In today’s retail industry, a store can go out of business for several reasons. These can include economic causes, such as shifting demand or excessive overhead, or physical characteristics like location and interior design features.
The good news is that many businesses bounce back after a temporary setback, or even find a buyer. But if you’re considering closing your business down, make sure to keep these things in mind so you can get it off the ground without any problems.
Vanity
Vanity is an American specialty chain of fashion retailers that sold apparel and accessories targeted to fashion-conscious young females. Founded in 1966 and headquartered in Fargo, North Dakota, the company operated as many as 140 stores in 27 states.
Known for its affordable prices and variety of sizes, Vanity was a popular choice among shoppers looking to buy clothing that fits. The brand also offered career wear and clothing for special occasions, as well as a line of accessories.
In addition to its mall-based locations, Vanity also had an online presence. The Vanity website, launched in 2008, offered a variety of products including fashion tops, jewelry, and clothing for men, women, and children.
The Vanity logo features the lettering “IMPRESSIONS” with a swirl design over it. The mark was used on all of the company’s clothing and accessories. The trademark was registered in 2006.
On March 1, Vanity filed for bankruptcy. It has contracted with Tiger Capital Group to conduct liquidation sales at its stores and will also sell off furniture, fixtures, and equipment from its distribution centers.
Charlotte Russe
The company started in 1975 and operated more than 500 stores across the United States and Puerto Rico at the time of filing for bankruptcy. The retailer specialized in fashion apparel, footwear, and accessories for women aged 15 to 29. Its products were often sold at discount prices, per Company Histories.
The bankrupt company aimed to use the bankruptcy process to shed debts and sell its assets, but it failed to find a buyer who would keep the business going, according to USA Today. Instead, it announced plans to close 94 of its 512 stores and sold its inventory, including all online retail, to liquidator SB360 Capital Partners for $160 million.
Charlotte Russe is one of a growing number of brick-and-mortar retailers that have struggled since being bought by private equity firms. It joins a list that includes Gymboree, Claire’s, and Mattress Firm.
For a generation of mall rats, the Charlotte Russe brand was an institution. Despite the competition from H& M and Forever 21, it was still considered one of the leading brands in teen fashion.
It was also a popular destination for young women who weren’t ready to spend a fortune on fashion, but who wanted fashionable clothing and accessories at a reasonable price. That’s because it offered a wide variety of items in sizes ranging from 0 to 28.
However, the quality of the items sold at Charlotte Russe remained low, especially when compared to other brands. For example, a pair of chic cargo pants sold at Charlotte Russe costs $20, while the same item at H& M is priced at $24.
The chain also has a reputation for not delivering on-trend, fashion-forward pieces. In fact, many customers complained about not being able to find trendy outfits for themselves and their friends.
Joules
Joules is a British lifestyle retailer selling quirky country clothing, accessories, and homewares. Its multichannel business covers retail, wholesale, and online channels. It operates what it calls a ‘total retail’ model, meaning that its brand and products are uniformly promoted across all channels.
The company was founded in 1977 as Joule & Sons and grew to become a successful business. It started off with just one man and a tent, but it has expanded to include more than 100 stores in the UK and Ireland.
In 2016, the firm floated on the stock market for PS140m after finding a niche in colorful clothing and Wellington boots. Despite this, trading was struggling and it was drafted by administrators last month.
But, after a bid from Crew Clothing owner Brigadier Acquisition Company and TFG failed, it was finally bought out of administration by British clothes retailer Next for up to PS34m. The FTSE 100 company will take over a majority of Joules, saving 1,450 jobs.
Next will keep around 100 of Joules’ 124 stores and retain most of its staff in the long term. It will also provide Joules’ head office with warehousing and distribution services.
The chain is expected to go live on Next’s Total Platform system in early 2024. The platform, which already provides services for brands including Gap and Victoria’s Secret, will take over the operation of Joules’ website and online operations.
This will allow the brand to continue operating on the high street while also leveraging Next’s infrastructure to drive sales. It will also save Joules the costs of building its own website and warehousing facilities.
Hancock Fabrics
Hancock Fabrics, one of the largest craft chains in the country, has filed for bankruptcy. Its 255 stores will be liquidated. Its going-out-of-business sale will be led by Great American Group, a subsidiary of B. Riley Financial Inc.
Hancock’s grew into a retail fabric chain in the 1950s, combining a large selection of fabrics with home sewing and decorating supplies. It pioneered a concept of a total fabric store that was cost-efficient and offered consumers a better selection than mall locations or small specialty shops.
In 1985, Hancock acquired Minnesota Fabrics in Charlotte, North Carolina, which operated over one hundred stores under the name Minnesota Fabrics and Fabric Warehouse. By 1992, Hancock was one of seven major retail piece-goods chains operating 482 stores in the United States.
By 1993, the entire retail fabric industry was in trouble, with many smaller and independent fabric shops closing. Hancock’s net income more than halved between 1991 and 1993, while earnings per share decreased from $1.03 to $0.57.
The company developed a number of marketing strategies to attract customers, including a half-hour sewing show and an annual magazine. It also began advertising in other media, such as HGTV.
Clark was a Hancock Fabrics customer as a child, and she has fond memories of shopping there with her mother. She even worked there for a few years as an associate.
Hancock Fabrics in Hazel Dell, TN (WJHL) is closing after the company filed for bankruptcy. Its liquidation sale started Thursday and will remain open until all the merchandise is sold, according to Billie Domson, an associate at the store.