Latest news with #Chapter11
Miami Herald
an hour ago
- Business
- Miami Herald
Huge cable and internet phone provider faces Chapter 11 bankruptcy
It's not a great time to be a cable company in a broad sense. For decades, cable had sort of two monopolies. First, it was the only real option if you wanted an expanded universe of channels. Related: Best Buy CEO raises red flag about startling customer behavior Yes, you could get an old-school giant satellite dish and pick up feeds from other countries, but unless you spoke multiple languages, that wasn't a viable alternative. In addition, when most major cable companies expanded, they had to spend millions to wire each market. In exchange for doing that, they asked for (and generally received) exclusivity. At first, they agreed to some pricing caps, but by the 2000s, those started going away. Cable prices were high because people had no choices and, to paraphrase the 1980s, "wanted their MTV." Now, however, the internet has made cable less needed and less exclusive. Don't miss the move: Subscribe to TheStreet's free daily newsletter "Data revealed that the number of traditional pay TV households in the United States stood at around 58 million in 2023. This figure will likely drop further over the next few years and amount to less than 41 million by 2028," according to data from Statista. Fewer people pay for traditional cable. Some of that has migrated to streaming services like YouTubeTV and Sling which off cable-like packages and "skinny bundles" of channels for lower prices (albeit with the cost being much more per channel in most cases). EchoStar used to have a unique place as a cable and internet provider that offered service in markets not served by traditional. Cable and Internet service provider. The company's HughesNet brand, for example, offered satellite internet to rural areas. It was slow and pricey, but also a lifeline to the markets it served. Elon Musk's Starlink has made HughesNet irrelevant as it's now not the best choice for nearly any consumer. The company does own Boost Mobile, which operates in the crowded prepaid wireless space and Dish, the satellite/internet cable company, as well as Sling, its pure digital sister company. Boost Mobile has been an asset for the company. "Wireless' performance remains strong with 150,000 subscribers net adds in the first quarter as compared to an 81,000 net loss in the same period of 2024," CEO Hamid Akhavan said during its first-quarter earnings call. Retail stories: Costco quietly plans to offer a convenient service for customersT-Mobile pulls the plug on generous offer, angering customersKellogg sounds alarm on unexpected shift in customer behavior The company did not share subscriber numbers for its cable or internet businesses, but cable saw revenue drop by $126 million while internet revenue was down $46 million. Now, due to an issue with the Federal Communications Commission (FCC) EchoStar has threatened to file for Chapter 11 bankruptcy. EchoStar (SATS) has said that it won't make an interest payment because of an FCC inquiry into its 5G network. "The move could potentially set the stage for EchoStar to seek Chapter 11 bankruptcy protection – and blame the FCC for it," according to Light Reading. FCC Chairman Brendan Carr has launched a "a review of EchoStar's compliance with its federal obligations to provide 5G service throughout the United States per the terms of its federal spectrum licenses," Carr wrote in a letter to EchoStar's Charlie Ergen, who runs EchoStar and its Boost Mobile business. Related: Costco CEO hints at new checkout option members will love EchoStar skipped a $326 million interest payment, according to a May 30 filing with the US Securities and Exchange Commission. The company did share that it has a 30-day grace period to make the interest payment "before such non-payment constitutes an Event of Default". "This uncertainty over our spectrum rights has effectively frozen our ability to make decisions regarding our Boost business, including continued network buildout and adversely impacts our ability to implement and adjust our overall business plan and requires us to re-evaluate the deployment of our resources," EchoStar explained in today's filing. The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Miami Herald
5 hours ago
- Business
- Miami Herald
USPS lowers overnight shipping prices to take down Fedex, UPS
Remember back in the olden days, circa 2015, when we had to wait six whole days to get our Amazon orders delivered? By 2018, the delivery window had shrunk to a barely tolerable three days (I joke). And today? The average delivery time is closer to two days, according to a 2024 Science Direct report. Don't miss the move: Subscribe to TheStreet's free daily newsletter The expectations around e-commerce delivery have certainly changed in a short time, and increasingly, plenty of us want our goods delivered on the same day we order them. The demand can be crushing for retailers and carriers, including small businesses that are trying to compete with the Amazons and Walmarts of the world. They're looking for ways to deliver quickly at an affordable cost. The United States Postal Service (USPS) may be a much-maligned institution, often criticized being slow and overpriced, but this time it's trying to be a problem-solver. To meet consumers' expectations, the USPS has quietly launched Priority Mail Next Day, a new service aimed at online retailers and small businesses. The new service allows businesses to get their goods into the hands of their customers within a day. In order for packages to be eligible for the next-day service, the packages (20 pounds or less) have to be delivered to a USPS processing center by 6 p.m. If they arrive after that cutoff, they'll be delivered in two days. Priority Mail Next Day is available by contract only, meaning it's for businesses with an agreement with the USPS. It is currently available in 62 U.S. markets with plans to expand. Related: Major logistics and trucking company files Chapter 11 bankruptcy Despite its limited rollout, USPS officials hinted at nationwide ambitions for Priority Mail Next Day, according to a USPS informational webinar. Since each contract is based on a business's volume, the USPS does not publish shipping rates for the new service. The launch of Priority Mail Next Day highlights the intensifying competition among the "big three" carriers: USPS, FedEx (FEDEX) , and UPS (UPS) . All three are racing to serve the growing needs of e-commerce sellers, particularly in regional and last-mile delivery zones. While FedEx and UPS have long dominated premium overnight shipping, their services often come with complex rate structures, fuel surcharges, and rural delivery fees, all costs that eat into retailer margins. USPS is working to position itself as the simpler and more cost-effective alternative to UPS and FedEx, without frills or complicated fees. The new Priority Mail Next Day is an extension of the USPS Ground Advantage program which launched in 2023 and offers a two- to five-day delivery window. Unlike the new overnight service, anyone can ship via Ground Advantage, no contract required. Both options make USPS attractive to small and mid-sized online retailers that need reliable regional shipping but lack the volume to negotiate steep discounts from FedEx or UPS. More retail: Aldi releases viral Trader Joe's item that is always out of stock Home Depot, Lowe's rivals strategic growth planTrader Joe's making huge mistake not copying Walmart, Target Nearly 70% of consumers say fast shipping influences their decision to complete a purchase, according to Digital Commerce 360, and Capital One Shopping says 80% of consumers expect retailers to offer same-day delivery. This growing expectation is putting increased pressure on retailers and carriers alike, so businesses, including mom-and-pop independent retailers, are constantly searching for shipping solutions that meet customer expectations without breaking their logistics budgets. One issue that is likely to increasingly plague retailers and that no carrier can solve: the faster the delivery time, the more likely the products are to be returned. That's according to a Science Direct study that looked at how shorter delivery times affect returns. Related: Veteran fund manager unveils eye-popping S&P 500 forecast The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Miami Herald
8 hours ago
- Business
- Miami Herald
Huge bankrupt retail chain closing down all stores after 80 years
Retailers must grapple with a lot of harsh realities these days. For one, it's just not 2019 anymore. Related: Popular bankrupt retail chain prepares to close all 96 stores Try as some retailers might, we can't bring the old times back. Which means we've been in the midst of a hard adjustment period over the past several years. We may not have realized it back then, but in 2020 when Covid struck, retail was about to seismically shift. While many stores may have gotten away with operating like it was 1985, the pandemic suddenly exposed those who were taking creative measures to grow or adapt and those who were just puttering along. Lots of smaller, niche, or specialized shops that relied on passive foot traffic to keep operations afloat were suddenly underwater. Foot traffic fell to near zero overnight, and it was suddenly unprofitable to operate in even the most populous, trendy areas. Image source: Getty Images When Covid finally waned and many of us began to resume our daily habits, some brick-and-mortar stores revitalized. But those stores were typically the ones that already had strong business models or competitive moats prior to the pandemic. 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 Discount retailers like TJ Maxx, Ross, and HomeGoods were uniquely positioned to capitalize on a renewed consumer enthusiasm not just for treasure hunting, but also for deal seeking. But niche retailers that offered specialty products or only catered to a sliver of the population struggled to find their way again. Retailers like Joann or Party City, which had large footprints across the U.S. but only offered a particular set of inventory for niche hobbyists, found it difficult to regain their footing. Joann, a once highly popular craft store for quilters, crafters, and other textile hobbyists, was one of the foremost victims of the fall of niche retailers. It filed for Chapter 11 bankruptcy for the second time in January 2025 and made the difficult decision to shutter all stores. Related: See's Candies local rival unexpectedly closing after 50 years Joann has already closed over 200 stores, and after a country-wide liquidation sale, it is preparing to close over 440 more stores by the end of May. When it filed for bankruptcy in January, Joann originally planned to shutter about 500 stores and maintain some operations. But when its assets were acquired by financial services company GA Group at auction, it made the difficult decision to close all stores and cease online operations. Stores that are still operational are holding up to 90% off sales. All stores will close by May 31. The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Miami Herald
18 hours ago
- Business
- Miami Herald
Bankrupt retail chain closing dozens more store locations
The drugstore retail sector has closed hundreds of stores over the last four years for a variety of reasons, including losses from theft of merchandise, underperforming stores that no longer make economic sense to operate, and stores with lease rates too high for the market rate. The nation's biggest drugstore chains have been busy since 2021 seeking to cut costs and losses by shutting down stores. Don't miss the move: Subscribe to TheStreet's free daily newsletter Walgreens, which operates about 8,600 stores with 6,000 profitable locations, evaluated 2,000 stores for potential closure and identified 1,200 locations to shutter, with 500 set to close in fiscal year 2025. Related: Major logistics and trucking company files Chapter 11 bankruptcy The retail chain, which in March agreed to be sold to private equity firm Sycamore Partners, said it will close locations with negative cash flows, underperforming stores where it owns locations, and ones with lease expirations coming due in the next few years to reduce the impact of dark rent. A more recent report said that the drugstore chain might close even more stores, possibly one-quarter of its locations. Huge drugstore chain CVS in 2021 revealed it would close 900 of its nearly 9,900 stores to reduce costs and cut losses, closing 300 locations each year in 2022, 2023, and 2024. The company took community needs into consideration, such as maintaining access to pharmacy services, local market dynamics, population shifts, a community's store density, and ensuring there are other geographic access points to meet the needs of the community. A severely distressed and iconic drugstore is in the process of winding down its store count. Image source:Bankrupt drugstore chain Rite Aid, which filed for Chapter 11 protection a second time on May 5 as New Rite Aid LLC, has filed a fourth notice of additional store closing locations with the U.S. Bankruptcy Court for the District of New Jersey, seeking approval to close 111 additional stores and liquidate their assets, adding to previously designated locations for closing, for a total of 472. Related: Bankrupt drugstore chain closing over 150 stores; here's where Rite Aid already filed notices of store closing locations for 361 stores with the original notice and an additional closing notice on May 9, a second additional closing notice on May 15, and a third additional closing notice on May 23. More bankruptcy: Iconic auto repair chain franchise files Chapter 11 bankruptcyPopular beer brand closes down and files Chapter 7 bankruptcyPopular vodka and gin brand files for Chapter 11 bankruptcy The first four groups of store closings listed locations in 13 states, including Pennsylvania (177), California (59), New York (37), Oregon (17), New Jersey (16), Virginia (13), Washington (13), New Hampshire (8), Maryland (7), Delaware (6), Idaho (4) Connecticut (3), and Massachusetts (1). Rite Aid's fourth additional closing notice filed on May 30 includes store closings in California (39), New York (39), Washington (11), New Hampshire (6), Maryland (3), Oregon (3), Virginia (3), Connecticut (2), Vermont (2), Delaware (1), New Jersey (1), and Pennsylvania (1). New Rite Aid is expected to file several additional store closing notices before its bankruptcy case closes, as it plans to close all of its stores, estimated at about 1,240. Judge Michael B. Kaplan signed an interim order on May 9 approving initial and additional location closings. Objections to the interim location closing order and any of the proposed store closings must be filed with the court and received by the debtor and their counsel no later than June 9, according to court papers. Related: Another major internet company files for Chapter 11 bankruptcy The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
20 hours ago
- Business
- Yahoo
PART 1: Remember these restaurants, stores around Dayton?
DAYTON, Ohio (WDTN) — Over the last several decades, countless eateries and stores have entered and departed the Dayton region. is taking you down memory lane by showcasing some fan-favorite restaurants and retail giants that are either no longer operating in the area or are gone altogether. Three Arthur Treacher's locations currently operate in northeast Ohio. A majority of the area's remaining Blockbuster locations closed in 2012. A closure impacted all Border's locations in 2011. The last Chi-Chi's Mexican Restaurant location closed in 2004. Circuit City closed all locations in early 2009. All CompUSA locations closed in the 2010s. Cub Foods shut its last Dayton area store down in early 2013. All Elder-Beerman and Elder-Beerman Furniture Gallery locations closed in 2018. All Fashion Bug stores closed in 2013. In late 2015, Flower Factory commenced going-out-of-business sales. Fox and Hound operated several locations across the region until closing in the mid 2010s. Friendly's closed its last location in the area in the mid 2010s. All hhgregg stores closed in 2017. After filing for Chapter 11 bankruptcy protection, all Hollywood Video locations closed by summer 2010. All locations of Linens 'n Things closed in 2008. Hometown Buffet, formerly Old Country Buffet, closed its remaining area location on Lyons Road in 2011. The final area K-Mart location closed in 2017. The last area Lone Star Steakhouse location closed in 2018 in Middletown. All Phar-Mor stores closed in 2002. Quizno's had several locations in the Miami Valley, but closed its last remaining area location a number of years ago at Dayton International Airport . Nearly all remaining RadioShack stores closed down in 2015 in the area. Schlotzky's closed its doors for good at Cross Pointe Shopping Center in Centerville in 2018. Sears closed its locations at the Dayton Mall and Mall at Fairfield Commons in late 2018. The retailer had closed several other of its area locations in the months and years prior. All Stein Mart locations closed by October 2020 after the company filed for bankruptcy protection. After filing for bankruptcy protection, Toys R Us closed its brick-and-mortar stores in the Dayton area in 2018. Got a restaurant or store that you remember from the area? Send me an email here and your suggestion could appear in a future list. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
