GA Chain Stores Closing, Hit By Retail Apocalypse In 2020

GEORGIA — The financial hemorrhaging of brick-and-mortar retailers across Georgia raged throughout 2020, after the coronavirus pandemic forced the closure of retailers and restaurants for weeks.

For the retailers that survived weeks of closures, the unexpected health crisis required them to pivot their business models — repeatedly — among ever-changing public health guidelines. Owing to the worst domestic public health crisis in a century, corporate bankruptcies in the retail and restaurant industries increased significantly from 17 in 2019 to 30 this year.

The economic crisis was felt strongly in Georgia, where the following retail chains filed for bankruptcy, announced location closures this year or will continue closures in 2021:

J.C. Penney

After filing for bankruptcy in May, J.C. Penney said it would close more than 200 of its 846 stores over the next two years. Seven have closed in Georgia, where 14 J.C. Penney stores remain, but the company has not disclosed whether any are on the chopping block. Simon Property Group, one of America’s largest mall owners, led a partnership that purchased the chain in September.

Pier 1

The bankrupt home furnishing chain announced in May that it was seeking court approval "to begin an orderly wind-down of the company's retail operations as soon as reasonably possible." While closing all of its stores, Pier 1 has retained an online presence.

J. Crew

The J.Crew Group filed for bankruptcy in May. J.Crew Group, which also operates the Madewell brand of clothing, estimated in a Chapter 11 bankruptcy filing in the U.S. Bankruptcy Court for the Eastern District of Virginia that it had assets and liabilities of between $1 billion and $10 billion.

GNC

Health and wellness retailer GNC filed for Chapter 11 bankruptcy in June and announced plans to close as many as 1,200 stores, including four in Georgia, according to USA Today. The Pittsburgh-based company plans to emerge from bankruptcy in the fall. It's in the process of selling itself to a Chinese pharmaceutical company.

Tuesday Morning

Discount home goods retailer Tuesday Morning filed for bankruptcy in May and announced plans to permanently close about 230 of its nearly 700 stores, including eight in Georgia, according to What Now Atlanta. The chain blamed the coronavirus outbreak for pushing it into bankruptcy.

Macy’s

Macy’s said in early February that it planned to close 125 stores over the next three years, including two in Georgia — Macy’s The Gallery at South DeKalb in Decatur and at the Macon Mall. Both stores closed earlier this year.

Stein Mart

The discount retailer, facing financial pressure caused by the pandemic, announced it would close its 300 locations nationwide. The retailer, which closed 13 Georgia locations, sold its name to a company that hopes to re-launch the brand online.

Tailored Brands (Men's Wearhouse, Jos. A. Banks)

The men's fashion retailer said in its bankruptcy filing that it planned to close 500 locations. The chain was purchased by its lenders and creditors; it's supposed to ask for court approval of a reorganization plan in early 2021.

Neiman Marcus

The upscale department store emerged from bankruptcy in September after shedding billions of dollars in debt and closing five stores. Its lone Georgia location is in Lenox Square in Atlanta.

Brooks Brothers

The 200-year-old menswear retailer filed for bankruptcy and was purchased in September by mall operator Simon Property Group, which also now co-owns J.C. Penney. Simon plans to keep about 125 stores in the chain operating; Brooks Brothers had about 425 stores before the pandemic.

RTW Retailwinds (New York & Company)

The company announced when it declared bankruptcy in July that it planned to shutter nearly all of its 400 stores. According to the company's website, all 16 Georgia locations are closed.

Ascena Retail Group (Justice, Ann Taylor, LOFT, Lane Bryant and other women's clothing stores)

Ascena closed hundreds of its stores, including 19 Justice locations in Georgia; two Lane Bryant locations in Georgia; eight Catherines locations in Georgia; and four Ann Taylor or LOFT locations in Georgia. A private equity firm is buying the company.

Guitar Center

The nation's largest musical instrument retailer attempted to offer virtual music lessons during the outbreak, but that didn't generate enough revenue to keep it out of bankruptcy. Nine Guitar Centers are open in Georgia.

Francesca's

After its recent bankruptcy filing, the women's boutique will close about 25 percent of its 700 stores. There currently are 13 locations in the state, according to the chain's website.