Retail bankruptcies and store closures persist throughout the United States, claiming another casualty in the form of Soft Surroundings, a women’s apparel and accessories brand. Let’s delve into their narrative.
Bankruptcy Woes
Established in 1999 with its inaugural store opening in 2005, Soft Surroundings initially thrived, expanding to over 80 locations. However, financial challenges loomed, resulting in the closure of twenty-five stores in 2021. In a bid for financial relief, the company sought protection from creditors in the U.S. Bankruptcy Court in September of this year, filing for Chapter 11 bankruptcy.
Last week, a bankruptcy judge approved the women’s apparel retailer’s plan, which encompasses a $22.7 million sale of its e-commerce platform and a $400,000 settlement for unsecured creditors. Notably, 65.4% of Soft Surroundings’ total sales are derived from online channels. As part of its restructuring, the brand has opted to shutter all physical stores across the United States, redirecting its focus towards e-commerce.
Closure Sales Unveiled
This week, global asset experts Gordon Brothers initiated closing sales across all 43 Soft Surroundings retail locations throughout the United States. Shoppers can benefit from discounts ranging from 20% to 50% on a wide array of items, spanning casual wear, footwear, and home products tailored for women. This comprehensive sale includes newly arrived products ideal for holiday festivities and gifting. Noteworthy, these discounts are exclusively available in physical stores, not online.
Durien Sanchez, Managing Director of Retail at Gordon Brothers, urged consumers to seize the opportunity to shop early and capitalize on the optimal selection of products and substantial savings available while supplies last.
California Store Closures
Of particular note, three Soft Surroundings stores in California are currently open and conducting liquidation sales:
- 555 The Shops at Mission Viejo #044B, Mission Viejo, CA 92691
- 720 Farmers Lane, Santa Rosa, CA 95405
- 12181 Seal Beach Boulevard, Seal Beach, CA 90740
Retail Industry Challenges
The retail landscape has been tumultuous this year, witnessing the bankruptcy and closure of several prominent chains, including Bed Bath & Beyond, Tuesday Morning, Party City, Christmas Tree Shops, David’s Bridal, and Mitchell Gold + Bob Williams. Even retail behemoths such as Walmart have found themselves compelled to shutter stores.
In this challenging environment, Soft Surroundings adds its name to the growing list of casualties, symbolizing the broader struggles faced by the retail sector in the current economic climate.