Missouri Retailer's Future in Jeopardy: Layoffs Imminent Amid Bankruptcy Proceedings
Earlier this month, I reported that popular Missouri based retailer Soft Furnishings would close all 44 retail stores nationwide as it shifts to online sales.
Unfortunately, layoff annoucements have commenced in Missouri, so let's take a quick look at the ongoing story.
Bankruptcy
Soft Surroundings, a women's apparel and accessories brand headquartered in St.Louis, filed for Chapter 11 bankruptcy stating it would close all its retail stores and move to online sales only. The business was founded in 1999 and opened its first store in 2005. It will now look to sell its online business to Coldwater Creek.
"Over the past year, we have taken significant steps to fortify our financial standing including rightsizing our business to better match current market conditions. Our commitment to our stakeholders has never wavered as we meticulously evaluated the best path forward and are welcoming this next step to financially secure a bright future for Soft Surroundings. This will allow us to adapt, restructure and emerge more resilient, ensuring the longevity of the beloved Soft Surroundings brand for our customers and partners.” Executive Chair Bridgit Lombard
Missouri stores closing
Below is the list of stores in Missouri that will close
- 33 The Boulevard, Richmond Heights, MO 63117
- 405 Nichols Road, Kansas City, MO 64112
Employees impacted
The business employs almost 650 staff at its headquarters and stores.
Yesterday, Soft Surroundings filed a Worker Adjustment and Retraining Notification (WARN) notice with the Missouri Office of Workforce Development.
The filing advised that 181 staff in Missouri would likely lose their positions on November 18. Some may keep their positions if a sale goes through, but many "will definitely lose their jobs,"
Your thoughts
Are you disappointed to see this business close all of its stores? Are you concerned about the number of retail stores closing? Do you feel people are moving too much towards online sales at the expense of customer service? Do you fear we are heading towards a recession?
Please leave your thoughts in the comments section below and share this article with others so more people can join the discussion.
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