It’s no secret that Covid-19 drastically impacted the world within these past couple of months. With the Covid-19 cases increasing every day and unemployment rates also increasing, during this pandemic, it didn’t shock anyone that many businesses and stores will be closing. Although some small businesses and stores were given money by the government to help them stay afloat during the pandemic, they still had to close many stores. Many fashion retail stores were filing bankrupt and some even closed due to Covid-19’s impact.
Neiman Marcus filed for bankruptcy on May 7 after furloughing 14,000 employees. The company operates 43 Neiman Marcus stores, 22 Last Call stores, and two Bergdorf Goodman stores and has a borrowings total of about $4.8 billion. Due to Covid-19 causing many retail stores to be empty for months, a total of 4 Neiman Marcus stores closed for good.
Although it’s not a fashion retail store, popular furniture store Tuesday Morning filed for bankruptcy in late May. Which the company filing for bankruptcy caused at least 132 stores to close across the United States. With Tuesday Morning deciding to slowly close other stores within the year for reorganization.
Despite the many celebrity collaborations, New York & Company is one of the fashion retail stores that just couldn’t survive Covid-19. The store’s parent company, RTW Retailwinds, Inc announced that it filed for Chapter 11 bankruptcy. Which led to stores across the United States to be closed.
One of the most recent fashion retail stores that announced that they will be closing some stores is a popular retail store H&M. Due to struggling sales during the pandemic, the fast-fashion store will be closing up to 250 stores. The company had a 5% sales decline in September, which the 250 stores closing will make up for that decline. However, the company is slowly trying to lean towards online shopping being the main source of sales.
As Covid-19 continue to change how the world works when it comes to consumers shopping, it seems like many people are moving towards online shopping compared to going to malls and shopping outlets. Especially when companies like Amazon exist.