When a restaurant closes, it usually has no financial impact on customers unless they have prepaid catering orders, or paid in advance for a party or other event.
When a retail chain closes, however, it can have a profound economic impact. Customers may have ordered and paid for items that have not been delivered, and some may have financed larger items directly through the company.
In the case of financing items, or purchases made on a company-specific credit card – well, you still have to pay.
“Even if a retailer files for bankruptcy, you’ll still be responsible for paying your balance. Typically, retail credit cards are issued through a finance company separate from the store, meaning any debt you owe is held by the bank, not the store. This is also true for ‘closed-loop’ cards that are only valid at specific retailers,” Bankrate reported.
When it comes to items you’ve paid for but not received, it gets trickier.
When a company closes without delivering your paid order, according to the Better Business Bureau, consumers should take certain steps:
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Collect receipts, proof of purchase, and other documents such as warranties and manuals. These materials will help you prepare for your request for resolution.
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Check with the bank or credit card you used to make the purchase(s) at the now-defunct company. You may be able to dispute the transaction(s) 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 closing companies will offer an email, website, or phone number to contact 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 refunds. Closing the business does not relieve the owner of that responsibility. While this can be time consuming and expensive, a consumer can take the company to court.
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For returns: If you have a warranty for an item you purchased at a store, check to see if the manufacturer or store has issued a warranty.. If the manufacturer issues a warranty, it will likely honor it. When a company goes out of business, its warranties and services often die unless other agreements are made.
In bankruptcy, consumers are usually unsecured creditors, which leaves them at the back of the line when it comes to getting paid.
Customers of Howard’s Appliance should follow the above advice, as the chain has suddenly closed all of its doors, but as of December 6, has not filed for bankruptcy protection.
A week after Black Friday sales, the nearly 80-year-old Howard’s appliance chain is closing all of its Southern California stores, giving employees just one day’s notice and nothing to customers, with orders in limbo, the Orange County Register reported.
The chain’s website could not be reached as of Dec. 6.
“In a notice signed by Isaiah Padilla, general manager of logistics for Howard, the company is ceasing its business operations effective Dec. 6 due to ‘circumstances beyond our control,'” the paper reported.
Padilla could not be reached for comment Dec. 5.
More retail:
The news of the shutdown spread on social media.
“My parents just ordered a new range from Howard’s and then saw this morning that they are all closing? They still haven’t received the range, and apparently, all stores are closing starting tomorrow. My mom called four different stores, and no one picked up,” wrote one user on Reddit.
Another poster confirmed the closures.
“After reading this, I rushed to their store in Tustin because we’ve had so many problems with them since ordering four months ago. Still, we’re waiting for some parts. Lights out, only a closed sign, and the hours of operation were scrubbed from the window,” wrote helloninterwebs3.
As of Dec. 6, there is no public record of the bankruptcy filing.
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According to a press release, the company was previously acquired by private-equity firm S5 Equity in 2025.
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Howard is closed all Its Southern California stores as of December 2025, the Orange County Register reported.
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Employees were reportedly notified of their termination on December 4, 2025, with no prior public warning, according to News Minimalist.
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The closing affects the company’s network of about 17 locations in Southern California, the Orange County Register added.
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Among past closings, the company previously closed its Upland, CA, store (effective September 16, 2020) due to weak sales, weak local retail conditions, and a shift toward investing in new locations, according to a press release.
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In 2024, a location previously acquired under the Midway Home Solutions name, which was rebranded to Howards in Victorville, also closed, the Victor Valley News reported.
Related: McDonald’s, Burger King, Wendy’s rival closing more restaurants
This story was originally published by TheStreet on December 6, 2025, where it first appeared in the Retail section. Add TheStreet as a preferred source by clicking here.
