Eastern Mountain Sports, Bob’s, Express and More Retailers Fuel Consumer Bankruptcy Filings in First Half of 2024
Corporate bankruptcies in June hit their highest level in a month since the start of 2020. And companies in the consumer discretionary category led the way in terms of filings for the first half of the year.
Seventy five U.S. companies filed for bankruptcy in June, according to data from S&P Global Market Intelligence. Year-to-date, corporate bankruptcies have surged to 346 which is a higher total than any comparable period in the last 13 years.
“High interest rates, supply chain issues and slowing consumer spending continue to weigh on struggling companies,” read the report.
Bankruptcies in the consumer discretionary sector — which includes footwear and apparel — came in at 16 for the month. Since the start of the year, there have been 55 total consumer discretionary bankruptcy filings, making it the sector with the most bankruptcies year-to-date. Notably, outdoor and athletic gear retailers Eastern Mountain Sports and Bob’s Stores, which are both owned by GoDigital Media Group, filed jointly for Chapter 11 bankruptcy in June. In April, apparel retailer Express filed for bankruptcy and started the process to close 106 stores. The company was one of three with more than $1 billion in liabilities that filed for bankruptcy in April.
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When it comes to footwear-specific companies, the U.S. based entities of slip-resistant footwear company Shoes for Crews (or Never Slip Holdings, Inc.) filed for bankruptcy in April in an effort to undergo a sale of its business. Last week, the company announced it has undergone a sale of its assets to first lien secured lenders via a stalking horse credit bid, thus emerging from Chapter 11 bankruptcy and eliminating more than $300 million of debt.
In 2023, U.S. corporate bankruptcy filings hit 637. Along with consumer discretionary, healthcare and industrials accounted for the most bankruptcy filings in 2023.
