Retail Bankruptcies Slowed in 2022 — But This Year Could Be a Different Story

Retail bankruptcies are set to come back into play in 2023 after a relatively slow year in 2022. Between the start of 2023 through the end of February, six major retailers filed for bankruptcy, according to BDO’s bi-annual bankruptcy report. That’s more than the total number of retail bankruptcies in 2022, a year in which retail sales were relatively stable until the last quarter. In total, 391 companies filed for bankruptcy in 2022, a new 13-year low, according to S&P Global Market Intelligence data. Tuesday Morning, Party City, Forma Brands and Independent Pet Partners Holding are among the six retail companies who have filed for bankruptcy thus far in 2023. According to the BDO report, which was written by BDO’s leader of business restructuring and turnaround services practice David Berliner, most of these companies sell mainly discretionary items, which are less of a priority for consumers dealing with inflation. The surge in bankruptcies at the start of this year could be due to the impact of retailers dealing with a slump in sales post-holiday, the report explained. “The post-holiday season is one of the most difficult times of the year for retailers,” Berliner wrote. “They face lower sales and need to buy new summer inventory

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