- Bob's Stores – a chain that has been supplying clothes to families for 70 years – will permanently close all of its stores.
- On June 30, a petition for protection from creditors under Chapter 11 of the Bankruptcy Act was filed with the court.
- Bob's Stores is a chain of retail stores founded by Robert "Bob" Lapidus in 1954.
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Bob's Stores – a retail icon
Bob's Stores, the beloved chain that has been supplying clothing to families for 70 years, will permanently close all of its stores amid the latest crisis in American retailing . As announced by the owner of the retail giant and an icon in its market segment, it was not possible to secure the financial resources necessary to maintain the business – reports nypost.com.
The Bob's Stores chain is selling out of stock at locations in Connecticut, Massachusetts, New Hampshire, New Jersey, New York and Rhode Island, offering discounts ranging from 30 to 70 percent. until the store closes. Purchases must be made in person as the company has also closed its website.
– We regret that our financial situation forced the liquidation of Bob's Stores – says CEO Dave Barton, quoted by nypost.com. "Bob's has been a pillar of our local communities for almost 70 years, and we know that our customers remember us as a retailer who was present at important moments in their lives," he added.
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Layoffs and bankruptcy of Bob's Stores
The store chain specializes in footwear, workwear, teamwear and casual clothing for families. The New York location, based in Centereach, Long Island, celebrated its grand opening at the turn of this year.
In May, parent company GoDigital Media Group abruptly laid off 150 employees when it decided to operate only in its larger stores and online. On June 20, a petition for protection from creditors under Chapter 11 of the Bankruptcy Act was filed on behalf of Bob's Stores and its sister company Eastern Mountain Sports, which employs 290 full-time and 481 part-time workers. According to the documents, the two companies share a headquarters and distribution center in Meriden, Connecticut.
Bob's Stores (photo: Shutterstock)
Bob's Stores and Eastern Mountain Sports had net revenue of $131.85 million. in calendar year 2023. However, PNC Bank says it is nearly $30 million in arrears, plus an additional $27 million. unpaid rent and operational debt. They also have liabilities due to unpaid remuneration in the amount of PLN 935,000. hole.
The bankruptcy filing lists the company's 20 largest creditors: Yell Steel Enterprise Inc., which owes $472,335; Smartwool Corp., which has debt of $455,290.88; Oboz Footwear, whose debt amounts to $432,147.30; Marmot Mountain International, whose debt amounts to USD 353,647.76. Creditors also include Amer Sports, Black Diamond, Google, Cotopaxi and others.
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Bankrupt companies have hired Epiq, an advisory firm, to help with restructuring plans. It is unclear whether creditors will receive their money back. A meeting of creditors is scheduled for July 23.
The reasons for the difficult situation include the high costs of running a corporate office. Employees also left the company's distribution center. According to court documents, executive salaries, technology and operations are very expensive and require high revenues from multiple stores.
– There are stores that do not make profits. They eliminate what the profitable stores produce. I would very much like to understand how they plan to cover all corporate overhead costs, employee benefits, technology platform, legal issues and other expenses – asks Eoin Comerford, director of Outsize Consulting, quoted by thedaily.outdoorretailer.com.
Bob's Stores is a retail chain owned by GoDigital Media Group. It was founded as Bob's Surplus by Robert "Bob" Lapidus in 1954. It gradually expanded until it was acquired by the Melville Corporation and has since been acquired five times. The stores are dedicated to customers with average incomes – we read in Wikipedia. They offer a wide selection of footwear, workwear, family wear and sportswear, including for teams.
The chain grew, taking over many locations after the liquidation of the Caldor discount department stores, as well as other stores. In July 2024, the owner announced that the planned openings would not take place and all operating locations would be permanently closed by July 14, 2024.
According to an analysis by CoreSight Research, retail chains will close almost 3,200 stores in the US this year, an increase of 24%. compared to 2023. In May 2024, Stop and Stop supermarkets closed multiple locations, citing poor financial performance, and seafood restaurant chain Red Lobster closed the doors of at least 50 of its locations and filed for Chapter 11 bankruptcy.
