EXAMPLES OF COMPANIES THAT HAVE SHUT DOWN AND THOSE THAT HAVE BEEN STARTED AMID COVID-19 PANDEMIC

EXAMPLES OF COMPANIES THAT HAVE SHUT DOWN AND THOSE THAT HAVE BEEN STARTED AMID COVID-19 PANDEMIC

What are some examples of consumer brands that have launched recently?

Three incumbent companies in the U.S. that recently launched are United Sodas, Rare Beauty, and NautiLife, while The Frye Company is an established company that closed its brick-and-mortar stores and is becoming an ecommerce-only brand. Three D2C companies in the U.S. that recently launched are HABIT, Goodhabit, and Loops Beauty. All the consumer brands listed below are based in the U.S. and were launched between February 2020 and September 2020.

Incumbents

  • The Frye Company is an established brand that announced, in August 2020, that it’s closing the 16 brick-and-mortar stores that it operates and is instead becoming an ecommerce-only brand.
  • United Sodas launched on May 13, 2020. United Sodas is based in Brooklyn and positions itself as a light, fun, healthy kind of soda, of which the company sells 12 interesting flavors, such as Pear Elderflower. The company sells both at brick-and-mortar locations in “Erewhon markets in . . . Los Angeles, California” and directly to consumers online.
  • NautiLife launched in February 2020. NautiLife is a plastic-bottle wine brand (specifically bottles made from Polyethylene terephthalate, which is fully recyclable) that sells both in retail stores in Maryland (Arnold and Dawson’s Liquors and Port Tack Ltd. Wine & Spirits) and online with shipping across the U.S.
  • Rare Beauty launched on September 3, 2020. Rare Beauty is Selena Gomez’s skincare brand that sells its products both in Sephora retail stores and online.

D2Cs

What are some examples of consumer brands that have shut down recently?

Jet.com, New York & Company, Pier 1 Imports, Art Van Furniture, Lord & Taylor, Modell’s Sporting Goods, and Stages Stores are consumer brands that have announced complete and permanent shut down of their operations since February 2020.

New York & Company

  • On July 13, its parent company, RTW Retailwinds, filed for Chapter 11 bankruptcy protection.
  • According to the CEO and CFO of RTW Retailwinds, the company will be shutting down its stores due to significant financial distress caused by “the combined effects of a challenging retail environment coupled with the impact of the coronavirus (COVID-19) pandemic.”

Pier 1 Imports

  • After filing for bankruptcy in February, the company plans to close all its stores and conclude liquidation sales by the end of October.
  • It cited the “temporary store closures caused by the coronavirus and failing to find a buyer for the drastic decision.”

Art Van Furniture

  • On March 5, the company announced it was shutting down because “the company’s brands and operating performance have been hit hard by a challenging retail environment.”

Lord & Taylor

Jet.com

  • On May 19, Walmart announced that it was shutting down Jet.com “due to continued strength of the Walmart.com brand.”

Modell’s Sporting Goods

Stages Stores

  • It filed for bankruptcy in May 2020.
  • The COVID-19 pandemic exacerbated its troubles to win financing and grow sales.

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