Bankrupt Retail Chain Launches Closing Sale
I recently reported that Soft Surroundings, a women's apparel and accessories brand, sought protection from creditors in the U.S. Bankruptcy Court in Texas and filed for Chapter 11 bankruptcy.
Now comes news of a massive Let'sff sale as employees advise stores will close in December or January.
Let's take a quick look at the ongoing story.
The business was founded in 1999 and opened its first store in 2005. Soft Surroundings employs almost 650 staff and will close all 44 retail stores and move to online sales only as it sells its online business to Coldwater Creek. Ironically, Coldwater Creek filed for bankruptcy in 2014 and closed over 300 stores moving to online sales only.
According to reports, 65.4% of Soft Surrounding's total sales come from online sales.
Texas stores to close with 80% off sale
Last year, the chain closed twenty stores, and the remaining 44 stores will close in the next few months.
Earlier this month, Soft Surroundings filed a Worker Adjustment and Retraining Notification Act (WARN), stating that it would lay off 181 workers at the company's distribution center.
Below are the stores in Texas that will close. A final sale has been launched, offering up to 80% off.
- 10000 Research Blvd., Suite #115, Austin, TX 78759
- 412850 Memorial Dr. Suite 1140, Houston, TX 77024
- 8201 Quaker Ave, Unit 116, Lubbock, TX 79423
- 1900 Preston Road, Suite #185, Plano, TX 75093
- 160 State Street, Southlake, TX 76092
“We don’t have a closing date for Soft Surroundings, but we know this is one of, if not the top performer in the chain of 40-plus stores.” Jason Kasal, vice president and senior leasing director at Kite Realty Group, that owns Southlake Town Square.
It has been a tough year for retail businesses, with several large chains filing for bankruptcy and closing stores, including Bed Bath & Beyond, Tuesday Morning, Party City, Christmas Tree Shops, David's Bridal, and Mitchell Gold + Bob Williams.
Even retail giants such as Walmart have been forced to close stores.
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 fear we are heading towards a recession?
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