The number of retailers filing for Chapter 11 bankruptcy protection is headed toward its highest annual tally since the Great Recession.
retailers have filed in just the first three months of 2017, according
to data provided exclusively to CNBC from AlixPartners consulting firm.
That equals the number for all of 2016. It also puts the industry on
pace for the highest number of such filings since 2009, when 18
retailers resorted to that action.
The rising number of retail bankruptcies comes as consumers are
making more purchases online, and shifting their spending toward travel
and other experiences. Meanwhile, the supply of physical stores
continues to outweigh shopper demand, putting pressure on the industry’s
But it isn’t just
those factors pushing retailers out of business. More than half the
filings year to date have come from retailers that were previously
purchased by private equity firms, according to AlixPartners. That’s up
from an average 31 percent over the prior five years.