For retailers, facing an apocalypse isn’t anything new. What’s new is the fact that everyone else is too.
Retail has for years faced the challenges of slowing foot traffic, changing shopping patterns and online competitors that has caused an industry upheaval some analysts have deemed the “retail apocalypse.”
But as the coronavirus pandemic has ground U.S. business to a halt, the pain has spread far and wide to upstart retail brands, landlords, lenders and suppliers. With everyone in duress, landlords and creditors with the ability to pull the trigger that could put a retailer into bankruptcy have become gun shy.
“Everyone has a gun to their head,” said one banker requesting anonymity. “It’s mutually assured destruction.”
In March, there were four retail bankruptcies, according to Debtwire parent Acuris. That’s more than the two retail bankruptcies that occurred in the same month last year, but it doesn’t reflect the pain that has crippled the industry which has been forced to…