Improving the Odds of Success for Retail Bankruptcies
Last year saw over 9,300 retail store closures—more than any other year on record and a 60% increase over the roughly 5,800 closures in 2018. Whether one believes the industry is in the midst of the “retail apocalypse” or that what’s happening is merely a matter of survival of the fittest, it is a...
Retail In Crisis
These are unprecedented times. In a matter of days, the coronavirus pandemic virtually shut down American society, and with it, the wheels of industry came to a standstill. There is not one industry that has not been hit with the repercussions of this virus. In fact, “hit” may be an understatement...
Uncertainty Persists Over Postpetition Interest Vis-à-Vis Unimpaired Creditors
Unsecured creditors in bankruptcy typically are barred from receiving postpetition interest on their prepetition claims against a debtor. That much is certain. But several courts recently have faced more challenging questions, such as whether unsecured creditors that are purported to be unimpaired...
Expectations, Recession, Manufacturing, Distribution
With economists predicting an economic slowdown in 2020 and a recession perhaps as soon as 2021, how will valuations and EBITDA (earnings before interest, taxes, depreciation, and amortization) multiples fare? While it is difficult to get meaningful data specifically on distressed sale transactions...
Expect the Unexpected
As the trade war between United States and China persists and competition abroad continues to grow, U.S.-based manufacturers have faced diminished profits and uncertain financial futures. In fact, Deloitte projects the U.S. manufacturing sector’s GDP growth levels for 2019 trended downward,...
Supply Chain Risk Is a Rising Tide
The auto industry moves the needle in many different geographic markets, which often trickles down to other commercial industries. Stress cracks at the original equipment manufacturer (OEM) level often create shock waves down the supply chain, which increase risk factors for tier one, two, and...
Distribution Is Bedrock of Success for Online Retailers
E-commerce has become a disruptive force in both the retail and distribution sectors. It has significantly impacted consumer buying habits as well as distribution networks and technology platforms. For the consumer, most of these disruptions have been positive. E-commerce was made possible in 1991...
Is the Distribution Sector Prepared for Digital Disruption?
The story has been told over and over regarding the negative impact of e-commerce on brick-and-mortar retail and continuing declines in that sector, so much so that the term “retail apocalypse” has lost some of its cataclysmic meaning and significance. Still, upward of 6,000 retail stores were...
Chapter spotlight
The view of the twinkling lights of Manhattan at dusk from a 35th floor conference center on Park Avenue is awe-inspiring. I still remember the first time I experienced similar views from the top of Manhattan. As a young man just out of college, it gave me a sense that I was on my way. I found it...
Like Vladimir and Estragon in Samuel Beckett’s famous play “Waiting for Godot,” distressed investors have spent a substantial amount of time awaiting the arrival of their own mysterious figure: the next distressed cycle. Over the past decade, this elusive Godot has failed to materialize, despite...