COVID-19 woes hit these major Modesto, valley chains; but one mall retailer opening
Coronavirus continues to cloud the futures of some of the Central Valley’s highest-profile chains.
As the pandemic continues, businesses large and small have felt the hurt. And now we can add In-Shape health clubs, H&M apparel retailer and Regal Cinemas to the growing list. In-Shape has several locations throughout the valley, H&M has a prominent place inside Modesto’s Vintage Faire Mall and Regal has two theaters in Stanislaus County.
In-Shape is reportedly looking at restructuring due to massive debt in part because of the ongoing COVID-19 outbreak and subsequent shutdowns. The chain based out of Stockton has 60 locations across the state which include three locations in Modesto, two in Merced and Manteca, one each in Turlock, Ceres, Atwater and Los Banos.
The clubs are all temporarily closed while Stanislaus County remains in the purple, widespread tier of coronavirus inspections. Gyms, like restaurants and salons, have struggled to survive as the pandemic drags on across the region and country. In Stanislaus County, gyms are only allowed to operate outside with various safety protocols in place.
According to a report from Bloomberg, the health club chain is considering its options including “debt restructuring, raising capital or a potential sale.” The company reportedly laid off most of its staff in March, and is facing a $70 million debt.
In-Shape spokeswman Jacqueline Buchanan said the club currently has 22 of its gyms open in counties where it is allowed across the state. The company would not comment further on reports of its financial predicament.
But it is far from the only fitness chain struggling right now. Other major brands that have filed bankruptcy because of the coronavirus crisis include 24 Hour Fitness and Gold’s Gym.
Meanwhile Regal Cinemas, the second-largest movie theater chain in the United States, announced it will temporarily close all its 663 theaters this week. The lack of new films being released, as well as ongoing shutdowns in regions that have yet to get the COVID-19 outbreaks under control, forced the chain’s parent company to close down.
In Stanislaus County, Regal has cinemas on north McHenry Avenue in Modesto and West Main Street in Turlock. Both cineplexes have been shut down since March. While they were given the greenlight to begin coming back in mid-June, those plans were dashed when the state started to see a spike in infections and reopenings were rolled back. Neither the Modesto or Turlock theater reopened and now remain closed.
Modesto mall stores face bankruptcy, more
In Modesto’s Vintage Faire Mall, which has weathered closings, reopenings, closings again and reopenings again, H&M is the latest national retailer to signal trouble ahead. The fast-fashion seller, which specializes in affordable yet stylish women’s and men’s clothing, has had a prominent Center Court spot in the Modesto mall since 2009.
H&M announced it plans to close 250 of its stores next year because of slowed business due to the pandemic. The company has 5,000 stores worldwide, but did not disclose which locations it plans to shutter.
It joins a growing list of national retailers with stores at Vintage Faire who have struggled amid the ongoing crisis. Those include J.C. Penney, Aeropostale and Men’s Warehouse which have all had their parent companies file bankruptcy. Their mall sites currently remain open.
One brand that has already shuttered its mall store, and was the first retailer to do so, was GNC. It closed its Vintage Faire location over the summer, while other sites in area remain open.
But, it’s not all bad news for the Modesto mall. Work continues on the former Sears anchor site, which will be the new home to a Dave & Buster’s and Dick’s Sporting Goods. The two-story spot is being split between the sports retailer on the ground floor and entertainment center on the second floor.
Hiring is underway for the new Dick’s, which is relocating from its standalone location in the complex along Dale Road, and the store will celebrate its grand opening the weekend of Oct. 17.
This story was originally published October 7, 2020 at 5:00 AM.
