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Miami Herald
30-05-2025
- Business
- Miami Herald
Major bank closing nearly 100 global branches
While it may not be the worst time in the world to be a retailer, it certainly isn't the best. It's probably fair to say that many of us were living in the worst age for retail about five years ago. Related: Famous retail chain closing more stores amidst chaotic new change At least as far as recent history is concerned, Covid presented something of an unprecedented disaster for retailers. As the pandemic swept through the globe, many businesses - both local and multinational - shuttered for some period of time. And some never recovered. The American Bankruptcy Institute reports that about 60% of businesses that closed during Covid did so permanently. And many more continue to struggle, even if they did make it to the other side of the pandemic. These numbers present a harsh reality for many retailers. Even if Covid is behind us, many of our habits have been permanently changed by the global event. It may seem like many of our activities are more or less back to normal these days. We still go out to dinner, see a concert, visit the beach, and travel to new or familiar destinations, and some of us still commute to work every day. More closings: Popular Mexican chain closing all restaurants, no bankruptcyIconic mall chain shuttering more stores foreverMajor gym closing multiple locations after franchisee bankruptcyAfter Chapter 11 bankruptcy, beloved retailer closes all stores But our daily routines and errands have more or less changed forever. Fewer of us go to movie theaters to see films, for example. And even fewer of us go to shopping malls for our everyday needs. Instead, we stream our movies from the comfort of our home, and we shop online for many of our household essentials. The same goes for banking, which fewer of us now do in person. Instead, many folks choose to carry out their banking needs online or via a mobile app, which offer far more convenient ways to do essential tasks like pay bills, deposit checks, and even apply for loans. This changing habit, however, has spiraled foot traffic levels ever downward. Which means it no longer makes sense for many banks to keep the lights on for a dwindling crowd. Related: Forget Rite Aid, another struggling drugstore closing down stores So Santander (SAN) has made the difficult decision to shutter 95 bank branches across the UK and Scotland. Santander, which is based out of Spain but has locations around the globe, has seen its e-commerce traffic skyrocket upward; digital transactions are up 63% compared to 2019. Conversely, in-person transactions are down by 61%. This comes after Santander announced it would shutter nearly 20 locations in the U.S., with most closing branches clustered around New England. "Santander Bank continues to refine its branch footprint and retail presence, including introducing new formats and investing in digital capabilities to better accommodate our customers and meet their evolving needs," a Santander spokesperson said of the closures. The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Miami Herald
14-05-2025
- Business
- Miami Herald
Popular outdoor retailer closing all stores, no bankruptcy
If you ask a retailer about the hardest thing regarding business right now, they'd probably tell you it's changing customer shopping habits. And if you asked a customer to share the most difficult thing about shopping, they'd probably say it's finding a new store after their old favorite one closed down. Related: Bankrupt retail chain gets possible billion-dollar rescue lifeline The fact of the matter is that retail is a difficult landscape, no matter which side of it you're on. On the business side of things, retailers have had to grapple with a tough past several years. Covid brought uncertainty, and with it, an unprecedented amount of closures. The American Bankruptcy Institute estimates that approximately 60% of businesses that closed during Covid did so permanently. That's largely because it became too hard to stay open when foot traffic went down to nothing in a matter of days. Plunging profits soon followed, and with no money coming in, keeping the lights on and moving inventory became a herculean task. So customers shifted their habits, too. With many of our favorite brick-and-mortar stores closed, most of us went online to find everything we needed. And now, five years later, many of us would still rather save the trip and order our stuff from easy and cheap e-commerce sites. This has created something of a difficult problem for many retailers. Most legacy retailers are native to the in-person world. They got their start the old-fashioned way, using brick-and-mortar stores to bring in customers and get to know them better. More closings: Popular Mexican chain closing all restaurants, no bankruptcyIconic mall chain shuttering more stores foreverMajor gym closing multiple locations after franchisee bankruptcyAfter Chapter 11 bankruptcy, beloved retailer closes all stores When large, digitally-native sites like Amazon began to grow in size and scope, many had to adapt their operations quickly or get left behind. Some, though, were able to continue as before if they were a local favorite or if their customers weren't swayed by online convenience. Still others tried to do two things at once: shift online and maintain a physical presence, which is expensive and complicated, even in the best of times. And in some cases, a retailer simply decides to hang up its hat, seemingly out of the blue. Such is the case for Next Adventure, a popular outdoor gear and apparel outfitter based in the Pacific Northwest. Headquartered in Portland, Oregon, Next Adventure has been in business since 1997 when it was founded by Deek Heykamp and Bryan Knudsen. Related: After bankruptcy, mall anchor begins going-out-of-business sales But both founders are looking ahead to retirement, and they made the decision to shutter all Next Adventure stores in the very near future. It will close the following locations: Central Eastside Portland flagship storeSandy storePortland paddle centerWarren paddle center Each of the four stores will put its entire inventory on sale in an "everything-must-go bonanza" beginning on May 28, 2025. "It has been the joy of my life to be part of such a great industry and work with our wonderful customers," Deek Heykamp said of the closures. "While retirement sounds pretty amazing right now, I will truly miss the camaraderie and community that we have built together." Related: Home Depot quietly makes a change that may enrage customers The surrounding Portland area continues to lose retailers as the high cost of operation, rising crime, and homelessness plague the region. Other retailers nearby, including REI and Andy and Bax, have also left in recent years. REI left the Pearl District in 2023, saying it "had its highest number of break-ins and thefts in two decades, despite actions to provide extra security." It added it had spent over $800,000 on security measures in 2022 alone, "yet, we still experienced 10 burglaries, including one event that shut down our 14th street entrance for more than two months," the company said. The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Miami Herald
07-05-2025
- Business
- Miami Herald
Popular Mexican chain closing all restaurants, no bankruptcy
Business Popular Mexican chain closing all restaurants, no bankruptcy The only industry that's had a harder time than the retail industry over the past several years is the dining industry. Running a restaurant is a notoriously hard business, and the pressures from 2020 have had lasting effects on the industry. Related: Struggling cosmetics brand sounds alarm, laying off thousands The early part of 2020 saw the closure of nearly every in-person business across the country for at least some period of time. And not all of them made it through. The American Bankruptcy Institute estimates about 60% of businesses that closed during Covid never reopened. Many retailers tried to survive by moving operations online. But things were especially hard for restaurants, many of which rely almost exclusively on in-person dining to turn a profit. Some attempted to adapt by offering takeaway options, but this transition was cumbersome and hard to scale up quickly. Plus, that tactic only worked for restaurants that were popular before the pandemic. If a restaurant had just been starting out and trying to make a name for itself, or if business had been sliding in the wrong direction pre-Covid, convincing customers to go out of their way and order takeout (which can be a hard sell in the best of times) was a recipe for trouble. A woman holding a plate of Mexican food. Image source: Getty Images Dining industry is challenging It's estimated that nearly 20% of restaurants fail within their first year of business. That number balloons to about 50% by the five-year mark. So next time you go into your favorite longstanding, independently run restaurant downtown, give them a big congratulations. They beat the odds. It's not hard to understand why restaurants have such a tough time. More closings: The cost to start one up can be astronomical; you'd need to invest in a high-foot traffic (and probably pricey) area up front. You'd also need to sink money into all the necessary materials, appliances, and renovations. Once the place is up and running, the cost of maintaining a restaurant can be costly. High rents, utilities, the cost of food (a lot of which can go to waste and is highly perishable), and labor can put a dent in profits. Beloved Mexican chain closing down So while it's a sad occurrence, it's never really surprising when a dining locale shuts down. That's what's happening with Fernando's Mexican Cuisine, an upscale Texas-based chain known for its nachos, fajitas, and margaritas. After over 20 years in business, however, Fernando's made the difficult decision to close both its locations in the Dallas area. Related: Huge retail chain closing more stores soon (locations revealed) "With extraordinary sadness, we share news that after 20 wonderful years, Fernando's Mexican Cuisine will be closing both of its locations on May 18th," Fernando's Managing Partner Anne Cowden wrote. "After 20 years of operations and five months of lease negotiations at our Dallas location, we were unable to reach a lease agreement with the landlord. With the Richardson lease also expiring soon, this is the appropriate time to close both restaurants." Fernando's will serve its last meals on Sunday, May 18, 2025. The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc. This story was originally published May 7, 2025 at 8:07 AM.
Epoch Times
06-05-2025
- Business
- Epoch Times
Chapter 7 Individual Bankruptcies in April Rise by 16 Percent Year Over Year
Chapter 7 bankruptcy filings by Americans rose by 16 percent year over year to hit 30,961 filings in April, the American Bankruptcy Institute (ABI) said in a May 2 Total bankruptcy filings, which include submissions from both individuals and businesses, were up by 9 percent on an annual basis. When an individual resorts to Chapter 7 bankruptcy, the court assesses the value of his or her assets and sells them to pay off as many outstanding debts as possible. Any remaining debt is canceled. The individual gets to keep some of the assets that were exempted from the process. 'The 9 percent increase in total bankruptcy filings in April 2025, particularly the 16 percent surge in individual chapter 7 filings, reflects the mounting financial strain on households, elevated prices, and higher borrowing costs,' Michael Hunter, vice president of bankruptcy data provider Epiq AACER, said in a statement. While individual bankruptcy filing numbers jumped in April, the country's overall economic situation has improved over the past months, according to employment and inflation data. In April, the U.S. economy added 177,000 new jobs, which followed 185,000 additions in March, according to Related Stories 5/5/2025 5/5/2025 White House press secretary Karoline Leavitt was quoted as saying in a May 2 White House Meanwhile, according to BLS data, the 12-month annual A Gallup Commercial Bankruptcy, Private Equity According to the May 2 ABI statement, overall commercial bankruptcy filings made by businesses decreased by 12 percent in April on an annual basis. There was a 4 percent growth in subchapter V business filings, which 'highlights the ongoing challenges for small businesses seeking relief, pointing to a broader need for accessible restructuring options,' Hunter said. There are concerns about the role of private equity investments in business bankruptcies. In an April 25 After analyzing bankruptcies of companies with more than $1 billion in liabilities, PESP discovered that seven out of 10 bankruptcies were of businesses owned by a private equity company, even though private equity only makes up 6.5 percent of the U.S. economy. 'This continues a troubling trend: in 2024, private equity-backed companies comprised 11 percent of all bankruptcies and 54 percent of large bankruptcies (those with over $1 billion in liabilities),' PESP said. 'Just three months into 2025, the industry is already outpacing that track record.' According to PESP, private equity focuses on short-term gains and rapid value extraction from businesses they invest in, thereby risking the long-term sustainability of the entities. Focusing on rapid financial gains can result in 'significant mismanagement' and instability, thereby pushing up bankruptcy rates among private equity-owned businesses. 'Bankruptcies are a key bellwether signaling the broader risks associated with private equity investments. For investors and the public alike, bankruptcy trends mark a critical moment and highlight the industry's need for regulation and transparency,' the nonprofit said.
