The retail apocalypse isn’t slowing down. Another Home Depot Rival Files for Bankruptcy Chapter 11, joining a growing list of companies that can’t compete with the big three anymore. McCammons Irish Market LLC just became the latest casualty in what’s becoming a bloodbath for smaller home improvement retailers.
This isn’t just another business story you’ll forget by tomorrow. When local garden centers and home improvement stores fold, it changes how you shop, where you find specialty items, and what options remain in your neighborhood. The dominance of Home Depot, Lowe’s, and Amazon continues to reshape retail in ways most people don’t see coming.
The Numbers Don’t Lie: Market Share Battle Getting Brutal
Home Depot grabbed 27.2% of the home improvement market in Q1 2025, while Lowe’s secured 17% and Amazon claimed 15.6%. Together, these three giants control almost 60% of all consumer spending in the sector. That leaves scraps for everyone else – and those scraps aren’t enough to keep the lights on anymore.
McCammons Irish Market LLC filed in the U.S. Bankruptcy Court for the Southern District of Indiana on July 17. The suburban Indianapolis garden center operator runs locations in Greenwood and Brownsburg, listing assets and liabilities between $1 million and $10 million. Their largest creditor is a company called NewCo, owed $262,000, followed by nursery supplier McHutchinson at $146,000.
The company sells flowering plants, vegetables, perennials, annuals, ground covers, herbs, and tropical varieties. They also offer tree installation services starting at $125 each for 30 different species. Their Subchapter V petition indicates funds will be available for unsecured creditors – a small silver lining in an otherwise grim situation.
Regional players like McCammons face impossible odds when competing against massive supply chains and pricing power. The math simply doesn’t work when your biggest competitors can undercut prices while offering convenience that local stores can’t match.
Why Small Retailers Keep Falling to Chapter 11
Rising labor costs hit small retailers hardest because they can’t spread expenses across thousands of locations. Product costs jumped thanks to inflation, while rising interest rates made borrowing expensive just when cash flow got tight. Import tariffs added another layer of financial pressure that squeezed profit margins even thinner.
The pandemic created a brief boom for home improvement, but demand normalized as people returned to pre-2020 spending patterns. Smaller retailers that expanded during the good times now face oversized overhead costs without corresponding revenue growth. Many took on debt, expecting continued strong sales that never materialized.
Amazon’s entry into home improvement changed customer expectations around delivery speed and product availability. Local garden centers can’t compete with next-day shipping on basic supplies, forcing them to rely on specialized knowledge and personal service. That strategy works for some customers but isn’t enough to sustain most businesses long-term.
When another Home Depot Rival Files for Bankruptcy Chapter 11, it signals deeper structural problems in retail. These aren’t just poorly managed companies – they’re victims of an industry where scale determines survival, and small players lack the resources to compete effectively.
Recent Bankruptcy Wave Hitting Home Improvement Hard
LL Flooring filed for Chapter 11 bankruptcy protection on August 11, 2024, seeking asset sales after housing market headwinds crushed demand. The flooring retail chain agreed to sell assets and distribution centers to a F9 Investments subsidiary for $1 million plus 57% of inventory value. Their troubles started when the COVID pandemic subsided and repair markets cooled significantly.
Gardener’s Supply Company’s parent, America’s Gardening Resource Inc., filed for bankruptcy protection on June 20 with four affiliates. The company listed $1 million to $10 million in assets against $10 million to $50 million in liabilities. They’re seeking a stalking-horse bidder to purchase assets as financial distress mounted throughout 2024.
Mosaic Companies LLC, a luxury tile and stone slab leader, filed for Chapter 11 on July 8, 2025. The surfaces industry specialist plans to sell certain assets while winding down and liquidating remaining businesses. Their bankruptcy highlights how even specialized premium retailers struggle against broader market pressures and changing consumer behavior.
Each filing follows a similar pattern: companies that thrived in niche markets find themselves unable to maintain profitability. The home improvement sector’s consolidation continues to accelerate as only the largest players survive intense competition.
What Chapter 11 Actually Means for These Companies
Chapter 11 bankruptcy isn’t a death sentence – it’s a reorganization tool that lets companies restructure debt while continuing operations. McCammons Irish Market chose this path to reorganize and restructure debts rather than liquidate immediately. The process gives them breathing room to negotiate with creditors and potentially emerge as a smaller but viable business.
Subchapter V provisions, which McCammons used, streamline the bankruptcy process for smaller companies with under $7.5 million in debt. This faster track reduces legal costs and administrative complexity, making reorganization more feasible for regional retailers. The provision that funds will be available for unsecured creditors suggests the company has realistic restructuring prospects.
Asset sales often accompany Chapter 11 filings, as companies shed unprofitable locations or business lines. LL Flooring’s sale to F9 Investments demonstrates how private equity firms target distressed retailers with turnaround potential. These buyers often have experience reviving struggling retail operations through operational improvements and strategic focus.
Some companies use Chapter 11 to break unfavorable lease agreements, renegotiate supplier contracts, and reduce labor costs. The bankruptcy process provides legal protection while management works to create a sustainable business model that can compete in the current market environment.
Impact on Consumers and Local Markets
When local home improvement stores disappear, customers lose specialized knowledge and personalized service that big box stores can’t match. Garden centers like McCammons offer plant varieties and growing advice that general retailers don’t provide. Tree installation services and local expertise become harder to find as these businesses close or consolidate.
Pricing often increases in markets with fewer competitors, even when dominant players maintain low prices on basic items. Specialized products and services tend to cost more when local alternatives disappear, forcing consumers to pay premium prices or travel farther for options.
Job losses ripple through local communities as retail employees, managers, and supporting service providers lose income. Small retailers often source from local suppliers, creating additional economic impact when these purchasing relationships end. The multiplier effect touches landscaping companies, delivery services, and other businesses that serve these retailers.
Real estate markets feel pressure as vacant retail spaces struggle to find new tenants. Garden centers and home improvement stores require specific layouts and outdoor spaces that limit potential uses for the properties.
Looking Ahead: More Bankruptcies Coming?
Industry consolidation shows no signs of slowing as the gap between large and small retailers continues widening. Rising minimum wages, healthcare costs, and regulatory compliance expenses hit smaller operators disproportionately hard. Technology investments required for modern retail operations strain budgets that larger competitors fund easily.
E-commerce growth accelerated during the pandemic and hasn’t reversed, making physical locations less valuable for many retail categories. Customers increasingly expect online ordering with rapid delivery, inventory visibility, and seamless returns – capabilities that require significant technology infrastructure investments.
Interest rates remain elevated compared to the near-zero environment that supported many marginal businesses during the 2010s. Companies that borrowed heavily during easy money periods now face refinancing challenges as debt comes due at higher rates.
Climate change and extreme weather events create additional risks for retailers with significant outdoor inventory or seasonal sales patterns. Garden centers face particular vulnerability to weather-related disruptions that can destroy inventory and reduce customer traffic during peak selling seasons.
The Bigger Picture for Retail Investors
When Home Depot Rival Files for Bankruptcy Chapter 11, it often signals strength for the dominant players rather than industry weakness. Market share consolidation benefits Home Depot, Lowe’s, and Amazon as they capture customers from failing competitors. Their scale advantages become more pronounced as smaller rivals exit the market.
Distressed asset opportunities emerge for investors willing to acquire retail properties, inventory, or entire operations at bankruptcy prices. Private equity firms like F9 Investments actively target these situations, seeking undervalued assets they can improve and resell. Real estate investors may find attractive deals on former retail locations suitable for redevelopment.
Supply chain disruptions affect all retailers, but smaller companies lack negotiating power and backup options that larger competitors maintain. Supplier bankruptcies create inventory shortages that hurt smaller retailers more severely than integrated operators with diverse sourcing strategies.
Public retail stocks often benefit when competitors file for bankruptcy, as investors anticipate market share gains and reduced pricing pressure. However, widespread industry distress can signal broader economic problems that eventually affect all retailers regardless of size or market position.
The home improvement sector’s evolution toward fewer, larger players appears irreversible, given current economic and competitive dynamics.
