Bankruptcy isn’t bringing second chances for many U.S. retailers. A wave of chains have returned to court only a few years after first seeking Chapter 11 protection.
In August, mall staple Claire’s filed for bankruptcy again. The tween retailer secured a buyer for nearly 1,000 stores but will still shutter hundreds of locations. Other repeat filers include Joann, Rite Aid, Forever 21, Party City, and Tuesday Morning. Rue21 and Z Gallerie have each filed three times. Of those chains, six ultimately liquidated, and only one is attempting a revival under new ownership.
Restaurants are following the same pattern. Bravo Brio Restaurants — parent of Bravo! Italian Kitchen and Brio Italian Grille — filed its second bankruptcy in August, just three years after its last. Bar Louie filed for the second time earlier this year, while Bertucci’s has filed three times since 2018.
The trend is so common it has its own nickname: “Chapter 22” — a reference to repeat Chapter 11 filings.
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