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Retailers in the United States are filing for bankruptcy at a record pace. Already this year, 14 retailers have declared bankruptcy , including the companies behind Payless, The Limited, and BCBG. Thats not far from 18, the total number of retailers that declared bankruptcy in 2016, according to insights from S&P Global Market Intelligence released last week. Related article: Discount retailers have been selling Ivanka Trump clothes but under a different label And there may be more to come. The S&P report shows several more retailers likely to file bankruptcy soon. Sears Holding Corp., which last month said it had substantial doubt it would continue, comes in at the top of the list with a 23.84% chance of going bankrupt in the next year. Brick-and-mortar retailers are suffering due to an increase in e-commerce and online shopping despite an overall increase in consumer spending in the U.S. Related article: Ikea is building apartments for its employees in Iceland It is widely agreed that the U.S. is over-stored and that the solution for flat or declining in-store sales resides to a significant degree online, where the most sales growth is now taking place, according to S&P Global Market Intelligence. Just days after S&Ps report was released, Bebe, which sells womens clothing, announced plans to close all 168 of its stores. It is unclear if the company will sell clothes online despite the store closures, but S&P predicts the company has a high chance of filing for bankruptcy.
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