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Another big retailer closed down in America! Here comes the latest high-risk list!
Another big retailer closed down in America! Here comes the latest high-risk list!
Forever 21, a US fashion brand, filed for bankruptcy protection on September 29 to restructure its business, shut down its operations in 40 countries and most of its stores, becoming another US retailer unable to cope with high rents and fierce competition in the market.
Forever 21, founded in 1984 in the United States, has grown into one of the largest fashion chain brands in the world in more than 30 years. Since 2000, it has met with great success. It has launched many products at a very low price, joined fast fashion industries such as Zara and H & M, so that young women can buy "one-off" fashion products. At its peak, Forever 21 had more than 800 stores in 57 countries.
In May this year, Forever 21 officially announced its exit from the Chinese market. Previously, Forever 21 began to withdraw from Belgium, the Netherlands, the UK, Germany, France, Japan and Australia, and most of its stores in North America have also been closed.
So far this year, U.S. retailers have announced the closure of as many as 8558 stores and 3446 new ones, according to global research firm coresight research. By the end of this year, the number of closed retail stores is expected to rise to 12000.
UBS's survey a few months ago predicted that 75000 U.S. retail outlets would close by 2026. "The increase in tariffs could cause half of these stores to close within one year, not four," said Thor, an analyst with the company. It's just the impact on public companies, not the impact on private stores.
According to the National Retail Federation, 42% of the goods sold in the United States are made and supplied by China, 73% of household appliances and 88% of toys.
For foreign traders who are mainly engaged in the US market, please do a good job in risk control of key customers. Please note this "high risk" list:
The largest home textile retailer in the United States
Bed bath & Beyond
Bed & beyond, a high-quality bedding and household goods brand with 1024 retail stores in the United States, Canada, Puerto Rico and Mexico, recently reported a 6.7% drop in same store sales in the second quarter, the 10th consecutive quarter of decline, a drop that exceeded market expectations.
The largest women's clothing group in North America
Ascenda retail
In the quarter ended August 3, 2019, ascenda retail had a huge loss of $358 million, compared with a net profit of $33.2 million in the same period last year. The company is now in deep trouble. Moody's downgraded the credit rating of ascenda Retail Group Inc. from B-to CCC + in June due to the difficulties, citing the potential unsustainable debt burden. It is rumored that ascenda retail may continue to sell brands. Large women's brands Catherine and lane Bryant are said to be on the table. The two brands operate 332 and 731 stores respectively, accounting for about one third of the group's 3500 stores.
The largest department store chain in the United States
J.C. Penney
After the stock price fell below $1 and entered the fairyland, the speculation that J.C. Penney was unable to avoid bankruptcy prevailed. Moody's downgraded its rating from B3 to junk caa1, and lowered its default probability rating from b3-pd to caa1-pd, which indicates that all debts may default. Other financial institutions have started to provide credit insurance services for the suppliers of Penney's department store, so as to prevent the accounts receivable of suppliers from becoming bad debts after Penney's application for bankruptcy, which can be supplemented to some extent.
No.1 women's wear in American workplace
J.Crew
J. crew was once popular in the United States because of Michelle Obama's love, but its loss in the second quarter further increased to $44.222 million, more than four times the loss of $6.094 million in the same period last year. Given the current downturn in the traditional U.S. retail market and the worsening trend of store closures, analysts believe that J. crew may eventually find it difficult to avoid going to bankruptcy protection.
Women's underwear giant
Victoria's Secret
On February 27, l brands, Inc., the parent company of Vimy, announced that it would close 53 physical stores in North America in 2019 due to the decline in sales and physical store performance.
One of the four largest clothing retailers in the world
Gap
Gap's sales for the second quarter ended August 3 rose 2% to $4 billion year-on-year, same store sales fell 4%, gross margin was 38.9%, and net profit fell 43% to $168 million, all lower than analysts expected. Gap group sales fell 1.9% in the first half to $7.711 billion, while net profit fell 14.3% to $395 million. To the industry's alarm, gap's sales of Old Navy, a cash cow, also fell.
The largest discount footwear chain in the United States
Payless shoe source
Payless ShoeSource, a US footwear retailer, announced in February that it would close the remaining 2100 stores in the US and Puerto Rico, close the stores and clear the inventory at the same time, and gradually end the online shopping sector. However, franchise stores and stores in central and South America are not affected.
Home appliance retailer
Pier 1 Imports
Pier 1 Imports
Pier 1 imports, a Texas based household goods retailer, announced on April 17, 2019 that it may close another 145 stores in 2019 due to poor sales profit. After closing 30 stores in March this year, the company now has 973 stores.
Famous gift retail chain in the United States
Things remember
Things remember declared bankruptcy on February 6 and closed about 400 stores. The main reasons for its application for bankruptcy are high debt and cash flow problems.
American fashion women's big brand
Avenue
Avenue filed for bankruptcy in August and plans to close all the remaining 222 stores and sell its e-commerce business. Previously, the company chose to gradually reduce its physical business without the knowledge of its employees and customers. City chic collective limited, an Australian listed company specializing in plus size women's wear brands, recently announced that it won an auction and won the opportunity to acquire the e-commerce assets of Avenue stores LLC.
Us luxury department store operator
Barneys New York
In August, Barneys New York Inc officially filed an application for bankruptcy protection. Barneys' assets and liabilities range from $100 million to $500 million, according to court documents. In the future, Barneys will gradually close three physical stores in Chicago, Las Vegas and Seattle, as well as five small concept stores and seven stores of Barneys warehouse, a discount department store, but the flagship store on Madison Avenue and four other flagship stores in New York will continue to operate.
Accessories and apparel retailers
Charging Charlie
This is the second time Charlie filed for bankruptcy protection, this time it closed all the remaining 261 stores.
American women's retail brand
Dressbarn
Dressbarn, a women's clothing brand targeting professional women, announced at the end of June that it would launch its delisting program, with the first 28 stores closed this summer. Ascenda retail, its parent company, said dressbarn is determined to gradually withdraw from the market in the future and will gradually close its 53 stores as planned by the end of August. Rumor has it that the company was forced to declare bankruptcy to get rid of rent pressure.But on the other hand, there are also retailers that are thriving in the U.S. market, such as ulta beauty, dollar tree and 7-Eleven.
This year's US market is particularly difficult! Foreign traders who are mainly engaged in the U.S. market must pay attention to the safety of payment for goods, not relax their vigilance because they are big and old customers, and purchase credit insurance when necessary!
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