The spread of coronavirus has caused businesses of all kinds to shut their doors, leaving their employees furloughed or laid off. Some of the stores being hit the hardest are brick-and-mortar fashion retailers. Millions of Americans are struggling financially, and self-isolation activities don’t exactly warrant a fashionable new wardrobe. Despite Arizona allowing businesses to reopen earlier than many other states, stores haven’t been immune to the mass business closings going on across the country. The Chandler Fashion Center location of Nordstrom has announced that it will not be reopening due to the devastating impact of COVID-19.
Not the Only Fashion Retailer That is Struggling
Nordstrom Has Not Yet Declared a Bankruptcy Filing
Despite reporting a 40% decrease in sales due to the coronavirus pandemic, Nordstrom did not indicate any intention of filing for bankruptcy in the store closure announcement. Perhaps, this is because of their strong stock following and price. However, other retailers like JC Penney, Tuesday Morning, and True Religion have filed Chapter 11 Bankruptcy in the wake of the pandemic.
Contributing to Arizona’s Unemployment Rate
Although there are payroll protection loans available to small businesses, and Arizona’s COVID-19 restrictions have begun to loosen, Arizona’s unemployment rate is still high. In late May and early June, Arizona saw new unemployment claims topping 20,000 each week. Before the pandemic occurred, new employment claims typically averaged about 3,500 per week in Arizona. The total of Arizonans that have lost their job since the pandemic began is nearly 650,000.
Other Arizona Businesses That Are Closing
Nordstrom at Chandler Fashion Center is far from the only business that will be closing in Arizona due to the coronavirus pandemic. Pier 1, an internationally inspired home décor retailer, has many locations in Arizona and is going out of business entirely. Tuesday Morning, a discount retailer that sells home goods and personal products has closed locations in Arizona. Caveman Burgers, Lilac Bakery, and other small Phoenix-area restaurants are closing permanently. Arizona economists expect more businesses located in malls to close because of online competition, months of closure, and customers continuing to self-isolate at home.
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