Bargain Hunt Becomes Latest Discount Retailer To Declare Bankruptcy
Shoppers looking for cheap deals were dealt another blow this week as the parent company of discount retailer Bargain Hunt filed for bankruptcy.
Essex Technology Group, which operates Bargain Hunt, filed for Chapter 11 Bankruptcy protection in a Tennessee court Monday, listing $10M to $50M in assets and liabilities between $50M and $100M.
It’s working with Dallas-based Riveron Consulting on a path forward, which could include the winding down of operations, Bloomberg reported.
Bargain Hunt has 92 locations across 10 Midwestern and Southern states, according to the company, promising customers steep discounts on a wide range of products from pet food to home decor.
The Tennessee-based retailer lists between 1,000 and 5,000 potential creditors with claims in the bankruptcy case. Riveron Managing Director Rob Hubbard has been appointed to the retailer as chief restructuring officer, court documents indicate.
The largest creditor listed in the suit is Amazon, which reportedly has a $30M unsecured claim against the company. Three other claims reach above $1M, coming from two shipping companies and apparel retailer One Step Up.
David Houston, an attorney at Nashville-based Burr & Forman, is representing Essex in the bankruptcy, with the first hearing set for Thursday morning.
Bargain Hunt’s bankruptcy is the latest in a string of closures and restructurings of discount retailers.
Big Lots reached a deal at the end of last year to sell its intellectual property to real estate consulting firm Gordon Brothers Retail Partners after the firm filed for bankruptcy in September.
The bankruptcy threatened to close all of Big Lots' more than 1,300 stores, but Variety Wholesalers purchased between 200 and 400 locations as part of the settlement.
Hardware retailer True Value filed for bankruptcy in October, and West Coast staple 99 Cents Only Stores announced the closure of all of its 371 locations in April.
At least 7,100 U.S. retail stores closed their doors in 2024, a 69% increase from the previous year, according to research firm CoreSight. The 45 retail bankruptcies through November were up from 25 over the same period in 2023.
