Retail chains have been closing a significant amount of store locations in 2024.
Major retailers have revealed hundreds of store closings, some in out-of-court restructuring plans and others in Chapter 11 or Chapter 7 bankruptcy filings.
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Huge drugstore chain owner Walgreens Boots Alliance (WBA) , which operates 8,000 stores with 6,000 profitable locations, on Oct. 15 revealed in its 2024 fourth-quarter report that it would close 1,200 underperforming Walgreens stores in the next three years, with 500 closings planned in the fiscal year 2025, as part of its out-of-court restructuring plan.
Related: Huge drugstore retail chain closes hundreds of locations
Walgreens in the third quarter began evaluating 2,000 stores for potential closure but identified 1,200 locations to close. The company said it would work to improve the operating performance and cash flows of the remaining 800 stores and will continue to evaluate those and all other locations for the best possible retail footprint.
Manchester, Vt., outdoor gear and apparel retailer Orvis on Oct. 4 said it would close an undisclosed number of its over 80 retail stores in the U.S., lay off 112 of its employees, and discontinue its historic retail catalog to "enable a smaller and more agile business," VTDigger reported.
The company did not indicate any plans to file for bankruptcy.
And then there are retailers who filed bankruptcy and closed stores.
Denver-based upscale grocery chain Choice Market, which operated five locations in Colorado, ceased operations permanently after failing to restructure its business and converting its Chapter 11 bankruptcy to Chapter 7 liquidation, the company's said in an Oct. 7 statement on LinkedIn.
Big Lots closing dozens more stores
Finally, bankrupt discount home goods retailer Big Lots has been reducing its footprint for over a month after filing for Chapter 11 protection, and on Oct. 11 it designated another 56 locations for closing, bringing its total closures to over 550 units.
Big Lots filed for Chapter 11 protection on Sept. 9 in the U.S. Bankruptcy Court for the District of Delaware seeking to sell its assets to stalking-horse bidder Nexus Capital Management for a $760 million bid, which includes $2.5 million in cash, debt payoff, and assumption of liabilities.
Related: Popular grocery chain closes down in bankruptcy liquidation
The debtor proposed a new bid deadline for assets for Oct. 23, new auction date of Oct. 28 if more than one bidder submits an offer, with a hearing to approve a sale proposed for Nov. 8
The retail chain, founded in 1967, filed an initial notice on Sept. 11 listing 344 store locations nationwide that it planned to close and liquidate. It filed a second list on Sept. 20 designating 49 more stores to be closed, then filed a larger list on Sept. 27 consisting of 58 additional stores.
The debtor filed a fourth list of store closings on Oct. 4, designating 46 more stores for liquidation. The latest list of 56 stores brings the total closures to 553 of the 1,392 locations the retailer operated in 48 states earlier this year before filing for Chapter 11 bankruptcy.
The Columbus, Ohio, debtor cited high competition, Covid-19 disruption, a high interest rate environment, and a less dependable supply chain, which increased operating costs, as reasons it filed for bankruptcy, according to court papers.
The retail chain struggled in recent quarters, as a downturn in the economy had soured customers and hurt profits, according to CEO Bruce Thorn. The company had a 10.2% drop in sales to $1.01 billion during the first quarter and a loss of $132.3 million.
Big Lots is the nation's fourth largest home goods retailer with general operating revenues of $4.7 billion in 2023.
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