Bankruptcies reached an unprecedented level in 2024, and the trend appears to be continuing into this year. Some notable major retailers that have been around for over a decade, such as Party City, have filed for bankruptcy for a second time. Other well-known retailers, including Rue 21, Joann, and the 99 Cents Only store, have filed for bankruptcy after teetering financially for years.
Inflation has significantly impacted the retail market, leading consumers to make more calculated purchases, primarily focusing on necessities. The potential impact of tariffs is a driving factor this year, as prices may continue to climb, and consumer purchasing could remain low. If these trends continue, the second half of 2025 may present consolidation in the retail sector, with smaller brands merging or closing altogether.
Retailers that are currently at the top of the list of distressed companies may soon consider pursuing their bankruptcy options. The bankruptcy filings could lead to potential store closures and vacant retail spaces, causing a ripple effect on the commercial real estate market. Creditors and suppliers may find themselves in a vulnerable position, requiring guidance on how to protect their rights and navigate the complexities of bankruptcy.
THCA provides strategic legal counsel to businesses, landlord, and creditors impacted by retail bankruptcies, ensuring they are well-positioned for financial recovery. We have significant and broad reach experience in retail bankruptcies throughout the United States, in all business sectors.
For more information, please contact us at +1 (617) 207-8670 or visit https://thcalaw.com/contact/