Retail On Pace For Most Bankruptcies And Store Closures Ever In One Year: BDO  

 

Retail On Pace For Most Bankruptcies And Store Closures Ever In One Year: BDO

By Daphne Howland of RetailDive

 

 

Summary:

• The pandemic — with its temporary store closures, social distancing requirements, e-commerce boom and supply chain disruption — in the first six months of this year fueled uncertainty for retailers and accelerated existing trends, according to BDO’s biannual bankruptcy update.
• BDO counts 18 retailers that headed to bankruptcy court in the first half of the year and another 11 in July through mid-August. Retail Dive’s bankruptcy tracker similarly lists 27 so far this year, compared to 17 in 2019. (BDO counts some businesses, like Gold’s Gym, as retailers.)
• The industry’s bankruptcy record so far put it on pace with 2010, following the Great Recession, when there were 48 bankruptcy filings by retailers, according to BDO’s report.

 

 

The COVID-19 pandemic has essentially interfered with what is normally a cyclical pattern for retailers and set up the industry for yet more bankruptcies in 2020’s second half, according to BDO researchers.

 

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