Formerly bankrupt retail chain closing more stores 5 years later

U.S. shoppers might be losing yet another retail chain, with its last few stores at risk of disappearing five years after a tumultuous bankruptcy filing.

Imagine waking up one morning and heading to your favorite store. However, instead of finding an establishment full of clothes and the sound of elevator music, you see an empty unit with nothing but signs that read “store closing.”

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The U.S. is losing retail chains faster than ever, with beloved retail giants like Macy’s  (M) , JCPenney  (JCP) , and Kohl’s  (KSS)  closing stores as if it were a competitive race, slowly leaving consumers fewer options to fulfill their shopping needs. 

Related: Huge home retailer closing 26 stores amid Chapter 11 bankruptcy

Founded in 1973, Roots is a Canadian outdoor apparel brand known for its athletic wear, leather goods, and accessories.

The retail chain has around 100 physical stores in Canada, two in the U.S., and over 100 partner-operated locations in Asia. It also has an e-commerce platform that delivers to more than 70 countries worldwide.

Roots files for bankruptcy in the U.S.

Roots  (RROTF)  filed for Chapter 7 bankruptcy in the U.S. in 2020 due to financial challenges resulting from the Covid pandemic. At the time, it had around $9.6 million in assets and $15.4 million in liabilities.

Related: Bankrupt retail chain makes major comeback, reopens new stores

This caused the retailer to liquidate and shut down nearly all its U.S. stores, leaving only two physical locations running nationwide. 

Because the company still saw potential in the country, it maintained its e-commerce platform to continue U.S. distribution but made no effort to expand its physical locations.   

Roots reveals a new strategy to get back on track 

In its latest earnings call, Roots revealed it has enacted a multi-year strategy over the past year focused on in-store customer engagement, digital merchandising, inventory availability, and omnichannel capabilities to boost sales and get its business back on track.

As part of this plan, the retailer has closed underperforming stores to invest in “locations that support long-term profitability and customer engagement.” 

Roots says these efforts have already delivered positive results during the first quarter of fiscal 2025, with sales increasing nearly 7% year-over-year. However, it still reported a net loss of almost $8 million (Canadian) in the quarter. 

More Retail News:

• Huge HomeGoods rival files Chapter 11 bankruptcy, closes stores
• Popular Mexican restaurant adds new menu, new store concept
• Walmart makes deal to open popular food chain in stores

These closures allow the retailer to invest in updating its exciting locations to provide a better overall customer experience. 

Although Roots has yet to disclose which specific locations will be on the chopping block next, the U.S. sector is not immune to suffering the same fate. 

If it deems them underperforming, the company could close its remaining two physical U.S. locations, as it plans to continue investing in other areas by cutting costs.   

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