Tough Choices Confront Trade Creditors When a Retailer Faces BankruptcyOctober 2014
The Great Recession, which began in December 2007 and officially ended in September 2009, has been especially hard on U.S. retailers, and its impact likely will be felt for many more years. Retailers sustained record-breaking declines in sales, inventories, and consumer confidence. The housing market crash, layoffs, and higher gasoline prices all hurt consumer spending and have had a disproportionate impact on retail businesses. And competition among retailers in the U.S. for fewer consumer dollars is fierce, with superstores putting local merchants out of business and, in turn, being hurt by internet retailers that are capturing business previously handled by brick and mortar stores.
To continue reading Dan Lowenthal's article from the October 2014 issue of the Journal of Corporate Renewal, please click here.