bankruptcy
November 24, 2020

Guitar Center filed for Chapter 11 bankruptcy on Saturday, with CEO Ron Japinga saying this is "an important and positive step in our process to significantly reduce our debt."

Based in California, Guitar Center opened in 1959, and is the largest musical instrument store in the U.S. The company, which has more than 13,000 employees, said it will keep all 510 of its stores open through the holidays.

Guitar Center declared in court documents that it was on "extraordinarily sound footing" before the pandemic, and its sales dropped primarily because of stores having to close due to the coronavirus. Company officials said Guitar Center has more than $1.3 billion in debt, and under a reorganization plan, that number will be reduced by nearly $800 million, CBS News reports.

Several major retailers have filed for bankruptcy protection amid the pandemic, including Neiman Marcus, Hertz, and J.C. Penney. Catherine Garcia

August 2, 2020

Lord & Taylor, the luxury department store chain with 38 locations in the United States, filed for bankruptcy on Sunday.

The store's owner, Le Tote Inc., also filed for Chapter 11. Le Tote, a subscription service that rents out women's clothing and accessories, bought Lord & Taylor from Hudson's Bay Co., the parent of Saks Fifth Avenue, in 2019.

Lord & Taylor, founded in 1826 by two immigrants from England, is the oldest department store in the United States. The company temporarily closed its stores in March due to the coronavirus pandemic, and is the latest retailer to file for bankruptcy protection this year, joining Neiman Marcus Group Ltd., J.C. Penney Co., and J.Crew Group Inc. Catherine Garcia

July 30, 2020

California Pizza Kitchen on Thursday filed for bankruptcy, with the restaurant chain saying it plans on closing some of its roughly 200 locations.

Founded in 1985, the company started looking for buyers last fall, and the search is still on. Now, California Pizza Kitchen is being kept afloat thanks to a $47 million loan from a group of lenders, which will fund operations through the bankruptcy proceedings, The Wall Street Journal reports.

"The unprecedented impact of COVID-19 on our operations certainly created additional challenges, but this agreement from our lenders demonstrates their commitment to CPK's viability as an ongoing business," CEO Jim Hyatt said in a statement. California Pizza Kitchen is based in Los Angeles, and has restaurants in the United States, United Arab Emirates, India, South Korea, Singapore, the Philippines, Mexico, Japan, and Hong Kong. Catherine Garcia

July 28, 2020

Remington Arms filed for bankruptcy on Monday, its second restructuring since 2018.

Prior to filing for Chapter 11 bankruptcy protection, the firearms manufacturer had been in talks with the Navajo Nation about a potential sale, but the negotiations fell through. A person with knowledge of the matter told The Wall Street Journal that Remington's firearms and ammunition businesses could now be sold off separately. Gun sales are up in the United States, with the FBI conducting a record number of background checks for licenses in June, the Journal reports.

Last year, the Supreme Court said a lawsuit filed against Remington by the families of Sandy Hook school shooting victims could proceed. The company's Bushmaster rifle was used in the attack, which left 20 children and six adults dead, and the families allege in their suit that the weapon was improperly marketed. The case is set to go to trial in 2021. Catherine Garcia

May 5, 2020

Gold's Gym announced on Monday it has filed for Chapter 11 bankruptcy protection, one month after it permanently shuttered more than two dozen gyms.

"No single factor has caused more harm to our business than the current COVID-19 pandemic," the company said. Worldwide, Gold's Gym operates more than 700 gyms, and said it had to close about 30 locations in April in order to "maintain the strength and growth of the potential of the brand as well as ensure the continued viability of the company for decades to come."

The company plans to emerge from bankruptcy by August, CBS News reports, and will seek court approval to keep paying employees, vendors, and suppliers. Catherine Garcia

February 19, 2020

The Diocese of Harrisburg filed for bankruptcy protection on Wednesday, becoming the first Catholic diocese in Pennsylvania to do so.

In August, the diocese announced it paid $12 million to more than 100 people who filed claims of sexual abuse against clergy and others working in the diocese. In 2018, a grand jury found that over seven decades, more than 300 Catholic priests in Pennsylvania sexually abused children, and their crimes were covered up by church leaders. Harrisburg was one of the six dioceses named in the grand jury's report.

Under Pennsylvania law, many of the victims are now too old to sue the dioceses — something that state lawmakers and advocates say they want changed. Since 2004, 20 Catholic dioceses in the United States have filed for bankruptcy protection.

Matthew Haverstick, an attorney for the Diocese of Harrisburg, told The Washington Post, "The diocese was in need of right-sizing. Bankruptcy is really the responsible way to do it, so it can continue to do all the things it does, spiritually and charitably." The diocese serves close to 250,000 Catholics across 15 counties. Catherine Garcia

September 29, 2019

The fast-fashion retailer Forever 21 announced on Sunday night that it has filed for Chapter 11 bankruptcy.

There are more than 800 Forever 21 locations spread across 40 countries, and the company said it expects a "significant number of these stores will remain open and operate as usual, and we do not expect to exit any major markets in the U.S." Forever 21 was founded in Los Angeles in 1984 by a husband and wife, South Korean immigrants Do Won Chang and Jin Sook. They still own the company, which Forbes says employs 30,000 people and has annual sales of $3.4 billion.

Linda Chang, Forever 21's executive vice president, said in a statement that filing for Chapter 11 is "an important and necessary step to secure the future of our company, which will enable us to reorganize our business and reposition Forever 21." This has been a hard year for retailers, with more than 8,200 stores closing in the United States so far in 2019, Coresight Research said. This is a big jump from 2018, when a total of 5,589 stores shuttered. Catherine Garcia

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