Retail news that keeps industry pros in the know
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With consumers pulling back on spending and venture capital becoming harder to come by, several retailers and brands have filed for bankruptcy over the last few months. While some are banking on a comeback, others are likely closing up shop for good.
Bye, bye, baby: Bed Bath & Beyond’s name will continue to live on as it stores shutter, and Buy Buy Baby is meeting a similar fate. While a bankruptcy judge this week approved the sale of the retailer’s IP to fellow baby-goods retailer Dream on Me, its stores are set to close. Parent company Bed Bath & Beyond canceled an auction last week to land a buyer, and talks with brand management firm Go Global Retail to keep the store business alive “fell apart” this week, per CNBC.
Taking down the tree: After filing for bankruptcy in May with plans to close just a select number of stores, Christmas Tree Shops will liquidate all of its locations, per the Wall Street Journal. The Massachusetts-based chain, which operates 82 stores, defaulted on a $45 million bankruptcy loan after the retailer didn’t “have the time nor the money to go forward with the plan,” its lawyer said in a court hearing last month.
Morning a loss: Discount retailer Tuesday Morning is moving to convert its Chapter 11 bankruptcy filed in February to Chapter 7, per a filing on June 30. While the retailer initially planned to close over half of its stores, the new motion stated the company has sold all of its assets. Its owner, Hilco, had been holding going-out-of-business sales for the retailer through the end of June, “which will conclude the Debtors’ retail operations,” the filing stated.
Off your food: A number of food brands have struggled as venture funding in the category continues to slip. Upcycled food company Do Goods Foods, which works with grocers to convert excess food to animal feed, filed for Chapter 11 bankruptcy last month, a move it says will “put the business in a position to succeed.” The company said in the filing it had received a commitment for about $30 million in new financing.
- Frozen plant-based food brand Tattooed Chef on June 30 announced its intention to file for Chapter 11 bankruptcy, with plans to sell all of its assets, a result of the tricky funding environment, chairman and CEO Sam Galletti said in a statement.
- Vertical farming company AeroFarms also filed for Chapter 11 bankruptcy in June, as it faces “significant industry and capital market headwinds,” though it said it entered an agreement for $10 million in debtor-in-possession financing from its investors.
Never say die(t): But one food brand is coming back from the brink. Weight-loss company Jenny Craig, which filed for Chapter 7 bankruptcy in May, will return as a DTC prepared meals and coaching business after Nutrisystem-owner Wellful Inc. acquired the rights to its IP.