Boston Real Estate
It’s been a difficult year for retailers, and things may get worse before they get better: The number of bankruptcy filings by retailers this year could outpace those filed in the wake of the Great Recession.
Nearly 6,000 Retail Store Closings
As of Sept. 29, nearly 30 retailers filed for bankruptcy, leading to almost 6,000 store closures, according to a biannual bankruptcy report from BDO International, a financial services firm. That’s on pace to beat 2010, when 48 retailers filed for bankruptcy.
This year is also unusual because many of those store closures are unrelated to bankruptcies: More than 15 retailers that have not filed for bankruptcy — including Macy’s, Bed Bath & Beyond and Gap — decided to shed at least 50 stores each, totalling more than 4,200 store closings.
A Pandemic-Driven Recession
One notable example was Brooks Brothers, which filed for bankruptcy in July and is likely to be acquired by Authentic Brands Group and SPARC Group, according to media reports. Others include Neiman Marcus, which emerged from bankruptcy earlier this month, and J.C. Penney, which has been acquired by Simon Property Group and Brookfield Property Partners.
Home furnishing retailers came in as the second-most affected, with five retailers filing for bankruptcy and 1,433 store closings.
