J.Crew Files for Bankruptcy; Others Could Follow Soon
J.Crew has become the first major retail casualty of the coronavirus pandemic. The retailer has filed for bankruptcy, the first of its peers to do so. Meanwhile, retailers who were struggling before the outbreak face an even more difficult road ahead.
J.Crew, Neiman Marcus, and JCPenney all suffer from massive debt loads and declining market share. The pandemic has hit retailers who primarily sell discretionary items particularly hard. Sears, another struggling retailer, could also see whatever future it had left erased by the coronavirus.
“The retailers who were wandering around aimlessly pre-pandemic are going to be substantially less likely to muddle through than they were before,” said Mark Cohen, director of retail studies at the Columbia Business School.