9 Retailers That Have Filed Bankruptcy, and 3 That Still Might

It's possible that 25,000 stores will close in 2020. That will be blamed on the pandemic, but COVID-19 only sped things up for most of these brands. The reality is that most of these companies were not healthy before coronavirus hit and were likely on the path to bankruptcy anyway.

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It's hard to fail as a discounter but Tuesday Morning has found a way. The company which sells a variety of home goods (among many other things) has filed for Chapter 11, but it hopes to keep operating.

Centric Brands owns and licenses a ton of famous brand names but that's clearly not enough to keep the company afloat. Brands owned by the company include Hudson, Robert Graham, Swims, Zac Posen, and Avirex. It also licenses Calvin Klein, Tommy Hilfiger, Nautica, Hudson Jeans, and many others.

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J.C. Penney may be the least surprising brand on this list. The department store chain has been struggling for years which forced it to file for Chapter 11. The company intends to keep operating though it plans to close some locations.

Stage Stores, another discount retailer that owns the Bealls, Goody's, Palais Royal, Peebles, and Stage brands, among others, hopes to be able to reorganize. That's by no means certain and the company could end up being liquidated.

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While you would think shoes would be a good business with some protection from losing business to digital retailers, that has not been the case. Aldo, which operates around 3,000 stores, has filed for bankruptcy protection in Canada but hopes to be able to reorganize and keep operating.

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Luxury retail has had its problems and the pandemic has made them worse. Neiman Marcus filed for Chapter 11 and had a deal in hand with many of its creditors to lighten its debt burden. The chain may have to close as many as half of its stores though the exact numbers have not been determined.

This one may have been avoided if the pandemic had not happened. J. Crew had planned to spin off its Madewell brand and that may have allowed it to pay down debt and stay afloat. That was unable to happen, however, so now the brands remain combined but had to file.

It's hard to sell trendy jeans when they're no longer trendy. That's what happened to True Religion. The company fell victim to not being able to stay hip and popular -- something that few brands can ever do.

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Unlike the other retailers on this list, Pier 1 Imports is actually closing its doors for good. The company has already begun liquidation sales where it's allowed to open (in order to close).

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While the retailers above have already filed, another group -- which includes some big names -- may have to follow. Not all of these brands are guaranteed to file for bankruptcy protection (and some may escape it) but some almost certainly will.

A mall mainstay, Gap has struggled with its namesake brand. The company has been supported by its Old Navy brand but that alone may not keep it afloat during these challenging economic times.

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Bed Bath & Beyond has struggled to find the right mix in its stores. The company has tried to shed costs, sell non-core brands, and take other steps to avoid bankruptcy. Those measures may work, but the pandemic and a slower economy could force its hand.

Sears has already filed for bankruptcy once, but it may have to do it again. The company has struggled for years and there's no reason for anyone to think that things will get better any time soon.

Daniel B. Kline has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.