Many of us are still picking up the pieces from the 2020 pandemic lockdown, even major store chains. Inflation, supply chain issues, and shortages have put a lot of pressure on retailers — and now we’ll start to see stores going bankrupt.
Bankruptcy is bad enough news, and in some cases it could mean partial or total store closures. The upside? We could get some big liquidation sales out of it. We already heard about the 2022 Bed Bath & Beyond store closings. Could more retailers follow?
Here are the major retailers on 2022 bankruptcy watch:
Bed Bath & Beyond
Why could Bed Bath & Beyond file for bankruptcy?
Bed Bath & Beyond has been struggling financially for years, and the pandemic didn’t help. The company is in the midst of a financial restructuring, but in 2022 they’ve dealt with internal tragedy and a 26% drop in year-over-year sales.
As part of their financial turnaround plan, they decided to close 150 Bed Bath & Beyond stores in 2022. With that many store closings in just a year, they could be going bankrupt soon.
Will there be a Bed Bath & Beyond liquidation sale?
Bed Bath & Beyond is in the middle of a massive round of store closings, so you can find sales happening right now. If you live near one of the first 56 Bed Bath & Beyond stores closing, head there to catch the liquidation sale. They start cutting prices up to 30%, but check back every two weeks to see costs cut another 10%. By the end, you could save up to 70%.
Express
Why could Express file for bankruptcy?
Express had problems even before the pandemic. In January 2020 they announced a plan to give 100 stores the boot to cut $80 million in costs and improve profit losses. In June 2021 they sold 15 million shares of their stock, fueling rumors of the chain of stores going bankrupt. By July 2022 Express’ profits improved, but they still reported $11.3 million in losses.
Will there be an Express liquidation sale?
You can count on Express having liquidation sales after store closing announcements. If liquidation sales in Canada are any indication, we can expect a minimum of 40% and up to an additional 60% off already marked down prices.
Party City
Why could Party City file for bankruptcy?
Parties and other social events were all but eliminated during the height of the pandemic, so party stores took a major hit in 2020. Party City had already been struggling due to a major helium shortage in 2019, but 2020 knocked them down even more with a sales decrease of 21%.
They bounced back a little at the start of 2021 with a 3.1% increase, but supply chain issues and more helium shortages deflated their earnings another 4.6%. In 2022 they’re still playing catch up and didn’t meet their earnings goals in the last couple of quarters.
We’re not saying Party City will be throwing a retirement party, but based on the last few years, they could be among the stores going bankrupt soon.
Will there be a Party City liquidation sale?
Because of the helium shortage and bad sales, Party City closed 55 stores in 2019 and another 21 in 2020. Party City’s liquidation sales typically come right on the heels of store closing announcements.
If they do close any more, expect to see liquidation sales start up to 30% off, then adding another 10% off every two weeks. That’s the pattern we see with most liquidation sales.
Rite Aid
Why could Rite Aid file for bankruptcy?
Rite Aid has gathered $32 million in debt throughout the years, and there hasn’t been enough profit to eliminate it. The drugstore chain lost more than $600 million during the pandemic while Walgreens and CVS thrived. In 2021 they announced 63 store closings and 145 more in 2022. In late September 2022, Rite Aid announced they expect losses to hit around $500 million in 2023.
Will there be a Rite Aid liquidation sale?
If your local Rite Aid store closes, head there ASAP because there will be a liquidation sale. Stores typically start in the 25 – 30% range for starter discounts, then go down by 10% every two weeks until the end of the sale.
The RealReal
Why could The RealReal file for bankruptcy?
During a year of skyrocketing prices, buying luxury brands isn’t at the top of people’s priorities. With both an online and brick-and-mortar store, luxury retailer The RealReal‘s profits grew 40% from 2018 through 2020.
The pandemic hit, and people switched from wearing nice clothes to work to sweatpants at home. Their profits dropped 18% in 2020, and although profits went up over 40% in 2021 and 2022, the average amount people spent in one order dropped 7% in 2022.
This doesn’t necessarily mean The RealReal is on the outs, but if people continue to go for less expensive items in the wake of inflation, they could be next on the bankruptcy list.
Will there be a The RealReal liquidation sale?
The RealReal only has 19 physical stores, but if they file bankruptcy, they might scale back on their brick-and-mortar locations and focus more on their online storefront. If that happens, expect to see some in-person sales and discounts on their website. The RealReal already boasts “up to 80%” off selling price for their luxury stuff and up to an extra 75% off their sale section. So we could see more things on sale if they go bankrupt.
Tuesday Morning
Why could Tuesday Morning file for bankruptcy?
Well, they’ve already done it once. The discount home goods store first filed for bankruptcy in 2020 due to low sales and closed 1/3 of Tuesday Morning locations. The financial plan hasn’t seemed to work out, and by the end of 2021, they had $29 million in losses.
By September 2022 sales were still down 29% from 2019. So don’t be surprised if you see Tuesday Morning back in court filing another bankruptcy soon.
Will there be a Tuesday Morning liquidation sale?
The last time they filed for bankruptcy, Tuesday Morning closed 230 stores, and some big liquidation sales followed. People scored at least 60% off their already discounted prices during their store closing sales. If Tuesday Morning does file bankruptcy again, expect similar sales to pop up at their stores.
Wayfair
Why could Wayfair file for bankruptcy?
During the pandemic lockdown, people spent a lot of money on their homes, and stores like online home goods store Wayfair saw increased sales. But after 2020 Wayfair struggled to keep momentum going. Sales dipped 3.1% in 2021 and have continued to decrease.
In 2022 the number of customers who placed orders dropped by 24% compared to 2021. Wayfair currently doesn’t have the sales to actually make money as a company, and that means a financial restructuring could be in their near future — in the form of a bankruptcy filing.
Will there be a Wayfair bankruptcy sale?
Will there be a Wayfair liquidation sale?
As an online retailer, Wayfair doesn’t have physical stores that’ll close, so if they do go for bankruptcy, you won’t see any kind of liquidation. Instead they could have big online sales to drive traffic, like their annual Way Day Sale — 48 hours of deals usually on landing around the April 28 – 29. With savings up to 80% off, Way Day is a big deal for home goods shoppers, so keep an eye out to see if Wayfair drops more sales.
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