×
69 371
Fashion Jobs
ESTEE LAUDER
Lead, Business Analysis, West Coast Cluster Brands
Permanent · Irvine
GAP INC.
Manager, Hroc And People Operations
Permanent · San Francisco
RAG & BONE
Sales Supervisor (Full -Time) - Fillmore
Permanent · San Francisco
SALLY BEAUTY CORPORATE
Outside Sales Representative -Cosmoprof
Permanent · Cleveland
NORDSTROM
Asset Protection - Agent - Bellevue Square
Permanent · Bellevue
DESIGNER BRANDS
General Manager
Permanent · Houston
BANANA REPUBLIC
General Manager - Bellevue Square
Permanent · Bellevue
CENTRIC BRANDS
Senior Manager, Production
Permanent · New York
ADIDAS
Sales Support Representative
Permanent · Carlsbad
ADIDAS
Senior Manager Business Process - Scm Retail Operations
Permanent · Portland
OLD NAVY
Assistant General Manager - Huntington - wv
Permanent · Barboursville
OLD NAVY
Assistant General Manager - Shoppes at Fox River
Permanent · Waukesha
OLD NAVY
General Manager - Walpole
Permanent · Walpole
OLD NAVY
sr. Director, Store Experience & Communications (Remote)
Permanent · San Francisco
OLD NAVY
Asset Protection Service Representative - Woodbury Common
Permanent · Woodbury
ASCENA
Store Sales Manager
Permanent · Baltimore
ASCENA
pt Sales | Stock Lead
Permanent · Aurora
ASCENA
Stock Lead
Permanent · Omaha
ASCENA
Sales Manager—Part-Time/Flexible Scheduling
Permanent · Savannah
ASCENA
Part-Time Sales Manager
Permanent · Phoenix
MACY'S
Asset Protection Detective, Shoppes at Buckland Hills - Full Time
Permanent · Manchester
MACY'S
Manager, Operations - Shipping/Exceptions - 4x10
Permanent · Owasso
Published
May 12, 2017
Reading time
2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

Bachrach files for bankruptcy in LA

Published
May 12, 2017

Los Angeles-based men's store Bachrach is the next retailer on the docket in bankruptcy court, with its parent company B&B Bachrach LLC having recently filed for bankruptcy protection in LA.



The company cites consumers turning to online shopping as the reason for its business failings and wants to shutter retail stores to gain solvency. It operates 24 stores selling men's apparel and claims it was profitable until 2016 when consumer retail preferences took a hard turn towards e-commerce.

This is not Bachrach's first bankruptcy filing. In 2005, operations of over 75 stores led the chain into bankruptcy where it was acquired by Sun Capital Partners.

Presumably, one of the reasons it has filed for bankruptcy protection this time is to get out of a deal it held with Simon Properties Group. According to court papers, Bachrach had to lease retail space in Simon's lower tier Class C malls in order to also have a presence in the top Simon locations.

Bachrach opened 17 new stores in 2012 but claims the Class C stores were a source of loss, even though according to court papers the chain saw an overall growth of gross sales that peaked at almost $19 million in 2014.

According to the pleadings, Bachrach was not able to grow its ecommerce sales enough to keep up with competitors. E-commerce sales expanded from $1 million in 2015 to $1.2 million in 2016, but that was not enough to survive.

Bachrach has listed $11.3 million in assets and $12.4 million in liabilities in its pleadings which indicates that a quick restructuring is possible.

Brian Davidoff, Bachrach's bankruptcy attorney explained, “Many of the retailers who have been restructuring or filed bankruptcy had the idea that they would sell the company or restructure, but they haven’t been able to survive because there were no buyers for them."

Bachrach now is using its bankruptcy filing to try to close 13 of its most unprofitable stores while keeping the 11 most profitable ones open.

Davidoff claims Bachrach's financial woes will be solved by closing stores and downsizing. In pleadings, he points to the success of the profitable stores in its chain as a source of optimism for continuing operations.

Undoubtedly this request will be challenged by Simon due to their existing contract. It is highly likely the locations Bachrach wants to close are the less desirable Class C stores it is contractually bound to operate.

 

Copyright © 2022 FashionNetwork.com All rights reserved.