BETWEEN THE HEADLINES VOL. 1 | THE FATE OF FASHION RETAILERS IN THE WAKE OF COVID-19

This isn’t how I pictured my first post in my new series to start, but I’m totally okay with that.

In this new series called Between the Headlines, I want to focus on headlines specifically pertaining to the fashion and beauty industries. Of course, we’re also in the middle of a pandemic and the Black Lives Matter movement, so I’m writing this first post with all of that in mind. 

Here in this series, you’ll be able to learn about fashion and beauty news regarding brand launches, sustainability in fashion/beauty, current events, and more. I’ve been wanting to make my blog a place that delivers fashion, beauty, and lifestyle news and I’m finally embarking on that journey.

First, let’s begin with retail news regarding stores filing for bankruptcy, closing brick-and-mortar stores, and the reopening process.

FASHION COMPANIES THAT FILED FOR BANKRUPTCY IN 2020

As the pandemic continues to affect just about every industry around the world, it’s caused a lot of financial hardships for companies. Many have chosen to file for bankruptcy, while others have been forced to shut down permanently. 

– JCPenney, J. Crew, Aldo, Neiman Marcus, and True Religion are some of the well-known retail fashion companies that filed for Chapter 11 bankruptcy this year due to COVID-19.

– RTW Retailwinds, the owner of New York & Company, is possibly preparing for bankruptcy, which could lead to the retailer shutting its doors for good.

WHAT CHAPTER 11 BANKRUPTCY MEANS FOR THESE COMPANIES

Chapter 11 bankruptcy is also known as a “reorganization” bankruptcy. This basically means that these retailers can create a plan to manage their debts, assets, and other business matters while still maintaining their day-to-day business operations. They’re assigned a trustee who will work with them and all important decisions must be approved by a bankruptcy court.

STORE CLOSURES HAPPENING IN 2020 AND BEYOND

With more and more people shopping online, companies have also decided to close their brick-and-mortar stores to decrease business expenses while focusing more on e-commerce. These are some of the fashion retailers who have chosen to close many of their locations.

– JCPenney will close 242 of its stores.
– Gap will be closing 230 stores in the next two years.
– Victoria’s Secret will be closing 250 locations.
– Zara’s owner Inditex plans to close between 1000-1200 stores within the next 2 years. It’s unclear which Zara locations will be closing, but Inditex also owns brands such as Pull & Bear, Bershka, and Stradivarius. 
– Chico’s FAS plans on closing 250 stores over the next 3 years.
– Macy’s will be closing 125 stores in the next 3 years.
– Nordstrom will be closing 16 locations and 3 boutiques.
– Express will close 100 stores in the next 2 years.

STORES THAT HAVE REOPENED AMIDST THE PANDEMIC

Even though there’s currently no vaccine for the coronavirus and the idea of shopping in public is questionable health-wise, many retail companies have chosen to reopen their stores to the public again. Stores have implemented safety measures such as social distancing, wearing gloves and masks, limiting the number of customers that are allowed inside, contactless payments, sanitizing and deep-cleaning stores often, curbside pickups, and different processes when it comes to fitting rooms.

An example of changes happening at DSW

Stores that have opened to the public in the month of June:

– DSW
– Nordstrom
– Abercrombie & Fitch
– Ralph Lauren
– TJX Companies
– Burlington Stores
– Ross
– Macy’s
– Kohl’s

– Chico’s FAS
– J. Crew Group
– Guess, Inc.
– Zara
– Gap, Inc.
– Adidas
– Express
– Nike

Beauty stores such as Ulta and Sephora have also started reopening their locations while taking precautions. For example, customers can’t touch testers anymore and samples are limited.

IN OTHER NEWS

– The Fédération de la Haute Couture et de la Mode announces that Paris Fashion Week will resume in September as planned, even if travel restrictions aren’t lifted. There will be a mixture of live shows and digital platforms to showcase the Spring 2021 womenswear collections.

– Samira Nasr becomes the first black editor-in-chief of Harper’s Bazaar. She is of Lebanese and Trinidadian descent and is currently the executive fashion director at Vanity Fair.

– Matthew M. Williams, founder and creative director of streetwear label 1017 Alyx 9SM, becomes Givenchy’s new Creative Director.

And that’s all the news I have for today! I hope this post was informative and let me know in the comments if you like this series! Thanks so much for reading and I’ll see you lovelies soon 🖤

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