Tuesday, August 1, 2017

Retail Bankruptcies Soared by 110% This Year

The fact that physical retail is hurting is old news. But the extent of its suffering became clear last week when news and research organization Reorg First Day reported that retail bankruptcies rose 110% in the first six months of this year compared with the same period a year ago. The consumer discretionary sector accounted for 24% of all bankruptcies this year, according to the ratings agency Fitch.

In its report, Reorg First Day released a chart listing major retailers that collapsed this year. True Religion, maker of jeans and shorts, started the slide at the beginning of this year by declaring liabilities of between $100 million and $600 million. Among the high-profile companies that declared bankruptcy this year was kids' retailer Gymboree, which declared liabilities of well over $1 billion. . . . more

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