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Fry’s Electronics is going out of business. KRON4 has confirmed that the iconic Bay Area retailer is permanently closing the doors of all stores nationwide. "After nearly 36 years in business as the one-stop-shop and online resource for high-tech professionals across nine states and 31 stores, Fry’s Electronics, Inc., has made the difficult decision to shut down its operations and close its business permanently as a result of changes in the retail industry and the challenges posed by the COVID-19 pandemic," the company said in a statement. The company ceased regular operations and began the wind-down process yesterday. Fry’s has more than two dozen stores mainly across California and Texas. There are six stores in Northern California, eight in Southern California, eight in Texas, two in Arizona, and one store each in Georgia, Illinois, Indiana, Nevada, Oregon, and Washington.

Department store chain Belk Inc. filed for bankruptcy protection on Tuesday, commencing an ultra-quick timetable intended to lift the Sycamore Partners-owned company out of chapter 11 within around 24 hours, the Wall Street Journal reported. Belk is scheduled to appear today in the U.S. Bankruptcy Court in Houston to seek confirmation of a restructuring strategy that creditors have already voted unanimously to support. The chapter 11 proposal, announced last month, would trim $450 million in debt from the company’s balance sheet and provide a $225 million capital infusion, supplied by Belk lenders and its private-equity owner Sycamore. The planned restructuring will keep Belk majority owned by Sycamore, a retail specialist that has controlled the company since 2015. With nearly 300 stores, mostly in the Southeast, Belk generated $3.8 billion in revenue in the 12 months ended November, according to Moody’s Investors Service. As of last month, the company was carrying $1.9 billion in debt. Since 2019, three other sizable companies — retailer FullBeauty Brands Inc., information-technology provider Sungard Availability Services and oil-and-gas company Sheridan Holding Co. I LLC — have filed for bankruptcy and secured court approval of their restructurings by the next day, cutting down on administrative fees from longer stays in chapter 11.

Mall owner Macerich Co. tapped PJT Partners Inc. for help managing its debt load as pandemic-related closures and retailer bankruptcies crimp its cash flows, Bloomberg News reported. PJT, an investment bank with specialties including debt restructuring, will advise the real estate investment trust on options for a $1.5 billion revolving credit facility that comes due in July. The REIT’s shares fell more than 5% to as low as $12.66 after Bloomberg reported the hire. The stock closed at $13.15. Macerich is grappling with some of the same liquidity problems hitting mall owners across the U.S. During government-mandated closures last year, many tenants withheld rent, creating a $52 billion revenue hole for retail-related property owners as of November, according to CoStar Group Inc. The stock briefly caught the attention of online day traders, who sent shares surging to more than $22 last month in a bid to squeeze short sellers. As more retailers succumb to bankruptcy, it’s becoming increasingly difficult for landlords to fill their spaces at sustainable rents. Macerich recently extended the maturities on three of its mall loans, pushing out more than $300 million of debt until at least 2022, according to company filings. 

Steak ’n Shake Inc. sued lender Fortress Investment Group LLC after the burger chain paid off debt coming due to avoid bankruptcy, accusing Fortress of misusing confidential information to mount a takeover bid, WSJ Pro Bankruptcy reported. The Indiana-based milkshake-and-burger chain, backed by entrepreneur Sardar Biglari, said that Fortress obtained sensitive information through negotiations for a potential real estate deal with Steak ’n Shake, then used that knowledge to build an $89 million position in the company’s loans. After acquiring the loans, Fortress made clear it “would not accept a negotiated repayment” and said it “would either force the company to repay the loans in full or file for bankruptcy,” according to the complaint. Steak ’n Shake paid off the loans in full on Friday, spending nearly $103 million to retire the debts and avoid a bankruptcy filing, the company said. Steak ’n Shake’s lawsuit, filed Friday in Marion County Superior Court in Indiana, seeks to recoup alleged losses from Fortress’s actions. Fortress didn’t immediately respond to a request for comment.

The owner of vegan restaurant chain By Chloe has named its bankruptcy lenders as the lead bidders to acquire its assets out of chapter 11, with hopes to get the proposed sale approved by next week, the WSJ Pro Bankruptcy reported. The chain’s bankrupt parent BC Hospitality Group Inc., designated a group of investors as the stalking horse bidders, according to records filed on Saturday in the U.S. Bankruptcy Court in Wilmington, Del., setting the minimum price for other potential bidders to beat. Under the agreement, the stalking horse bidders would acquire 100% of the equity interests of the company in exchange for a credit bid, equal to the $3.25 million in bankruptcy financing they provided, according to court papers. The investor group includes Qoot International UK Ltd., along with equity investor Kitchen Fund LP, private-equity firms Lion Capital LLP, investment firm Bain Capital LP, and venture-capital firm Simple Capital Management LLC.

The Federal Reserve warned of significant risks of business bankruptcies and steep drops in commercial real estate prices in a report published on Friday, Bloomberg News reported. “Business leverage now stands near historical highs,” the central bank said in its semi-annual Monetary Policy Report to Congress. “Insolvency risks at small and medium-sized firms, as well as at some large firms, remain considerable.” In part encouraged by government and Fed programs, businesses have taken on more debt over the past year as they’ve struggled to deal with the economic and financial fall-out from COVID-19, including in some cases forced shutdowns. The Fed report, which provides lawmakers with an update on economic and financial developments and monetary policy, was published on the central bank’s website ahead of Chair Jerome Powell’s testimony before the Senate Banking Committee on Tuesday and the House Financial Services panel a day later. In the report, the Fed voiced hopes of an end to the pandemic later this year though it cautioned that pitfalls remained. In particular, it said that commercial real estate prices “appear susceptible to sharp declines” from historically high levels. That could particularly prove to be the case if the level of distressed sales picks up or if the pandemic leads to longer-term declines in demand, it said. Commercial real estate might be hit by a double-whammy after the pandemic, some economists say. An increase in people working from home could result in less demand for office space, while stepped-up online purchases could force more shutdowns of brick-and-mortar retailers and additional vacancies at shopping centers.

Gym chain YouFit Health Clubs LLC got a new leader and owners as the company wraps up its bankruptcy case, Bloomberg News reported. The fitness chain, which filed for chapter 11 in November, will be run by a group of former lenders that took control through the court reorganization process, according to a statement Thursday. Birch Grove Capital is the majority shareholder. YouFit also appointed Brian Vahaly as its new chief executive officer. Vahaly was formerly chief financial officer of strength-training studio chain Solidcore and earlier worked in private equity and venture capital roles. The fitness industry is seeking to recover from pandemic-induced forced closures and limits on capacity. Chains including Gold’s Gym International Inc., 24 Hour Fitness Worldwide Inc. and the owner of New York Sports Clubs also sought bankruptcy protection last year. Youfit filed for bankruptcy with a tentative deal to sell itself to lenders in exchange for debt forgiveness, court papers show. It won approval of the sale in December after agreeing to notify gym-goers that their memberships would be transferred to the new owners. The company has 80 locations in the U.S., many of them in Florida, according to its website. YouFit was founded in St. Petersburg, Florida in 2008 and remains headquartered in the state.

The owners of 70 Missouri and Illinois Jack in the Box restaurants filed for bankruptcy this week, citing competition and the coronavirus pandemic, the St. Louis Post-Dispatch. The chapter 11 filings potentially affect 57 restaurants in Missouri, with 1,338 full- and part-time workers, and 13 restaurants in Illinois, with another 332 workers, but the filings say major creditors “have tentatively agreed to attend mediation” after the bankruptcy case is filed and lawyers have submitted motions so employees will still be paid. Tuesday’s filing in St. Louis says the companies, Missouri Jack LLC and Illinois Jack LLC, were already feeling financial pressure from increased fast food competition that reduced market share and made it hard to find employees. The companies fell behind in payments on a loan from City National Bank, their largest creditor, and the bank filed a complaint earlier seeking more than $15 million due on several loans. Then the coronavirus pandemic struck, the filings say, hurting business more. The companies were negotiating, and proposed closing seven or eight unprofitable restaurants, but couldn’t strike an agreement with the bank, the filings say. Missouri Jack owes $927,000 to its top 20 creditors, other than the bank and Jack in the Box, including $115,000 to Ameren and nearly $168,000 to American Express, according to court records. Illinois Jack owes nearly $170,000 to its top 20 creditors.