As a previous post here detailed, the retail market, which includes so-called “brick and mortar” clothing and other stores as well as restaurants, is a hard market to make a profit in right now. This is due in part to Amazon and other online retail outlets that offer customers the convenience of shopping in their own homes and having items delivered to their doorsteps.
However, the reality is that, despite a slew of retail bankruptcies and some reorganization efforts on the part of other companies, there are still too many retailers for all of them to be sustainable in today’s economy. As such, it’s not a surprise that the number of retailers closing their doors broke records last year, surpassing even the number of retailer bankruptcies during the so-called “Great Recession.”
This year could be even worse for retailers. There have already been several retailers which have filed for bankruptcy in 2018. Just recently, the former retail toy giant Toys-R-Us filed a request in its bankruptcy to close up shop and liquidate the remainder of its toy stores. There are several other big-name retailers, many of which would be familiar to Kentucky residents, that are being watched for a looming default.
While the struggles of large brick and mortar businesses are making the news, it is quite likely that smaller retail outfits are feeling the pinch as well. Many Louisville business owners may be realizing that it is time to devise an exit strategy from their businesses, while others may still hope to turn their ships around by restructuring debts or taking other action. An attorney with experience handling business bankruptcies can be of valuable assistance to these businesses.
Source: Business Insider, “Retailers are filing for bankruptcy at a staggering rate – and these 19 companies could be the next to default,” Hayley Peterson, March 16, 2018.
