Vitamin World Files For Bankruptcy Protection
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Vitamin World has filed for Chapter 11 bankruptcy protection. Vitamin World said it has identified 51 stores it wants to close during the bankruptcy process. As of the filing, the retailer operated 334 stores and employed nearly 1,500 people. Vitamin World has already closed 45 stores since early 2016. Vitamin World Chief Financial Officer Frank Conley said the retailer suffered "significant supply chain and ingredient availability issues" that hurt sales. The company owes a total of $14.4 million in accrued interest on secured debt and another $9.5 million on a seller note originating from the company’s 2016 buyout by a private equity company. The retailer’s inventory is valued at around $30 million. If Vitamin World can come out of the bankruptcy smaller and more nimble, they will still face a tough environment for selling supplements. With the US retail landscape radiply changing, malls shutting down and supplements under increased scrutiny from government officals, it's become a tough grind for many. We hope Vitamin World can turn things around in 2018.