You could argue that a very big comet killed the Tyrannosaurus rex, yet their descendants are still present in the modern-day chicken. Mall death happens where there is not enough of a customer base to support the stores, and the stores close rather than pay overhead costs like rent and utilities in a failing location. On the other side of the spectrum, commercial bankruptcies increased in certain industries, especially energy, retail and casual dining. There were four Chapter 11 filings by companies with more than $50 million in liabilities in the week ended Nov. 14. The storefronts go dark, and people go out of work, and the pain is felt up and down the economic ecosystem. Call us today and get off the train wreck, and put your life back on the rails. How to File Chapter 13 Bankruptcy in Florida. There were 479 distressed bonds from 241 issuers trading as of Monday, down slightly from the previous week. Observers expect bankruptcies in retail to rise; it’s just a question of how much, when the wave (s) will hit and what will become of the companies … The simple answer is yes, but there is a… Read More, Can loan modification stop foreclosure? On top of this, America was over-malled. Request a call back. Click here for a worksheet of distressed bonds and loans. After COVID-19, Many Businesses Still Struggle to Pay Rent  – Bankruptcy May Be the Answer. Whether it’s a bankruptcy, a consolidation, or other solution, you can and should schedule a free consultation with us. So far in 2020, there have been 36 bankruptcies by retail companies that have over $50 million in liabilities, the most for any comparable period on record, data compiled by Bloomberg show. It gets to your doorstep, you get a good deal, and when you are working two or three jobs it means that you don’t have to haul out, burn up a few precious hours, and go get it yourself. Malls were once a place to pick up everything from major appliances to boutique items, hang out, and find entertainment. Our offices in Fort Lauderdale and West Palm beach are open seven days a week – and your initial consultation is free. Rise of Internet Retailing. More retail bankruptcy filings are expected in the second half of the year, and bricks-and-mortar stores will continue to close at a higher rate, according to the report. In some cases, the penalties for breaking a lease are less than the cost of staying in. The retail apocalypse is the closing of numerous brick-and-mortar retail stores, especially those of large chains worldwide, starting around 2010 and continuing onward. They included YouFit Health Clubs LLC, and Gulfport Energy Corp., both of which joined a long list of their fitness and energy peers that have been slammed by the pandemic. Volume of distressed bonds dropped 11% while troubled loans swelled 4.6%. In short, don’t blame Amazon for retail bankruptcies, look at the bigger picture. Then came the internet, a middle class wage squeeze, and two recessions. Home; After a rise in retail bankruptcies in 2016, retailers have continued to see challenges in 2017. It’s time to sit down and look at real solutions to the pain. Consumer discretionary businesses accounts for almost a third of all 2020 filings, compared to about 20% for energy, and retail is the third biggest sector for distressed bonds and loans. J. Retail businesses, already squeezed by changing consumer habits and the rise of online behemoths like Amazon and Walmart.com, are required to follow state and federal regulations to curb the spread of the virus during what’s normally the busiest buying period of the year. Through the first quarter of this year, nine major retailers have sought bankruptcy protection. This equals the entire number of filings for 2016. Retail Bankruptcies On the Rise, Despite Overall Drop in Filings Only three months into 2017 and nine retailers in the U.S. Have already filed for bankruptcy. Have a confidential tip for our reporters? As an attorney who specializes in bankruptcy, I can’t help but note with dismay the huge increases in retail bankruptcies, and of course it’s the smaller businesses that provide the majority of American jobs that are feeling the heat. At the same time that the Millennials and Digitals were seeing the train wreck, Gen X was on the train going off the rails. They were hit hard by a confluence of the mortgage crisis, student debt, household debt, and job losses. There are a number of people working multiple jobs, and a number of people in the workforce longer, creating a bottleneck that keeps people from moving up, and wages low. “For those businesses, bankruptcy may be a viable forum in which to seek various forms of rent relief and to negotiate with key stakeholders,” Indyke said. 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