RETAIL UPDATE
Rockland Store Could Be Affected By Closures
Destination Maternity, which owns its namesake brand and the Motherhood Maternity chain, is closing more than 180 of its stores as part of its Chapter 11 bankruptcy protection case, according to court documents.
The New Jersey-based retailer, which was already closing about a dozen stores before it filed for bankruptcy, has about 436 domestic standalone locations.
Destination Maternity filed for Chapter 11 bankruptcy protection Monday, joining a growing phalanx of fashion retailers that has been diminished by expensive leases and digital competition.
The retailer operates stores under several brands, including Destination Maternity, Motherhood Maternity and A Pea in the Pod.
There is a Destination Maternity at Rockland Plaza, but Motherhood Maternity in both the closed Macy’s in Nanuet and the Palisades Center, are gone. A Pea In The Pod also closed.
An employee at the store said she believed the Rockland location might be one of the stores expected to close but RCBJ could not get confirmation from Destination Maternity’s corporate affairs.
The company had 446 stores in the U.S., Canada and Puerto Rico as of Aug. 3. It also operated 491 shops-within-a-shop at various department stores and baby specialty retailers.
The company plans to close 183 stores after already shuttering 27 recently, according to a court filing. In a court document, the company blamed the retail industry’s turmoil, declining birth rates, high rents and leadership turnover for faltering. The company has had five CEOs in the last five years.
In its bankruptcy petition, Destination Maternity listed $260.2 million in assets and $244 million in debts.
The company’s stock, traded on the Nasdaq, plunged 44% to 19 cents as of Monday.
Founded as a mail-order catalog business called Mothers Work in 1982, the company went public in 1992, acquired the Motherhood Maternity and A Pea in the Pod brands in 1995 and expanded rapidly in the years thereafter.
Destination Maternity declined to release a list of locations set to close.
In its most recent fiscal quarter, which ended Aug. 3, Destination Maternity reported a year-over-year revenue decline of 11.9% and a net loss of $3.5 million.
The retailer warned it may close additional stores depending on how its bankruptcy goes. The company operates stores under several brands, including Motherhood Maternity, Destination Maternity and A Pea in the Pod.
Liquidation sales at the closing locations are expected to wrap up before the end of the year and will be handled by Gordon Brothers Retail Partners.