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QINGDAO TODAY
在线翻译:
szdaily -> World Economy -> 
Bankruptcies rip through US mall tenants with no end in sight
    2020-08-06  08:53    Shenzhen Daily

EVERY week seems to bring another round of retail bankruptcies in the United States. With conditions worsening, the numbers may keep climbing.

Over the weekend, Tailored Brands Inc. — the owner of Men’s Wearhouse and JoS. A. Bank — and department store Lord & Taylor filed for Chapter 11. The Canadian unit of Chico’s FAS Inc. declared bankruptcy July 31. The previous week, it was Ann Taylor and Lane Bryant parent Ascena Retail Group Inc.

At least 25 major retailers have now filed for bankruptcy this year, with 10 of these coming over the last five weeks. The steady drumbeat of bankruptcies goes back to mid-March, when the lockdown of non-essential retailers began in an attempt to halt the spread of COVID-19.

The U.S. economy has now largely reopened, but this hasn’t provided relief to the battered industry, which has taken on more leverage in the battle to survive.

“The common denominator is debt,” said Simeon Siegel, an analyst at BMO Capital Markets. “At this point, now everyone has debt. Everyone took on massive amounts of liquidity.”

With the United States seeing a resurgence of COVID-19, retailers are now flying blind into the year’s most vital shopping months. Companies have to juggle decisions on cost cutting, store closures and merchandise without having a clear picture of where consumer demand will be or how bad economic conditions will get.

Clothing stores have been particularly hard hit. Two denim shops — G-Star Raw and Lucky Brand — went bankrupt on the same day in early July. Household names J.C. Penney Co., Neiman Marcus Group, J. Crew Group Inc. and Brooks Brothers all filed Chapter 11 earlier this year.

Apparel sales were down about 30 percent in June, even as overall U.S. retail sales have picked up this summer, according to Panjiva, the supply chain research unit of S&P Global Market Intelligence.

As many as 25,000 stores are expected to close in the United States in 2020, mostly in shopping malls, according to Coresight Research. (SD-Agencies)

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