When a restaurant closes, it generally has no financial impact on customers unless they had a pre-paid catering order, or paid an advance deposit on a party or other event.
When a retail chain closes, however, it can have a more profound financial impact. Customers may have ordered and paid for items that were not delivered, and some may have financed larger items directly through the company.
In the case of financed items, or purchases made on 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. Generally, retail credit cards are issued through a finance company separate from the store itself, meaning that any debt you owe is held by the bank, not the store. This is true even for ‘closed-loop’ cards that are only valid with specific retailers,” Bankrate reported.
When it comes to items you have paid for but not received, it becomes more difficult.
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 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 a refund. Closing a business does not release the owner from that responsibility. While 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 for an item you bought in the store, see if the manufacturer or store has issued the warranty. If the manufacturer issues a warranty, they will likely honor it. When a company goes out of business, its warranties and services often die unless another agreement is made.
In the event of bankruptcy, consumers generally become unsecured creditors, leaving them at the back of the line when it comes to getting paid.
Howard’s Appliance customers should follow the above advice, since the chain suddenly closed all its doors, but did not, as of December 6, file 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, offering only a day’s notice to employees and none to customers, with orders in limbo, the Orange County Register reported.
The chain’s website could not be reached as of December 6.
“The notice, signed by Isaiah Padilla, the general manager of logistics for Howard’s, said the company was closing its business operations, effective Dec. 6, due to ‘circumstances beyond our control,'” the paper reported.
Padilla could not be reached for comment on Dec. 5.
More Retail:
News of the closure spread on social media.
“My parent 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 the stores are closing starting tomorrow. My mom called four different stores, and no one is picking up,” wrote one user on Reddit.
Another poster verified the closure.
Related: 123-year-old retail chain closes popular mall location
“After reading this, I went out to their warehouse in Tustin because we’ve had numerous issues with them since our order four months ago. Still, we’re still waiting for a few pieces. Lights out, just a closed sign, and the hours of operation have been scratched out the window,” wrote helloninterwebs3.
There is no public record of a bankruptcy filing as of December 6.
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The company was acquired earlier in 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 closure affects the company’s network of approximately 17 locations across 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), 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 acquired under the name Midway Home Solutions, which was rebranded to Howard’s 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.