The Covid-19 was the coup de grace. In one week, three flagship retailers in the United States declared bankruptcy. After the bankruptcy avalanche of 2019 (more than 9,000 stores closed), " the apocalypse " of the retail trade, according to the expression of the American press, seems to be confirmed.
Friday, May 15, the chain of department stores for clothing, accessories and cosmetics, J.C. Penney, one of the oldest in the country, asked to be placed under Chapter XI bankruptcy protection. Founded in 1902 by the son of a Missouri pastor and farmer, James Cash Penney, the brand had survived the Great Depression of the 1930s. At its peak, it employed more than 200,000 people (85,000 today) and owned 1,600 stores. The group said it had obtained $ 900 million (825 million euros) from its creditors to organize its restructuring. It plans to close 200 stores this year and 50 more in 2021, or nearly 40% of the current number of its establishments.
The decline of malls
A week earlier, it was the luxury department store chain Neiman Marcus that had filed for bankruptcy after 113 years of existence. The Dallas, Texas-based group, which also owns the Bergdorf Goodman and Horchow brands, had to lay off 14,000 workers due to the pandemic when it had more than $ 4 billion in debt. He preferred to anticipate the deadlines: most of his stores, except those in Florida, are still closed due to sanitary measures.
Another victim: the brand J. Crew, which had nevertheless experienced a revival of fervor since Michelle Obama had adopted its ready-to-wear line BCBG. In 2011, it even became the first consumer fashion brand present at New York Fashion Week. And she launched Madewell, a brand for teenagers, which had grown rapidly and now has 132 stores. On May 4, J. Crew also invoked Chapter XI. The company hopes to reach an agreement with its donors (Anchorage Capital Group, LLC and GSO Capital Partners) to convert part of its debt ($ 1.65 billion) into capital.
The United States has many more stores than it has become necessary in a world where consumption has changed
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