Local malls are losing retail stores due to bankruptcies. In the last month, Payless shoes and Charlotte Russe are the latest in the long list of stores to announce it has filed for Chapter 11 bankruptcy protection.
Within the last couple of years, we have seen Sears, Brookstone, Gymboree, Claires, Davids Bridal, Toys R Us, Kmart, and Shopko, either shut their doors for good or close several stores in an effort to avoid financial disaster. Payless Shoe Source has filed for Chapter 11 protection twice in the last two years.
Declining sales due to giants like Amazon and other online retailers and rising interest rates have forced several brick and mortar stores out of business. Mismanagement and huge debt also played critical roles in the retailers closing the doors. Unable to keep up with the online trend has been catastrophic for several retail businesses.
When anchor stores go bankrupt and leave the mall, it often causes the lease to increase for the smaller stores remaining. This, in turn, causes the smaller stores to either close their business or move to more profitable locations.
Malls owners are making changes to attract customers and businesses so they won’t be paying the bills on an abandoned mall. Sunrise Mall in Citrus Heights, California has a farmers market every Saturday in the parking lot. Other malls have turned some of their parking spaces into light rail stations. We’ve seen fitness centers, schools, medical clinics, police substations and churches occupying spaces in local malls as they struggle to adapt and stay open.
If you have lost your job due to retail businesses going bankrupt, or worry you won’t be able to keep up with your debt much longer before you start losing your assets. Contact a Dallas bankruptcy attorney to discuss what options you have.