13 retailers that are dying and taking the fashion industry with them

• Updated on: 2018-10-21
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More than 3,500 stores are expected to close across the US in the next couple of months, with some of the most iconic American fashion brands shuttering locations.  Retailers like Macy's, Bebe, and Payless are all closing dozens — or even hundreds — of stores in 2017. As mall traffic declines and e-commerce grows, many fashion brands have struggled to keep up.  Here are 13 retailers that are disappearing across the US, as store closures sweep the country. 

The discount shoe retailer said Tuesday that it had filed for Chapter 11 bankruptcy protection and would immediately close 400 stores in the US and Puerto Rico. Additional store closures are likely. Payless has been in talks with its lenders for months over a restructuring plan that at one point included closing as many as 1,000 stores, or a quarter of the company's locations. Currently, Payless has about4,400 locations worldwide,including 3,600 in North America. The Chapter 11 filing reports less than $1 billion in assets and $10 billion in liabilities. 

The women's clothing retailer shut down all 250 of its stores in early January.  "We're sad to say that all The Limited stores nationwide have officially closed their doors," the company said in an online statement. "But this isn't goodbye. The styles you love are still available online — we're just a quick click away 24 hours a day."

The struggling teen retailer is closing all of its stores, thecompany announced in late January.  The closures come two years after Wet Seal closed 338 of its then-511 storesin January 2015,shortly before the company filed for bankruptcy protection. At the time, Wall Street analysts said that falling foot traffic at shopping malls played a major role in Wet Seal's death spiral.

Currently, BCBG has 570 locations worldwide, and 175 in the US. Most of the 120 stores being shuttered are in the US.  In January, BCBG told Bloomberg that it would shift its focus away from brick-and-mortar stores, and instead double down on e-commerce and selling the BCBG brand through other retailers.  In February, Women's Wear Daily reported that the retailer is considering filing for bankruptcy, with a source telling the publication BCBG is "shopping for bankruptcy attorneys."

In March, Bloomberg reported Bebe planned to close all 170 stores, in an effort to focus on online sales. The retailer previously announced in early February that itplanned to shutter up to 25 locations in 2017. Bebe's sales have been slumping in recent years. In the most recent quarter, the company reported that same-store sales dropped 10.5% compared to the same period a year ago, in which sales declined 2.5%.

The retail announced in mid-March that it planned to close 60 stores by the end of the year. Guess has already closed 62 stores in the last two years, including 10 in the last quarter alone.  "I am laser-focused on improving the profitability of the Americas business," CEO Victor Herrerosaid on a call with analysts in March. 

The teen retailerannounced in Marchthat it was closing another 60 stores. Abercrombie's store count has dropped 20% since 2013, with the latest wave of closures bringing the brand's total number of stores down to roughly 674.  "The competitive environment resulted in more promotional activity and a lower gross margin rate than planned," Abercrombie CEO Fran Horowitz said in a statement. "The Abercrombie brand renewal continues, although it is a work in progress."

The future of American Apparel's stores hasn't been formally announced following the retailer's acquisition by Gildan Activewear Inc. Gildan did not acquire the chain's 110 locations when it bought the American Apparel brand. If American Apparel doesn't find a buyer, these stores will likely be shut down.  While rumors circulated that the brand would be shuttering all locations immediately, the retailer has denied these reports. Stores will not close for at least a few more months due to a 100-day license with Gildan, American Apparel spokeswoman Arielle Patrick told Business Insider in mid-January. American Apparel declined to comment on what would happen after that point.