Troubled retailers that stayed alive thanks to heady consumer spending during the pandemic are now showing signs of distress, filing for bankruptcy at the highest rate since 2020 and closing hundreds of stores, WSJ Pro Bankruptcy reported. A dozen large retailers with shrinking revenue or high debt have filed for bankruptcy so far this year, as many as in all of 2021 and more than double the total for 2022, making this the most active year since the onset of the pandemic, according to BDO, which keeps track of retail bankruptcies for its semiannual reports. Discount home-goods chain Christmas Tree Shops, its former parent Bed Bath & Beyond and wedding-gown supplier David’s Bridal have filed for chapter 11 over the past several weeks, hurt by wage and price pressures and changing consumer preferences. More bankruptcy filings or rescue deals are expected among retailers on weak financial footing, especially companies that rely on discretionary spending. Kitchenware-maker Instant Brands and household-storage company Tupperware Brands are among those working with restructuring advisers to fix their balance sheets.
