Party City
Plagued by helium shortage and prolonged underinflated earnings, Party City shut many of its stores. The New Jersey-based party store missed on earnings in 2019 and was looking towards the Halloween and holiday season to give it a reason to party.
In May 2019, the company announced plans to shut down 45 stores. CEO of Party City, James M. Harrison, expected a $2.4 billion rise in revenue for 2019; however, we are not sure how that expectation delivered itself. Add the fact that 2020, along with its Halloween and Holiday season, had too many people sitting at home, and you get a pretty bleak picture.
Lands’ End
Lands’ End lost its way. It floundered through an ill-fitting partnership with Sears from 2002 to 2014, it was led astray by former president Federica Marchionni into a trendy high-end parlay, and now, Lands’ End is back home in the steady hands of CEO Jerome Griffith.
New CEO Griffith has achieved growth by prioritizing Lands’ End’s e-tailing division and partnering with Amazon (gasp!). But it’s working. By the end of 2018, Lands’ End reported six straight quarters of sales growth under Griffith’s leadership. The plan was to open up to 60 new stores by 2022 and raise sales by $2 billion.
Chico’s
The trendy, upscale-fashion go-to spot for women over 30 made Fortune magazine’s “100 Fastest-Growing Companies” list in 2001. However, Chico’s FAS declined, trading at around $3 on the NYSE. Other stores under the umbrella of Chico’s FAS, Inc. include White House Black Market and Soma. Those stores were acquired in 2003 and 2004, respectively. Chico’s has an endearing founding story. The original shop in Sanibel Island, Florida, opened in 1983. The little hole-in-the-wall featured Mexican folk art and gift items.
Called Folk Art Specialties (the acronym for FAS), the store began selling sweaters which became so popular they outsold all other items. As Chico’s transformed into a women’s clothing boutique, the owner renamed it Chico’s after a friend’s pet parrot. The first chain store opened in Minnesota, and over 1,400 stores later, Chico’s had a good run. Other measures meant to enhance the company’s profitability include partnering with Amazon and QVC to bolster sales. If you can’t beat ’em, join ’em!
Guitar Center
Guitar Center has been in business since the 1970s. The company’s been building and refurbishing its stores and adding brand-new Guitar Center locations. Most conspicuously, it refurbished its flagship Hollywood store, spending $5 million on the project.
In 2018 there were rumors of Guitar Center falling victim to the bulk-bankruptcy fate of so many other retailers were unfounded. The company’s $1 billion debt triggered the rumors, but it was able to renegotiate those loans. CEO Ron Japinga said there were a few years when the company was “kind of going sideways.” But, the CEO said, “We’ve got a clearer vision of what we’re here for... [and, the company has] really started to turn the corner.”
Toys “R” Us
Toys “R” Us is a vastly different story. Chock-full of doom and demise, this company dove off the precipice to a savage end, exploding in balls of fire visible from space. Toys “R” Us is the third largest retail bankruptcy ever. The mega-toy store crashed and burned under $5 billion worth of debt.
It was an ugly ending. Toys “R” Us filed for bankruptcy in 2017. All did not go well. In 2018 the company announced it would close all 800 of its stores, liquidating 33,000 jobs. We’re going to miss that adorable giraffe. In 2021 the two last remaining stores closed their doors.