Recently, Gymboree became another leveraged retailer to file Chapter 11 for relief from the ‘Amazon Effect’ on consumer spending behavior. The bankruptcy filing will leave many unsecured creditors with little or nothing. Related to this announcement, Fitch Ratings announced Monday its retail sector institutional term loan trailing 12-month default rate moved to 2.7% from 1.7%. By the end of the year, Fitch predicts the rate will rise to 9% — a threefold increase — a number that assumes a default by Sears. Continue reading
Demand Rises for AR Puts After Gymboree’s Bankruptcy
June 23, 2017
Henry Ford said it best; “Any customer can have a car painted any color that he wants so long as it is black.”