Bankrupt Retailers Reorganize at a Record Rate in 2017

"...The percentage of retail industry bankruptcies that are ending in reorganization, rather than liquidation, spiked in 2017...

...Joshua Sussberg, a partner at the law firm Kirkland & Ellis LLP's restructuring group, said in an interview that retail bankruptcies have seen an uptick in reorganization because retailers are increasingly seeking to negotiate with their creditors prior to filing for bankruptcy protection.

...'People have tried to get ahead of the curve and plan ahead of a potential bankruptcy,' he said. "'The bankruptcy itself is then used to implement the restructuring, both operationally and financially.'"

This article appeared in its entirety in the December 21, 2017 edition of S&P Global Market Intelligence.