With retail stores being only shoppable online during the pandemic, some huge brand name stores are turning to file for bankruptcy. Of course, companies like Amazon received influxes of orders as it was a reliable and fast method of getting supplies when people feared to leave their houses, but companies like American Eagle and J.Crew have suffered astronomically.
J. Crew Group has become the first national US retailer to take the difficult steps to file for bankruptcy protection. Although this doesn’t confirm the company will go out of business, it shows they are truly struggling financially after not being able to welcome guests into any of their 500 locations. Pier 1 Imports filed for bankruptcy on February 17th and have since declared they would shut down after not appealing to any potential buyers of the company.
Not only are these stores suffering millions of dollars in losses, but their inventory is now dated and limited as they haven’t been producing at their regular rates. After visiting my local TJ Maxx over the weekend, the store was still carrying items from the Easter holiday. As soon as I walked in, I could see the shelves and racks were picked through and also very out of season. As soon as shops started to close, stores like TJ Maxx stopped receiving shipments of new merchandise. It is unclear how long it will take to catch up on replenishing and updating the inventory in these stores as they are still overcoming barriers just to have customers walk in.
Some plus sides to the closure of retail stores across the country are the majority of these stores marking down a good portion of their merchandise to make room for updated inventory. But before you grab your keys and mask, familiarize yourself with the rules and regulations that are in place by retailers. Stores are requiring you to follow the arrows around their store to avoid close contact between customers. The dressing rooms in most stores are closed as well to avoid contamination. Lastly, waiting in line to enter the store may also be required as capacity has been limited in each franchise. Be sure to follow and respect these rules to not only protect yourself but other customers and employees as well.
