As of June of this year, more than 300 retailers have filed for bankruptcy. It’s no surprise that we’ve seen a 31% increase from the previous year. As major online retailers like Amazon continue to dominate sales over traditional storefront retailers, we’ll be seeing more and more businesses filing.
Many of those retail stores that filed for bankruptcy chose to restructure through Chapter 11 bankruptcy. That means that they plan to stay in business. Still, although not all of these companies will end up closing their doors, the trend still seems dire as we continue toward a record number of closings this year. Retailers like Gymboree, Payless ShoeSource, rue21, and Gander Mountain all filed, though they are still in business. Stores like Gordmans, Wet Seal, and The Limited all ended up closing up shop completely.
So the question you have to ask yourself as a retail store owner: will I be affected by this trend? If yes, how will you protect yourself and your business?
What You Should Know about Bankruptcy
If you find that your business is no longer attracting the customers it used to and that you are having trouble coming up with the money to stay open, you might need to learn what you can about filing.
Here’s one important question that you should consider when thinking about bankruptcy:
Do you plan to stay in business after filing? The answer to this question will determine what type of bankruptcy you will need to file. If you need a refresher on the different types or what alternatives you have at your disposal, check out our blog posts on the subject here, here, and here. Once you can answer this question, don’t wait any longer.
Is your retail store at risk of bankruptcy? Schedule a no obligation evaluation.