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Retailers filing for bankruptcy or going out of business in 2018

Retailers continue to close under-performing stores and cut staff as many struggle with high debt and low cash.
Credit: Justin Sullivan/Getty Images
People walk by a Claire's store at the Northgate Mall on March 19, 2018 in San Rafael, California.

Will 2018 be worse for retailers than 2017?

The rapidly changing retail landscape is seeing a great deal of upheaval as brick-and-mortar stores are struggling to change and adapt in the highly competitive digital age.

Retailers continue to close under-performing stores and cut staff as many struggle with high debt and low cash.

The number of retailers filing for bankruptcy shot up to 40 in 2017, the highest level since 2011, according to financial data and analysis firm S&P Capital IQ.

And the number of U.S. retailers at potential risk of defaulting on their debts or seeking bankruptcy court protection continues to grow, according to analysis by rating agency Moody's.

S&P Capital IQ believes defaults in 2018 could match or exceed last year’s level, according to a February report.

Here are the retailers that have filed for bankruptcy or are liquidating so far this year:

Claire’s Stores

The jewelry store chain for tweens and young women filed for Chapter 11 bankruptcy protection on March 19.

The retailer, which claims to have pierced over 100 million ears worldwide, operates two store brands — Claire’s and Icing — in more than 7,500 locations in 45 countries through company-owned stores, concessions and franchises.

The company has not indicated that it plans to close stores. The chain has locations in about 99% of U.S. malls, according to the court filing.

The company has reached an agreement on a debt-cutting plan with its main creditors and said it plans to shed about $1.9 billion in debt.

Toys R Us

The toy store chain filed for Chapter 11 bankruptcy protection in September 2017 but was unable to successfully reorganize and decided that it had to liquidate on March 15.

The iconic retailer will be closing 735 stores as it ends a 70-year run for a once-beloved holiday shopping spot.

Going-out-of-business sales are set to begin and the company hopes to complete those sales by the end of June.

Toys R Us said at the time of the liquidation filing that gift cards could be redeemed for the next 30 days.

The company is also closing its Babies R Us locations but CEO David Brandon plans to maintain the Babies R Us registry and web stores for the time being in hopes someone might want to buy that asset.

B&B Bachrach

The men’s apparel retailer filed for Chapter 11 bankruptcy liquidation on February 16.

The company said it is going out of business and closing its 14 remaining stores in eight states. Final liquidation sales are on now.

The Los Angeles-based chain had briefly emerged from an earlier Chapter 11 bankruptcy reorganization filed in April 2017 after a round of store closures but continued to struggle.

The retailer was founded in 1877 and at one time had as many as 32 stores.

Bon-Ton Stores

The department store chain filed for Chapter 11 bankruptcy protection on February 4.

The company operates 256 stores in 23 states under the Bon-Ton, Bergner's, Boston Store, Carson's, Elder-Beerman, Herberger's and Younkers brand names.

The retailer is aiming to keep stores open by selling the entire company but said in late 2017 prior to the bankruptcy filing that it planned to close at least 40 stores through 2018.

Bon-Ton has hired an outside agency to liquidate all of its assets if it can't find a viable alternative, financial adviser James Baird said in a court filing.

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