According to Retail Dive, major retailer bankruptcies have exploded so far in 2020, with more to come.
Retailer Bankruptcies, To Date
Sur La Table | kitchenware specialty goods
Brooks Brothers | mens’ clothing
Neiman Marcus | luxury brand apparel
J Crew | casual wear
Roots USA | outdoor apparel
True Religion | luxury brand jeans
Pier 1 | home goods
G Star Raw | luxury urban denim
Lucky Brand | luxury denim
GNC | supplements and vitamins
Tuesday Morning | off-price retailer
Centric Brands | major brand licensee with 100 brands
JC Penney | major retail
Stage Stores | multiple minor retail brands (Gordmans)
Aldo | shoes
Modell’s Sporting Goods | sporting goods
Art Van Furniture | furniture
Bluestem Brands | direct to consumer outlets
SPF Franchise Corp | Papyrus fine paper
The vast majority of these retailer bankruptcies are Chapter 11 reorganizations. A few are Chapter 7 liquidations. But even in the case of liquidating companies, asset sales are part of the restructuring plan.
With major retailer bankruptcies leading the way, it is amply clear at this point that business restructuring is, or will become, a virtual necessity for every retail business this year.
Where is the Silver Lining?
If your business is in retail, it is absolutely time to consider business restructuring and, likely, a Chapter 11 reorganization proceeding. Consider 2020 as a “glass-half-full” moment in time–take full advantage of this unusual opportunity!
Do you need lease relief? This is the time to make that happen?
Do you need to restructure secured obligations? This is the time to make that happen?
Do you need tax relief? Again, this is the time to make that happen.
We Can Help
We assist businesses in restructuring their obligations, including commercial lease obligations. If we can help your business with this process, please give a call: (213) 600-6077–ask for Kevin McBride.