When restaurants close, there is generally no financial impact on customers unless they have prepaid catering orders or have paid upfront for a party or other event.
However, when retail chains close, there can be a more profound financial impact. Customers may have ordered and paid for items that have not yet been delivered, and some may have financed larger items directly through the company.
For financing projects or purchases made with a company-specific credit card, you’ll still need to make payments.
Bankrate reports: “Even if a retailer files for bankruptcy, you’re still responsible for paying off your balance. Generally speaking, retail credit cards are issued through a finance company separate from the store itself, meaning any debt you owe is held by the bank rather than the store. This is true even for ‘closed-loop’ cards that are only valid for a specific retailer.”
Things get trickier when it comes to items you paid for but didn’t receive.
According to the Better Business Bureau, there are certain things consumers should do when a company closes without delivering your paid order:
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Collect receipts, proof of purchase and other documents such as warranties and manuals. These materials will help you prepare to resolve your request.
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Please check which bank or credit card you used to make purchases from the now-closed business. You may be able to dispute a transaction due to failure to receive goods or services.
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Try contacting the company to complete the transaction or resolve the issue. Some closed companies provide an email, website, or phone number that can be contacted for more information.
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If the company has not filed for bankruptcy, the business is still obligated to fulfill your order for goods, services, or provide a refund. Closing a business does not relieve the owner of liability. While this can be time-consuming and expensive, consumers may take the company to court.
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For returns: If the item you purchased in a store comes with a warranty, check to see if the manufacturer or store issued the warranty. If the manufacturer issues a warranty, it will most likely be honored. When a company goes out of business, its warranties and services usually disappear unless another agreement is reached.
In a bankruptcy, consumers often become unsecured creditors, which puts them in the last position when it comes to getting paid.
Howard’s Appliance customers should follow the above recommendations, as the chain has abruptly closed all of its stores but has not yet filed for bankruptcy protection as of Dec. 6.
Howard closed without notifying customers.Shutterstock
A week after Black Friday sales, the nearly 80-year-old Howard Appliances chain will close all of its Southern California stores, giving just one day’s notice to employees and no notice to customers, leaving orders stranded, the Orange County Register reported.
As of December 6, the chain’s website remained inaccessible.
“The notice, signed by Howard’s general manager of logistics Isaiah Padilla, said the company will close its operations on December 6 due to ‘circumstances beyond our control,'” the newspaper reported.
Padilla could not be reached for comment on December 5.
More retail:
News of the closure spread on social media.
One user on Reddit wrote: “My parents just ordered a new range of products from Howard’s and then found out this morning that they were all closed? They haven’t received the range yet and apparently all stores are closed starting tomorrow. My mom called four different stores and no one took delivery.”
Another poster confirmed the closure.
“After reading this article, I rushed to their store in Tustin because we have had so many issues with them since the order was placed four months ago. Still, we are waiting on several items. The lights are out, there is only a closed sign, and the hours are gone from the window,” wrote helloninterwebs3.
As of December 6, there were no public records of bankruptcy filings.
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The company was acquired by private equity firm S5 Equity in early 2025, according to a press release.
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Howard has closed all As of December 2025, its Southern California stores are open, the Orange County Register reported.
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According to News Minimalist , employees were reportedly given notice of termination on December 4, 2025, without prior public warning.
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The shutdown affects the company’s network of about 17 locations in Southern California, the Orange County Register added.
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Among past closures, the company previously closed its Upland, Calif., store (effective September 16, 2020), citing weak sales, poor local retail conditions and a shift toward investing in new locations, according to a press release.
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In 2024, a store in Victorville that was previously acquired under the name Midway Home Solutions and was later renamed Howard’s was also closed, Victor Valley News reported.
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This article was originally published by TheStreet on December 6, 2025, and first appeared in the Retail section. Click here to add TheStreet as your preferred source.
