The country’s longest economic expansion has stopped in the first quarter of 2020. And as the economy is experiencing a sharp decline, this year has seen a steep rise in the number of bankruptcies. In Maryland alone, more than 7,200 businesses have filed for bankruptcy according to the American Bankruptcy Report, and that’s only from January to July. Many more companies are seeking the assistance of bankruptcy attorneys in Baltimore and other cities in Maryland as they decide to file for bankruptcy protection. As a result, you might be seeing less of your favorite establishments in 2021.
Here are some big business entities that have decided to close some, if not all, of their doors to the public due to bankruptcy, business restructuring, or the pandemic which mulled dine-in services and in-store shopping.
1. JCPenney
JCPenney is one of the retail giants that have filed for bankruptcy this year. The announcement came last May where they also announced their plan to permanently close 242 stores as part of the company’s effort to restructure. Three of the JCPenny stores that are set to close are in the following Maryland locations: Abingdon, Lanham, and La Vale.
2. Papyrus
Papyrus, a stationery retailer that once had 450 locations, filed for Chapter 11 earlier this year. All of its remaining 254 stores across the US and Canada will be closed permanently including 5 Maryland locations in Annapolis, Montgomery, Chevy Chase, Columbia, and Towson town.
3. PF Chang’s
This American-based popular Asian restaurant chain closed its only Montgomery County location in Friendship Heights, Maryland last May 14. The decision was made after all restaurants were required to stop dine-in services in line with the stay-at-home order for Marylanders issued by Gov. Larry Hogan.
4. Pier 1 Imports
It was reported last February that Pier 1 Imports, a home goods chain specializing in home furnishings and décor, filed for Chapter 11 bankruptcy after years of falling sales. The company plans to close 450 of its stores which is about half of its total store count. There are 9 Pier 1 Imports establishments that are set for closure in Maryland specifically in Westminster, Nottingham, Salisbury, Gaithersburg, Baltimore, California, Gambrills, Ocean City, and Rockville.
5. Sugarloaf Craft Festivals
Sugarloaf organizers announced that the popular craft fair which was drawing thousands of people to Maryland filed for Chapter 7 bankruptcy on June 15 after 45 years of operation. Sugarloaf emailed the news to people who participated in the festivals and also published a letter on their website.
“Unfortunately, the global pandemic sparking cancellations of large public gatherings makes it impossible for our business to continue,” Sugarloaf wrote on their homepage. “With no cash flow coming in, even a well-managed company cannot survive indefinitely. Sadly, today we must announce that Sugarloaf Craft Festivals will close.”
6. Jos. A. Bank
Tailored Brands, the parent company of Jos. A. Bank and Men’s Wearhouse, declared bankruptcy in August. The company filed for Chapter 11 after they announced their decision to close up to 500 stores. Jos. A. Bank was deeply rooted in Maryland as it was based in Hampstead in Carrol county before it was acquired by Men’s Wearhouse in 2014. Included in the list of proposed sites for closure are Jos. A Bank stores in Severna Park, Rockville, Gaithersburg, Baltimore, and Germantown.
7. Modell’s Sporting Goods
Modell’s Sporting Goods is a family-owned business chain with 153 stores across the country. However, the company filed for Chapter 11 bankruptcy in March and announced that it was closing all of its stores with 9 sites located in Maryland.
8. Bed Bath and Beyond
Bed Bath and Beyond, a domestic merchandise retail chain, announced on July 8 that it will shutter around 2oo of its stores over the next 2 years as part of the company’s restructuring plan to cope with the current situation. Although the company did not yet release an official list of stores that will be closing, most of them will be its namesake – Bed Bath & Beyond stores.
Many of these brick and mortar stores have already been suffering from low foot traffic as a result of people preferring to shop online but this has been exacerbated by the on-going Covid-19 pandemic. If your business in Maryland is struggling to stay afloat and you’re considering filing for bankruptcy, don’t hesitate to consult with your local bankruptcy lawyer. Richard J. Hackerman is an experienced bankruptcy attorney in Baltimore who can give you insights about the different chapters and guide you in every step of filing for bankruptcy protection. You can give us a call at 410-243-8800 or 888-243-5500 for a free consultation.
