Business

Home-goods chain Muji files for bankruptcy

A customer holds a Muji shopping bag while walking through the Westfield Garden State Plaza mall on Black Friday in Paramus, New Jersey, U.S., on Friday, Nov. 29, 2019. U.S. shoppers are expected to spend around $32 billion on Black Friday, according to Customer Growth Partners' President Craig Johnson. Photographer: Gabby Jones/Bloomberg via Getty Images

(CNN) — Trendy home-goods chain Muji has filed for bankruptcy, making it the latest in a string of retailers to do so as the coronavirus crisis decimates the industry.

Muji, which sells minimalist decor, stationery and clothing, filed for Chapter 11 bankruptcy protection Thursday in Delaware. The company plans to use the process to emerge with a renewed focus on online sales.

“Muji has felt the devastating effects of the Covid-19 pandemic on in-store retail, and as a result will take this opportunity to refocus our efforts in the United States on key regional markets and e-commerce,” Muji CEOSatoshi Okazaki said in a separatestatement Friday.

Part of this refocusing will involve shutting down “a small number” of stores — thoughMuji currently remains open for business in its recently reopened stores as well as online.

When a company files for bankruptcy, it doesn’t necessarily mean the firm will go out of business. Many use the bankruptcy process to shed debt, close unprofitable operations and focus on profitable strategies.

Muji’s Chapter 11 filing listed liabilities of $50 million to $100 million, owed to between 200 and 999 creditors.

The company said in its statement that the bankruptcy process will “ensure the future health, growth, and viability of the company. Muji is committed to serving its customers in the market and providing a high quality of product and experience into the future.”

Muji, which is the US arm of Japanese conglomerate Ryohin Keikaku, joins retail giants like J.CrewJCPenney and Brooks Brothers in filing for bankruptcy during the pandemic.

The-CNN-Wire™ & © 2020 Cable News Network, Inc., a WarnerMedia Company. All rights reserved.

MORE STORIES

LIKE US ON FACEBOOK