Wisconsin supermarket and gas station chain The Store is being forced to close all 25 of its locations.
The store, founded in 1976, will close its activities at the end of July. It also has locations in Michigan.
But this is not the story of another retail chain that runs into financial problems or is hit by declining sales.
The American company was forced to close after the company that owns the buildings and land, Mountain Express Oil, went bankrupt last year.
A real estate investment trust that purchased the land does not plan to renew the deal for The Store to operate there.
It is thought that it will be built upon, or that a new company – perhaps a national gas station chain such as Chevron – will operate the locations.
The company is working to ensure that all current employees are hired by the next operator
But The Store’s parent company, Team Schierl, said it is working with the next operator to ensure current employees will be hired into their current roles after the transition. WSAW-TV reports this.
Chapter 7 bankruptcy is more serious than Chapter 11, and means that a company does not intend to transfer and sell all of its assets. Chapter 11 is considered a reorganization bankruptcy.
In recent months there has been a wave of bankruptcies and the closure of shops and restaurants.
On Monday we reported how BurgerFi – which bills itself as a higher-end McDonald’s – has raised concerns about mass closures after revealing it is considering bankruptcy.
Bosses are eyeing a Chapter 11 bankruptcy, which would allow the company to cancel leases on its worst-performing restaurants and sell off the contents – as Red Lobster did last month.
In fact, Red Lobster closed nearly 100 of them after filing for bankruptcy in May. Another 135 are under consideration.
National coffee and luxury supermarket chain Foxtrot said in early April it would close all its stores with immediate effect, leaving staff and customers stunned.
Meanwhile, retailer Express, a key part of the shopping centre, filed for bankruptcy in April and said it would close 95 outlets.
The closures are part of a larger downturn in U.S. retail, as nearly 2,600 stores have already closed this year.
The Store, which was first established in 1976, will close its branches at the end of July
99 Cents Only Store will close all 371 stores nationwide this year
Big names like Macy’s, Walmart, Walgreens, Foot Locker and 7-Eleven have all said they are closing stores.
Discount stores such as Family Dollar and the bankrupt 99 Cents Only have been hit the hardest, as have drugstores such as CVS and Rite Aid.
If closures continued at the same pace for the rest of the year, they would total 7,800 in 2024 – almost 40 percent more than the 2023 total.
Physical locations are having a hard time with online competition.