In 1Q 2017 and into 2Q 2017, news of retail store closures and bankruptcy filings had become commonplace, with no sign of abating. Shifting consumer shopping habits and competition from fast-fashion retailers and e-commerce have led to a more competitive marketplace and, in general, decreasing...
Disruption is the new norm across the retail industry as retailers pursue the best omnichannel approach to engaging with their customers. The proliferation of internet retail and omnichannel delivery is resulting in new priorities for the in-store experience. Brick-and-mortar retailers must now...
Early January brought a rash of store closure announcements from household names. Macy’s and Sears collectively announced 218 store closures across the United States, 1 and The Limited announced it would close all of its 250 U.S. stores, while assuring customers that all of its products would still...
U.S. retail is under stress. While it seems that this has been in the headlines more and more lately, the fact is that consistent disruption by new entrants has been the story of U.S. retail for decades, with the rise and fall of catalog showrooms, big-box retailers, department stores, and, more...
Over the past several years, secured lenders have faced greater uncertainty as to whether Bankruptcy Courts will permit them to credit bid their entire secured claim in asset sales under Section 363 of the U.S. Bankruptcy Code. In the bankruptcy of Fisker Automotive Holdings Inc., an electric...
A few years ago, two large U.S. grocery store chains merged. Parts of the combined chain were acquired by a much smaller regional grocery chain, which was declared the “winner” in the sale of locations that the combined company needed to divest to comply with a Federal Trade Commission order and...
During the past several years, many retailers have identified a few common challenges as their most difficult to navigate. The prevalence of savvy shoppers who like to view products at stores and then turn to e-commerce and m-commerce (mobile commerce) platforms to find retailers that offer the...
Retail executives have felt the impact of the new and more demanding business environment in recent years. The rising challenges of new competition, technology, consumer demographics, etc., have caused unsettling shifts few could have predicted as the new millennium began. Major disruptive trends...
A dispute arising from the bankruptcy cases of Sports Authority Holdings Inc. highlights an issue that could be at the forefront of upcoming retail bankruptcies and should always be considered by parties with credit exposure to distressed retailers. The dispute centered on the competing claims of...
