Retail Bankruptcies

Summary

This practice note discusses retail Chapter 11 bankruptcies. The shopping habits of consumers have drastically changed over the years. With the advent of e-commerce, retailers with brick and mortar stores have faced significant economic challenges. In many cases, retailers are faced with increased competition from online competitors, are stuck in long-term leases, and are without sufficient cash flow to meet these challenges. The COVD-19 pandemic has exacerbated these problems. Retailers with brick and mortar stores have been particularly hard hit by the shutdowns, store capacity restrictions, and the recent economic downturn. This has led to an increase in the filing of Chapter 11 retail bankruptcies.