Rubies Files Bankruptcy
Rubies the single largest costume company in the World filed for Bankruptcy. The New York based company have filed for voluntary petition under Chapter 11. The family owned company hopes to restructure under Chapter 11. “Given the highly seasonal nature of our business, our manufacturing relationships in China, the chilling impact of the COVID-19 pandemic on the U.S. and the global economy and potential liquidity pressures, the Board of Directors determined that the Chapter 11 filing is our best path forward as we carry out our restructuring efforts,” says Rubie’s President Marc P. Beige. “We believe that this decision will best serve our customers, licensors, employees, and business partners.”
Rubies had recently cut 75% of its entire workforce back in March 2020. Recently the company has been creating face masks to help thru the covid 19 crisis. The company holds licenses such as Ghostbusters, Star Wars and Marvel comics.
Rubies problems from our view point go deep. Halloween retail was taken over by Amazon, Walmart, Target and Spirit when Rubies thrived most Halloween retailers were Independent small business. Companies like Walmart have created their own brands of costumes cutting out companies like Rubies. Rubies was instrumental is breaking the famous Chicago Transworld show apart wanting to part ways with haunted houses and Transworld. Since that move was made the Halloween retail show has been in steep decline. Some report attendance as low as a couple hundred buyers, walking up and down isles as if visiting a Ghost Town.
Meanwhile Transworld started a haunted house tradeshow which bosomed into Escape Rooms, Christmas, VR, with some Halloween retail. Transworld's Amusement show now attracts over 10,000 buyers from all over the World. Today haunted house owners have diversified opening new business other than haunted houses such as escape rooms, axe throwing, and family fun centers. We can only imagine had Rubies embraced the haunted house community, these owners would be their new small business customers. Nearly every single haunted house has now delved into Halloween retail, but considering haunts spend tens of thousands on marketing they'd been the perfect new partner.
What a missed opportunity for Rubies! Rubies could have started a program to educate haunted house owners how to open Halloween retail stores, using their foot traffic to drive retail sales. The Halloween retail show is on its death bed there is no saving it at this point. The retailers need to make the call to Transworld and attempt to re-connect the two shows.
Haunted Houses are the future small business retailers to bad Rubies didn't see that 13 years ago! We can now only look towards the future. The once mighty company has been reduced to rubble, but there is hope make the call to Transworld where new customers await partnerships.