Bob's Stores explained that, despite making swift and aggressive changes to its structure and operations, it was unable to secure the finances it needed to maintain operations.

As part of the closure of its 21 locations in Connecticut, Massachusetts, New Hampshire, New Jersey, New York and Rhode Island, it is conducting a going out of business sale with discounts of 30-70%.

Bob's Stores president Dave Barton said: "We regret that our financial position necessitated the liquidation of Bob's Stores."

He added that the business has been a stalwart of local communities for nearly 70 years, and has been there for major moments in its customers' lives: "We remain grateful to our vendors, suppliers, customers and employees for all of their support over the years."

Hilco Merchant Resources in a joint venture with Gordon Brothers is managing the liquidation event.

The business is expected to close on 14 July 2024.

In 2020, UK retail conglomerate Frasers Group, the owner of Sports Direct and House of Fraser, placed its subsidiary Bob's Stores under strategic review after NIKE cut ties with the US retail chain.

At the time, Frasers Group said it would no longer distribute to Bob's Stores, its own subsidiary, that trades out of the US.

Earlier this week, the US stock exchange delisted US clothing retailer Delta Apparel after it filed for bankruptcy with the Delaware District Court and its Salt Life brand is expected to be sold to FCM Saltwater Holdings, Inc. for approximately $28m.

GlobalData retail analyst Neil Saunders told Just Style last month, when bankruptcy was already a real possibility, that Delta Apparel's main problem was demand for many of its products had declined steeply.

The outlook for the global fashion sector as we head into H2 2024 also looks bleak with Hong Kong fashion retailer Esprit on the brink of divesting its China business and US sportswear giant Nike sounding a warning for the financial year ahead.