Financial Distress in the Retail Industry
Published October 1, 2014
Nicholas F. Kajon
Journal of Corporate Renewal
Even though default rates and corporate Chapter 11 filings remain at historic lows, several industries have been experiencing financial distress. Chief among them is the retail industry, which has been enduring a relentless onslaught from the internet. Overcapacity in the industry, an anemic economy, and overleveraged consumers add to retailers’ woes and ensure that the retail industry will continue to experience financial distress.