Three well-known companies have announced in the last few days that they would each be making big changes. Gap announced that it would shift its focus to another set of brands. Meanwhile, Toys“R”Us is considering bankruptcy, while Chili's is shrinking its menu.

Gap and Banana Republic stores closing

Gap announced a few days ago that it would be closing around 200 Gap and Banana Republic stores over the next three years. This is due to a shift in increasing the prevalence of its two other brands that are growing in popularity, Old Navy and Athleta.

Over the next three years, Gap will be opening about 270 stores for those two brands.

Gap says that Old Navy is closing in on surpassing $10 billion in sales, while the newer Athleta is expected to soon pass the $1 billion mark. The company says it expects to rake in $500 million in savings over the next three years with these changes in place.

Toys“R”Us weighs bankruptcy filing

Toys“R”Us has hired law firm Kirkland & Ellis in order to help the company restructure about $400 million dollars in debt that is due next year. Sources familiar with the situation also told CNBC that this could include the well know toy dealer filing for bankruptcy.

If the company can address their debt prior to the busy holiday season, it would help give major investors more confidence in terms of stocking their products and greater clarity regarding the long-term plan viability of Toys“R”Us.

This all comes at a time when the company is facing increased competition from other brick-and-mortar stores and online retailers like Walmart and Amazon.

Chili's drastically slashing menu

Resturant chain Chili's announced that it is massively reducing its menu offerings by removing 40 percent (75 items) of its food offerings by September 18th.

The news, which was first reported by The Street, is a giant cutdown from January when the restaurant reached a peak of over 125 menu items.

Chili's has been dealing with slow sales for close to a decade, with it being reported that store sales fell 2.2% in its most recent fourth quarter numbers. In June the NPD Group reported that visits to casual dining restaurants fell 4.4% in the first quarter of the year, a continuing trend for the industry in recent years.

In their statement, Chili's announced that they would be going “back to its roots” and investing heavily in items like burgers, fajitas, and ribs. The restaurant also said that it would reveal in the coming days exactly which menu items will be removed.
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