Retail Woes Tee Up More Bankruptcies This Year

Retail Woes Tee Up More Bankruptcies This Year Kali Hays Retail is off to a rough start this year, with more companies struggling to keep the lights on and the keep debtors at bay.    The first major industry bankruptcy filing of 2016 didn't come until March, when Sports Authority went under. But the first five weeks of this year have already claimed The Limited, Wet Seal and Eastern Outfitters, with rumblings around BCBG Max Azria Group LLC growing louder. That has turned a general question of "What if?" into "Who's next?" "The weight of the trend combined with the reluctance of retailers to make big changes is creating an environment where the end of the road is near for many," said Greg Portell, a partner in consulting firm A.T. Kearney's retail practice. "In 2017, we'll likely see an uptick [in bankruptcies] because [retailers] are just running out of runway." That runway includes the typical attempts to cut costs, through store closures and staff reductions. But Portell said a given retailer can only do that so many times before management is forced to either "go bold" and reinvent the business or "slowly enter the death cycle" of negative attention and lender pressure. At least 17 large retailers, including Pacific Sunwear of California Inc., Aéropostale Inc., Nasty Gal and American Follow WWD on Twitter or become a fan on Facebook. Read More... Fashion 3