After Chapter 11 bankruptcy, beloved retailer closing all stores
The chain's fans are very upset that it has begun its going-out-of-business sales sooner than many expected.
Many brands fail despite having a large fan base.
Just because people love you and support your company does not guarantee success. A popular restaurant, for example, might be steadily busy, but if it's landlord thinks another tenant will pay more money for the space, it might close due to a rent increase it can't afford.
Related: Discount retailer closing more stores after Chapter 11 bankruptcy
In retail, rising rents can play a role but so can many other things. A number of the chains that have fallen into liquidation over the past few years actually had successful businesses.
The problem is that they had so much debt that profitable ongoing operations cannot service their debt. In addition to not being able to pay off loans, these companies also can't afford to make needed changes.
