The Retail Bankruptcy Boom: The factors disrupting dominant brands

Brian Davidoff, Chair of the Bankruptcy, Reorganization & Capital Recovery Group, authored, "The Retail Bankruptcy Boom: The factors disrupting dominant brands" in Chain Store Age.

Excerpts:

Recent Chapter 11 filings in the retail sector have highlighted significant struggles for well-known brands.

Many of these filings have been driven by factors such as inflation, changing consumer habits, debt burdens, and the overhang of the Covid-19 pandemic. Let’s take a look at some of the most notable examples:

• TGI Fridays filed a Chapter 11 on Nov. 3, 2024. Two private equity groups, TriArtisan and Sentinel Capital Partners LLC had jointly acquired TGI Fridays in 2014. Sentinel exited in 2019. Once a destination spot for happy hours, Dallas-based TGI Fridays had been losing ground in the U.S. dining scene as consumers opted for newer restaurant choices. Sales declined, and the chain closed dozens of locations to stabilize its finances. TGI Fridays tried to pivot to delivery and to-go services after the pandemic, but U.S. sales dropped 15% from the previous year.

Read the full article here.

Resources

• Chain Store Age