An important European chain announced the closure of its stores in the United States and will lose hundreds of jobs

There are many companies that have chosen to take advantage of the bankruptcy law in 2024. | Photo: Getty Images

Bankruptcy is one of the most difficult scenarios that any company around the world can face. This process is usually determined by the laws of different countries, and includes a series of stages in which the company maneuvers some strategies to avoid liquidation and closure forever.

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Insolvency proceedings usually allow companies to restructure their debts with their creditors to continue operating normally. However, this process is not always successful. Over the past few months, new companies have emerged in the United States that have filed for bankruptcy protection. Some were unable to get out of the financial hole and ended up liquidating their goods.

A new case has recently been revealed involving a clothing chain on the European continent that may be a few steps away from bankruptcy: Ted Baker, which is experiencing huge sales due to the closure of stores in Ted Baker branches in Canada. Ted Baker Limited in the United States, as well as Brooks Brothers and Lucky Brand, both in Canada.

It is important to remember that although the chain operates in the United States, it was founded in the United Kingdom and also has offices in North America, the Middle East, and Europe.

The company's disaster began around 2019, when it recorded a negative closing value of 70.4 million pounds, according to the Fashion United portal. This result is compared to the result of the immediately previous year, where the company was able to collect about 24.4 million pounds.

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This situation has also been exacerbated by the coronavirus pandemic, which has left the company in trouble. The company was forced to open negotiations at the end of March 2022, in order to find a buyer who could capitalize the company.

This deal was successful, and Authentic Brands Group, owner of Forever 21 and Aeropostale, acquired the company at the time for $253.5 million.

According to a statement from the retailer, effective May 10, 2024, online purchases will no longer be available on the portal and all sales will be final at all the company's retail stores.

What branches will the company close?

There are about 31 locations that will cease operations, in addition to 9 stores in Canada. Among the US states in which the affected companies are located are California, New York, Pennsylvania, Texas, Washington, Florida, Georgia, Illinois, Massachusetts, Michigan and Nevada.

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Myrtle Frost

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