restaurant bankruptcies 2020

Directly citing the impact of the COVID-19 pandemic on its profits, budget steakhouse Sizzler, which has been around for over 6 decades, filed for bankruptcy in September of 2020 (despite several millions of dollars in federal loans paid out earlier in the year). Read the latest edition of the Commercial Observer online! “But, essentially, without a powerful re-imagination of what it means to shop, it’s just the IV drip of the end of times for physical retail.”. John Nacion/SOPA Images/LightRocket via Getty Images. While generally more resilient to the ravages of 2020, many major restaurant chains were also hit hard. “Pier 1 is a brand that, quite honestly, couldn’t keep up,” she said. Even a restaurant already has a lot of the restaurant-related work done. Chuck E. Cheese was already carrying a debt load of more than a billion when the pandemic forced the shuttering of all of its locations nationwide. t’s the perfect summation of 2020 to say that, in the commercial real estate industry, it was a much better year to be a bankruptcy lawyer than a retailer. “That’s a meaningful company that just vanished.”. For more restaurant news, here are the beloved restaurant chain dishes that are gone forever. By Steven John. That’s what’s happening. You’ve got owners in Midtown Manhattan, the Financial District, and in every city across the country, where people haven’t been going to their office and businesses have not been paying their full rents. But COVID was a hard stop. Some 185 locations were closed permanently, while another 230-plus restaurants remain in operation while the parent company looks to consolidate debt and likely be sold off. Charles William Endsley, 64, St. Joseph, passed away Saturday, Dec. 26, 2020. I think come March, April or May, you’ll see the renaissance begin.”. There’s gotta be fallout to that.”. EatThis.com is part of the AllRecipes Food Group. A Mediterranean restaurant called Gyro House is expected to open as early as Jan. 25 in the Lake Forest Town Center off KY 54 in east Owensboro. The company announced that they would be able to keep most of their 130 locations open while under Chapter 11 protection and predicted minimal layoffs. The retail apocalypse is the closing of numerous brick-and-mortar retail stores, especially those of large chains worldwide, starting around 2010 and continuing onward. Just over 600 filed in … All Rights Reserved. They had already been losing money before the pandemic, but its advent accelerated the folding. While some brands, like Lord & Taylor and Century 21, are gone for good, companies including Neiman Marcus, Brooks Brothers, and Ascena Retail (parent company of Ann Taylor and Lane Bryant), among others, will survive their filings, albeit with a smaller retail footprint. Monthly sales remain well below pre-pandemic levels with November 2020 sales 19% below the same period last year. Closures stretch across Texas and Pennsylvania. So, I think there were missteps along the way that COVID certainly made terminal more quickly.”. In the first half of 2020, more than 3,600 companies filed for bankruptcy, according to Epiq. Here is a list of 10 major restaurant chains that filed for bankruptcy in 2020. It’s mind-blowing.”. “With [a company like] GNC, their stores are little, only 1,000 to 1,500 feet, but there’s 5,000 stores,” David Firestein, managing partner at SCG Retail, said of the supplements retailer, which announced in June it would close almost 25 percent of its stores and revealed its sale to China-based Harbin Pharmaceutical Group in October. If you were paying $10,000 a month in whatever business you might have, and I offered [space] to you at $5,000, are you going to wait on the sidelines? Linda L. McBride, 81, St. Joseph, passed away Tuesday, Dec. 29, 2020. And, while the retail bankruptcy trend overall is bound to have ramifications, some of the companies that filed for bankruptcy are significant enough to affect the retail landscape on their own. Making the potential challenge even greater is that, pre-COVID, more experiential uses were an oft-discussed potential savior for flailing retail outlets. We’re getting a lot more calls for pop-ups than normal.”. And that’s where I think you’re going to see the next trend in bankruptcy. For every brand that gets discussed in a ‘oh my gosh, rest in peace’ sort of way, there are others coming up that are really exciting, and also brands changing the way they’re doing business.”. In February 2020, another 51 Sears and 45 Kmart locations were set to close, leaving some 182 surviving stores. Across the board, the apparel sector has been one of the hardest hit by bankruptcies. “Most would probably opt for online sales, if not pop-ups. “The headline is that it’s all about COVID, but there are enough examples of businesses that don’t have something really distinguishing them. He was born Sept. 10, 1956, in St. Joseph to Charles and Peggy (Covill) Endsley. With all of the dire news and forecasts, there are some bright spots on the retail horizon. “[For brands like] Modell’s and True Religion, the writing was on the wall. The pandemic, massive amounts of debt and a shift in shopping as well as dining habits created a lethal cocktail of bankruptcies and closures.. New data from Coresight Research reveals American retailers have announced 8,400 closures this year. There was a systemic erosion underneath, and as long as they could mask some of that by selling things at discount, they could have skated for another year, maybe. To convert it is very expensive, because you have sloped floors and all kinds of stuff that doesn’t work [for other businesses].”. The PA Chains That Declared Bankruptcy, Closed Stores In 2020 - Pittsburgh, PA - The coronavirus outbreak made 2020 a devastating year for retailers and restaurant chains. “The Hudson Yards [store] was a catastrophe well before COVID. If developers attempt to convert retail space to office in larger numbers, that could merely spread the misery. While this is understandable, given the negative prognosis for retail, COVID-19 has made the fate of office tenuous, too. Unfortunately, in December 2020, citing the pandemic, the company filed for bankruptcy. “They got outsmarted by some of the innovation and creation from others in the business. There’s nothing urgent that was driving people back into the mall. A beloved diner and ice cream shop with an 85-year history, Friendly's filed for bankruptcy in the late fall of 2020. Look at Target, and juxtapose that with the offerings at Pier 1. But theater space doesn’t really work well for anybody else. While the COVID-19 pandemic certainly accounts for the sheer breadth of the list, it’s just one factor in many of the bankruptcies, and often, more of a final straw than a primary cause. Our series covering trends in tenant and workplace experience. It’s the perfect summation of 2020 to say that, in the commercial real estate industry, it was a much better year to be a bankruptcy lawyer than a retailer. “If a landlord gets back a J.Crew, it’s a clean box. Baxter also sees an upside in the basic life cycle of business — that, for every death, there can be a new birth. While a certain amount of retail bankruptcies is to be expected, especially over the past few years, Not all of the bankruptcies have been death knells. The company said in a statement they did not intend to permanently close any locations. “A lot of these brands will go away, but every time you see a brand go away, imagine that there’s probably 15 entrepreneurs sitting out there that are the next Jeff Bezos or Tory Burch,” said Baxter. After holding on for months, Ruby Tuesday filed for Chapter 11 bankruptcy in early October of 2020. I don’t think that’s going to happen in our lifetime,” said Famularo. as e-commerce has provided staunch competition for brick and mortar, Hogan Lovells Renews Office Lease at Baltimore’s Legg Mason Tower, COVID-19 has made the fate of office tenuous, too. Tens of thousands of small businesses have closed permanently during the pandemic, with restaurants representing a majority of them. But Neiman Marcus, J.Crew, Brooks Brothers — these companies are iconic. Once the successful operator of more than 1,600 restaurant franchises including Wendy's and Pizza Hut, NPC International filed for bankruptcy in July. In March of 2020, the chain initially shuttered its locations on a temporary basis, but within less than two months, announced that the closure would be permanent. The Pennsylvania, Department of Agriculture, 866-366-3723, uses a risk-based inspection reporting process for restaurants and, other food handlers. They just got to that endpoint a little bit quicker because of COVID, which maybe shaved off 18 months,” said Soozan Baxter of Soozan Baxter Consulting. Permanent store closings, bankruptcies coming. 10 Biggest Restaurant Chain Bankruptcies of 2020. So, why do you need to go to Pier 1 anymore?”, “I wouldn’t lay it all at the feet of COVID for Neiman Marcus,” said Newlin. I t’s the perfect summation of 2020 to say that, in the commercial real estate industry, it was a much better year to be a bankruptcy lawyer than a retailer.. Restaurant bankruptcies were … IHOP's parent company, Dine Brands Global, committed to re-opening the shuttered locations. Restaurant franchisor CraftWorks filed on March 3 to reduce its debt by more than $140 million shortly after closing about 10% of its locations. “That’s one looming out there that makes lots of people nervous, because they impact lots of other tenants,” said Firestein. While this is understandable, given the negative prognosis for retail, Making the potential challenge even greater is that, pre-COVID, more experiential uses were an oft-discussed potential savior for flailing retail outlets. The brand is inching closer to bankruptcy. After Neiman Marcus closed its Hudson Yards store in July, co-developers Related Companies and Oxford Properties announced they would re-market the space for office use. “The past 12 months have been a bloodbath,” said James Famularo, president of Meridian Retail Leasing. While some brands, like. They’ve been around for generations. In mid-summer 2020, CPK entered Chapter 11 bankruptcy. Pasternak, meanwhile, sees the slew of bankruptcies as opportunities for right-sizing. The cumulative effects of these bankruptcies and other store closings found the national retail vacancy rate at 20 percent by mid-year, according to the National Association of Realtors, leaving a glut of space that could have effects beyond retail. Are we going to reach the same rent levels we were at a few years ago? In many cases, the COVID-19 pandemic merely accelerated a process ignited years ago by online competition, or bad decisions, or by the takeover of some of these companies by private equity firms that demanded dividends and ladened the retailers with debt. December 19, 2020. Even these huge companies and household names had a tough time surviving the pandemic. You’ll jump in head-first. That’s why I’m saying we’re going to be back. Get the best food tips and diet advice every day. There were 27 farm bankruptcies in Iowa in 2019 — more than double the 13 ... 2020 gave some gut punches to farmers — particularly animal producers. After Neiman Marcus closed its Hudson Yards store in July, co-developers Related Companies and Oxford Properties announced they would re-market the space for office use. But entertainment of all forms has taken, perhaps, the hardest hit of the COVID era, as restaurants flail for survival and the major, movie theater chains, facing both COVID fears and restrictions, and movies being released day and date on streaming services or video on-demand in response. “You’ll see [stores] like JCPenney get new ownership that will try to make it a legitimate shopping destination,” Newlin said of the legendary retailer, which is exiting bankruptcy protection having sold the bulk of its assets to Simon Property Group and Brookfield Asset Management. Others have, unfortunately, already been added to our list of the saddest restaurant closures in every state. Not all of the bankruptcies have been death knells. Baxter also sees an upside in the basic life cycle of business. In 2019, retailers in the United States announced 9,302 store closings, a 59% jump from 2018, and the highest number since tracking the data began in 2012. Based on his deal volume throughout the pandemic, Famularo agreed, noting that one brand’s capitulation to inevitability is another brand’s golden opportunity. “But my team and I have closed almost a hundred deals during the quarantine. People feel opportunistic. “It’s very impactful because it’s pushing so much space back into the market.”, “When you look at Ascena, and how many brands and how much square footage they have, that will probably take a dent out of some B malls, and definitely out of the outlet industry,” said Baxter. struggle to avoid their own bankruptcy filings. © 2020 Galvanized Media. “The volume of clothing retailers that have gone into bankruptcy will really make surviving retailers apprehensive about opening new stores in the future,” said Meridian’s Famularo. During the next few months, the company managed to restructure and eliminate nearly a quarter of a billion in debt and by the late fall, California Pizza Kitchen emerged from bankruptcy. While a certain amount of retail bankruptcies is to be expected, especially over the past few years, as e-commerce has provided staunch competition for brick and mortar, the pace of this year’s retail bankruptcy news has been dizzying. “Bankruptcy gives these companies an opportunity to shed some leases, get leaner and meaner, and clean up their balance sheet,” said Pasternak. The coronavirus pandemic has wreaked havoc on businesses of all types, but few establishments have suffered more than restaurants. Even these huge companies and household names had a tough time surviving the pandemic. Just over 600 filed in June, up 43 percent from June of last year. There's no way to sugarcoat it: 2020 was a brutal year for restaurants and stores. “I think if we didn’t see [these bankruptcies] this year, we would have seen them next year. But also oil producers, mall landlords, and gyms across the country. Vegan fast-casual restaurant By CHLOE opened its first location in New York City in 2015, and within a few years, had multiple locations in the U.S, plus five in London and one in Canada. An early victim of the effects of COVID-19, bakery, sandwich, and pastry chain Le Pain Quotidien filed for bankruptcy in May of 2020. “People are innovating all the time. While a certain amount of retail bankruptcies is to be expected, especially over the past few years, as e-commerce has provided staunch competition for brick and mortar, the pace of this year’s retail bankruptcy news has been dizzying. Several dozen restaurants were re-opened following a sale to a new parent company. It's the second time in 10 years that Friendly's has filed for bankruptcy. Nathan Bomey. But entertainment of all forms has taken, perhaps, the hardest hit of the COVID era, as restaurants flail for survival and the major, movie theater chains — facing both COVID fears and restrictions, and movies being released day and date on streaming services or video on-demand in response — struggle to avoid their own bankruptcy filings. saddest restaurant closures in every state, beloved restaurant chain dishes that are gone forever. Neiman Marcus, JCPenney, Brooks Brothers, Lord & Taylor, CEC Entertainment (parent company of Chuck E. Cheese), Pier 1 Imports, Modell’s Sporting Goods, J.Crew, Century 21 Department Stores, Aldo, and Guitar Center are just a few of the many companies that filed for some form of bankruptcy in 2020. “Harry Winston’s expansion really speaks to the category, the power of Fifth Avenue, and the belief that retail is going to come back,” said Baxter. By late August, the parent company CC Entertainment filed for bankruptcy, and, now, the future of the 43-year-old company is unclear. “The fundamentals [for many of these companies] have been wrong for a long time,” said Kate Newlin, CEO of Kate Newlin Consulting. Newlin believes the effect on malls will be more than just a dent. CFRA Holdings managed nearly 50 IHOP locations spread across multiple southern states, but most of those restaurants saw a double-digit drop in profits during the pandemic, prompting the company to file for bankruptcy in May. Click to read more of our coverage and sign up for the weekly Tenant Talk newsletter. Given the ease of shopping online for clothes, it’s hard to be optimistic about the sector’s future. The coronavirus pandemic has wreaked havoc on businesses of all types, but few establishments have suffered more than restaurants. Retailers, airlines, restaurants. In fact, nearly 110,000 restaurants in America shut down for good due to COVID-19. In the early days of the COVID-19 lockdowns, most restaurants were forced to stop operating—and even when restrictions eased, most dining establishments saw far fewer patrons than ever before. “New York will bounce back. that, for every death, there can be a new birth. Once numbering 300-plus locations, the chain was already down to fewer than 100 spots left. “I think these things are ultimately going to be good for the retail economy, because they’re going to lead to more efficiencies and a better chance of profitability of recovery for return on investment.”. It was a fast-forward to the ultimate outcome, but it wasn’t the only cause of it, certainly.”. 14 big restaurant companies that have filed for bankruptcy so far in 2020. Baxter notes that athleisure and cosmetics are doing well, and the recent announcement that Harry Winston is nearly doubling its Fifth Avenue space demonstrates the staying power of jewelry sales. “That’s an even bigger problem,” said Jonathan Pasternak, a partner in the bankruptcy practice at Davidoff Hutcher & Citron, “because not only do you have some retail vacancies, but you would end up potentially with a lot of office building vacancy. The restaurant, owned by Mena Mekaiel, is a 2,000-square-foot space located at 4551 Springhill Dr. Mekaiel, who also owns two restaurants in Elizabethtown, said he plans to offer… She was born Nov. 6, 1939, in St. Joseph, to Robert Leighton and Mary Jane (Roskoski) McGrew. Founded in the late 1970s and at one point numbering nearly 100 locations under both the names Souplantation and Sweet Tomatoes, this all-you-can-eat style buffet restaurant did not survive the COVID-19 pandemic. This was not a great surprise, however. 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