Bankruptcies and store closings seem to be all over the news this year — a trend that was happening even before President Donald Trump announced his tariffs plan on April 2.
The looming impact of tariffs has spooked many businesses. Unfortunately, their fears are rational.
With the pressure of new levies on both large and small businesses, it's almost certain that we will see many forced to either downsize or throw in the towel this year.
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While some stores are such staples that it's hard to imagine them closing, for some it's happening anyway.
Joann, a fabric and craft store that customers have loved since its opening in 1943, was forced to declare Chapter 11 bankruptcy twice in the last year and is in the process of closing all its stores, a process that should be completed by May 31, 2025.
Related: Beloved retailer in Chapter 11 bankruptcy angers customers
Another company that declared Chapter 11 this year is 23&Me, which announced the news in mid-March. The DNA company once had a valuation of $6 billion, which is a far cry from the $256m Regeneron Pharmaceuticals paid for it earlier this week.
While a Chapter 11 bankruptcy doesn't always mean the end for a company, it does mean it needs a way to restructure its debt. In some cases the companies sells its assets to do this, as 23&Me did.
In others, the best way to handle it is to simply close all the locations if the company is a chain. And that's exactly what one casual restaurant is doing now, after declaring Chapter 11 bankruptcy in May.
Miami-based restaurant chain starts closings
National vegan restaurant chain Planta has closed the first of its locations only a few weeks after filing for Chapter 11 bankruptcy.
The first location to close is the West Palm Beach location at CityPlace, which officially shuttered on May 20.
“Assistant manager Jessie Gregory, who had worked at the West Palm Beach location for over two years, said they were informed on Tuesday, May 20 that they were closing and that it would be her and her coworkers' final shift,” per a report in The Palm Beach Post. “Gregory said they had received no warning and despite the bankruptcy filing reported May 12, the buzz at the CityPlace restaurant was that they'd be ‘staying open,' she said.”
Planta has also closed its South Beach location and the Williamsburg location in Brooklyn, New York, according to the website.
Related: Historic college suffers complete financial collapse after bankruptcy
The plant-based chain previously operated in 18 locations in seven states, including Florida, Chicago, Atlanta, Washington, D.C., Maryland, Los Angeles, and Toronto. Planta has not announced what will happen to the locations that are still operating.
Planta, which is owned by Miami Beach-based CHG US Holdings, cited its reason for the bankruptcy as “inflationary pressures on input costs and consumer pullback as driving factors behind its bankruptcy,” according to a court filing.
“The debtor's largest unsecured creditors include landlord 8461 Melrose Avenue, owed over $613,000; law firm Saul Ewing Arstein & Lehr LLP, owed over $316,000; landlord 13 W 27 Leasehold LLC, owed over $203,000; landlord Friedman Properties, owed over $180,000; and Baldor Specialty Foods, owed over $176,000,” reports TheStreet's Kirk O'Neil.
Related: Home Depot local rival closing permanently after 120 years
