sports Authority, Inc. ("Sports Authority"), which filed for chapter 11 protection on March 2, 2016, in the District of Delaware with $1.1 billion in debt and intentions to find a buyer after closing 140 of its 463 stores. Republic blamed its failure to succeed on a pilot shortage and the grounding of planes during its negotiation of labor contracts and agreements with larger carriers. SunEdison borrowed heavily in recent years to acquire wind and solar developers but faced disappointing earnings from its yield company subsidiaries, TerraForm Global Inc. and TerraForm Power Inc., which did not file for bankruptcy. 4 position on the Top 10 List of 2016. 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