There were 30 U.S. retail bankruptcy filings of public and certain private companies through Nov. 14, 2024, raising the risk for apparel retail firms.
The 30 filings to date is now higher than comparable levels in eight of the prior 14 years. It also surpasses last year’s 26 bankruptcy filings, as well as the 13 filed in 2022. One aberration in recent years was the 51 companies that filed in 2020, largely due to the impact of the COVID-19 pandemic.
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For apparel retailers, the one-year probability of default is now 3.4 percent, up from 2.7 percent through Oct. 16, 2024. There were 37 companies who filed thus far in the apparel retail sector.
Heading the list of new filers was Franchise Group Inc., the parent of The Vitamin Shoppe and Buddy’s Home Furnishings banners. Also new was direct marketer Universal Screen Arts Inc.. Rounding out the top three was home improvements retailer Duerdens Appliance Inc.
Apparel filings during the year include Heritage Collegiate Apparel Inc., Eastern Mountain Sports, Rue21 Holdings Inc., and Express Inc. Home retail filings include Big Lots Inc., Metro Mattress Corp, LL Flooring Holdings, Conn’s, Boston Window & Door, and Polished.com Inc.
According to the S&P data, personal care products and home furnishing firms posted the highest increases in default risk scored in November. with 0.8 percentage point increases in each industry.