When a new year begins, we often look at the previous one to examine trends, which can provide guidance as to what may lie ahead of us. Unfortunately, 2019 was not kind to retailers. The retail industry suffered many bankruptcies and what followed was a changing shopping landscape across the country.
A report released by Challenger, Gray, & Christmas Inc., showed that the retail industry cut more jobs than any other sector, which resulted in 77,745 losing employment. Almost 50,000 of these were due to the company filing for bankruptcy. Many factors contribute to the bankruptcy problem including trade concerns, emerging technologies, and changes in consumer behavior explains VP Andrew Challenger. But these are not the only factors that have led to the bankruptcies. Restructuring and company closures were also to blame.
While the bankruptcies may seem overwhelming, out of the almost 600,000 losses that occurred in 2019, 127,700 transpired in the fourth quarter. This was the lowest total loss seen since the third quarter of 2018. The quarterly total in 2018 was lower than the fourth quarter of 2019 by only 6,900 losses. There was good news to report including 789,800 seasonal jobs added in 2019 for the retail industry as well as almost 100,00 year-round jobs. Strong consumer spending at the end of 2019 in addition to more clarifications for the trade negotiations, has helped retailers increase their confidence heading into 2020.
Some of the notable bankruptcies seen last year included Payless ShoeSource, Barneys New York, and Forever 21. The increase in e-commerce has made a big impact on how consumers buy their goods. Due to this, even the most robust retailers have made changes in their business models. Keeping open only the most profitable brick-and-mortar stores open along with improving their e-commerce presence. Target is an example. Target has been changing the way their physical stores operate by switching to opening smaller stores while remodeling larger stores already in operation.
Where can You Find Legal Help With Bankruptcy in Indiana?
If you are facing a chapter 7 bankruptcy, you are not alone during that process. My name is Christopher L. Arrington, P.C. and I am an Indiana bankruptcy lawyer. I understand the difficult decision and the mix of negative emotions that those filing for bankruptcy are going through because I have provided legal representation to many residents in Indiana who have been in this exact situation.
I will work with you to understand your story. My goal is to define a path forward for you and help you through your debt situation by presenting potential options to you for your review. I care about helping represent the best interests of residents in Danville, Plainfield, Avon, Brownsburg, and the surrounding communities. If you are in a difficult financial situation, call my law firm and I will answer all of your questions.
You can set up your free consultation by calling my Danville bankruptcy law firm at 317-745-4494 today. I look forward to discussing your case with you.