Discount store chain Bargain Hunt has filed for bankruptcy under its parent company Essex Technology Group and will shutter its 92 locations across the US.
The reasons for the closure cited within the Chapter 11 document were a highly competitive environment coupled with inflation rates and supply chain issues.
The discounter has struggled to attain profitability amid the competitive retail market and is expected to cease operations by the end of February.
Going out-of-business sales have commenced across its national outlets.
Court documents revealed that the company has made significant losses over the past years.
The company had net losses of $25.4 million for the fiscal year that ended on January 28, 2023, and net losses of $21.8 million for the fiscal year that ended on February 4, 2024.
For the ten months ending on November 30, 2024, the retailer also had a net loss of approximately $19.0 million.
Additionally, the company struggled to recover from a lost deal with Amazon. It operated a reverse logistics business with Amazon as its main supplier. Amazon provided customer returns to Bargain Hunt for its wholesale business, which was a profitable deal.
However, in 2024, Amazon undertook a request for proposal process that resulted in a 25% loss of business for Bargain Hunt. Eventually, the deal was terminated, thus closing the company’s wholesale business.
Adding to these challenges was competition from big-box retailers, ecommerce companies, and local outlets.
A&G Real Estate Partners has announced plans to auction the 92 retail centers formerly occupied by the company.
The discounter joins a growing list of companies in the US filing for bankruptcy and ceasing operations as rising costs and competition take a toll on businesses.
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