America’s Iconic Retailers Fight For Survival As Pandemic Rages On
For the dozens of American retailers that have filed for bankruptcy in 2020, it doesn’t always mean the end is near. Bankruptcies have piled up in the retail industry this year, as many of the consumer-facing companies that were already teetering on the edge of survival prior to the coronavirus pandemic were pushed into even bigger sales slumps, and could not manage through the crisis. And analysts say another wave of filings likely lies ahead, after the holiday season, with the size of that wave dependent upon retailers’ performance through the winter months. A common misconception among consumers — when they see their favorite brands are headed to bankruptcy court — is that those companies are going away for good. (Yes, sometimes tears are shed.) But a number of the retailers that have filed for Chapter 11 bankruptcy protection this year have already emerged, in some form or fashion. Typically, that is with fewer bricks-and-mortar stores, as many companies will use the restructuring process to break leases without penalty to slim down their real-estate portfolios. Read more at CNBC.
