The retail industry is now taking action against a potential wave of bankruptcies leading to a month-long less efficiency in restructuring activity. It might result in increased and distressed retailers in the form of increased prices for certain goods.
A 90-year-old cosmetics giant, Revlon became the first household consumer-facing name in doing so by filing for Chapter 11 bankruptcy protection.
“Retail is in flux,” added Perry Mandarino, the co-head of investment banking and the head of corporate restructuring at B. Riley Securities. “And in the next five years, the landscape you see today will be much different.”(Source: CNBC)
The S&P Global Market Intelligence stated that they have collected only four retail bankruptcies which is quite low. But they haven’t believed in this record and suspect that it’s gonna create more trouble for the industry in the near future through their clever holiday season approaches.
“We have potentially a perfect storm brewing,” Sally Henry, a professor of law at Texas Tech Law School and former partner at Skadden, Arps, Slate, Meagher & Flom LLP, added. “I wouldn’t be surprised to see an uptick in retail bankruptcies.”