2017 Retail Bankruptcies Soar To ‘Great Recession’ Highs
by Tyler Durden
ZeroHedge.com
Apr 3, 2017
As U.S. equity markets continue their march back toward all-time highs, courtesy of the latest BTFD binge trade, at least one ‘small’ segment of the U.S. economy does not seem to be participating in the rally as 9 brick-and-mortar retailers have already filed for bankruptcy protection in 1Q 2017 alone. That volume of filings matches the total number of retail bankruptcies for all of 2016 and puts the industry on pace to exceed even the ‘great recession’ highs. Per CNBC:
Nine retailers have filed in just the first three months of 2017, according to data provided exclusively to CNBC from AlixPartners consulting firm. That equals the number for all of 2016. It also puts the industry on pace for the highest number of such filings since 2009, when 18 retailers resorted to that action.
The rising number of retail bankruptcies comes as consumers are making more purchases online, and shifting their spending toward travel and other experiences. Meanwhile, the supply of physical stores continues to outweigh shopper demand, putting pressure on the industry’s profits.
“It’s just kind of this perfect storm where things are coming together, and it’s going to continue for awhile,” Deb Rieger-Paganis, a managing director in the turnaround and restructuring practice at AlixPartners, told CNBC.
The Rest…HERE
