Retail bankruptcies with assets over $100 million, sized by assets. 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. 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. Incidentally, Claire's, which was once a public company, went private in 2007 after it was bought by Apollo Global Management in 2007. After posting losses for 11 straight quarters, the retailer filed for bankruptcy in February 2015 only to emerge a month later following its purchase by General Wireless. Ascena, which operates Ann Taylor, LOFT, Lane Bryant, Lou & … 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. Privately owned Modular Space Corp. ("ModSpace"), a Berwyn, Pennsylvania-based manufacturer of office and construction trailers, portable storage solutions, classrooms, and other temporary structures. With one exception, the Top 10 List of "public company" (defined as a company with publicly traded stock or debt) bankruptcies of 2016 consisted entirely of energy companies—solar, coal, and oil and gas producers—reflecting, as in 2015, the dire straits of those sectors caused by weakened worldwide demand and, until their December turnaround, plummeting oil prices. The company listed $8.4 billion in assets and $6.5 billion in debt at the time of the bankruptcy filing. $0.3B. How The Toys 'R' Us Bankruptcy Impacted July's Jobs Data, Sears Bankruptcy 'Another Blow' To Apparel Supplier Iconix. Such partnerships were bankrolled by the U.S. shale boom, but many took on heavy debt loads to fund their acquisitions. Retail Bankruptcies On the Rise, Despite Overall Drop in Filings. All U.S. Retail Chapter 11 Bankruptcies Resulting in Going Out of Business Liquidation Sales 2008 - 2015: 2015 Great Atlantic & Pacific Tea Company (A&P) Chapter 11 Filing. The bankruptcy court entered an order recognizing the proceeding on April 27, 2016. And, given that there are less than three months left in the year, it's possible there will be even more bankruptcies to come in 2019. Online shopping has hit retailers where it hurts. I t’s the perfect summation of 2020 to say that, in the commercial real estate industry, it was a much better year to be a bankruptcy lawyer than a retailer.. Arch Coal ran into debt trouble after purchasing International Coal Group Inc. for $3.4 billion during a coal price peak in 2011. And while the Toys “R” Us bankruptcy was one of the largest ever retail bankruptcies, it isn’t even in the running for a top 10 or even top 50 listing. The foreign representatives of Oi and several affiliates filed petitions seeking chapter 15 recognition of the Brazilian restructuring proceeding on June 21, 2016, in the Southern District of New York. In 2012, Online fashion retailer Nasty Gal reached $100 million in sales but began experiencing declining sales in the ensuing years. Therefore, store closings and openings are used an indicator of how well the U.S. economy is doing overall. 7 position on the Top 10 List for 2016, when it filed for chapter 11 protection in the Southern District of New York on February 25, 2016, with $3.5 billion in assets and $3.6 billion in debt. On October 28, 2016, the bankruptcy court appointed a chapter 11 trustee for China Fishery, concluding that creditors had justifiably lost confidence in its management and that the debtors’ prospects for rehabilitation under existing management were "problematic, if not dim.". 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. 2016 US Retail Industry Overview Statistics, Types of Retailing. Retail store closings in the U.S. reached a record in the first half of 2020 and the year is on pace for record bankruptcies and liquidations as the Covid-19 pandemic accelerates industry changes. The 10 biggest retail bankruptcies of 2020 This year, Neiman Marcus and J.C. Penney joined the ranks of some of the biggest retail bankruptcies on record, including Sears, Toys R … © 2021 Benzinga.com. Retail Bankruptcies: Next On the Chopping Block. 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. Half of the companies on the Top 10 List filed prepackaged or prenegotiated chapter 11 cases. ModSpace filed a restructuring proceeding in Toronto and a chapter 11 case in the District of Delaware on December 21, 2016, to restructure more than $1 billion in long-term debt by means of a prepackaged chapter 11 plan providing for a debt-for-equity swap. Retailers may be headed for a tough year. After 156 years in business, one of the oldest U.S. retail chains still in business filed Chapter 11 bankruptcy in July, 2015. Justin Ho Sep 29, 2020. Department store chain Bon-Ton had its tryst with Chapter 11 protection in February and is clawing its way back. 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. The bankruptcy filings came just months after Performance revealed that it was under investigation by securities regulators in Canada and the U.S. for accounting irregularities. Emerald bought the 107th Street properties in 2016 with the intention of converting them into condominiums, while the 117th Street properties were acquired in March 2018 with a … 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. 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. A Chapter 11 bankruptcy facilitates reorganization of a company through a plan to keep its business alive and pay creditors over time. Commentaries, We use cookies to deliver our online services. Unable to pay back the $5 billion in debt, retail toy chain Toys R US filed for bankruptcy in September 2017. Several causes have been attributed for the surge in bankruptcy filings. Next . 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. The No. By Dawn Geske 12/25/20 AT 1:00 PM. Read full article. More than 8,000 employees were also affected by the shutdown, with the majority losing their jobs. Newsletters, February 2021 Chapter 7 is a plan where a company's non-exempt property is liquidated and the proceeds are paid to creditors. 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 couldn't survive the reorganization and had to close down for good in March 2018. 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. Claire's emerged from bankruptcy just seven months after the filing. Oi, Brazil’s fourth-largest telecom, with more than 74 million customers and 142,000 employees, ascribed its financial woes to Brazil’s deep recession and corruption scandals that have hurt foreign investment and crippled the Brazilian capital markets. 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. Retail store closings in the U.S. reached a record in the first half of 2020 and the year is on pace for record bankruptcies and liquidations as the Covid-19 pandemic accelerates industry changes. Read full article. Even for those retailers emerging from bankruptcy, vendors are likely to be tepid to ship them product while at the same time tightening payment terms as the pandemic rages on. 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. already seen a greater number of major retail bankruptcies than in all of 2016. The bankruptcy court entered an order recognizing the restructuring on July 22, 2016. Source: Neiman Marcus. This year, Neiman Marcus and J.C. Penney joined the ranks of some of the biggest retail bankruptcies on record, including Sears, Toys R Us and Circuit City. Abeinsa and nearly 20 affiliates filed chapter 11 cases in the District of Delaware on March 29, 2016. "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. 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. The bankruptcy court confirmed SandRidge’s chapter 11 plan on September 9, 2016. By any measure, 2020 was a brutal year in business, ending up with a record number of more than 160 consumer-facing businesses filing for bankruptcy, including the 35 retailers below, and 12,200 store closings. Key features of a proposed chapter 11 plan filed by Republic on November 16, 2016, include reinstatement of its secured debt, distributions of cash and stock to unsecured creditors, and the extinguishment of old equity. Retail Bankruptcies of 2011 December 2011 In our December 2010 blog posts entitled Retail Bankruptcies of 2010 Part I and Part II , we discussed retail bankruptcy strategies and trends during 2010, including the increase in sales auctions and liquidations resulting from failed attempts to reduce overhead costs and right-size operations and the inability of retailers to restructure their debt. Carmel, Indiana-based for-profit college operator ITT Educational Services Inc. ("ITT"). New Hampshire-based Performance, which also filed a bankruptcy case in Canada, stated that the filing was due to high-profile bankruptcies of its retail customers, weakness in the baseball and softball equipment market, and the relative strength of the U.S. dollar, which reduced profitability in overseas markets. Singapore-based China Fishery Group Limited ("China Fishery"), which through its subsidiaries sources, harvests, onboard-processes, and delivers fish worldwide. Hamilton, Bermuda-based oil and natural gas producer Energy XXI Ltd. ("Energy XXI") trickled into the No. 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. This year has been a challenging one for retailers. 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