The global retail sector is struggling. Throughout the world, previously successful and storied retailers and brands are facing increasing pressure from the “online” retailers.
Some are succumbing to these pressures and becoming insolvent, including filing for Chapter 11 protection in the U.S. The U.S. retailers source products globally. AlixPartners 2017 North American restructuring experts survey reports that 67% of respondents said the retail industry would be the most likely to see distress in 2017, taking the top spot from the oil and gas industry in 2015 and 2016. Indeed, recent Chapter 11 retail filings include Sports Authority, Linens & Things, The Limited, Wet Seal, and most recently Radio Shack’s “Chapter 22” and electronics retailer hhgregg with 220 U.S. store locations, filed in Indiana.
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