Online:
Visits:
Stories:
Profile image
By CoyotePrime (Reporter)
Contributor profile | More stories
Story Views

Now:
Last Hour:
Last 24 Hours:
Total:

“These 19 Retailers Are on the Brink of Bankruptcy – 13,216 Stores to Close?

Thursday, March 2, 2017 14:31
% of readers think this story is Fact. Add your two cents.

(Before It's News)

 
“These 19 Retailers Are On The Brink of Bankruptcy-
 13,216 Stores to Close?
by Thomas Dishaw
 
Moody’s recently released a Sector In-Depth report titled “Retail and Apparel– US: Distressed Retail and Apparel Companies Are on the Rise. Who’s Next?” and its findings show that the retail bubble could soon be taking another major blow….Bankruptcy.
 
We all know that retail is a very volatile market. This factor causes many companies to turn to “financial sponsors” and hedge funds that, in return for the quick cash, offer highly leveraged funds causing many retailers to end up struggling under debt with the terms set by the sponsors. Due to these agreements distressed bond issuers in the U.S. retail and apparel markets are nearing levels that haven’t been witnessed since the Great Recession of 2008-2009, tripling in the past six years. While the clock has been ticking on stores like Sears and J.Crew for quite some time, 17 other stores appear to have found themselves in the crosshairs of financial doom:
 
• Claire’s- 2,867 stores
• rue21- 1,200 stores 
• Payless- 4,496 stores
• Nine West- 800 stores
• Gymboree- 1200 stores
• Not Your Daughter Jeans
• True Religion- 900 stores
• Indra Holdings Corp.
• Bon Ton Department Stores- 267 Stores
• TOMS Shoes
• David’s Bridal- 300 stores
• Tops- 126 stores
• Velocity
• 99 Cent Only Stores- 350 stores
• Charming Charlie- 350 stores
• Evergreen Saver’s- 330 stores

 

 
These 19 retailers including Sears and J.Crew, have more than $3.7 billion of debt maturing in the next five years, with about 30% of that total due by the end of 2018. If all of the retailers listed were to shutter their doors that alone would amount to the closing of more than 14,450 stores and leave hundreds of thousands of employees without jobs.
 
Aside from sponsored ownership, these apparel companies suffer from stressed liquidity, weak quantitative credit profiles, overly discounted merchandise, a decrease in traffic, challenged competitive positions, and erratic management structures. Whether or not any of these companies will be able to reverse the destruction remains to be seen. Based on the growing trend of retail bankruptcy and mall abandonment it seems highly unlikely.”
 

Related:
• Abercrombie & Fitch announces another 60 stores closing as sales continue to slide
• hhgregg to close 88 stores in an attempt to stay afloat
• Hershey’s to lay off thousands in global workforce reduction
• Wendy’s to start replacing employees with 1,000 self-ordering kiosks in 2017

Does the above look like a healthy economy? 
We all hear about how the economy is in “recovery”, that and all the lies the 
government tells habitually. My reaction to their lies is best summed up like this:
 
I’m sure you’ll agree…


Source: http://coyoteprime-runningcauseicantfly.blogspot.com/2017/03/these-19-retailers-are-on-brink-of.html

Report abuse

Comments

Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Total 1 comment
  • Pink Slime

    No wonder. Stores I never heard of. :???:

Top Stories
Recent Stories
 

Featured

 

Top Global

 

Top Alternative

 

Register

Newsletter

Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.