When a restaurant closes, it generally has no financial impact on customers, unless they had a pre-paid catering order or paid an advance for a party or other event.
However, when a retail chain closes, it can have a deeper financial impact. Customers may have ordered and paid for items that were not delivered, and some have financed larger items directly through the company.
For financed items or purchases made with a company-specific credit card – well, you still have to pay.
“You’ll still be responsible for paying your balance even if a retailer files for bankruptcy. Retail credit cards are generally issued through a financial company separate from the store itself, meaning any debt you owe is owned by the bank, not the store. This is even true for ‘closed-loop’ cards that are only valid at certain merchants,” Bankrate reported.
When it comes to items you paid for but didn’t receive, it gets trickier.
When a company closes without delivering your paid order, consumers should take certain steps, according to the Better Business Bureau:
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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 resolution request.
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Check with the bank or credit card you used to make the purchase(s) at the now-closed 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 closed companies will provide an email, website or phone number to contact for more information.
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If the company has not filed for bankruptcy, the company is still obligated to fulfill your order for goods, services or a refund. Closing a business does not relieve the owner of this responsibility. Although it 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 on an item you bought from the store, check if the manufacturer or store issued the warranty. If the manufacturer issues a warranty, they will most likely honor it. When a company goes out of business, its warranties and services often die, unless other agreements have been made.
In bankruptcy, consumers generally become unsecured creditors, which puts them behind the line when it comes to getting paid.
Howard’s Appliance customers should follow the advice above, as the chain has suddenly closed all of its doors, but has not filed for bankruptcy protection as of December 6.
A week after Black Friday sales, the nearly 80-year-old Howard’s appliance chain is closing all of its Southern California stores, giving only a day’s notice to employees and nothing to customers, with orders in limbo, the Orange County Register reported.
The chain’s website has been inaccessible since December 6.
“The notice, signed by Isaiah Padilla, Howard’s general manager of logistics, said the company is shutting down business operations, effective Dec. 6, due to ‘circumstances beyond our control,'” the paper said.
Padilla could not be reached for comment Dec. 5.
More retail:
News of the closure spread on social media.
“My dad just ordered a new range from Howard and then saw this morning that they are all closing? They haven’t received the range yet and apparently all stores are closing tomorrow. My mom called four different stores and no one is picking up,” wrote one user on Reddit.
Another poster verified the closures.
“After reading this I rushed to their store in Tustin as I have had numerous issues with them since our order four months ago. Still waiting on a few parts. Lights out, just a closed sign and the hours of operation were wiped off the window,” wrote helloninterwebs3.
There is no public record of a December 6 bankruptcy filing.
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The company was acquired in early 2025 by private equity firm S5 Equity, according to a press release.
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Howard’s has closed all its Southern California stores by December 2025, The Orange County Register reported.
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According to News Minimalist, the employees were notified of their termination on December 4, 2025, without prior public warning.
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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 previous closings, the company previously closed its Upland, CA store (effective September 16, 2020), citing weak sales, poor local retail conditions and a shift toward investing in newer locations, according to a press release.
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In 2024, a location previously purchased as Midway Home Solutions, which was renamed Howard’s in Victorville, also closed, the Victor Valley News reported.
Related: McDonald’s, Burger King, rival Wendy’s close 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 favorite source by clicking here.