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The Atlantis Report, 9/29/23
"12 Major Retailers Shutting Down
Multiple Stores In The Fall Of 2023"
"The U.S. economy has an ominous atmosphere looming this fall. Amidst this backdrop, gloomy clouds are casting their shadow over major retail giants, and are taking drastic steps to navigate the uncertain terrain ahead. Some are proactively shedding underperforming stores to safeguard their financial stability, while others are plunging into liquidation as they face insurmountable challenges.
Take the case of Bed Bath & Beyond, a household name that filed for bankruptcy back in April. Despite efforts to revive its business, the outlook remained bleak. In a revised bankruptcy plan, the company delivered grim tidings to its shareholders. Those holding specific interests or claims tied to Bed Bath & Beyond were left empty-handed, as compensation or benefits were eliminated. Even Overstock's $21 million acquisition of the brand's intellectual property couldn't offset the company's crushing debt. On September 12, the final blow landed as Bed Bath & Beyond confirmed the closure of all 360 of its remaining stores scattered across 40 states.
Similarly, JoAnn Fabrics is bracing for mass store closures and staff layoffs in 2023. The retailer revealed plans to shut more stores and trim its corporate office workforce. Amanda Hayes, a spokesperson for Joann, cited the need to realign the company's structure and expenses with its business requirements. The exact count of layoffs and store closures remains undisclosed, but the financial picture is unsettling, with a mere $19.1 million in cash against a towering $1 billion debt. Quarterly losses have surged to $73 million, up from $56.9 million in the previous quarter. The specter of being delisted looms large, making it challenging to secure much-needed capital. JoAnn's stock has plummeted by 68% compared to a year ago and an astounding 95% from its 2021 peak, earning it a spot on Moody's bankruptcy watchlist.
These store closures are just one part of a larger narrative of economic turbulence. Alongside these closures, hundreds of thousands of retail workers are losing their jobs as companies battle for survival or concede defeat. The repercussions are reverberating through key economic indicators, including the nation's gross domestic product. Yet, for countless hardworking Americans, the retail crisis is causing their lives to unravel. While it's too early to gauge the full extent of this downturn, one thing is crystal clear: the American retail landscape will undergo a profound transformation in early 2024. In this video, we delve into the strategies popular brands are employing to weather the ongoing recession, shedding light on the evolving retail landscape."
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