Retail Apocalypse Returns
Interest rates, lower consumer spending and inflation spark a fresh wave of distress
A Bed Bath & Beyond store in Westbury, New York, US, on Friday, Jan. 6, 2023.
Photographer: Johnny Milano/BloombergWelcome to the first issue of The Brink, the new newsletter from Bloomberg's global credit team that chronicles the fallout from corporate distress, bankruptcies and financial meltdowns. Leveraging the team's scoops, exclusive data and expert insight, we'll explain the news every Tuesday and Friday. I’m Amelia Pollard, a reporter in New York, where troubled retailers are teetering on bankruptcy again. Send us feedback and tips at apollard18@bloomberg.net or Tweet to @ameliajpollard. And if you aren’t yet signed up to receive this newsletter, you can do so here.
After toppling household names like Toys “R” Us and Sears and forcing the closure of thousands of stores across the world, retail bankruptcies went on something of a hiatus in the post-pandemic era. Central bank stimulus made rescue financing widely available for even the most troubled retailers while consumers spent freely thanks to pandemic stimulus checks.