When a restaurant closes, it generally has no financial impact on customers unless they had a pre-paid catering order, or had paid an advance deposit on a a party or other event.

When a retail chain closes, however, that can have deeper financial impact. Customers may have ordered and paid for items that have not been 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 will still be responsible for paying off 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 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, that gets trickier.

Here’s what happens when a company closes without delivering a paid-for order

When a company shuts down without delivering your paid-for order, consumers should take certain steps, according to the Better Business Bureau:

  • Collect receipts, proofs of purchase, and other documents such as warranties and manuals. These materials will help you prepare for your request for a resolution.
  • 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.
  • Try to contact 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.
  • 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 doesn’t relieve the owner of that responsibility. While it can be time-consuming and expensive, a consumer may take the company to court. 
  • For returns: if you have a warranty for an item you bought at the store, look into whether the manufacturer or the store issued the warranty. If the manufacturer issues the warranty, it 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 the case of a bankruptcy, consumers generally become unsecured creditors which leaves them at the back of the line when it comes to getting paid.

Customers of Howard’s Appliance should follow the above advice as the chain has abruptly closed all of its doors, but has not, as of Dec. 6, filed for bankruptcy protection.

Howard’s closed with no notice to customers.

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Howard’s closes all of its stores

A week after Black Friday sales, the nearly 80-year-old Howard’s Appliance chain is shuttering all of its Southern California stores, offering only a day’s notice to employees and nothing to customers, with orders in limbo, the Orange County Register reported.

The chain’s website could not be reached as of Dec. 6.

“The notice, signed by Isaiah Padilla, the logistics general manager 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 Friday.

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News of the shutdown 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 haven’t received the range yet, and apparently, all the stores are closing as of 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 hurried to their store in Tustin because we have had numerous issues with them since our order four months ago. Still, we’re awaiting a few pieces. Lights off, only a closed sign, and the hours of operation were scrubbed off the window,” wrote helloninterwebs3.

There is no public record of a bankruptcy filing as of December 6.

Howards Appliances shutdown timeline

  • The company was acquired earlier in 2025 by private‑equity firm S5 Equity, according to a press release.
  • Howard’s has closed all its Southern California stores as of December 2025, The Orange County Register reported.
  • Employees were reportedly notified of their termination on December 4, 2025 with no prior public warning, according to News Minimalist.
  • The shutdown affects the company’s network of roughly 17 locations across Southern California, the Orange County Register added
  • Among past closures, the company had previously shut down its Upland, CA store (effective Sept 16, 2020), citing weak sales, poor local retail conditions, and a shift toward investing in newer locations, according to a press release
  • In 2024, a location previously acquired under the name Midway Home Solutions, which was rebranded to Howard’s in Victorville, also closed, Victor Valley News reported.

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