CALIFORNIA — As businesses continue to recover from the major blow that the COVID-19 pandemic brought, many major retailers have struggled to bounce back.
According to Forbes’s 2024 retail forecast, the industry will likely face a reckoning in the new year as consumers come to terms with the post-COVID world. Since the pandemic, the economy has grown, Forbes anaylysts said, giving way to a small amount of recovery and growth.
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According to researchers at The Conference Board, consumer confidence in the economy going into 2024 has surged and the pandemic-induced turbulence appears to be coming in for a landing.
“US consumer spending has held up remarkably well this year despite elevated inflation and higher interest rates. However, this trend cannot hold, in our view,” The Conference Board said.
Despite consumer trends leveling out, numerous businesses have declared bankruptcy as a result of financial hardships in 2023.
Here are the chains that will close entirely or close many stores in 2024
1. Rite Aid
Rite Aid announced it would be closing more than 60 stores in the Golden State due to bankruptcy. The company announced in court documents in October that more than 150 of its underperforming stores across the country will be closed.
The drug store chain’s bankruptcy came amid slumping sales and heavy debt from an opioid lawsuit filed by the Justice Department in March that accuses the company of filling prescriptions for large quantities of opioids “that had obvious, and often multiple, red flags indicating misuse.”
Rite Aid appointed a new CEO, Jeff Stein, who will lead restructuring efforts and also serve on the company’s board of directors.
“With the support of our lenders, we look forward to strengthening our financial foundation, advancing our transformation initiatives and accelerating the execution of our turnaround strategy,” Stein said in the statement. “In doing so, we will be even better able to deliver the healthcare products and services our customers and their families rely on — now and into the future.
2. Party City
Party City filed for bankruptcy at the beginning of 2023, prompting the go-to party goods retailer to close almost 40 stores nationwide. California is home to the largest number of Party City store locations in the country, and four of its 108 stores in the state are closing.
- Downey: 7171 Firestone Blvd.
- Lodi: Southwest Plaza, 2350 W. Kettleman Lane
- Marina: The Dune on Monterey Bay, 125 General Stillwell Drive
- Palmdale: Amargosa Commons, 39451 10 St. W.
“As we take this important step to put our business on stronger financial footing for the future, we are as committed as ever to inspiring joy by making it easy for our customers to create unforgettable memories,” Party City CEO Brad Weston said.
3. Jenny Craig
Weight loss and management business Jenny Craig announced it would close its doors in May “due to its inability to secure additional funding,” according to internal documents obtained by NBC News.
Jenny Craig had roughly 500 company-owned and franchised locations across the country, including 68 locations in California:
4. Buy Buy Baby
A last-ditch effort to save Buy Buy Baby fell apart, and the company announced it would close all its stores in California and across the U.S. as part of its bankrupt parent company’s ongoing liquidation.
CNBC reported that the owner of children’s apparel company Janie and Jack was “eager” to buy the Bed Bath & Beyond chain and keep it running, but could not reach a deal on its value.
The 15 remaining stores in California were scheduled to close as of July, according to the retailer.
5. CVS
CVS announced in Nov. 2021 that it would shutter more than 900 locations over three years — 300 stores per year. The company said the closures would reestablish a “new retail footprint strategy aligned to evolving customer needs,” Yahoo reported.
6. Z Gallerie
Home goods and design retailer Z Gallerie offered store-closing sales in October following its parent company, DirectBuy Home Improvement, Inc., filed for Chapter 11 bankruptcy protection.
Z Gallerie had a total of five stores in California including Sherman Oaks, Costa Mesa, Encinitas, Corona and Roseville near Sacramento.
7. Tuesday Morning
The discount home goods retailer Tuesday Morning Corp. filed for bankruptcy in February and announced it would close 31 of its 37 California stores in February.
In the Feb. 14 bankruptcy filing, Chief Executive Andrew Berger cited “exceedingly burdensome debt.” In a statement, Tuesday Morning said it had secured a $51.5 million debtor-in-possession commitment from Invictus Global Management to support operations during the bankruptcy proceedings.
“We have determined that the best path to reorganizing and transforming the company begins with a Chapter 11 filing,” Berger said in a statement. “Fortunately, we have the support of a committed capital provider in Invictus and a clear vision for transforming into a focused retailer that serves its core, heritage markets in a profitable manner.”
