Connect with us

Headlines

US Retail Sector Leads Corporate Defaults

But reorganizations, not liquidations, chosen by most troubled companies.

mm

Published

on

Party City is one of several retailers to file Chapter 11 bankruptcy this year. iStock, Rabbitti
Party City is one of several retailers to file Chapter 11 bankruptcy this year. iStock, Rabbitti

The number of corporate defaults in the U.S. for the first two months of 2023 was at its highest since 2009, and retail led the way, with seven out of 23 defaults. Those stats were contained in a recently released S&P Global Ratings report that was covered by Retail Dive.

S&P noted that companies in the consumer staples sector favored reorganization over liquidation in 2022 and year-to-date with nearly 86 percent of such companies seeking reorganization. Party City, Serta Simmons, Bed Bath & Beyond and 99 Cents Only Stores are among the retailers that have either defaulted or filed bankruptcy so far this year.

Retail “continues to face challenges from logistics, labor and supplier cost inflation, all squeezing margins for both retailers and their suppliers. Nearly half of retail issuers rated B- or lower have negative S&P outlooks or credit watch implications. As a result, “further downgrades as well as a potential increase in defaults” is possible, S&P said.

Bankrupt companies are increasingly seeking reorganization over liquidation. According to a separate S&P report, 78 percent of corporate entities that filed for bankruptcy through February sought reorganization, the highest in at least 14 years.

Click here to see the full article by Retail Dive.

Advertisement

SPONSORED VIDEO

SPONSORED BY VARILUX

The Best Overall Progressive Lens, Now Powered by AI

Engineered with Behavioral Artificial Intelligence and utilizing new XR-motion™ technology, Varilux XR series goes beyond prescription and eye physiology to consider the patient’s visual behavior and design a progressive lens that respects how
their eyes naturally move.

Varilux XR series comes in two versions, Varilux® XR design and Varilux® XR track. The Varilux XR track lens provides an additional level of personalization by incorporating the exclusive Near Vision Behavior Measurement, providing up to 25% more near vision width3 according to the patient’s need, so patients get the highest level of customization.

Discover Varilux XR series and enjoy instantly sharp vision in motion4 and seamless transitions from near to far.

For more information, visit here.

Promoted Headlines

Advertisement

Advertisement

Subscribe

INVISIONMAG.COM
BULLETINS

Get the most important news and business ideas for eyecare professionals every weekday from INVISION.

Advertisement

Advertisement

Most Popular