Not long ago, we wrote a blog post about Toys R Us’ financial troubles and how the retailer was toying with the idea of filing for bankruptcy. On September 18th, 2017, it was made official: Toys R Us filed for Chapter 11 bankruptcy.
As the holiday season looms, retailers across the nation and their suppliers across the globe are gearing up for their busiest season of the year. The holiday season can be an opportunity for struggling retailers to get out of debt, but it can also be a devastating blow for retailers who cannot make the numbers they need by the year’s end.
Payless Shoesource, Inc., a mall staple and go-to shoe supplier for consumers across the country, has announced that it will file for bankruptcy as soon as early April 2017 to address its $655 million debt. Much of this debt is outstanding payments to Chinese factories, which sparked protests at a container freight station in Xiamen, China.
Following a holiday season of slow sales, major retailers Macy’s and Sears Holdings announced that they will be closing more than 200 stores combined during 2017. Sears Holdings, which operates both Sears and Kmart stores, will close 108 Kmart stores and 42 Sears stores during the coming months. Macy’s announced that it will shutter 68 of its stores during 2017 as part of its larger plan to close 100 stores.
When companies are owned by the public through shares of stock, the company is known as a publicly held company. The individuals who own shares in the company are known as shareholders and these individuals are partial owners of the company. Increasingly, shareholders are demanding a say in their companies' bankruptcy choices.