In Ohio and elsewhere, the retail sector is struggling. This is particularly true for so-called brick and mortar establishments, both big and small. They have taken on additional business debt as they struggle to compete with online retailers with little to no overhead costs.
Large stores and chains like JCrew, Sears, Charming Charlies, Eddie Bauer and others have been affected. Other, smaller retailers may find themselves in the same predicament as the large national chains. Currently, many of those struggling have a Caa rating (or worse) from Moody’s, its lowest credit rating.
Though a majority of retailers are relatively healthy, others are finding it a challenge to remain in business. In fact, the number of retailers teetering toward bankruptcy is higher even than during the recent recession, the report indicates. This has been attributed to the rise of online retailing and the slow decline of malls and storefronts in America. Thought facing a business bankruptcy can be stressful for some retailers, there are ways for it to be a positive event for those involved.
Significant business debt can cause instability and the inability to recover from downturns and slow sales. When a business is unable to sustain itself, it often considers bankruptcy, as may be the case for some of the retailers here in Ohio. When this happens, it may be beneficial for the owners of a business to seek advice from attorneys with experience in business bankruptcy. There are a number of available options, including a Chapter 11 reorganization focused on devising and implementing a plan to overcome the financial issues once and for all.
Source: Cleveland OH Patch, “16 Ohio Retailers On Verge Of Bankruptcy“, Beth Dalbey, June 16, 2017