According to at least one source, retailers are in for another tough year in 2018 which could be substantially worse than the retail sector's poor showing in 2017.
While last year saw the closure of around 9,000 stores, estimate for 2018 suggest there will be 12,000 closures of retail stores over the upcoming months, a 25 percent increase. Some nationwide retail stores, over a couple of dozen, may also wind up in Chapter 11 bankruptcy this year.
Experts do not see any change in the economic circumstances which are making it so hard for retail stores to succeed, and, already, there are over 3,500 planned closures of major retail outfits. January could see the announcements of additional store closings, as businesses often make moves to trim costs in January, while they have cash left over from the busy holiday shopping season.
This news is not just going to affect retail stores, however. For one, many indoor malls and their property developers will be left hurting if more retail stores fold up their shops, leaving commercial buildings vacant. Moreover, even in Louisville alone, many hundreds if not thousands of people will be left looking for other jobs.
Retailers in Kentucky who have been hurt in the ongoing difficult economic circumstances may need to evaluate their legal options for debt relief. Legal options could include a Chapter 11 bankruptcy, but, as this blog has discussed, could also include other strategies.
Likewise, those who are affected by the ongoing shift in the retail market may also need to consider bankruptcy should they lose their jobs in the shuffle.
Source: Business Insider, "A tsunami of store closings is about to hit the US- and it's expected to eclipse the retail carnage of 2017," Hayley Peterson, Jan. 1, 2018.