According to the National Retail Federation, in 2021, retailers saw a 26.5% increase in organized retail crime (ORC) incidents. Retailers credit ORC for the year’s 4.1% increase in losses ($94.5B in total) over 2020. 

Companies from REI to Starbucks are also grabbing headlines as they close stores and cite crime and theft as a reason. Others, like Ulta, are simply locking up more products to keep them out of thieves’ hands.

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While economic growth in advanced markets like the US and France is set to see a notable slowdown in 2023, per the IMF, the picture is more positive in emerging markets like China and many countries in Africa.

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Using CB Insights data, we dug into the retail tech and innovation landscape in Q1’23, including:

1. The continued decline in retail tech funding in Q1’23, to its lowest level since Q2’16
2. Early-stage deal strength in retail, and where the money is going
3. A steady quarter for exits, with 9 IPOs and a slight uptick in M&A activity
   
4. The handful of mega-rounds that buoyed food & meal delivery funding
5. The 11% quarter-over-quarter increase in US funding
   

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The Covid-19 pandemic initially compounded these issues and accelerated the fall of several retailers, which had faced dwindling sales and growing debt in the years prior as consumer preferences changed.

Department stores proved to be the most vulnerable, with the pandemic felling iconic names such as Neiman Marcus and JCPenney. Malls saw declining foot traffic even pre-pandemic, but stay-at-home orders further shifted shoppers to online shopping and spending cash on essential goods instead.

Following 2020, retail experienced a significant rebound as consumers returned to stores. While there were 52 retail bankruptcies in 2020, 2021 saw just 21 — a 60% drop year-over-year, according to Axios. In 2022, only a handful of companies went under.

But this doesn’t mean that retail is out of the woods just yet. With retailers facing old challenges in addition to combating newly rising prices and a pullback in consumer spending, some reports indicate that retail bankruptcies may flare up once again in 2023.

In this report, we dig into 154 recent bankruptcies starting in 2015 and the reasons behind them. As we’ll see, Amazon is not the only reason that physical retail is troubled — mounting debt and retailers’ own missteps and lack of adaptability are also to blame, among other factors.

Here’s what we’ll cover in this article:

• Companies that filed for bankruptcy in 2023 so far
• Companies that filed for bankruptcy in 2022
• Companies that filed for bankruptcy in 2021
• Companies that filed for bankruptcy in 2020
• Companies that filed for bankruptcy in 2019
• Companies that filed for bankruptcy in 2018
• Companies that filed for bankruptcy in 2017
• Companies that filed for bankruptcy in 2016
• Companies that filed for bankruptcy in 2015

*Denotes a company’s second or third bankruptcy

Companies that filed for bankruptcy in 2023 so far:

Bed Bath & Beyond

Date: April 2023

Categories/Product(s): Home goods

After teetering on the edge of bankruptcy for months, Bed Bath & Beyond filed for Chapter 11 bankruptcy protection in April. While the company grew its physical footprint considerably in the aughts, it lagged behind competitors like Target, Amazon, and Walmart in building out its e-commerce presence. Alongside supply chain disruption, its e-commerce shortcomings left it ill-equipped to keep up with consumer demand for online shopping in recent years.

Faced with declining revenue and a cumbersome debt load, the company tried to reduce costs by cutting back on trademark offerings like mailer coupons and name-brand inventory. Ultimately, it turned to store closures and layoffs. While it narrowly avoided bankruptcy in February thanks to a share sale, it was unable to uphold the terms of the agreement. The retailer announced it would close its stores while it tries to sell parts of the business.

David’s Bridal

Date: April 2023

Categories/Product(s): Bridal apparel

Wedding gown retailer David’s Bridal filed for bankruptcy (again) in April. This news came just a few days after the company announced it would lay off more than 9K employees. While the company emerged from its first bankruptcy in 2019, it was then thrust into the pandemic, which saw events like weddings (and the demand for wedding apparel) come to an abrupt halt.

While weddings have since picked up again, the company highlighted that its business continued to suffer due to a change in consumer preferences for wedding apparel post-pandemic. The retailer also cited broader macroeconomic turbulence as contributing to its financial woes.

Boxed

Date: April 2023

Categories/Product(s): Wholesale products

Boxed — an e-commerce platform selling wholesale consumer goods — entered into bankruptcy in April. Warning signs revealed themselves gradually in the months leading up to its filing. For example, its stock price and market cap both fell below the New York Stock Exchange listing threshold last year. Its struggles were likely exacerbated by the crisis at Silicon Valley Bank, where it held a majority of its cash deposits and other liquid assets. Boxed announced it would wind down retail operations and sell its software business amid bankruptcy proceedings.

Independent Pet Partners

Date: February 2023

Categories/Product(s): Pet supplies

Independent Pet Partners — the parent company of Loyal Companion, Chuck & Don’s, Natural Pawz, and Kriser’s — filed for Chapter 11 bankruptcy in February. The company pointed to consumers’ shift away from the grain-fee, high-protein dog food sold in its stores as contributing to its financial difficulties. Its sales losses only worsened with temporary store closures amid the pandemic.

As part of its bankruptcy restructuring, the company decided to exit its Natural Pawz and Loyal Companion brands as well as close some existing stores. It will continue to operate under its Chuck & Don’s and Kriser’s brands in Minnesota, Colorado, Kansas, Wisconsin, and Illinois.

Tuesday Morning

Date: February 2023

Categories/Product(s): Discount home goods

Discount home goods retailer Tuesday Morning filed for bankruptcy protection in February. It previously filed for bankruptcy in May 2020 due to pandemic-induced store closures, at which time it shut down a number of locations in restructuring. In the face of decreased consumer spending and high interest rates, the company was forced into bankruptcy yet again. This time around, the company plans to close unprofitable and underperforming stores in a bid to cut costs and move forward. 

Serta Simmons Bedding

Date: January 2023

Categories/Product(s): Bedding and accessories 

Mattress manufacturer Serta Simmons Bedding filed for Chapter 11 bankruptcy protection in January. Serta had already been dealing with ongoing litigation over emergency funding it received during the pandemic. Slowed sales stemming from more recent macroeconomic turbulence added fuel to the fire. The company was left with a $1.9B debt load and turned to restructuring in an attempt to cut it down to $300M. To aid its restructuring, the mattress company also moved to resolve the litigation surrounding its pandemic-era funding.

Party City

Date: January 2023

Categories/Product(s): Party supplies

In mid-January 2023, party supply store chain Party City filed for bankruptcy protection. In addition to a helium shortage in 2019 (which impacted the retailer’s balloon business),  increased costs amid the pandemic, and an inflation-driven slowdown in consumer spending, Party City has also run up against rising competition from big box and online retailers. Having secured a $150M bankruptcy loan, the company is planning to keep operations running while it restructures its debt load — as of the end of September 2022, Party City had $1.7B in debt and $122M in available liquidity. Party City could emerge from bankruptcy with a much smaller brick-and-mortar footprint — while it aims to keep some of its stores open, it is exploring store closures amid bankruptcy proceedings. 

Forma Brands

Date: January 2023

Categories/Product(s): Beauty 

Forma Brands — parent company of beauty brands like Morphe, Lipstick Queen, and Bad Habits — filed for Chapter 11 bankruptcy at the start of 2023. Forma Brands originally launched as Morphe in 2008. Its affordable pricing and product variety helped it gain popularity among consumers, and it used partnerships with influencers like James Charles and Jeffree Star to create a robust social media presence. However, after some of its influencers became embroiled in personal scandal, Morphe moved away from leveraging influencer partnerships and rebranded as Forma Brands in 2020. It struggled in the time that followed, with most of its brands failing to hit revenue projections, and it eventually shuttered its brick-and-mortar operations. The company entered into an acquisition deal that would see lenders take over its wholesale operations, online platforms, and international Morphe stores.

Companies that filed for bankruptcy in 2022:

M&Co

Date: December 2022

Category/Product(s): Apparel

UK-based fashion brand M&Co fell into administration (the equivalent of Chapter 11 in the US)  in the middle of December. Like many retailers, M&Co suffered the double-whammy of decreased consumer appetite and increased costs amid rising inflation. The retailer tasked management consulting company Teneo with overseeing the administration and was reported to be exploring the sale of its business. At the time it entered insolvency, it was reported that its website and 170 stores would continue to operate and nearly 2,000 employees were at risk of redundancy.

Sears Hometown

Date: December 2022

Category/Product(s): Home goods

Sears Hometown Stores — a franchise-owned Sears spinoff focused on home goods — filed for Chapter 11 bankruptcy in December. The once-mighty Sears launched the chain in 2012, and TransformCo acquired it after buying Sears out of bankruptcy in 2019. While Sears Hometown’s smaller size and focus on home goods initially positioned it to fare better than its department store-focused parent company, it ran into a number of issues, including pandemic aftershocks, a drop in sales, and increased costs. While the company took steps to mitigate its losses, like closing underperforming stores and searching for a buyer, they proved insufficient for bankruptcy prevention.

Joules 

Date: November 2022 

Category/Product(s): Apparel

UK-based retailer Joules entered into administration in mid-November. The business, like many others in the retail industry, had struggled with complications like supply chain disruption and decreased consumer spending. It appointed administrators with a plan to keep its stores open while it found a buyer, which came to fruition the following month. Clothing retailer Next, in partnership with Joules founder Tom Joule, bought Joules out of insolvency in December. Next stated it would operate around 80% of Joules store locations and others would be closed by administrators.

Olympia Sports

Date: September 2022

Category/Product(s): Sporting goods

After initiating a liquidation process earlier in the year, Olympia Sports filed for Chapter 11 bankruptcy in mid-September. At the time, the company expressed its intent to close its remaining stores by the end of the month. The retailer was founded almost 50 years ago and operated around 230 stores at its peak. After closing a number of unprofitable stores between 2013 and 2019, it was acquired by private equity firm CriticalPoint Capital and held with the investor’s other sporting goods assets under the Running Specialty Group (RSG). Olympia’s parent organization faced a number of challenges in the time that followed, including a faulty order management system and executive flight, which were only compounded by the pandemic. The turbulence ultimately led to Olympia’s total closure.

Secoo

Date: August 2022

Category/Product(s): Luxury goods

Luxury e-commerce platform Secoo filed for bankruptcy in August 2022. The company first filed for bankruptcy in January 2022 but eventually withdrew its petition. Secoo had initially experienced resounding success, growing from a second-hand handbag marketplace to China’s largest luxury e-commerce platform. It went public in 2017, raising $140M in the process, and watched its net profit surge that year. However, the company struggled to keep up with heightened competition and decreased consumer spending amid the pandemic. It also faced a myriad of other interrelated challenges, like sales contract disputes, false advertising charges, and consumer rights protection complaints. Despite its filings and the surrounding controversy, Secoo announced it had entered into agreements with 2 new investors at the end of August.

Future Retail 

Date: July 2022 

Category/Product(s): Retail chain operator 

At the end of July, an Indian court accepted the Bank of India’s petition to admit debt-ridden retail chain operator Future Retail (FR) into the bankruptcy resolution process. The decision was made despite Amazon’s efforts to oppose the move. The retail giant, an FR shareholder, claimed that creditors had colluded with FR to deny it its rights after battling for control of FR since 2019. However, much to the delight of FR creditors, Amazon’s claims were dismissed. The ruling served as a major blow to Amazon’s ability to compete with Reliance — its rival in the Indian retail market.

Revlon

Date: June 2022

Category/Product(s): Beauty

Cosmetics giant Revlon filed for Chapter 11 bankruptcy halfway through June 2022. The filing came at the end of a tough few years for the company, which had already been combatting declining sales when the pandemic arose. Covid-induced supply chain disruption proved to further compound the issue, making it more difficult for the company to manage its debt load. In addition to macro pressures, Revlon had also been finding it increasingly difficult to capture younger consumers amid the growing popularity of beauty startups like Glossier. 

The company had previously tried to prevent bankruptcy by taking on Citigroup as its loan agent. However, while the bank originally intended to send $8M in interest payments to Revlon’s lenders, it accidentally wired $900M. At the time Revlon filed for bankruptcy, more than half of that sum had still not been returned.

While the company set up a restructuring committee, its plans to reorganize have not moved forward and could be challenged by ongoing litigation stemming from the 2020 Citi fiasco. 

Missguided

Date: May 2022

Category/Product(s): Women’s apparel

UK-based Missguided fell into administration at the end of May, as it owed more money than it was making and had a number of suppliers that had not been paid for orders. While the online fashion company initially experienced great success capitalizing on the rise of fast fashion, increased supply chain costs and inflation hampered its continued growth. The company’s attempt to find a buyer provider proved to be successful — Frasers Group bought Missguided out of administration for nearly $24M at the start of June. 

Escada America

Date: January 2022

Category/Product(s): Luxury womenswear

Escada America — the US face of Germany-based luxury women’s apparel brand Escada — filed for Chapter 11 bankruptcy in mid-January 2022. While the pandemic played a key role in driving Escada America to bankruptcy, the branch had been struggling with a myriad of issues in the years prior. Escada America was born out of the previous bankruptcy of Escada USA in 2009, and the global Escada organization grappled with overexpansion, deficient leadership, and overpriced leases in the years that followed. This mismanagement trickled down to its subsidiaries, including Escada America, which left the company ill-equipped to endure the pandemic. The company has agreed to close 5 of its 10 US locations as part of the bankruptcy process, and it plans to reorganize and repay its creditors. 

BH Cosmetics

Date: January 2022

Category/Product(s): Beauty

Direct-to-consumer (D2C) cosmetics brand BH Cosmetics filed for Chapter 11 bankruptcy in the middle of January 2022. The Los Angeles-based company was popular among millennial and Gen Z consumers and entered into public collaborations with music artists Doja Cat and Iggy Azalea in 2021 — however, it struggled to reach profitability. The company pointed to pandemic-driven changes in beauty routines as contributing to its decline (it suffered a multi-million dollar revenue drop in 2020), and those involved with the restructuring process highlighted complications stemming from the unsuccessful launch of a number of product lines. At the time of filing, BH Cosmetics stated that it planned to sell its intellectual property for $4.3M. It was bought out of bankruptcy by UK-based Revolution Beauty the following month.

Companies that filed for bankruptcy in 2021:

ABC Carpet & Home

Date: September 2021

Category/Product(s): High-end home goods 

After 124 years in business, the high-end home goods retailer filed for Chapter 11 protection with around $80M in unsecured debt and $8M in secured debt. Notably, the company initially survived the onset of the pandemic — however, like others in its space, it ultimately succumbed to decreased foot traffic and supply chain disruption. While the pandemic gave rise to new complications, it also exacerbated existing issues for the company, such as flagship store construction delays and the company’s struggle to establish a digital presence on par with its in-store experience. At the time of filing in 2021, sales were down 50% from 2018, reaching just $25M. The company announced that it would maintain regular operations and seek out a buyer via auction by the end of October. 

Lorna Jane 

Date: September 2021

Category/Product(s): Activewear 

The Australia-based activewear retailer filed for Chapter 11 protection in California’s bankruptcy court. Despite experiencing a surge in e-commerce revenue amid the pandemic, the retailer’s brick and mortar sales dropped 56% in 2020, leaving it unable to meet its lease obligations. The company was then hit with a $3.7M fine in July 2021 after falsely advertising that its clothing was capable of eliminating and providing protection from Covid-19. Bankruptcy was a strategic move on the retailer’s part, which hoped to use it as grounds to cancel its 21 US store leases while continuing to sell to US consumers online. 

Sequential Brands Group

Date: August 2021

Category/Product(s): Apparel 

As August came to a close, consumer brand-owner Sequential Brands filed for Chapter 11 bankruptcy protection. The company, which owns brands such as Jessica Simpson, Joe’s Jeans, Avia, and AND1, ended 2020 with a debt load upwards of $450M, which it had been struggling to pay down amid executive flight in the lead up to its filing. While the company initially made moves to improve its financial standing by selling off large assets — like Ellen Tracy and Caribbean Joe — those efforts proved futile, and Sequential filed for bankruptcy just 3 weeks later. Upon filing, it looked to sell most if not all of its assets and initiate a bidding process for interested buyers. 

Global Brands Group USA 

Date: July 2021

Category/Product(s): Apparel 

The North American arm of apparel maker and brand owner Global Brands (GBG USA) filed for Chapter 11 bankruptcy at the end of July. Established in 2005 by the century-old Li & Fung, the company licenses major brands — such as All Saints, Saga, and Le Tigre — and makes private label products as well. A large majority of its sales (around 85%) come from wholesaling to major retailers like Macy’s, Nordstrom, Bloomingdale’s, and Costco, which left it vulnerable to the decline of retail store foot traffic and consumer spending brought on by the pandemic. Compounded by supply chain disruption, liquidity issues, and pressing royalty obligations, Covid-induced shifts led to sales dropping 44% in the fiscal year ended March 2021. GBG USA entered into purchase agreements for its Aquatalia brand and others and looked to sell its remaining assets under court supervision. 

Alex and Ani 

Date: June 2021

Category/Product(s): Jewelry 

Jewelry brand Alex and Ani filed a restructuring support agreement in June 2021, requiring the company to file Chapter 11 proceedings in Delaware’s bankruptcy court. The company — known for its bangle bracelets — experienced success in its early days, notching a $1B valuation in 2016. Shortly afterward, the company began a downslide driven by legal complications, executive turnover, and mismanagement, which left it unable to adapt in the face of changing consumer preferences, a ransomware attack, and the onset of the pandemic. Revenue fell 40% in 2020, giving way to June’s bankruptcy. 

Washington Prime Group 

Date: June 2021

Category/Product(s): Real estate investment 

Mall owner Washington Prime Group filed for Chapter 11 bankruptcy protection after temporarily closing around 100 shopping centers. Businesses had been unable to pay rent under the weight of pandemic pressures, resulting in the company’s rental income dropping $127M in 2020. The downturn didn’t stop there: from March 2020 to March 2021, income fell from $10M to $3.3M. In initiating bankruptcy proceedings, WPG entered into a restructuring agreement with its creditors. The company stated that it had secured $100M in debtor-in-possession financing in order to maintain business operations as it looked to deleverage its balance sheet by $950M.

The Collected Group

Date: April 2021

Category/Product(s): Women’s apparel

Summary: Behind the labels Joie, Current/Elliot, and Equipment, The Collected Group, which had 33 locations at its height, was already in the process of closing its locations when the pandemic hit, accelerating its move away from physical retail. The company had been looking for buyers but was unable to find a satisfactory offer before it declared bankruptcy in April. In early June, Collected received new funding from private equity firm KKR, emerging from bankruptcy to continue its e-commerce business.

Paper Source

Date: March 2021

Category/Product(s): Stationary

Summary: Stationery retailer Paper Source filed for bankruptcy in early March. It saw declining sales due to pandemic-related store closures as well as a drop in demand for stationary as weddings and other events were canceled. Paper Source came under fire when it was revealed it had awarded executives a combined $1.5M in bonuses during the pandemic while reportedly leaving some of its vendors unpaid. In May, Barnes & Noble acquired the retailer, providing the necessary funding for Paper Source to emerge from bankruptcy.

Belk

Date: February 2021

Category/Product(s): Department store

Summary: Belk received speedy approval for its reorganization plan — just one day after filing, the department store chain emerged from bankruptcy. Founded in 1888, Belk was struggling to adapt to changing consumer preferences even before the pandemic. It entered bankruptcy with a significant debt load —$1.9B — which it was unable to service as the Covid-19 pandemic put a damper on its sales. Under its restructuring agreement, Belk said it had reduced its debt by $450M and received $225M in fresh capital to keep its 291 stores in operation.

Solstice Marketing Concepts

Date: February 2021

Category/Product(s): Sunglasses

Summary: Sunglasses retailer Solstice filed for Chapter 11 bankruptcy in February, with plans to restructure. At the time of filing, the company said sales at its 66 stores were down more than 50% from 2019 due to pandemic lockdowns. In August 2021, the retailer emerged from bankruptcy after Second Avenue Capital Partners provided it with a $6.5M exit financing facility.

L’Occitane

Date: January 2021

Category/Product(s): Beauty

Summary: The US arm of French beauty retailer L’Occitane filed for bankruptcy in January. At the time of its filing, the company was behind on $15M in rent and was looking to exit 29 “burdensome” leases where its sales had fallen, claiming its rent at those locations “no longer reflect the market.” In August, the company announced that it had completed restructuring and planned to emerge from Chapter 11 proceedings by the end of the month.

Christopher & Banks

Date: January 2021

Category/Product(s): Women’s apparel

Summary: Minneapolis-based Christopher & Banks said it would close most, if not all, of its 450 physical stores at the time of its Chapter 11 filing in January. The company’s former CEO Keri Janes said Covid-19 hit the retailer particularly hard, as its average middle-aged female customer stopped buying new apparel in the absence of social engagements. Christopher & Banks sold its online business, which had seen growth, to an affiliate of Hilco Merchant Resources in early March. It has since closed all of its brick-and-mortar locations.

Loves Furniture

Date: January 2021

Category/Product(s): Furniture

Summary: While Loves Furniture claimed that Covid-19-related supply chain disruptions were behind its financial challenges, its bankruptcy filings revealed that warehousing and inventory problems, which led to lost furniture, unhappy customers, and canceled orders, were also to blame. The furniture chain, which was created to take over Art Van Furniture, closed over 20 stores and planned to reorganize as part of its bankruptcy proceedings.

Stock+Field

Date: January 2021

Category/Product(s): Farming and agriculture

Formerly known as Big R Stores, Stock+Field filed for Chapter 11 bankruptcy at the start of the year. The farming and agricultural goods retailer announced that it would be closing its 25 locations after more than 55 years in business. CEO Matthew Whebbe alluded to the Covid-19 pandemic in his statement on the matter, commenting that “there have been many challenges in 2020, and Stock+Field was not immune to them.” In March 2021, R.P. Acquisition Corp. announced that it would be acquiring the bankrupt company and reopening its stores under new ownership. The Illinois-based lumber company stated that it planned to retain the Stock+Field name and offer the same products and services.

Companies that filed for bankruptcy in 2020:

Francesca’s

Date: December 2020

Category/Product(s): Women’s apparel & accessories

Summary: Francesca’s said it would close roughly half of its 551 locations in malls across the US after filing for bankruptcy protection in December. The women’s clothing and accessories retailer had already closed 140 locations before declaring bankruptcy following 2 years of losses. In February 2021, Francesca’s sold to TerraMar Capital and Tiger Capital Group for $18M.

Furniture Factory Outlet

Date: November 2020

Category/Product(s): Furniture

Summary: Furniture Factory Outlet, which is owned by private equity firm Sun Capital Partners, filed for Chapter 11 bankruptcy in November. At the start of 2020, the retailer had 68 stores across the US, but then supply chain disruptions and a drop in revenue due to the Covid-19 pandemic forced it to close 37 stores. Retailer American Freight acquired Furniture Factory Outlet in December 2020, rebranding FFO’s remaining stores to American Freight.

Guitar Center

Date: November 2020

Category/Product(s): Musical instruments

Summary: The largest musical instruments retailer in the US filed for bankruptcy in November. Already struggling against $1.3B in debt and online competition before the pandemic, Guitar Center was unable to overcome the loss in revenue related to Covid-19-related store closures. In December 2020, Guitar Center emerged from bankruptcy following an infusion of capital that wiped out $800M of debt.

YouFit Health Clubs

Date: November 2020

Category/Product(s): Gym

Summary: Gym chain YouFit declared bankruptcy in November following a difficult year for gyms amid capacity limits and closures due to the pandemic — 24 Hour Fitness and Gold’s Gym also filed for bankruptcy earlier in the year. As part of its bankruptcy deal, which was approved in December, YouFit sold itself to a group of former lenders in exchange for debt forgiveness.

Century 21

Date: September 2020

Category/Product(s): Discount department store

Summary: New York discount retailer Century 21 will close all 13 of its stores after filing for bankruptcy in September. Its CEO blamed the chain’s demise on its insurers for failing to pay the chain $175M. National off-price retail chains like TJ Maxx and Ross, which boast much larger retail footprints, have reportedly seen growth amid the pandemic, despite the industry reliance on brick-and-mortar sales.

Stein Mart

Date: August 2020

Category/Product(s): Discount department store

Summary: Discount department store chain Stein Mart long struggled with declining sales before it fell to bankruptcy in August. The chain had initially found a buyer in January 2020, but canceled the merger as the pandemic forced it to close its locations. The 112-year-old chain employed more than 8,000 people as of August and is set to liquidate all of its stores by the end of the year.

Tailored Brands

Date: August 2020

Category/Product(s): Men’s apparel

Summary: Tailored Brands, which owns Men’s Wearhouse and Jos. A. Bank, filed for bankruptcy in August. The company had been on the verge of bankruptcy for months, after sales declined more than 60% amid the pandemic. It announced in July that it would be closing up to 500 stores — over a third of its locations — and laying off 20% of its corporate staff. The company is set to emerge from bankruptcy by November.

Lord & Taylor

Date: August 2020

Category/Product(s): Department store

Summary: The oldest US department store operator, Lord & Taylor, filed for Chapter 11 bankruptcy in early August and announced it would be liquidating all 38 of its stores. The nearly 200-year-old retailer was acquired by Hudson’s Bay Company in 2012 and then sold to clothing rental subscription service Le Tote for a paltry $75M in 2019.

Ascena Retail

Date: July 2020

Category/Product(s): Apparel & accessories

Summary: Ascena Retail Group, which owns Ann Taylor and Lane Bryant, will close more than half of its stores — 1,600 out of 2,800 locations — according to its Chapter 11 bankruptcy filing. It is set to emerge from bankruptcy this year, after selling plus-sized apparel brand Catherine’s. Formerly known as Dress Barn, the company was heavily reliant on sales from retail locations in malls, but saw revenue plunge in recent years with growing competition from online retailers and D2C brands.

New York & Company

Date: July 2020

Category/Product(s): Apparel & accessories

Summary: New York & Company parent company RTW Retailwinds is closing almost all of its nearly 400 stores across 32 states as part of its Chapter 11 bankruptcy. The latest in a string of apparel store closures, the company sold its e-commerce business and intellectual property to Saadia Group. As stay-at-home orders were enacted across the US, retailers like New York & Company saw sales plunge, forcing them to furlough workers and temporarily close stores.

Muji USA

Date: July 2020

Category/Product(s): Stationery & retail

Summary: Japanese retailer Muji’s US arm filed for bankruptcy in July, one of the latest victims of the Covid-19 pandemic. Known for its minimalist, unbranded goods, the retailer plans to close some of its 18 US-based locations but will continue to run its e-commerce store. Its US business has reportedly been operating at a loss for the past 3 years, due to high rents and cheaper alternatives.

Sur La Table

Date: July 2020

Category/Product(s): Kitchenware

Summary: Kitchenware seller Sur La Table filed for Chapter 11 bankruptcy in the same week as Muji USA. The retailer will close 70+ of its 112 stores and will sell its assets to Fortress Investment Group. The company was already struggling to stay afloat pre-pandemic, as online retailers ate away at its market share and consumers shifted away from at-home cooking.

Brooks Brothers

Date: July 2020

Category/Product(s): Apparel & accessories

Summary: Storied menswear brand Brooks Brothers has grappled with evolving its brand in recent years, as more casual dress styles have become the norm. After it filed for bankruptcy in July, retail management firm Authentic Brands Group and mall landlord Simon Property Group won the bid to buy out the brand by offering a zero-interest loan.

Lucky Brand

Date: July 2020

Category/Product(s): Apparel & accessories

Summary: Clothing retailer Lucky Brand declared bankruptcy in July, with plans to close at least 13 stores and sell its business to an apparel group owned by Authentic Brands and Simon Property Group, which also operate Aéropostale and Nautica. The clothing retailer saw a 50% month-over-month decline in revenue amid the coronavirus pandemic.

G-Star

Date: July 2020

Category/Product(s): Apparel & accessories

Summary: Netherlands-based denim brand G-Star, which operates 31 stores in the US, filed for Chapter 11 bankruptcy in July, citing the pandemic’s disruption to its retail locations. G-Star’s CEO said that it plans to close approximately 24 stores in the US. Its parent company and web-based business will remain in operation.

NPC International

Date: July 2020

Category/Product(s): Fast food operator

Summary: Pizza Hut’s largest franchisee, NPC International, filed for bankruptcy in July despite the resurgence of pizza chains amid the Covid-19 crisis. The operator of more than 1,200 Pizza Huts and nearly 400 Wendy’s restaurants, NPC has seen increasing turmoil in the past year, with a growing debt burden of nearly $1B, rising food and labor costs, and, finally, the pandemic-induced shutdowns. NPC is hoping to sell its business for at least $725M — $400M for its Wendy’s locations and $325M for its Pizza Hut stores.

Chuck E. Cheese

Date: June 2020

Category/Product(s): Entertainment centers

Summary: Chuck E. Cheese’s parent company CEC Entertainment declared bankruptcy in late June. The chain has announced the permanent closure of 47 Chuck E. Cheese stores, which have been hit especially hard by pandemic-related shutdowns.

GNC

Date: June 2020

Category/Product(s): Health & wellness goods

Summary: The vitamin and nutrition chain GNC has been struggling to garner sales and pay off nearly $1B in debt, even pre-pandemic. It finally filed for bankruptcy in June as the Covid-19 crisis forced it to close 40% of its locations. The company said it will close up to 1,200 stores across the nation. In September, it sold to China-based Harbin Pharmaceutical Group for $770M.

24 Hour Fitness

Date: June 2020

Category/Product(s): Gym

Summary: Gym chain 24 Hour Fitness filed for bankruptcy mid-June after shuttering its locations for months due to Covid-19. It will permanently close 100 gyms, leaving roughly 300 locations across the nation. Mid-tier gym chains have faced increasing competition from boutique classes, such as OrangeTheory and Barry’s Bootcamp, and cheaper facilities, like Planet Fitness.

Le Pain Quotidien

Date: May 2020

Category/Product(s): Bakery & cafe chain

Summary: Bakery and cafe chain Le Pain Quotidien filed for bankruptcy in May, but its filings revealed that the company had planned to do so pre-pandemic. The chain, which originated in Belgium, was rescued from liquidation when it subsequently sold all of its 98 locations to food brand Aurify, allowing at least 35 stores to continue operations.

Advantage Rent A Car

Date: May 2020 (third bankruptcy)

Category/Product(s): Rental cars

Summary: Following Hertz, Advantage Rent A Car filed its Chapter 11 in late May, as the pandemic continued to stall travel. This reportedly marks the third bankruptcy filing for the rental car company, having previously filed in 2008 and 2013. The company’s 2013 filing resulted in its sale to Toronto-based PE firm Catalyst Capital Group.

Hertz

Date: May 2020

Category/Product(s): Rental cars

Summary: The nation’s second-largest rental car company, Hertz is one of the highest-profile victims of the coronavirus pandemic, with $19B in debt and some 700,000 cars in its inventory. The rental car industry saw demand plummet as travel halted amid nationwide shutdowns. In June, Hertz stock rallied by as much as 10x, which led to Hertz attempting to sell new shares of its stock — a move soon revoked when the SEC began looking into the sale.

Centric Brands

Date: May 2020

Category/Product(s): Brand collective

Summary: Centric Brands designs and manufactures clothing for brands such as Calvin Klein, Tommy Hilfiger, and Under Armour. As part of its Chapter 11 filing, the brand collective entered into a restructuring support agreement with its lenders and will emerge as a private company. The company said in September that it expects to exit bankruptcy by the end of October.

JCPenney

Date: May 2020

Category/Product(s): Department store

Summary: Department store chain JCPenney was another early victim of the Covid-19 crisis, declaring bankruptcy in mid-May. The company said that it will continue operating throughout the bankruptcy, but it expects to close about 30% of its 800+ US stores. JCPenney has been beleaguered with problems for the past decade, many of them self-inflicted due to poor executive decisions. It’s hemorrhaged money since 2010, its last profitable year, and has accumulated $4.5B in net losses since then. In September, mall owners Simon Property Group and Brookfield Property Group announced an agreement to acquire the chain for $1.75B.

Stage Stores

Date: May 2020

Category/Product(s): Department store

Summary: Department store operator Stage Stores, which owns department stores and discount brands like Goody’s, Peebles, and Gordmans, filed for bankruptcy after being forced to temporarily close all of its 700+ stores across 42 states. Department store chains like Stage Stores have been especially at risk amid the pandemic, as the shift to online shopping has accelerated.

Tuesday Morning

Date: May 2020

Category/Product(s): Discount home goods

Summary: Discount home goods chain Tuesday Morning filed for Chapter 11 bankruptcy in May, citing Covid-19-induced store closures. The company plans to restructure and close approximately 230 locations, leaving 450 stores remaining across the US, and is currently seeking buyers.

Neiman Marcus

Date: May 2020

Category/Product(s): Department store

Summary: Luxury retailer Neiman Marcus was another major national retailer to file for Chapter 11 bankruptcy amid the coronavirus crisis, but it exited in September under new owners, including Pimco, Davidson Kempner Capital Management, and Sixth Street. Like many other retailers, it faced problems stemming from before the pandemic, especially after a 2013 private equity buyout that saddled the company with debt. The department store chain, which owns Bergdorf Goodman, struggled to adapt to e-commerce, and its heavy debt burden prevented it from being able to compete against rivals like Farfetch and Net-a-Porter..

Aldo

Date: May 2020

Category/Product(s): Footwear

Summary: Shoe chain Aldo filed for bankruptcy in Canada in May, and it is seeking protection in the US and Switzerland. The Montreal-based retailer has failed to gain a foothold in the growing casual footwear market in recent years.

John Varvatos

Date: May 2020

Category/Product(s): Apparel & accessories

Summary: Luxury menswear brand John Varvatos declared bankruptcy in May. Its current majority owner Lion Capital received court approval to buy the brand in July, which included a $76M credit bid. The company suffered in 2019 when Nordstorm pulled some of its brands out of its department stores, resulting in a sharp plunge in profit. The brand was mid-reorganization when the pandemic forced it to close stores and lay off 76% of its workforce.

Gold’s Gym

Date: May 2020

Category/Product(s): Gym

Summary: Global gym chain Gold’s Gym filed its Chapter 11 in May. Amid the pandemic, the company had to temporarily close approximately 700 gyms globally and permanently close 30 locations. The company said that it plans to emerge from bankruptcy by August and will continue to operate as it restructures.

J. Crew Group

Date: May 2020

Category/Product(s): Apparel & accessories

Summary: The owner of J. Crew and Madewell was the first national store brand in the US to file for bankruptcy since the Covid-19 pandemic began. Store closures decimated sales and derailed IPO plans for Madewell, which has garnered more success and popularity than J. Crew in recent years. The company continued operating through its bankruptcy, which it emerged from in September.

Roots USA

Date: April 2020

Category/Product(s): Apparel & accessories

Summary: Toronto-based clothing retailer Roots is shuttering the majority of its 9 US stores, which have represented only losses for the brand. Its US arm filed for a Chapter 7 bankruptcy in April, but Roots plans to keep its long-standing stores in Michigan and Utah open.

True Religion

Date: April 2020 (second bankruptcy)

Category/Product(s): Apparel & accessories

Summary: True Religion’s April Chapter 11 filing marked the denim retailer’s second bankruptcy in 3 years. The company has temporarily closed all stores amid the crisis and laid off more than 90% of its employees in the meantime. It says it expects to exit bankruptcy in October.

Dean & DeLuca

Date: March 2020

Category/Product(s): Grocery

Summary: Gourmet grocery chain Dean & DeLuca had already ceased all operations when it filed for bankruptcy in March. The chain had been a pioneer in introducing US customers to international, hard-to-get items, but growing competition from rivals like Amazon’s Whole Foods and Trader Joe’s forced it to shutter stores after running out of cash mid-2019. Dean & Deluca was acquired by Thailand-based real estate developer Pace Development in 2014.

Modell’s Sporting Goods

Date: March 2020

Category/Product(s): Sporting goods

Summary: The sporting goods retailer, Modell’s Sporting Goods, filed for bankruptcy in March, with plans to liquidate all of its 134 stores. Retail Ecommerce Ventures acquired its e-commerce business and intellectual property in August for $3.6M.

Art Van Furniture

Date: March 2020

Category/Product(s): Furniture

Summary: Art Van Furniture sold a fifth of its stores in its Chapter 11 bankruptcy filing, which was later converted to a Chapter 7. The furniture retailer was once one of the largest in the Midwest, with nearly 170 locations. US Realty Acquisitions, the real estate investment arm of private equity firm US Assets, acquired the inventory and assets for approximately $6.9M and reopened stores under a new name, Loves Furniture.

Bluestem Brands

Date: March 2020

Category/Product(s): D2C retailer

Summary: D2C retailer Bluestem Brands filed for Chapter 11 bankruptcy in March, citing poor holiday performance and a prolonged liquidity crunch. The filing came with a deal to sell itself to private equity firm Cerberus Capital Management LP, which was completed in August. Bluestem owns a variety of brands, including Appleseed’s, Blair, Draper’s & Damon’s, and Fingerhut, spanning multiple retail categories such as apparel and electronics.

Pier 1 Imports

Date: February 2020

Category/Product(s): Home goods

Summary: After filing for bankruptcy in February, home goods retailer Pier 1 Imports shuttered all of its retail stores as Covid-19 battered the already-vulnerable company. Retail Ecommerce Ventures purchased Pier 1’s e-commerce assets for $31M in July.

Papyrus

Date: January 2020

Category/Product(s): Stationery

Summary: Schurman Fine Paper, which owns stationery chain Papyrus, filed for bankruptcy in January. It said it would close all 254 stores in North America. The advent of email and text messaging effectively devastated the greeting card industry, and the company says it was never able to fully recover from the Great Recession.

Fairway

Date: January 2020 (second bankruptcy)

Category/Product(s): Grocery

Summary: New York-based grocery chain Fairway declared bankruptcy in January and will close up to 5 of its 14 locations. The chain filed for bankruptcy previously in 2016, after going public in 2013. Pressure from larger competitors like Whole Foods and Trader Joe’s have squeezed smaller chains in recent years, with A&P, Winn-Dixie, and Bi-Lo all filing for bankruptcy in recent years.

Companies that filed for bankruptcy in 2019

Destination Maternity

Date: October 2019

Category/Product(s): Maternity apparel

Summary: Destination Maternity filed for Chapter 11 bankruptcy in October, reportedly attributing its financial struggles to a confluence of factors, including declining birth rates, retail trends, and leadership turnover. The company owns several maternity brands, including Destination Maternity, A Pea in the Pod, and Motherhood Maternity. It carried $244M in debt as of its filing. In early December, Marquee Brands acquired the brand, which will likely close all retail stores in favor of an online shop.

Sugarfina

Date: September 2019

Category/Product(s): Luxury candy

Summary: The high-end candy brand Sugarfina filed for Chapter 11 bankruptcy in September. The company’s bread and butter products were confections geared toward millennial adults, such as champagne and cocktail-themed candies. Despite several consecutive years of year-over-year revenue increases, it began taking accelerating losses in 2016. In 2018, Sugarfina reportedly took nearly $18M in losses, and, as of its bankruptcy, carried $26M in debt.

Forever 21

Date: September 2019

Category/Product(s): Fast-fashion apparel & accessories

Summary: Forever 21 filed for Chapter 11 bankruptcy in September and plans to close hundreds of stores as it restructures. However, the company said it does not plan to go out of business and is instead using the bankruptcy filing to restrategize and shore up its future. Part of its restructuring is shrinking its global footprint and withdrawing from 40 countries where it previously operated stores. In addition to its US operations, Forever 21 will reportedly continue to operate in Mexico and Latin America, while largely reducing its Asian and European interests.

Fred’s

Date: September 2019

Category/Product(s): Retail & pharmacy

Summary: The Southern discount retail and pharmacy chain Fred’s filed Chapter 11 in September and swiftly began liquidation sales. The news was not particularly surprising, as the chain had been visibly struggling earlier in the year. Fred’s closed hundreds of locations prior to its Chapter 11 filing in an effort to save the company. Though Fred’s is in the process of closing all of its stores, it sold portions of its pharmacy business to Walgreens and Express Rx in late September.

Barneys New York

Date: August 2019 (second bankruptcy)

Category/Product(s): Luxury department store

Summary: After filing for Chapter 11 bankruptcy in August, luxury department store Barneys New York announced in early November that it would launch liquidation sales in several locations. It previously filed for bankruptcy in January 1996. Although its flagship New York City store will reportedly remain open for the next year, the brand is moving swiftly to sell off inventory as licensing company Authentic Brands takes over ownership. Authentic Brands is said to be entertaining a licensing deal with Saks Fifth Avenue. The New York Times reported that the loss of its identity and the struggle to move online contributed to the downfall of Barneys New York.

Avenue

Date: August 2019

Category/Product(s): Plus-size apparel

Summary: Avenue, a plus-size clothing brand for women, pursued Chapter 11 bankruptcy in August. However, it converted its case to Chapter 7 in November. In court documents, Avenue CFO David Rhoads blamed the company’s circumstances in part on increased competition in the plus-size apparel space. With an increase in plus-size offerings from a range of clothing companies, Avenue struggled to hold onto its market share. Rhoads also noted general retail challenges, including the pressure to offer steep discounts (thus reducing profit margins) as contributing factors to Avenue’s woes.

A’gaci

Date: August 2019 (second bankruptcy)

Category/Product(s): Apparel & accessories

Summary: A’gaci’s Chapter 11 filing in August was its second in two years, signaling the brand’s ongoing financial struggles. The company first filed for Chapter 11 in January 2018, citing expansion problems and hurricane damages as reasons for its monetary woes. The San Antonio brand was unable to recover following that filing, and it announced that it will close all of its retail stores in light of its second bankruptcy. However, it was reported that the brand is now under new ownership, as its social media page announced a relaunch of the online store in November.

Charming Charlie

Date: July 2019 (second bankruptcy)

Category/Product(s): Apparel & accessories

Summary: Charming Charlie filed for bankruptcy for the second time in July 2019. Its first Chapter 11 filing came in December 2017, during which it announced the closure of 100 stores. Then in July, it declared that its more than 250 current stores would be closed as well. The brand shuttered its stores and sold its intellectual property sold for more than $1M at auction to the chain’s founder in September. The Houston brand announced its relaunch over social media in November and is slated to open 15 stores in 2020.

FTD

Date: June 2019

Category/Product(s): Flower delivery company

Summary: FTD, a flower and gift delivery brand, declared bankruptcy in June 2019. The company struggled with $200M in debt related to its acquisition of a rival company in 2014. Declining sales in recent years strained the business, eventually contributing to its Chapter 11 filing. In August, a court approved the sale of FTD North America for roughly $110M to Nexus Capital Management.

Hollander Sleep Products

Date: May 2019

Category/Product(s): Bedding and accessories

Summary: The Florida-based Hollander Sleep Products company declared bankruptcy as a result of substantial cash limitations and debt constraints. Hollander Sleep Products reportedly had just $523,000 in cash on hand at the time of its Chapter 11 filing, attributing its liquidity issues at least in part to rising materials costs. The company also carried $233M in debt. It was sold for $102M in August to Bedding Acquisition LLC.

Sonia Rykiel

Date: April 2019

Category/Product(s): Luxury fashion

Summary: The French brand Sonia Rykiel filed for bankruptcy in the US in April, part of a broader bankruptcy story at the company. In addition to its Chapter 7 filing and the closure of stores in New York, the company also underwent similar proceedings in France. As of July, the company was reportedly court-mandated to close its stores and liquidate.

Roberto Cavalli

Date: April 2019

Category/Product(s): Luxury clothing

Summary: The luxury fashion brand Roberto Cavalli filed Chapter 7 bankruptcy in April for its US division, Art Fashion Corp, which entailed closing all American stores and letting go of nearly 100 employees. Roberto Cavalli, as an entity, admitted to having “financial difficulties” as it strategized ways to stay afloat. The company was bought by Dubai-based real estate developer Hussain Sajwani in November.

Z Gallerie

Date: March 2019 (second bankruptcy)

Category/Product(s): Home decor

Summary: Los Angeles-based home decor brand Z Gallerie announced a Chapter 11 filing in March 2019. It also announced the closure of up to 17 stores as part of its strategy. It previously filed for bankruptcy in 2009, during which it reportedly closed 17 stores. In May, DirectBuy bought Z Gallerie at auction for $20M. The COO of DirectBuy reportedly said the company will continue to operate at least 32 Z Gallerie stores and use it as a complement to the parent company’s brand.

Diesel

Date: March 2019

Category/Product(s): Denim & jeans

Summary: Denim fashion brand Diesel filed for bankruptcy in March 2019, citing mounting losses at its 28 brick-and-mortar locations in the US. The company had also made what proved to be an ill-timed $90M capital investment, mostly in its stores, that did not bear the desired fruit. In addition, the fashion denim company claims that multiple incidents of theft and fraud led to a $1.2M loss over the last three years. The firm has not announced store closures, but it has outlined a plan for recovery that includes opening new stores and retrofitting some old ones to make their operation more cost-effective.

Charlotte Russe

Date: February 2019

Category/Product(s): Apparel

Summary: Popular women’s apparel retailer Charlotte Russe struggled for years as online shopping disrupted the retail sector. Eventually, it could not manage the debt it incurred and filed for bankruptcy in February 2019. At the time, Charlotte Russe secured a $50M debtor-in-possession financing commitment in the hopes of finding a buyer. But according to recent reports, the fashion retailer is going out of business and closing all of its stores nationwide. It’s online store has also shut down.

FullBeauty Brands

Date: February 2019

Category/Product(s): Beauty

Summary: FullBeauty Brands entered and exited bankruptcy in record time. The company filed for Chapter 11 on February 3, 2019 and emerged with court approval for its reorganization plan in less than 24 hours. Having struggled with financial difficulties and increased competition, the New York City-based online retailer of plus-sized women’s clothing had carried a debt burden of $1.3B prior to bankruptcy. It was able to eliminate about $900M of debt by turning over company ownership to its creditors. FullBeauty Brands has since secured $35M in new financing.

Payless

Date: February 2019 (second bankruptcy)

Category/Product(s): Footwear

Summary: After emerging from its first bankruptcy in late 2017, Payless filed for bankruptcy once more on February 18, 2019. Struggling with the challenging retail environment and significant debt from its first foray into Chapter 11 (while managing a massive footprint of about 3,400 stores in 40 countries), Payless announced it would be closing all 2,100 of its remaining stores in the US and Puerto Rico. Payless represents one of the one of the largest retailer liquidations to date, according to the Wall Street Journal.

Things Remembered

Date: February 2019

Category/Product(s): Gifts

Summary: Facing steep competition from online retailers and shouldering a $144M debt load, Things Remembered filed for bankruptcy on February 6, 2019. Later in the month, the Cleveland-based gifts retailer won court approval to close a majority of its 400 stores as it planned to sell most of its business to Enesco, an Illinois-based company that specializes in gift ware, home decor, and accessories. The transaction completed in March 2019, and Things Remembered will continue to operate 176 sores under its brand.

Beauty Brands

Date: January 2019

Category/Product(s): Beauty

Summary: Beauty Brands filed for bankruptcy in January 2019, entering into an asset purchase agreement with Hilco Merchant Resources for the sale of its operating assets. The Kansas City-based beauty and salon retailer is reported to have expanded its store footprint too rapidly, racking up unsustainable operating losses in the process. In February, however, a judge granted the founder approval to buy Beauty Brands for a minimum of $4.65M. While 25 stores will be closing, the remaining 33 are expected to remain open as the beauty retailer reorganizes.

Gymboree

Date: January 2019 (second bankruptcy)

Category/Product(s): Children’s apparel

Summary: Gymboree filed for its second bankruptcy in January 2019, announcing that it would close about 800 Gymboree and Crazy 8 stores in the US and Canada. Gymboree had closed and liquidated 300 stores and eliminated roughly $900M in debt following its first bankruptcy in June of 2017, but it continued to steadily lose market share after that point. Gymboree is now selling its flagship brand as well as the Crazy 8 brand to The Children’s Place for $76M. The children’s apparel retailer will also sell its Janie and Jack clothing line to Gap Inc for $35M.

Innovative Mattress Solutions

Date: January 2019

Category/Product(s): Mattresses

Summary: Faced with disruptive competition from bed-in-box startups like Casper, Kentucky-based Innovative Mattress solutions filed for Chapter 11 in January 2019. Innovative Mattress Solutions has secured $14M in debtor-in-possession financing from strategic partner Tempur Sealy as it seeks a buyer. It is expected to close some of its stores in the southeastern US.

Shopko

Date: January 2019

Category/Product(s): Retail chain

Summary: Shopko filed for bankruptcy on January 16, 2019 after being hit with a lawsuit from pharmaceutical drug supplier McKesson Corporation alleging that it owed the firm $67M. The Wisconsin-based retailer secured $480M in financing from lenders so that it could continue normal business operations, then announced that it would close 250 more stores on top of the 38 locations it had previously declared it would shutter. A special committee is investigating dividend payments made by Shopko to some of its equity owners, including Sun Capital.

Companies that filed for bankruptcy in 2017

Charming Charlie

Date: December 2017

Category/Product(s): Apparel & accessories

Summary: Apparel chain Charming Charlie was the final casualty in 2017’s retail apocalypse. Founded in 2004, the company has historically provided mid-price range, color-coordinated apparel and accessories assortments. The company filed for Chapter 11 protection on December 11, citing declining sales due to issues with inventory, merchandising, and vendors. Charming Charlie plans to close 100 of its stores by the end of 2017 with larger plans to restructure its debt and business.

Styles For Less

Date: November 2017

Category/Product(s): Teen apparel

Summary: Teen apparel chain Styles For Less filed for Chapter 11 bankruptcy protection in November 2017. The company cited issues such as industry discounting, e-commerce, and competition from fast fashion brands (which bring inexpensive designs to stores to quickly meet emerging fashion trends). As of early November, Styles stated it had closed 50+ of its stores, laid off 300+ employees, and cut salaries to shed debt in anticipation of a turnaround bid.

Toys “R” Us

Date: September 2017

Category/Product(s): Children’s toys

Summary: Toys “R” Us was the third largest bankruptcy in the US (after KMart in 2002 and Federated Department Stores, now Macy’s, in 1990). A mounting debt, due to a leveraged buyout by a few private equity firms in 2005, along with competition from Amazon and other online merchants, caused Toys “R” Us’ ongoing crisis, which culminated in a Chapter 11 filing in September 2017. Despite hopes of a turnaround amidst its Chapter 11 filing, in March 2018, the company ultimately decided to close all of its stores, after a disappointing holiday sales period.

Aerosoles

Date: September 2017

Category/Product(s): Footwear

Summary: Affordable footwear retailer Aerosoles struggled to compete in an tough apparel market as it looked to balance affordability and comfort with changing fashion trends, while competing with even cheaper fast fashion chains. The company filed for Chapter 11 bankruptcy in September 2017, noting the need to improve its financials and close many of its 88 stores. Aeropostale had been owned by private equity firm Palladin Consumer Retail Partners since 2014.

Vitamin World

Date: September 2017

Category/Product(s): Vitamins

Summary: With 334 retail locations and over $43M in debt, Vitamin World declared bankruptcy. The company cited supply chain and ingredient availability issues as contributing factors towards its decline. In late November 2017, Vitamin World won court approval to close over 100 stores and put the rest up for sale over the 2017 holiday season.

Perfumania

Date: August 2017

Category/Product(s): Perfume & beauty

Summary: Amidst declining sales and piling debt, Perfumania filed for Chapter 11 protection in August. Increased expenses, supply chain inefficiencies, and the need to enhance operating results contributed to the perfume retailer’s bankruptcy, which was court-approved in October. Perfumania plans to go private and become a digital retailer with a renewed focus on e-commerce and omnichannel initiatives. The company will have to compete with direct-to-consumer perfume brands like Scentbird, Sniph, and others.

Alfred Angelo

Date: July 2017

Category/Product(s): Bridal dresses

Summary: In July 2017, Florida-based Alfred Angelo filed for Chapter 7 bankruptcy, which allowed the company to liquidate instead of restructure its debt. This caused a frenzy for bridal parties who had pre-ordered dresses. Competitors, such as David’s Bridal, even offered discounts for brides who had previously ordered dresses from the bankrupt retailer. The company faced an eviction lawsuit over unpaid rent at the end of June, prior to declaring bankruptcy.

True Religion Apparel Inc.

Date: July 2017

Category/Product(s): Denim & jeans

Summary: California-based denim retailer True Religion was another company who sought bankruptcy in efforts to revive itself from huge debts and decreasing sales. The company struggled to retain business in a difficult denim market that was being chipped away by the athleisure clothing trend as well as fast fashion and low-priced retailers. After filing for Chapter 11 protection in July, the company exited in October with plans to establish a smaller footprint and increase digital growth.

Papaya Clothing

Date: June 2017

Category/Product(s): Teen apparel

Summary: Papaya Clothing joined many of its mall-based peers earlier in June after facing financial difficulties from e-commerce and fast fashion competition, along with a badly timed expansion plan. The company has asked the court to exit 30 stores but plans to stay open as it looks to restructure debt, rationalize its retail footprint, and fulfill other financial obligations.

Gymboree

Date: June 2017

Category/Product(s): Children’s apparel

Summary: Another victim to financial woes and a leveraged buyout (by Bain Capital in 2010), Gymboree filed for Chapter 11 protection in June 2017. The company, renamed to Gymboree Group Inc., exited bankruptcy in October 2017 with plans to close and liquidate 330 under-performing stores and shed $900M in debt. Moving forward, the company plans to revamp its brand, decrease its store footprint, and increase omnichannel initiatives.

Rue21

Date: May 2017

Category/Product(s): Teen apparel

Summary: Amidst closing over 400 stores in efforts to downsize, teen specialty apparel retailer Rue21 filed for Chapter 11 bankruptcy in May 2017 and agreed to reduce debt and reorganize internally thanks to an injection of new capital from investors. The company cited the general retail industry downturn, declining sales, and increasing operating costs along with internal problems such as merchandising, strategy, and e-commerce fulfillment as major factors that led to bankruptcy. However, the company emerged from this carefully planned bankruptcy in less than four months from the initial filing with intentions to maintain high performing stores and to continue growing its e-commerce business.

Payless

Date: April 2017

Category/Product(s): Footwear

Summary: After a leveraged buyout in 2012 by private equity firms Blum Capital and Golden Gate, Payless continued struggling with a large debt and weak sales amidst a challenging retail environment. The discount footwear chain filed for Chapter 11 protection in April 2017, which resulted in an agreement with lenders to close 800 stores and reduce debt. The company recently announced a new strategy that will shift its focus to Hispanic markets, establish a new pricing strategy, and streamline corporate headquarters.

Gordmans

Date: March 2017

Category/Product(s): Discount department store

Summary: Nebraska-based Gordman’s struggled to adapt to e-commerce (it launched an online site in 2015) and experienced declining sales since 2012. Exacerbated by a legacy Wall Street development from 2010 that accelerated the company’s cash depletion, Gordman’s filed for bankruptcy in March 2017 and announced severe job cuts. The company’s final liquidation plan was approved in November.

Gander Mountain

Date: March 2017

Category/Product(s): Outdoor recreation

Summary: Another outdoor retailer, Minnesota-based Gander Mountain filed for Chapter 11 bankruptcy in March 2017 and announced plans to close 30+ under-performing stores. Outdoor and camping retailer Camping World won the bankruptcy auction for Gander Mountain for approximately $37M. The company recently rebranded as “Gander Outdoors” and has noted plans to relaunch in 2018 with a revamped customer experience for outdoors enthusiasts.

RadioShack

Date: March 2017 (second bankruptcy)

Category/Product(s): Electronics

Summary: After a disappointing co-branded partnership with Sprint, which was launched to help RadioShack better compete and Sprint to scale its own business, the company declared bankruptcy for the second time in March 2017 (after previously doing so in 2015). RadioShack exited bankruptcy earlier in November 2017 with hopes of operating as an online retailer with a limited physical footprint.

HHGregg

Date: March 2017

Category/Product(s): Consumer electronics & home appliances

Summary: Beyond apparel, big-box electronics stores have also faced fierce competition in recent years. Unable to compete with Best Buy and Amazon, Indiana-based HHGregg filed for bankruptcy. Holding company Valor LLC, which outbid Sears and Best Buy, bought the company’s rights and HHGregg emerged from bankruptcy in October 2017 as a purely online brand. Though the company’s website has a section for store information, HHGregg currently has no physical footprint. However, new leadership has recently claimed that HHGregg will make a comeback with a revamped website and smaller physical footprint.

Vanity

Date: March 2017

Category/Product(s): Women’s apparel

Summary: Mall-based specialty apparel retailer Vanity was one casualty of the retail apocalypse that did not have a future post-bankruptcy. After filing for Chapter 11 protectiion in March 2017, the company decided to close all of its 140 stores across the US, effectively eliminating jobs for approximately 1,400 employees. After filing, Vanity’s website (which no longer exists) advertised a going-out-of-business sale.

BCBG

Date: February 2017

Category/Product(s): Women’s apparel

Summary: Another mall-based women’s clothing store known for special occasion dresses, BCBG had a distinct and widely loved brand but still failed to differentiate its apparel from other department and specialty stores. Exacerbated by operational challenges and competition from e-commerce and fast fashion brands, the company declared bankruptcy in February 2017. Marquee Brands and Global Brands Group Holding Ltd. acquired BCBG’s IP and assets. The company has emerged from bankruptcy in August with plans to move forward by decreasing its brick-and-mortar footprint and foraying into new categories, all while still keeping a mid-price range.

Eastern Outfitters

Date: February 2017

Category/Product(s): Outdoor apparel and gear

Summary:  Eastern Outfitters, which was formed out of Vestis Retail’s bankrupty was perhaps not surprising after leading sporting goods brand Sports Authority’s bankruptcy in 2016. Increased competition, high retail costs, and consumer shifts to experiential spending had created a tough climate for the sporting goods and apparel industry. Ultimately, British retailer Sports Direct acquired certain assets (including Bob’s Stores and Eastern Mountain Sports) of Eastern Outfitters for $101M in cash.

Wet Seal

Date: February 2017 (second bankruptcy)

Category/Product(s): Teen apparel

Summary: Wet Seal struggled to differentiate its apparel from struggling rivals such as Abercrombie & Fitch and Aeropostale, and struggled to succeed even after its first bankruptcy (2015). After its buy out by Versa, the company had trouble meeting the private equity firm’s demands and filed yet again for bankruptcy protection in February 2017. After closing over 330 stores, Wet Seal was then bought by investment and advisory firm Gordon Brothers for $3M in March 2017.

The Limited

Date: January 2017

Category/Product(s): Women’s apparel

Summary: Mall-based women’s apparel brand The Limited was 2017’s first retail apocalypse victim thanks to declining mall traffic, lower-than-anticipated sales, and competition from fast fashion brands like H&M and Zara. After declaring Chapter 11 bankruptcy in January 2017, private equity firm Sycamore Partners, which specializes in retail investments, bought The Limited’s IP and e-commerce assets. The company subsequently closed its 250 retail stores across the US. With a renewed focus on plus size fashion, The Limited recently launched a new website with plans to bring back The Limited storefronts to malls.

Companies that filed for bankruptcy in 2016

Yogasmoga

Date: December 2016

Category/Product(s): Athleisure manufacturer and retailer

Summary: The New York City-based activewear brand Yogasmoga filed for chapter 11 bankruptcy in December 2016, following an involuntary chapter 7 bankruptcy in November by three creditors who said that they were owed $3.2M. At the time of the filing, Yogasmoga had roughly 50 to 99 creditors, with assets valued between $1M and $10M. The company closed all stores except for one in La Jolla, California.

American Apparel

Date: November 2016 (second bankruptcy)

Category/Product(s): Apparel

Summary: Within a year of its first bankruptcy, American Apparel declared bankruptcy for the second time in November 2016. This time, Canadian apparel company Gildan acquired the company and replaced its “made in America” manufacturing (which was highly expensive) with the motto “Globally Sourced, Ethically Made, Still Sweatshop Free. That’s American Apparel.”

Nasty Gal

Date: November 2016

Category/Product(s): Online fashion retailer

Summary: Nasty Gal filed for chapter 11 bankruptcy to address “immediate liquidity issues, restructure our balance sheet and correct structural issues including reducing our high occupancy costs and restoring compliance with our debt covenants.” In 2012, it hit $100M in sales (just 6 years after launch), but the company’s sales started dropping —$85M in 2014 and then $77M in 2015, thanks in part to leadership turnover. Ultimately, Nasty Gal sold its brand name and other intellectual property for $20M to a rival fashion site, UK-based Boohoo.com.

Aeropostale

Date: May 2016

Category/Product(s): Teen apparel

Summary: Teen retailer Aeropostale faced similar challenges to other mall-based retailers and declared bankruptcy in May 2016. The company exited bankruptcy after shedding a large chunk of its physical retail presence and kept 230 stores open after a buy out by mall operators Simon Property Group and General Growth. Since then, the company has reopened over two-thirds of its closed stores under new leadership and is focused on refreshing its brand.

Vestis Retail Group

Date: April 2016

Category/Product(s): Sporting goods

Summary: Owner of Eastern Mountain Sports, Bob’s Stores, and Sport Chalet, Vestis Retail Group (owned by private equity firm Versa Capital Management LLC) announced plans for Chapter 11 bankruptcy in April 2016. Due to operational and financial challenges, the company decided to shut down its Sport Chalet business and place a long-term strategic focus on Bob’s Stores and Eastern Mountain Sports. Sport Chalet began closing all of its locations that month, while EMS and Bob’s closed only 9 locations in total.

Pacsun

Date: April 2016

Category/Product(s): Teen apparel

Summary: Surf and skate apparel brand PacSun faced evolving teen apparel trends and long-term debt issues and ultimately declared bankruptcy in April 2016. San Francisco-based private equity firm Golden Gate Capital acquired PacSun, which exited from bankruptcy just 5 months later, having decreased its store count as well as a great deal of its debt in a debt-for-equity swap.

Sports Authority

Date: March 2016

Category/Product(s): Sportswear

Summary: Sporting goods retailer Sports Authority declared bankruptcy in March 2016 with intentions of finding a buyer and closing 140 of 450 stores. Beyond competition from other big-box retailers and Amazon, major sports leagues such as the NBA and NFL that sell team merchandise also chipped away at Sports Authority’s market share. After failing to find a buyer to keep the business alive, the company liquidated and sold all its assets in May 2016, signaling continued difficulties for brick-and-mortar sportswear apparel.

Hancock Fabrics

Date: February 2016 (second bankruptcy)

Category/Product(s): Fabrics

Summary: Mississippi-based Fabric retailer Hancock Fabrics first declared bankruptcy in 2007, but it emerged over a year later. However, a difficult retail environment amidst competition from Jo-Ann Fabric and Crafts forced the company to declare a second bankruptcy in February 2016. Unable to find a buyer, Hancock sold its branding rights and IP to arts and crafts retailer Michaels, allowing the company to leverage Hancock’s customer data to get into the sewing business. Hancock Fabrics ultimately went out of business completely and closed all 185 of its stores nationwide in 2016, signalling the end of over-niched big-box retailers.

Joyce Leslie

Date: January 2016

Category/Product(s): Women’s clothing retailer

Summary: Joyce Leslie, a women’s clothing retailer with 47 stores in the New York metropolitan area, filed for Chapter 11 reorganization on January 2016. According to court papers, company lacked a “sophisticated e-commerce platform to compete in today’s market.” The company also said its assets and liabilities ranged between $1M to $10M, with between 1,000 and 5,000 creditors. The retailer liquidated its assets and sold off its intellectual property, retail store leases, and the lease of its corporate office and distribution center to help pay down debts.

Companies that filed for bankruptcy in 2015

Tamara Mellon

Date: December 2015

Category/Product(s): Women’s shoes

Summary: Tamara Mellon, founder of Jimmy Choo, filed for chapter 11 bankruptcy for her namesake ready-to-wear and footwear label in December 2015. The company filed in order to reorganize and emerge from bankruptcy to form a new company. During the process, Tamara Mellon could continue to trade for 60 days without reducing employee count. The company eventually secured funding from private equity firm New Enterprise Associates, among others, and relaunched.

Good Times Convenience Stores

Date: November 2015

Category/Product(s): Gas & Convenience

Summary: Facing legacy supply issues from 2006, Good Times Convenience Stores, once a major player for gas stops and convenience stores, declared Chapter 11 protection in November 2015. Back in 2006, Dallas-based Alon USA Energy Inc. purchased 40 of its stores and converted them into 7-Elevens.

American Apparel

Date: October 2015

Category/Product(s): Apparel

Summary: Manufactured-in-America brand American Apparel faced declining sales, massive debt, and internal issues with controversial founder Dov Charney, ultimately leading to its first Chapter 11 bankruptcy in October 2015. The company emerged from bankruptcy in February 2016 under the ownership of hedge fund Monarch Alternative Capital LP.

City Sports

Date: October 2015

Category/Product(s): Sports apparel

Summary: Boston-based sports apparel retailer City Sports filed for bankruptcy in October 2015, after facing competition from athletic apparel retailers. The company liquidated its assets, closed over two dozen of its stores nationwide, and was bought by the Sonnek-Schmelz brothers, who also owned soccer store chain Soccer Post. In April 2017, the company’s website relaunched to sell online merchandise and it announced the upcoming opening of new storefronts in Boston, New York, Philadelphia, and Washington, D.C.

Quiksilver

Date: September 2015

Category/Product(s): Surfwear apparel

Summary: Orange County-based surfwear company, Quiksilver, which was the first surfwear company to go public in 1986, succumbed to the rise of fast fashion. Exacerbated by a declining popularity in surfwear apparel during the recession, the company opened too many stores that relied too heavily on its surfwear products. Quiksilver ultimately declared bankruptcy in September 2015. The company restructured approximately $800M in debt and became private under the new management of private equity owner Oaktree Capital. In March 2017, the company rebranded to become Boardriders, Inc. and in early December, made a bid to acquire Australian competitor Billabong, which is currently pending approval.

GM Pollack

Date: July 2015

Category/Product(s): Jewelry

Summary: Employee-owned jewelry chain GM Pollack, which was family-owned until 2009, began shutting down stores in June but did not originally plan to close all of its stores. However, the company ultimately announced Chapter 7 bankruptcy in July 2015 and that it would be dissolving its entire business due to massive debt. This created issues for customers who had previously purchased products as they no longer had a parent company through which to claim warranties.

Great Atlantic & Pacific Tea (A&P)

Date: July 2015

Category/Product(s): Grocery

Summary: In a second bankruptcy within 5 years, or “Chapter 22,” the Great Atlantic & Pacific Tea Co. Inc. (which owned the A&P supermarket chain) chose to sell 125 stores and close 25 in efforts to save jobs and pay creditors. The parent company faced financial difficulties, internal strategy issues, and industry shifts that ultimately led to bankruptcy.

Frederick’s of Hollywood

Date: April 2015

Category/Product(s): Lingerie chain

Summary: Frederick’s of Hollywood filed for bankruptcy protection in April 2015, blaming increased competition and decreased mall shopping for its demise. The company was acquired by Authentic Brands Group for $22.5M, and relaunched as an online-only business. The business had not turned a profit since 2007, listing $36.5M in assets and roughly $106M in liabilities. The Authentic Brand buyout was completed in June 2015.

Karmaloop

Date: March 2015

Category/Product(s): Clothing

Summary: Karmaloop filed for bankruptcy in March 2015 with $100M in debt. Once a popular online destination for streetwear, the company launched a series of ill-fated and pricey business ventures, including a failed $14M attempt to cross over into television. In May 2015, Comvest Capital and CapX Partners bought Karmaloop out of bankruptcy for $13M. They sold the company a year later to Shiekh Shoes.

RadioShack

Date: March 2015

Category/Product(s): Electronics

Summary: RadioShack’s first bankruptcy in March 2015 was an early indication that the company wasn’t prepared for the rise of mobile phones or competition from the likes of Best Buy and Amazon. Following this initial bankruptcy, RadioShack emerged as a private company after being bought by General Wireless, an affiliate of hedge fund Standard General LP.

Cache

Date: February 2015

Category/Product(s): Women’s clothing retailer

Summary: Women’s clothing retailer Cache filed for chapter 11 bankruptcy protection in February 2015, citing a lack of time and money to reorganize. At the time of the filing, the New York company said it would continue to run its business, but shutter more than 200 stores and sell or renegotiate some of its leases. The retailer received about $22M in financing from Salus Capital Partners to maintain operations during the process.

Wet Seal

Date: January 2015

Category/Product(s): Women’s apparel

Summary: After announcing the closure of two-thirds of its retail locations, Wet Seal declared bankruptcy in January 2015. The brand was not able to innovate fast enough as it faced competitive pressure from fast fashion brands like H&M and Zara. Wet Seal was subsequently bought by private equity firm Versa and its struggles ushered in a wave of bankruptcies for other mall-based teen apparel chains.

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But after bringing in $260M in funding, momentum in the space has stalled, with funding drying up in part due to the broader venture slowdown (link-in-bio companies have raised just $12M in 2023 YTD).

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But the post-Covid comedown has been hard on connected fitness equipment players — which gained a lot of attention during the height of the pandemic from locked-down consumers — leading to disappointing hardware sales for MIRROR, as mentioned on Lululemon’s most recent earnings call:

“The overall at-home fitness space remains challenged. MIRROR hardware sales during the holiday season came in below our expectations” 

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Location-based marketing companies offer brands and retailers insight into consumer geographical patterns to help them better understand how marketing efforts influence website and in-store traffic. These solutions can help with closed-loop measurement efforts for retail media networks by bridging the gap between ad exposure and purchasing.

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Data clean rooms offer secure data-sharing environments in which advertisers, brands, and retailers can aggregate customer data from walled gardens (like Meta’s and Google’s closed ecosystems) and first-party sources without compromising customers’ privacy.

Businesses can use this customer data for targeted advertising campaigns with enhanced measurement and first-party data enrichment.

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Companies building marketing attribution technology provide teams with insight into effective channels for digital marketing to help advertisers make informed spending decisions. Some of these solutions focus on closed-loop attribution — providing a direct link between targeted ads and sales — to help improve return on ad spend (ROAS) for advertisers.

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Last week, the retail giant sold Bonobos for $75M, a 76% markdown from the $310M Walmart paid for the men’s fashion brand in 2017.

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Digital sampling platforms help companies build online sampling campaigns and deliver product samples to interested consumers.

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Trade promotion optimization (TPO) platforms help brands and retailers shape all aspects of their pricing strategies. Many of these tools utilize artificial intelligence (AI) to automate pricing, allowing users to avoid traditionally manual and time-consuming methods, such as spreadsheets.

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Virtual try-on solutions leverage artificial intelligence (AI) and augmented reality (AR) to enable users to virtually try on clothes, accessories, and makeup and provide tailored recommendations.

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With content demand on the rise, brands and retailers face the additional challenge of creating a sufficient amount of quality content across different platforms to engage and convert users. As a result, they are turning to new solutions to create, manage, and distribute content at scale.

Generative AI developments are only propelling the space forward. Content creation and distribution solutions are quickly incorporating GenAI to expedite content creation and creative processes at an unprecedented rate.

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The beauty giant paid $2.5B — nearly 23x Aēsop’s valuation of $110M when its former owner Natura took a majority stake in 2012. 

But with such a large price tag, did L’Oréal overpay for Aēsop?

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While Andreessen Horowitz’s total annual deals fell in 2022 — by 17% year-over-year — the firm still participated in 22 investment rounds in the consumer & retail sector. Its bets spanned a range of categories that serve the travel, food, beauty, and retail industries. 

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Over its 20+ year history, the China-based company has ventured into more and more industries, including cloud computing, healthcare, travel, and entertainment, among others — growing influential enough to attract intense scrutiny from a tech-wary Chinese government in recent years. And in March 2023, Alibaba announced it would split its sprawling business empire into 6 separate units.

At least 3 of these new units will focus on Alibaba’s core retail business. And they’re likely to remain committed to the behemoth’s vision for “New Retail” — a long-held aim to integrate Alibaba’s advanced e-commerce data and analytics into offline commerce to create a seamless omnichannel experience.

Using CB Insights data, we uncovered 5 of Alibaba’s most important strategic priorities in retail which will remain top-of-mind even as the company restructures. We then categorized companies by their business relationships with Alibaba across these priorities.

• Cross-border commerce
• E-commerce
• Express logistics
• Omnichannel retail
• Online grocery

This graphic includes investments, acquisitions, and business relationships for Alibaba Group, Alibaba Entrepreneurs Fund, and Tmall. These designations are not exhaustive of Alibaba’s investment and partnership activity in the analyzed period.

Cross-border commerce

Alibaba has formed several strategic partnerships via its logistics arm, Cainiao, to reach shoppers outside of China (as well as to connect foreign brands with Chinese customers). The company is particularly focused on less-mature markets where it can capture new growth.

It has partnered to enable cross-border logistics and shipping to South America (Atlas Air Worldwide Holdings), Japan (SGH Global Japan), Europe, the Middle East, and North Africa (Saudia Cargo). 

Alibaba has also formed smaller-scale partnerships with organizations like the Zhejiang China Commodities City Group Co. with the goal of helping small businesses extend their reach outside of China.

E-commerce

Alibaba’s investments in e-commerce platforms have focused on growing its reach in high-growth markets and in key product categories.

For instance, over the last 2 years, the retailer increased its stakes in Turkey-based online fashion marketplace Trendyol as well as in Singapore-based mass online marketplace Lazada. In addition to the potential for growth in Singapore, Lazada reaches even further across the competitive Southeast Asian retail landscape. Alibaba wants to extend the marketplace’s reach into Europe and other new markets as well. 

Alibaba’s investments also signal that it’s doubling down on growing categories. Its investment in online luxury marketplace Farfetch in November 2020 points to the importance of luxury shoppers and products in Asia. The deal included not only a $300M investment in Farfetch but also a $250M stake in a new joint venture called Farfetch China, both investments were in partnership with the Swiss luxury holding company Richemont. 

Express logistics

In recent years, Alibaba has increased its ownership stakes in the biggest express logistics companies in China. The companies offer fast logistics and delivery capabilities and have grown dramatically as a result of an increase in the use of e-commerce across China. 

Notably, the company fully acquired China-based logistics provider ALOG in August 2020. ALOG had been the main warehouse management provider for Tmall Mart, Alibaba’s online supermarket. 

Omnichannel retail

Alibaba continues to focus on grocery as a key building block for its store footprint and New Retail online-to-offline strategy. 

Since 2016, Alibaba has run its high-tech supermarket Freshippo, which deploys tech like electronic shelf labels, facial recognition, and robotics to enable more efficient shopping in stores as well as faster delivery. The chain now has nearly 300 locations.

Alibaba’s investments in recent years have added to its physical grocery footprint, with the aim to extend New Retail capabilities. The company’s biggest move in the sector was a $3.6B investment in Sun Art, one of the largest mass merchandiser and supermarket chains in China, in October 2020. The deal added nearly 500 stores to Alibaba’s brick-and-mortar network. Since then, Alibaba also led a $100M round for China-based T11 Food Market. 

Online grocery

Alibaba’s online grocery initiatives offer the company more ways to make New Retail connections between stores and online. They also enable the company to take advantage of the growth in online grocery, which expanded in China during the pandemic.

Its investments have reached across the grocery value chain. For instance, in February 2021, Alibaba took a minority stake in Caihuasuan, which builds pieces of the fresh food supply chain. 

Alibaba also invested 4 times in the group grocery buying platform Nice Tuan, which has since dissolved. But Alibaba’s attention to the company points to its interest in new online models like group buying, which has caught fire in the fast-growing lower-tier cities in China (as well as in India, South America, and elsewhere) where Alibaba is looking for growth.

A social commerce partnership may prove most fruitful for Alibaba’s online grocery ambitions. In August 2022, Alibaba’s online grocery platform Ele.me launched a presence on Douyin, the Chinese equivalent of TikTok (also owned by ByteDance). Douyin users can place grocery and restaurant orders directly via Ele.me on the video platform.

Other

Beyond these 5 strategic focus areas, Alibaba has made noteworthy investments, partnerships, and acquisitions across a range of other categories.

E-commerce enablement: In July 2020, Alibaba invested in the Australia-based cross-border payments processor Airwallex. Then in March 2021, the company invested $30M in China-based Leyan Tech, which makes AI-powered e-commerce customer service software. 

Media & content: Alibaba has made a few investments that indicate interest in advanced e-commerce content and the metaverse. In November 2021, the company backed a Series A round to China-based DGene, which makes mixed reality content for several industries, including AI-generated actors for film and TV, as well as digital influencers. Then in March 2022, Alibaba participated in a $60M Series C round for the mixed reality equipment and tech company Nreal, which is based in China. 

Sustainability: Sustainability has come into focus for Alibaba as it grows in importance for Chinese consumers as well as for the Chinese government. Along with a 2020 investment in Hong Kong-based green packaging developer Ecoinno, Alibaba also formed a “Waste Free World” partnership with Unilever in 2021. The companies designed machines that use AI to identify types of plastic and sort them to be recycled. Users get Unilever coupons and rewards on Alibaba’s payments platform AliPay.

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Planogram compliance and inventory management providers sell technology to track in-store shelf conditions. Solutions focus on planogram and merchandising compliance and in-stock levels. There are 5 primary data collection solutions: cameras, mobile scanning, shelf sensors, robots to monitor shelves, and autonomous drones.

Companies in this space also use software platforms to process data from external sources along with their own data to optimize pricing and assortment and forecast demand.

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AVP has $1.2B of assets under management and invests in data-driven startups that can impact healthcare, customer experience, and underwriting performance. These areas represent opportunities that are relevant to the entire insurance industry.

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While resale stands as a new revenue opportunity for brands, they are running into a number of challenges when it comes to launching their own resale operations. For one, the market is becoming much more fragmented and specialized. Additionally, logistics, shipping, and critical capabilities like quality control and fraud management are also expensive to scale and implement.

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While lots of retailers are currently struggling to figure out last-mile logistics, players who have been investing in the space for a while are moving their focus to areas like the middle mile (the leg before goods reach fulfillment centers) and intralogistics (the movement of goods within fulfillment centers).

Seeing an opportunity, Amazon is pairing its AWS cloud computing capabilities with extensive e-commerce logistics to create a suite of supply chain offerings for small to midsize businesses. It has even been extending these services beyond its marketplace clients with solutions like “Buy with Prime” which allows brands to offer Prime’s delivery speed, package tracking, and return logistics on their own e-commerce sites.

Doing so not only creates additional revenue for Amazon but also helps it optimize its own supply chains with fuller freight loads and more efficient operations. 

In this report, we break down Amazon’s strategy in the supply chain across 3 key takeaways: 

• Amazon is automating intralogistics. With Amazon’s enormous warehouse footprint, a dizzying number of offered products, and millions of packages shipped every week, automating intralogistics is key to driving e-commerce profitability for the tech giant. 
• Amazon wants to revitalize the middle mile. Amazon has been ramping up its middle mile capabilities with new products and investments in freight management and air cargo. In doing so, the tech giant is looking to capitalize on an often overlooked leg of the supply chain. 
• Amazon is betting on sustainable mobility. Amazon has taken some big swings in the electric vehicle market, striking deals to purchase fleets of vehicles and investing billions of dollars. 

Amazon is automating intralogistics

Intralogistics involves the movement of information and goods within individual fulfillment or distribution centers. 

A key enabler of Amazon Prime’s quick delivery speed is the company’s extensive network of fulfillment centers. And with over 1,100 centers in the US alone and a reportedly extremely high employee turnover rate in warehouses, Amazon is keen to automate intralogistics as much as possible. 

Amazon is one of the top players for supply chain patents, with many of its filings related to automating intralogistics processes like mapping the footprints of fulfillment centers for efficiency or detecting inventory levels.

In 2022, the tech giant introduced new intralogistics robots named Sparrow and Cardinal. Currently, these robots are designed to sort packages, move goods throughout the fulfillment center, and pick goods of different shapes, sizes, and materials (an area existing picking robots have difficulty with). 

Amazon has also made moves outside of its internal robotics development, such as: 

• Acquiring intralogistics robot maker Cloostermans in Q3’22 to boost its robot research and deployment. 
• Announcing its warehouse & distribution network in Q3’22. This is a pay-as-you-go service offering inventory management within Amazon fulfillment centers and automated distribution for sellers.
• Expanding its warehouse footprint by investing in smaller fulfillment centers — situated near major population centers and stocked with in-demand items — to enable same-day deliveries for some of its goods. 

While Amazon has been ramping up its offerings and investments in this space over the last few years, the tech giant has recently conducted the largest layoff in its history and has closed or abandoned plans for dozens of warehouses. Given the increased focus on cost control, the success of its automation bets could be more important than ever.

Amazon wants to revitalize the middle mile

The middle mile is the leg of the supply chain where goods are brought from distribution centers to fulfillment centers. This leg can include ocean, air, and ground freight. While the middle mile has traditionally been outsourced, it has recently received more attention as squeezed supply chains have made headlines for costing retailers millions of dollars in profit. 

A successful middle mile is also crucial to last-mile operations to ensure fulfillment centers have goods in time to meet the ever-shorter delivery timeframes promised to customers.

Amazon has a distinct advantage in providing middle-mile services to retailers as it has already invested heavily in its own freight technology to make Prime shipping possible. Also, with Amazon Web Services’ cloud computing capabilities, the tech giant has high visibility into logistics — a key component of successful middle-mile operations. 

Building on this, Amazon offers Amazon Freight which allows retailers to book space on its freight trucks for thousands of routes across the US. Amazon uses algorithms to determine which vehicles are operating at LTL (less than load) to offer discounted shipping rates to retailers. 

Amazon has also made strategic moves with air cargo. Previously, the e-commerce retailer relied entirely on contracts with UPS and FedEx. But in the last few years, Amazon began to shift its strategy and in 2021 opened a $1.5B air hub in Kentucky to have more ownership over its middle mile. 

Additionally, Amazon has struck several deals for minority stake investments and strategic partnerships in this area, including: 

• A minority stake in Air Transport Services Group, an aircraft leasing and air cargo transport provider, in Q2’21
• A minority stake in Hawaiian Airlines to operate 10 airbus freight plans starting in fall 2023
• A partnership with Azul Cargo Express in Q4’22 to expand its delivery reach in Brazil
• A partnership with India-based Quikjet Cargo in Q1’23 to expand its reach in India

Amazon has been operating these planes under the brand Amazon Air which has expanded rapidly since its inception in 2015. With air cargo’s high barrier to entry both from a regulatory and capital standpoint, expect Amazon to begin creating additional revenue streams from its investments similar to what it has done with Amazon Freight. 

Amazon is betting on sustainable mobility

Fuel costs account for around 15% of last-mile expenses and volatile fuel prices can sometimes push this proportion even higher. However, it’s estimated that using electric last-mile vehicles can reduce fuel costs by more than half — attracting interest from big fleet operators. 

Amazon (which has a 2040 net-zero emissions goal) has already made significant moves to electrify its delivery fleet and has made some big bets on sustainable mobility, including: 

• Backing California-based EV maker Rivian and pledging to order 100,000 delivery vehicles from the company. Amazon has reportedly delivered 10M+ packages with Rivian EVs.
  
• A commitment to deploy 10,000 electric delivery vehicles in India and entering into partnerships with India-based companies (Tata Motors, Mahindra Electric, Magenta Mobility, and TVS Motor) to produce those EVs. 
• Amazon is also still wanting to deploy battery-powered delivery drones under its Prime Air program, which has already made some test deliveries in California and Texas. However, this division has been heavily affected by the Q1’23 layoffs. 

Source: Amazon

With Amazon shipping well over a million packages a day, meaningful progress toward sustainable mobility could have a big impact. However, even with its carbon reduction efforts, Amazon’s total emissions grew by 18% in 2021 as demand for its services went up — signaling that the company will need to make additional investments in making its supply chain more sustainable to hit its net-zero goal by 2040.

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Many of this year’s winners focus on boosting the efficiency of retail operations across channels. To this end, AI is being deployed by winners across categories, to automate everything from inventory forecasting and management to counterfeit tracking. Additionally, platforms that integrate tech stacks — whether in stores or for digital selling — are gaining traction in developed as well as emerging markets. 

Other companies in this year’s winning cohort help retailers create more engaging shopping experiences, via tools like chat commerce, shoppable video, and NFTs. Sustainable shopping solutions for both consumers and retailers make a notable appearance as well.

Using the CB Insights platform, our research team picked these 100 private market vendors from a pool of over 7K companies, including applicants and nominees. 

The list includes early- and mid-stage startups driving innovation across store tech, e-commerce, loyalty & rewards, supply chain & logistics, and digital engagement. They were chosen based on factors including funding, proprietary Mosaic scores, market potential, business relationships, investor profile, news sentiment analysis, competitive landscape, team strength, and tech novelty. The research team also reviewed hundreds of Analyst Briefings submitted by applicants.

Clients can access the entire Retail Tech 100 list and interactive Collection here. (If you don’t have a CB Insights login, create one here.)

Companies are categorized by their primary focus area and client base. Categories in the market map are not mutually exclusive. Please click to enlarge.

Want to be considered for future rankings? Fill out this initial application form (it’ll take no more than a few minutes). If selected, you’ll be asked to complete our Analyst Briefing Survey so that our analysts can better understand your products, customers, and market traction.

RETAIL TECH 100 COHORT HIGHLIGHTS

Overall funding & valuation trends: The cohort has raised nearly $5B across more than 250 equity deals since 2019 (as of 3/2/23). In 2022 alone, companies on the list raised more than $3.1B across 106 deals. This year’s list features 3 unicorns: self-checkout company Mashgin, delivery management platform Veho, and omnichannel operations and loyalty tool Swiftly. 

Funding leaders: Cart.com, which makes end-to-end e-commerce technology, is the most well-funded company on the list, with $323M in total equity funding. Delivery management unicorn Veho comes in second with $299M in funding. New unicorn Swiftly rounds out the top 3 with $216M in total equity funding.

Global reach: This year’s winners come from 20 different countries. Fifty-six of the selected companies (56%) are headquartered in the US. The United Kingdom comes in second with 6 (6%) and China and Australia are tied for third with 5 companies (5%) each. 

Notably, 12 companies on the list (12%) represent emerging market economies. Local companies in these markets are increasingly looking to deploy tech to make fragmented and informal retail processes more efficient and trackable.

Some of the companies in these geographies — like Majoo (Indonesia) and Dot (India) — offer omnichannel retail operations platforms that help retailers digitize operations across in-store and online channels. Other solutions — such as Khazenly (Egypt) — are focused on delivery management.

Top investors: Insight Partners is the top investor in this year’s list. It has invested in 8 of this year’s winners since 2019, including 3D digital content producer and manager nfinite, food traceability solution iFoodDS, and delivery management platform Shipium. Tiger Global is close behind with 7 companies, followed by Accel with 5.

Digital content and engagement rules: The biggest category for this year’s list is digital shopper engagement, which has 16 companies (16%). The companies in this category allow retailers to connect with shoppers across platforms and channels, with a focus on personalization and loyalty. 

For instance, Charles and Postscript both make chat commerce platforms that enable marketing and checkout via text. Meanwhile, Arianee, METAV.RS, and Novel help brands develop NFTs and use Web3 tools to boost loyalty and authenticate their products. 

Automation is driving efficiency: Automation solutions reach across categories on this year’s list as retailers and brands look for tools to make their operations faster and smarter. 

Alloy, for instance, makes a platform to connect e-commerce teams’ apps and automate tasks. Several other companies build supply chain integration platforms that aggregate tools and use AI to optimize decision-making. Meanwhile, Vue.ai, Lily AI, and Pixyle use AI to automate product tagging and broader catalog management online, which can ultimately boost the accuracy of shoppers’ searches and drive more buying. 

Early-stage innovation: More than half of the winners in this year’s cohort are early-stage companies (seed/angel or Series A). These companies are developing innovative solutions to promote more specialized and personalized shopping experiences.

For example, EQL’s e-commerce platform is specialized for “hype commerce,” or limited-time drops for hot products. EON creates digital IDs (or digital twins) to make apparel traceable. And Nibble Technology uses AI and chat commerce to inject negotiation into e-commerce shopping.

What we didn’t find: Despite retailers’ acute challenges in a few areas — namely loss prevention and employee empowerment — our research turned up fewer-than-expected earlier-stage companies solving these problems in new ways. 

However, a few tools still stood out in these areas. For example, Spot’s AI-powered video intelligence system helps retailers track everything from shoplifting to employee issues. Meanwhile, SparkPlug’s platform helps retailers reward employees in a tough labor market through the gamification of tasks.

THE RETAIL TECH 100 CLASS OF 2022: WHERE ARE THEY NOW?

The 2022 Retail Tech 100 winners have accomplished a great deal since March 2022. Together, they have seen:

• Over $2.5B in equity funding across 25+ deals (as of 3/2/23)
• 10 mega-rounds (deals worth $100M+), including a $300M round to cross-border payments company Xendit
• 2 exits: 1 merger and 1 acquisition
• 1 new entrant to the $1B+ unicorn club

If you want to learn more about the Retail Tech 100 Class of 2022, check out the full list of previous winners.

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Emerging use cases in retail could deliver time and cost savings across significant areas of operations like marketing, where companies spend nearly 14% of their budgets.

Here are 6 ways generative AI can automate tasks and scale critical work for brands and retailers:

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Consumer survey solution startups facilitate using multiple communication channels (such as text and video) for companies to survey consumers. Some solutions also offer on-demand customer surveying from networks of engaged consumers who want to share their opinions on trends and brand perception.

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Brands, retailers, and individual sellers around the globe are increasingly using technology to enable full shopping experiences on social media platforms. The approach is projected to drive $1T+ in sales by 2025, according to Accenture — up 2x from 2021. 

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