Some of the headwinds that blew A’gaci into bankruptcy echo those we’ve heard from other retailers that have sought Chapter 11 protection recently: namely, overexpansion and the growing prominence of e-commerce.

And A’gaci’s recent physical expansion was particularly poorly timed — it came just as mall traffic was declining. (A’gaci’s own e-commerce sales were $12.8 million last year, or about 9.4%, of its total sales, according to Butterbach.), says Retail Dive.

But every bankruptcy is unique in some way. While other retailers lost sales from last year’s catastrophic hurricanes, A’gaci is the first large retailer to point to last year’s major weather events as a cause of its bankruptcy. Butterbach said that the hurricanes caused the temporary closure of eight stores in Texas, 12 in Florida and four stores in Puerto Rico, two of which have not yet reopened.

Read more on this topic here.



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