US-based Bachrach Clothing Stores, tradition of fashionable clothing for the everyday man, has become latest victim of financial problems and filed for Chapter 11 in the US Bankruptcy Court. In the bankruptcy filed, the company listed US $ 11.3 million in assets and US $ 12.4 million in liabilities.
The retailer’s business remained profitable until 2016, when its consumers started gravitating more toward online shopping. Its e-commerce sales grew from US $ 1 million in 2015 to US $ 1.2 million in 2016, that was far from enough to make up for a number of less profitable stores based primarily in shopping malls.
Now Bachrach wants to shutter 13 unprofitable stores in its 24-store chain and keep 11 lucrative outposts up and running.
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“Despite the size of e-commerce sales relative to the retail stores, the company’s e-commerce revenue is stable and growing as opposed to the retail store sales, which have decreased,” Lipman, Chief Executive of Bachrach and its principal owner wrote in a court statement, adding, “Sales from bachrach.com have grown over the years, and the company sees the e-commerce business as a fundamental component of the success of the company going forward.”
