On July 15, 2020, it was reported, regional gift specialist The Paper Store filed for Chapter 11 bankruptcy Tuesday after trying to manage a liquidity crisis brought on by the COVID-19 closures, which hit on some of the company's most important selling days. The company, which runs 86 stores in the Northeast, is looking to sell itself in bankruptcy. The company's tight timeline calls for a late August auction. Don Van der Wiel, a restructuring adviser to The Paper Store, said in court papers that a group that includes one of the retailer's creditors has "expressed an interest" in making a stalking horse bid for the company that would set the baseline at an auction. The retailer entered bankruptcy with $45 million in funded debt, $13.5 million in unpaid bills to vendors, and $3.7 million in unpaid rent for April, May and June, among other liabilities.
On July 15, 2020, PVH Corp. said it will permanently shutter its 162 Heritage Brands outlet stores by mid-2021. The brands with company-run stores are Izod, Van Heusen and Warner's, according to the company's 2019 fiscal year summary. The company's Tommy Hilfiger and Calvin Klein retail stores aren't affected, a company spokesperson told Retail Dive in an email. The company will also cut 450 positions or 12% of its workforce, according to a press release. The company expects the workforce cuts to save $80 million annually. PVH expects the changes to cost about $80 million in pre-tax charges over the next 12 months mostly severance, lease termination costs, inventory markdowns and noncash asset impairments about $10 million of that is expected to be noncash.
On July 14, 2020, it was reported, Bed Bath & Beyond has put a price tag on how much it expects in annual savings by getting better prices from current vendors. In an update filed with the SEC today, the retailer said it should be able to generate approximately $200 million in savings each year by renegotiating better terms. As previously announced, the company has also embarked on an initiative to remove about $1 billion in inventory from within Bed Bath & Beyond store locations over the next 24 months. That sum includes inventory associated with the 200 units its plans to shutter over the same period. Although the filing did not specifically address recent reports that BBB is shopping the Cost Plus World Market and Christmas Tree Shops/AndThat chains, the company said the sale of non-core assets could bring in $350 million to $450 million. On July 09, 2020, Bed Bath & Beyond announced it will close about 200 stores, mainly from its namesake banner, over the next two years. This represents about 20% of the Bed Bath & Beyond banner. The company expects to generate between $250 million and $350 million in annualized savings from store closures; lower supply chain costs; selling, general and administrative cost optimization; and more efficient pricing and promotions, executives said on a conference call with analysts. This comes as the company reported first quarter net sales fell nearly 50% to $1.3 billion, according to a press release.
On July 13, 2020, it was reported, New York & Co. owner RTW Retailwinds filed for Chapter 11 bankruptcy protection Monday after facing deep financial distress since the onset of the COVID-19 crisis. The apparel seller said in a press release that it plans to close "a significant portion, if not all" of its brick-and-mortar stores in bankruptcy. The company is also "evaluating any and all strategic alternatives," including a sale of its e-commerce business and related intellectual property.
