×
167
Fashion Jobs
LE HUMAN RESOURCES SOLUTIONS PVT LTD
Production Manager
Permanent · Pune
FIRST MERIDIAN BUSINESS SERVICES
Head Production Manager
Permanent · Gurugram
ADECCO INDIA PRIVATE LIMITED
Sales Manager
Permanent · Mumbai
ALEMBIC PHARMACEUTICALS
Area Development Manager
Permanent · Pune
LEVI'S
Technical Product Manager
Permanent · Bengaluru
THE SEARCH HOUSE (A DIV OF JSD SEARCH HOUSE PVT. LTD.)
Manager Production-Sheet Metal (Laser /Punching/ Press Break)
Permanent · Bhiwadi
ABHAY INDUCTION TECH PVT LTD
Sales Manager
Permanent · Ahmedabad
FREELANCER PRATIK PARIKH
Opening in Leading Life Insurance Company/ Area Business Manager
Permanent · Gandhinagar
MANISHMEDI INNOVATION
Area Sales Manager
Permanent · Hyderabad
OJB HERBALS
Area Sales Manager
Permanent · Ranchi
LIVE BIOTECH PRIVATE LIMITED
Area Sales Manager, Regional Sales Manager, Zsm
Permanent · Chennai
KM ELECTRONIC CABLES PVT. LTD
Area Sales Manager - Vijayawada
Permanent · Chennai
CTA APPARELS PVT. LTD
Opening For Merchandising Manager- Noida(Garment Export)
Permanent · Noida
CTA APPARELS PVT. LTD
Opening For Merchandising Manager- Noida(Garment Export)
Permanent · Noida
STAR UNION DAI ICHI LIFE INSURANCE (SUD LIFE)
Hiring- Area Manager - Bancassurance- Kolkata Metro
Permanent · Kolkata
NIKKO & CO.
Area Sales Manager /Sales Officers(5-10 Yrs Into Fmcg)
Permanent · Karimnagar
FUTURE GENERALI
Opening For Area Manager in Bangalore With Future Generali li
Permanent · Bengaluru
INFEXN LABORATORIES PRIVATE LIMITED
Area Sales Manager
Permanent · Mumbai
LENSKART
Area Operations Manager
Permanent · Chennai
ADECCO INDIA PRIVATE LIMITED
Job Opening For Area Sales Manager Role For Mnc Company
Permanent · Bengaluru
DR LAL PATHLABS
Area Sales Manager -Chandigarh
Permanent · Chandigarh
JOB INDIA
Regional Manager Sales (Backend Operations)Garments - Gurgaon
Permanent · Faridabad
Published
Dec 21, 2016
Reading time
2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

Fitch Ratings predicts the next US retailers to declare bankruptcy

Published
Dec 21, 2016

Seven chains, including J. Crew, Claire’s, Sears, and Nine West, have been identified as being at a high risk of defaulting this year, according to a Fitch Ratings study of retail bankruptcy released earlier this fall and updated this week. The shift in the way millennials shop and the migration to online shopping are cited as the source of the retailers' problems.

 


J.Crew, on the retailer endangered species list, according to a report by Fitch Ratings. - Cherry Creek Shopping Centre


The report was based on a study of 30 recent retail bankruptcies, totaling a $10.5 billion worth of debt. True Religion Apparel Inc., 99 Cents Only Stores LLC, Nebraska Book Co., Rue 21 Inc were also named in the 114-page report.

The study found that many of these retailers have lost the ‘reason to exist’, having no favor or even brand recognition with customers.

One of the reported causes of the string of bankruptcies is the advent of millennials. Young people are not as interested in spending time in malls, and thus, spending less money at mall-based retailers. According to analyst Sharon Bonelli, co-author of the study, her research found that millennials prefer to spend whatever disposable income they have on technology (iPhones, tablets, laptops), or experiences, like coffee shops and restaurants.

The majority of the 30 endangered chains studied in the article sold branded goods, rather than brand-unique products. However, consumers are meanwhile looking to other locations, such as online retailers like Amazon, to purchase branded goods.

Two of the biggest names pointed out in the report, J. Crew and Claire's, have been making steps to shift their brand names to a more profitable image.

One option for J. Crew is to, through a loophole in the clause, move the brand name to an unrestricted entity in the Cayman Islands. This would allow the retailer to borrow assets to help pull J. Crew out of the $2 billion debt it currently sits in. But the J. Crew lenders have been in talks with lawyers, ready to push back against this option and the damage it would do to creditors.

Claire's already took this route earlier this year, securing a $130 million loan agreement from using an unrestricted subsidiary. This didn't stop Fitch Ratings from declaring Claire's in the top seven retailers at a high bankruptcy risk on December 12th, again citing poor mall traffic as a cause.

Also noted by the study, retailers are three times more likely to liquidate than other businesses as it is much tougher to facilitate a turn-around. 50 percent of the retail bankruptcies studied did not survive, in comparison to a 17% bankruptcy failure rate in other industries.

 

Copyright © 2022 FashionNetwork.com All rights reserved.