In 2010, in the wake of the Great Recession, 48 retailers filed for bankruptcy. In 2020, with five months still left in the year, 43 retailers have filed for bankruptcy.
The big shake-up of retail was taking place long before the pandemic. Many retailers were heading for bankruptcy; the coronavirus hastened their demise. For them, the question now is whether they will emerge from bankruptcy or disappear forever from the troubled retail scene.
And one thing seems certain: the trouble is far from over. According to Jan Kniffen, a retail consultant, for retailers who are based in malls, heavily in debt, considered non-essential, or selling products that consumers have cut out of their budgets because of the pandemic, the writing is on the wall.
Le Tote, owner of Lord & Taylor, and Tailored Brands, parent company of Men’s Wearhouse, filed for bankruptcy Sunday. They’re the latest retailers pushed to the brink by the pandemic.