American Retail Companies That Filed for Bankruptcy in 2015

by San Antonio Attorney

By midyear of 2015, more retail bankruptcy filings have been made as compared to 2014 and 2012-2013 combined. Unlike other types of businesses that managed to continue operating after emerging from bankruptcy, retailing companies often became incapable of doing the same.

AlixPartners, a consulting firm that provides turnaround space services, has documented the increase in number of bankruptcies since 2012 and they projected that these numbers will double in 2016.

The five major companies that filed for bankruptcy in 2015:

1. American Apparel

After the October bankruptcy filing, a deal was made that will aid creditors a stake in the company for a debt-for-equity conversion. There were reports that its former CEO may resume office after repurchasing his shares.

2. Columbia House

The rise of streaming music and video pushed the company to file for bankruptcy protection last August. However, being obsolete doesn’t mean the company is going to get phased out. Columbia House rechanneled its sales on vinyl records, hoping to reemerge from bankruptcy.

3. Quiksilver

The surfwear shop filed for Chapter 11 bankruptcy protection last September due to trend changes that no longer appeals to the teenage consumers. Meanwhile, the global branches of Quiksilver are unscathed and the company thinks that the U.S. bankruptcy is an advantage since the poor sales in the country can pull down the revenue of other global branches.

4. RadioShack

The formerly famous electronics company filed for court protection in February and sold 2,400 stores to Sprint, a U.S. Network along with its hedge fund shareholder Standard General. The deal enables the electronics company to live on.

5. The Wet Seal

They started the New Year with filing their first bankruptcy case last January 15. Wet seal’s twin stores such as Delia’s and Deb Store have already sought bankruptcy protection last December.

 

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