<span style="color: #a3a3a3;">Modell’s Sporting Goods, J.C. Penney, Neiman Marcus and Stage Stores were just some of the retailers that landed in bankruptcy court in 2020 amid a wave of store closures forced by the spread of COVID-19 infections in the U.S.

U.S. retailers have announced 8,400 store closures this year, according to Coresight Research, and the research firm expects 2020 to set a new record, surpassing the 9,302 closures it tracked in 2019.

Pre-pandemic, several bankrupt retailers were teetering on survival with heavy debt loads and struggling to adapt to the shift toward online selling. But lockdown orders put in place in March to slow the spread of COVID-19 led to weeks of store closures and in-store restrictions over the last few months. Specific categories, such as apparel, were also hit hard, particularly as the stay-at-home economy shifted demand toward groceries and other essentials.

Not surprisingly, the bankruptcy load was heavier than in 2019, when Payless ShoeSource, Shopko, Barneys, and Fred’s were among the bigger filings, and in 2018 when the filers included Performance Bicycle, Sears, Rockport, Bon-Ton, Walking Company, and Remington.

Modell’s became the latest regional sporting goods chain to exit the marketplace, joining Sports Authority, MC Sports, Golfsmith, and City Sports in recent years. Among vendors, Remington Outdoors filed for the second time and sold off in pieces.

The following summarizes 2020’s major bankruptcy cases: 

  • Centric Brands, the apparel and accessories licensing firm, voluntarily filed for protection under Chapter 11 in May and emerged in September. The company shed some $700 million in debt and left bankruptcy under new ownership, with Blackstone Centric being the majority sponsor. Kids apparel makes up more than half of Centric Brands sales and includes licenses from Calvin Klein, Under Armour, Tommy Hilfiger, Nautica, and Disney.
  • Century 21, the New York department store chain, filed for bankruptcy and closed its stores. Century 21 has 13 stores, mostly in New York City and the surrounding metropolitan area. The filing was blamed on nonpayment by the company’s insurance providers of approximately $175 million due under policies to protect against losses stemming from business interruption such as that experienced as a direct result of COVID-19.
  • Gold’s Gym filed for Chapter 11 bankruptcy protection in May as the fitness chain dealt with the closure of outlets across the country due to coronavirus. The filing did not involve franchise-owned gyms. In August, RSG Group GmbH, which operates the McFit chain in Europe, acquired the business in a bankruptcy auction. With the purchase of the Gold’s Gym brand, RSG Group has more than 900 gym locations around the world.
  • GNC Holdings, the parent company of health and wellness retailer GNC, filed for Chapter 11 bankruptcy protection on June 24 as the latest effort to manage its debt load unraveled amid the coronavirus pandemic. The Pittsburgh-based chain, which had approximately 5,200 retail locations in the U.S. and 7,300 locations globally as of March 31, said it planned to close between 800 to 1,200 stores in bankruptcy proceedings. In mid-October, the business was sold to China-based Harbin Pharmaceutical Group for $770 million.
  • J. Crew filed for bankruptcy in May to become the first major U.S. retailer to go bankrupt during the outbreak of the coronavirus. Before the pandemic, the retailer had been burdened by a large debt load resulting from a 2011 leveraged buyout and had struggled to adapt to changing consumer tastes. The retailer exited bankruptcy in September by converting $1.6 billion in debt into equity, putting lenders in control. Madewell, the denim-driven concept, has been performing better in recent years than the preppy-themed J. Crew flagship concept. In November, Libby Wadle, who had been leading Madewell, took over as CEO.
  • J.C. Penney Co. filed for bankruptcy in May as the pandemic sidetracked its turnaround plans. Weighed down by some $4 billion in debt, the more than 100-year-old company had closed numerous brick-and-mortar locations in recent years amid online shopping growth. In early December, Penney emerged from bankruptcy proceedings in a deal that left its two largest landlords, Simon Property Group and Brookfield Asset Management, as the department store chain owners and operators. As part of the agreement, Penney’s creditors took over control of its distribution centers and other real estate holdings. Penney plans to permanently close nearly a third of its 846 stores as part of its restructuring over the next two years, which would leave it with just over 600 locations.
  • Lord & Taylor filed for bankruptcy on August 2 with plans to close 24 of its 38 remaining stores but soon moved to close all locations. Lord & Taylor opened its first store in New York in 1826 and was America’s oldest operating department store. In 2012, Hudson’s Bay Company acquired Lord & Taylor before selling it in 2019 to Le Tote, a fashion rental subscription service, for $75 million.
  • The Louis Garneau Sports Group filed for creditor protection in Canada in March. In early December, a new investor, Montreal-based investment firm Champlain Financial Corporation, arrived to complete a reorganization and set a brand relaunch. Its company founder, Louis Garneau, remains the majority shareholder. Garneau and Champlain have been working over the past months to prepare a strategic plan to increase the international growth of its three core brands — Garneau, Sugoi and Sombrio.
  • Lucky Brand filed for bankruptcy in July and emerged in August in a $140 million sale to SPARC Group, a 50/50 joint venture of brand licensing and marketing company Authentic Brands Group and mall operator Simon Property Group. Lucky Brand closed 13 stores in bankruptcy proceedings and has about 180 stores.
  • Modell’s Sporting Goods filed for Chapter 11 on March 11 after being unable to find a buyer outside of bankruptcy protection. The 131-year-old retailer moved to liquidate to pay off lenders by mid-April in hopes that a white knight would arrive to revive operations. However, the emergence of lockdown efforts due to the pandemic subsequently undermined efforts to hold going-out-of-business sales and vanquished efforts to find an investor. The Chapter 11 case was first suspended until April 30, with going-out-of-business sales able to restart in late June. The liquidation plan called for unsecured creditors, including trade vendors with claims, to recover less than one percent of their claims.
  • Neiman Marcus filed for bankruptcy in May and closed five stores, including its Hudson Yards stores that opened in New York City in 2019. It emerged from bankruptcy in September under new ownership and $4 billion in debt eliminated. In a press release, CEO Geoffroy van Raemdonck said the luxury retailer’s new owners — which include the investment firms PIMCO, Davidson Kempner Capital Management, and Sixth Street — “understand the value of our brands and the opportunity for growth.” He added that Neiman’s new owners are also committed to sustainability issues, “where we intend to be a leader within the industry.”
  • The Northwest Company in April filed for bankruptcy protection in the Southern District of New York. Upon a motion from Ashford Textiles USA, a key vendor of products to Northwest, the case was converted to Chapter 7, which refers to the liquidation of assets in late November.
  • Remington Outdoors in July filed bankruptcy for the second time in two years. The return was blamed on elevated inventory levels and a wide range of brands that extended the company beyond its “core focus” coming out of its first bankruptcy. Officials also said unfavorable trends had continued since the first bankruptcy. COVID-19 and civil discord have Americans stocking up on guns and ammunition, but Remington was short of funds despite having erased hundreds of millions of dollars in debt in a 2018 bankruptcy. The business was broken up in sales to seven different entities. Among the more prominent buyers, Vista Outdoor purchased Remington’s Lonoke ammunitions business and certain IP assets; Sierra Bullets, which is owned by Clarus Inc., acquired Barnes Bullets, another part of Remington’s ammunition business; and Sturm Ruger & Co. acquired Remington’s Marlin firearms business.
  • Sail Outdoors filed for creditor protection under the Bankruptcy and Insolvency Act in Canada in June due to the pressure of having its stores shuttered for several weeks because of measures to limit the spread of COVID-19. Sail closed four stores in Quebec and two in Ontario and is reorganizing around its eight locations in Quebec and four in Ontario, and its e-commerce business.
  • Stage Stores filed for bankruptcy protection in May and moved to liquidate its store base after failing to receive a viable going-concern bid as part of a larger restructuring strategy. Stage had originally planned to convert more than 500 department stores across the country in 2020, including Bealls, Goody’s, Palais Royal, Peebles, and Stage, into the Gordmans off-price concept but challenging preexisting market conditions, exacerbated by COVID-19, prevented the retailer from obtaining the required financing. Going-out-of-business sales at 720 locations began in late July.
  • Stein Mart blamed its August bankruptcy filing in part on the apparel category’s online pressures in recent years. COVID-19’s arrival and, in particular, a resurgence in cases in July left the 112-year-old discount department store chain unable to pay its bills. All its 281 stores were liquidated. An investment firm bought the brand in December with plans to relaunch online.
  • 24 Hour Fitness filed for Chapter 11 protection in June, blaming the “disproportionate impact of the COVID-19 pandemic” on its operations. The fitness chain recently said it expects to exit bankruptcy proceedings by December 31 under a plan that will reduce its debt by around $1.2 billion. The Chapter 11 process has resulted in the closure of around 130 clubs and 24 Hour Fitness now has 286 locations, of which 91 are currently open.
  • U.S. Outdoor Store, a landmark store in downtown Portland, OR for decades, filed for bankruptcy and closed its downtown store. The retailer blamed fallout from COVID-19, civil unrest in Portland, shifts to online purchasing, and a dispute with its lender. The store reopened in the Pearl District of Portland with the benefit of lower rent.
  • YogaWorks, the largest yoga chain in the U.S., filed for Chapter 11 restructuring in October and moved to permanently close its more than 60 studios while offering digital and live-streaming content. In early December, MEP Capital Management LLC acquired YogaWorks’ digital business out for $9.6 million as part of a joint offer with affiliates of media company GoDigital Media Group.