Trepp: The 11 largest retailer bankruptcies of 2017
More than 30 U.S. retailers have filed for bankruptcy protection in 2017 due to the brick-and-mortar “retail apocalypse,” according to Trepp data. More than $35 billion of CMBS debt is exposed to retailers that sought bankruptcy protection this year.
However, these bankruptcies does not indicate a weak retail sector. Retail sector sales increased by 2.6 percent in 2016, and 5.6 percent in the first half of 2017. The retailers filing for bankruptcy relief and closing stores have shifted to an ecommerce platform.
Within the mall sector, REITs and developers are focusing more on revamping class-A malls while shedding class-B and C assets. Food, entertainment, fitness, and other specialty retailers that can adapt and incorporate experiential technology will likely continue to take a growing market share.
Based on Trepp’s CMBS data, the following is a ranking of the retailers with the largest amounts of outstanding CMBS debt to file for bankruptcy in 2017.
- The Limited - $14.7 billion
- Toys “R” Us - $5.6 billion
- Gymboree - $5.4 billion
- Payless ShoeSource - $3.9 billion
- RadioShack - $2.4 billion
- Hhgregg - $1.8 billion
- Rue21 - $1.7 billion
- Gordmans - $944.3 million
- Gander Mountain - $432.6 million
- MC Sports - $417.2 million
- BCBG - $164.9 million
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