After shutting down more than 5,000 stores in 2017, store-closings are accelerating in 2018 with news that Bi-Lo LLC, the supermarket company that owns the Winn-Dixie chain, is preparing for a potential bankruptcy filing as soon as next month, and is planning to shut almost 200 stores as part of the move - either before or after the filing.
Winn-Dixie joins JCPenney, Bon-Ton, Toys R Us, Sam’s Club, Macy’s, Sears, Kmart and others in the growing list of 2018 shutterings as the 'great economy' that stocks foreshadow fails to show up in the retailer landscape.
As Clark.com details, the new year is shaping up to be another difficult one for traditional retailers.
J.C. Penney – 8 stores
After closing more than 140 stores in 2017, J.C. Penney is shutting down one of its distribution centers and eight more stores nationwide, The Dallas Morning News reports. Around 670 jobs will be cut with the closing of the distribution center in Wauwatosa, Wisconsin, this summer. Meanwhile, around 480 employees will be affected by the eight stores that are closing, which follows a post-holiday review. The locations will be shut down between now and May, according to CNBC.
Bon-Ton – 42 stores
The Bon-Ton Stores Inc., a department store chain, is closing more than 40 underperforming locations this year, including stores under all of the company’s nameplates. Store closing sales are scheduled to begin on February 1 and run for approximately 10 to 12 weeks, the company said in a news release. Associates at the affected locations will be offered the opportunity to interview for available positions at other stores.
Toys R Us – Up to 182 stores
Toys R Us, the iconic Wayne, New Jersey-based toy retailer, has announced that it will shut down up to 182 U.S. stores. Store closing sales are likely to begin in early February, with the bulk of the closures expected to take place by mid-April, according to a letter from the company’s CEO. However, some closures may be avoided if the store can negotiate more favorable lease terms.
Sam’s Club – 63 stores
Bad news for Sam’s Club members! The Walmart-owned warehouse club has abruptly shut down multiple locations across the country, according to local media reports. The retailer has confirmed that 63 clubs are closing and up to 12 of them will be converted to e-commerce fulfillment centers. Walmart said the impacted clubs will close over the next few weeks, leaving 597 Sam’s Club locations.
Macy’s – 11 stores
Nearly a dozen Macy’s department stores will soon be closing their doors forever. In a news release, the company announced the closure of 11 Macy’s stores. It’s part of the retailer’s plan to close approximately 100 stores, which was announced back in August 2016. Macy’s intends to close an additional 19 stores as leases or operating covenants expire or sale transactions are completed.
Sears and Kmart – 103 stores
Just days after the holiday shopping season ended, Sears Holdings announced that it’s closing more than 100 stores.In a news release, the struggling retailer said it told associates at 64 Kmart and 39 Sears stores that the locations will be shut down between early March and early April 2018. Liquidation sales will begin as early as January 12 at the impacted department stores. Sears Holdings previously announced plans to shut down 63 Kmart and Sears stores this January. The company closed more than 350 locations last year.
J. Crew – 50 stores
After reporting a 12% sales drop for its third quarter, J. Crew said it will close dozens of stores by the end of January 2018, CNN Money reported. In a news release, J.Crew said it expects to close 50 stores during fiscal 2017, which ends in January.
And now Winn-Dixie plans to shutter 200 of its 500 stores...
Winn-Dixie's parent, Bi-Lo LLC, which went bankrupt in previous incarnations in 2005 and 2009, may still find a way to restructure its debt out of court.
However, as Bloomberg reports, with low margins and ample competition, the grocery business has always been challenging. But now the industry is contending with a more aggressive push by big-box retailers and Amazon.com Inc., which acquired Whole Foods last year to give it a larger brick-and-mortar presence. The moves threaten to force older chains to either consolidate or revamp their operations.
Bi-Lo is laboring under more than $1 billion in debt following its 2005 buyout by Lone Star Funds.
The company and its creditors have held talks to discuss a possible debt-to-equity swap, as well as alternatives such as asset sales, Bloomberg reported last year.
Lone Star piped in $150 million when the grocer exited Chapter 11 the first time, and invested $275 million to help fund the purchase of Winn-Dixie in 2012. But it probably will still come out ahead, having paid itself at least $800 million since 2012, along with management fees it’s collected, according to regulatory filings.
Southeastern Grocers, based in Jacksonville, Florida, says it’s the fifth-largest supermarket chain, with more than 700 stores and 50,000 employees. It also operates the Harveys and Fresco y Mas chains.
Comments
Thanks Bezos!
And you all thought the Dystopia wouldn't be here before you croaked, eh?
In reply to Thanks Bezos! by DillyDilly
"I fundamentally changed America!"
~ Hussein Mohammed Obama
In reply to And you all thought the… by knukles
Get over it, Trump owns this mess now
In reply to "I fundamentally changed… by Handful of Dust
Please, Obama rode the "I inherited this mess" crap for six of his eight years. He did nothing to make anything better but "extend and pretend", but now Trump owns the mess? Besides that, things change. Businesses open and close, retail is no different and the internet is pushing things along at a rapid pace. You are a fucking moron.
In reply to Get over it, Trump owns this… by Bren843
Lone Star .... probably will still come out ahead, having paid itself at least $800 million since 2012, along with management fees it’s collected, according to regulatory filings.
Buying a decent company and destroying it to enrich oneself ought to be criminal.
In reply to Please, Obama rode the "I… by smithcreek
Winn Dixie stores always had the appearance of a local dirty northern town independent grocer. Piss poor management is to blame plus not knowing what a fucking mop is used for is a close 2nd.
In reply to Lone Star .... probably will… by Whoa Dammit
Their appearance was always sub par. They had some nice new stores, but they don't keep them up.
People would rather pay a little more at Publix, then shop in a store that smells like a wet rug.
But, Aldi is what's killing Winn Dixie. They're popping up everywhere and people love them. My wife is in there three times a week, and she drives by two Winn Dixie's to get there.
In reply to Winn Dixie stores always had… by booboo
This depresses me. I think I'll go shopping at Amazon or Amazon or Amazon or Amazon.
In reply to Their appearance was always… by Tarzan
Trump owns this mess b/c he is crowing how great everything is now that his policies have fixed everything. Trump the candidate was right about many things; Trump the president is pouring water into the swamp.
In reply to Please, Obama rode the "I… by smithcreek
In another four years he might. Your boy ran the show for 8. A return to the mom and pop grocery stores might not be all bad. People need to start planting gardens.
In reply to Get over it, Trump owns this… by Bren843
Dollar General stores are popping up everywhere in Calif. like weeds. Like tiny mini-me grocery / Wal Marts.
In reply to In another four years he… by Cloud9.5
DG is going to get smoked by EBT STORE . Also, they have payday loans, check cashing, bail bond too!
In reply to Dollar General stores are… by pparalegal
Hell, I hear if you use EBT they will ship free to your ACLU approved Newport Beach homeless tent.
In reply to DG is going to get smoked by… by Offthebeach
Speaking of "popping up like mushrooms," count the pay-day-loan/title loan/quick cash establishments in your city and state.
I don't think we are supposed to notice this or comment it on it though. We might come to some conclusion that contradicts the "economy is great" meme.
In reply to DG is going to get smoked by… by Offthebeach
Dollar Generals have been popping up like weeds in Alabama for at least 10 years.
This tells us something about the prices most consumers can actually afford.
In reply to Dollar General stores are… by pparalegal
Way over 80% of the government bureaucrats are Democrats! They always own this crap! Wake up and smell the Lib stink! It hangs in the air any time you get near anything to do with Uncle Slam!
In reply to Get over it, Trump owns this… by Bren843
I like Trump more every day! I'm so glad that last guy is gone, he was a big phony.
In reply to Get over it, Trump owns this… by Bren843
I can't stand Trump more everyday. We are sinking and sinking fast.
In reply to I like Trump more every day!… by Moe Hamhead
Some days here Trump is the hero of nation. Other days he is a con man with no clear principles who has exhibited no inclination to follow through on the myriad pledges that got him elected.
In reply to I can't stand Trump more… by Silver Savior
This is the house that Clinton built, with his backing of NAFTA and offshoring the US middle class to China.
In reply to Get over it, Trump owns this… by Bren843
The Fed will throw trillions at the banks and Stawks under Trump just like they did with Obammy
In reply to "I fundamentally changed… by Handful of Dust
Nah, they may try to drop interest rates if things get too bad and stop reducing their balance sheet but I don't think they are foolish enough to try that crap QE again.
If you hit an idiot on the head enough times they will get the message. This is just a part of their normal debt creation/foreclosure cycle. If you crash the economy badly enough they will swoop in at the bottom and buy the assets on deep discounts.
This time it will be far worse than the last several times.
In reply to The Fed will throw trillions… by Juggernaut x2
It looks like the tax cut is throwing money at stocks via buybacks.
In reply to The Fed will throw trillions… by Juggernaut x2
The buybacks are important, so too are the purchases by the Swiss National Bank, all the pension funds, insurance funds, Plunge Protection team, all the "economy is great" stories and, oh yeah, making sure that sentiment for and prices of gold and silver remains atrocious.
In reply to It looks like the tax cut is… by Endgame Napoleon
The "Status Quo" will be protected under Trump just like it was under Obama. The can will be kicked under Trump just like it was under Obama.
... You could add: Bush II, Clinton, Bush I to this calvalcade of Status-Quo, neocon Statists.
In reply to The Fed will throw trillions… by Juggernaut x2
"We're gonna fug over some folks."
In reply to "I fundamentally changed… by Handful of Dust
Says the idiot that lives in Earthquake/Mudslide central.
How's that underfunded pension coming along?
In reply to And you all thought the… by knukles
you said: "Thanks Bezos! " -- BullShit! this is groceries! - not much of a challenge ...yet - from Amazon
The failure focus of most of these Retail BK's is Debt - LBO's - that believe the cash flows are infinite in the Excel Spread Sheet - In Providence Rhode Island - Arthur Little Jr. said to me 30 years ago - the equivalent of Excel would be a doomsday machine in the wrong hands!
sure you can sell the bonds especially in low yield without alternatives market - that doesn't make the sale legitimate if it cant stand the test of time - the bonds are designed to "fail" at cash flow / debt coverage ratios promoted.
Plus: It was obvious the internet was going to eclipse the bricks and mortar in 1996 - given the cost of disparate inventories and overheads in local distribution systems - but they gave exemption to local sales tax anyway
so many bonds are time bombs equities as well
In reply to Thanks Bezos! by DillyDilly
Guess which neighborhoods those 200 stores are gonna be in!
In reply to Thanks Bezos! by DillyDilly
Jeff is only partly responsible, the greedy fucks at Lone Star are far more culpable.
In reply to Thanks Bezos! by DillyDilly
if amazon was earning a decent profit while competing with predatory pricing I'd say congrats to Amazon-but Amazon has for more than a few years been able to lose money to gather market share--not better faster cheaper.
So, what wrong with this picture--how is amzn able to keep growing market share while losing money--who are the enablers?
Probably FTC, but also wall street and the brokers RIAs etc who keep buying Amazon stock because "it keeps going up".
Losers are the competing companies and employees.
BTW--Walmart for years was dissed for bringing lower prices to communities while killing skill business. WMT has been dissed for begin a bad employer, While AMZN sucks the breadth out of its independent contractors and line employees and nary a word is said. So the media is partly to fault.
AMZN is responsible for keeping inflation from getting out of hand: low prices and low wages and compensation.
In reply to Thanks Bezos! by DillyDilly
How in the hell am I supposed to order milk on Amazon?!?!
In reply to Thanks Bezos! by DillyDilly
Piggly Wiggly next?
Ecstatic Consumerist Lust is Diminishing
1. Amazonification: consumers are suffering thought-fatigue
and are unable to make purchase decisions.
2. America's workers have achieved the Lowest Possible Wage (LPW),
where they will still reproduce but will not engage in consumerist desires.
3. there are too many homeless and other economic bench-warmers
4. the last consumer died
In reply to Piggly Wiggly next? by Arnold
All that's left is " Posting Cat photos "
In reply to Ecstatic Consumerist Lust is… by Deep Snorkeler
PW ?? There goes the fucking US of A. BUHAHAHA Next it will be Blimpie...oh the fucking humanity..We are in deep yogurt now.
/sarc
In reply to Piggly Wiggly next? by Arnold
Hey merica get your fat ass in the car and go to the grocery store. And walk it off
In reply to PW ?? There goes the fucking… by kill switch
Winn Dixie and Piggly Wiggly account for the majority interest in the meat cutters union.
I can recall working for Winn Dixie in the early 1990s, and many workers would cash their paychecks in the checkout lane.
I was standing behind a senior meat cutter/ butcher when he cashed his weekly paycheck for over $2,400.
The meat cutter industry is dying.
In reply to PW ?? There goes the fucking… by kill switch
Cashed a $2400 check in a supermarket checkout? Sometimes the banks can't even do that anymore.
In reply to Winn Dixie and Piggly Wiggly… by serotonindumptruck
I have been watching numismatic auctions for several years now as I am a vest pocket dealer. It is clear that demand is waning and prices are starting to fall. It is the same with several types of collectibles as sold on Ebay.
That is a clear signal of a coming recession as it demonstrates diminished disposable income. In spite of stocks, should they continue to rise; a recession will be confirmed by other data no later than late Spring/early Summer.
That's my guess and I am taking appropriate measures such as increasing my cash, reducing exposure to financials and increasing as much as possible my accumulation of specie. Also ensuring my ability to withstand a serious disruption in food and/or energy distribution.
I expect falling prices in many goods initially but a quick reversal to across the board rising prices as stimulus makes its way through the general economy.
In reply to Piggly Wiggly next? by Arnold
Yes, it is a buyer's market. ALL those "older" folks dying and leaving all of that furniture, household goods and, yes, gold.
In reply to I have been watching… by jaxville
Jaxville, when the comments are better than the article.
In reply to Yes, it is a buyer's market… by Ban KKiller
Maybe you won’t see rising prices as all of these stimuli were directed toward the financial aspect and to keep the derivatives from imploding (((their))) financial system.
In reply to I have been watching… by jaxville
You may be right about that. Prices will only rise if the financial authorities can get cash into the system at the consumer level. That means more lending. Not sure how that will work as interest rates start moving up in earnest.
Maybe they will roll out some kind of universal income scheme or something along those lines.
In reply to Maybe you won’t see rising… by chestergimli
Stamp prices are waaay down for collectors. Dealers with retail outlets can't possibly survive. Coins and stamps with good photography can be blown up multiple times in size to view on the internet. It is not as good as being there but it gives a lot of people confidence for buying, deserving or not.
Most aspects of the antiques trade are a disaster. Prices half or less than 10 years ago and it is still difficult for dealers to sell inventory.
Local restaurants are struggling, some closing.
In reply to I have been watching… by jaxville
used cars and certain collectors/specialty type japanese imports are starting to get "inflated"
a friend has a 2012ish toyota fj cruiser and apparently it actually went up in value.
a clean, good condition integra type R can fetch up to $50,000. keep in mind that the acura integra is basically a civic with leather seats.
subprime autoloans are the only reason car manufacturers can keep moving cars off the lots. someones gotta give the dindus a new car with dey po' credit
In reply to I have been watching… by jaxville
Restaurants are closing all over the place in my city.Next up:car dealers and real estate brokers. rising interest rates will be a bitch for those guys.
In reply to Piggly Wiggly next? by Arnold
Tops is next.
In reply to Piggly Wiggly next? by Arnold
I don’t know or care what these morons sell. I’d bet it’s garbage though. Bye bye Winn. Win?
In reply to Piggly Wiggly next? by Arnold
Pagination