On May 15, 2024, Bloomberg Law quoted Allison Day on the increase in retail bankruptcies.
According to the article, distressed retailers have already started to flood bankruptcy courts this year. The bankrupt retailers have pointed to the continued fallout from the COVID-19 pandemic and long-standing challenges to brick-and-mortar businesses that in 2020 forced J.C. Penney, Neiman Marcus, and others into bankruptcy. But they also blamed more recent trends, like high inflation and interest rates for their struggle.
As a result, retailers are having a hard time passing on costs to consumers, who are also dealing with higher costs.
“Money is really tight, and so people are spending money on their transportation and on food and their home and are not as likely to go shopping,” said Day.
To access the article click here.