The number of corporate defaults in the U.S. for the first two months of 2023 was at its highest since 2009, and retail led the way, with seven out of 23 defaults. Those stats were contained in a recently released S&P Global Ratings report that was covered by Retail Dive.
S&P noted that companies in the consumer staples sector favored reorganization over liquidation in 2022 and year-to-date with nearly 86 percent of such companies seeking reorganization. Party City, Serta Simmons, Bed Bath & Beyond and 99 Cents Only Stores are among the retailers that have either defaulted or filed bankruptcy so far this year.
Retail “continues to face challenges from logistics, labor and supplier cost inflation, all squeezing margins for both retailers and their suppliers. Nearly half of retail issuers rated B- or lower have negative S&P outlooks or credit watch implications. As a result, “further downgrades as well as a potential increase in defaults” is possible, S&P said.
Bankrupt companies are increasingly seeking reorganization over liquidation. According to a separate S&P report, 78 percent of corporate entities that filed for bankruptcy through February sought reorganization, the highest in at least 14 years.
Click here to see the full article by Retail Dive.
Family Legacy, New Chapter: How Wilkerson Turns 89 Years of History Into Future Success
After 89 years of serving the Albany community, Harold Finkle Your Jeweler faced a pivotal decision. For third-generation owner Justin Finkle, the demanding hours of running a small business were taking precious time away from his young family. "After 23 years, I decided this was the time for me," Finkle explains. But closing a business with nearly nine decades of inventory and customer relationships isn't something easily managed alone.
Wilkerson's comprehensive approach transformed this challenging transition into a remarkable success story. Their strategic planning handled everything from advertising and social media to inventory management and staffing — elements that would overwhelm most jewelers attempting to navigate a closing sale independently.
The results speak volumes. "Wilkerson gave us three different tiers of potential goals," Finkle notes. "We've reached that third tier, that highest goal already, and we still have two weeks left of the sale." The partnership didn't just meet financial objectives—it exceeded them ahead of schedule.
