Financial stress in the retail industry is at a historic high.


Financial stress in the retail industry is at a historic high.


Moody`s said in a report on Tuesday that retail sector defaults hit a record high during the first three months of 2018 as the rise of e-commerce and decline of malls continues to eat away at profits.

Struggling Sears and bankrupt Claire`s are among the nine retailers that defaulted on their debt during the first quarter despite the healthy overall economy. All but one of the retailers are based in the United States.

Retailers accounted for one-third of all corporate defaults this year, underscoring the pain this pocket of business feels as customers flock to Amazon (AMZN) and other online shopping hubs...

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RSK: There will be more as retail has a major shakeout. A new model of retailing is emerging and retailers need to get on the wagon or risk falling by the wayside. As a landlord be wary of retail leases and protect yourselves.

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- - Volume: 6 - WEEK: 16 Date: 4/17/2018 9:46:45 AM -