What’s closing in the Central Valley? Chapter 11 bankruptcies close major retailers

Macy’s Department Store in West Valley Mall

The year 2017 saw 11 major retailers go belly up. In most cases the giants cut costs by closing stores. So what retailers filed bankruptcy in 2017, and how did it affect shopping in the Central Valley?

The 11 retailers include those with locations in San Joaquin, Stanislaus and Merced counties such as Toys “R” Us, RadioShack, Rue21, Gymboree, BCBG and Payless Shoe Source.

Before December 2017, more than 30 businesses had filed for bankruptcy, many citing brick and mortar apocalypse due to a growing trend of ecommerce shopping. Other stores, such as Sears, JC Penney and Macy’s, managed to avoid bankruptcy but still closed locations due to falling revenue.

RadioShack was hit big. The electronics retail chain closed all of its Central Valley locations except for one in Oakdale. It’s one of 70 company-owned locations left after the brand closed over 1,000 locations.

In one of the biggest hits of the year, The Limited has decided to close all of its doors after filing bankruptcy and reportedly landing $14.7 billion in debt. That’s the largest amount of reported debt accumulated by any of the 11 major retailers that filed for Chapter 11 in 2017. The Limited will continue to operate as an online only brand.

Rue21 announced it would close approximately 400 of its 1,218 U.S. locations including its Tracy, Manteca and Modesto spots.

Toys “R” Us announced plans to close a minimum of 100 stores after filing bankruptcy last year. The locations have not yet been identified but several Central Valley stores could be at risk.

After emerging from its Chapter 11 restructuring in August 2017, Payless Shoe Source doesn’t have any plans to close doors other than may occur through the normal course of business operations.

Gymboree will close a total of 24 California locations (including one in Fairfield) after rebranding under Gymboree Group, Inc. The brand also owns clothing retailers Crazy 8s and Janie and Jack. For now, all San Joaquin, Stanislaus and Merced county locations are safe.

California-based BCBG Max Azria Group, Inc., a women’s clothing chain featuring designer collections from work wear to evening gowns, will close 120 locations, primarily in the U.S. The Stockton store, inside of Dillard’s at Weberstown Mall, is safe for now.


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