Luxury kitchenware chain Sur La Table files for Chapter 11 bankruptcy and will close 50 of its 130 stores citing the ‘financial impact of the COVID-19 pandemic’
- The Seattle-based company had already laid off about 20 percent of its workforce last months, with hundreds more jobs now set to be slashed
- Sur La Table’s management says the move will allow them ‘to reduce expenses’ so that they can ‘ thrive in a post COVID-19 retail environment’
- Hertz, Neiman Marcus, J.Crew and JCPenney are among other big name companies that have filed for Chapter 11 bankruptcy amid the pandemic
Upmarket kitchenware chain Sur La Table has filed for Chapter 11 bankruptcy and will close 50 of its 130 stores nationwide.
The Seattle-based company announced the news Wednesday, saying the decision was due to the ‘financial impact of the coronavirus crisis’.
Sur La Table was forced to shutter all its stores amid the COVID-19 pandemic, but many have since reopened with safety protocols in place.
However, the business laid off around 20 percent of its staff last month, with hundreds more jobs soon to be slashed as the 50 stores close their doors permanently.
Upmarket kitchenware chain Sur La Table has filed for Chapter 11 bankruptcy and will close 50 of its 130 stores nationwide. One of the company’s outlets is pictured back in March, after it was boarded up amid the coronavirus pandemic
A statement on Sur La Table’s website says the ‘hardest part’ of its decision was the fact that many of its employees will now be without jobs.
‘We recognize that closing stores will have a major impact on their lives. Our hope is that many of them will continue to work for us in other stores if possible or return to Sur La Table in the future,’ the company stated.
CEO Jason Goldberger says the closing stores will cease operation by September, with liquidation sales getting underway at those outlets.
He told Business Insider Thursday that the bankruptcy filing will allow the company ‘to reduce expenses’ so that Sur La Table will ‘be positioned to thrive in a post COVID-19 retail environment.’
The company will continue to operate remaining stores as usual, and will offer cooking classes at many of those facilities. They also plan a push to increase sales on their online website.
Sur La Table’s will keep 80 of its stores open, and will push to increase online sales. A Sur La Table store in Virginis is pictured
Sur La Table is the latest in a line of companies to file for Chapter 11 bankruptcy amid the coronavirus pandemic.
Last week, NPC International – which operates 1,200 Pizza Hut restaurants and nearly 400 Wendy’s outlets – filed for Chapter 11 , citing a debts of almost $1 billion.
In May, rental car giant Hertz filed for Chapter 11 last month after failing to reach a standstill agreement with its top lenders. The Wall Street Journal reported that the company has roughly $19billion of debt.
Clothing brand J. Crew and department stores Neiman Marcus and JCPenney all declared bankruptcy back in April.
In May, car rental company Hertz filed for Chapter 11 after failing to reach a standstill agreement with its top lenders