A not-so-perfect storm not only for Rue 21 but other companies - rising interest rates, supply chain issues, and stricter lending requirements... the "pretend and extend" may be coming to an end. Fortunately, there has been so little development of retail properties over the last 15 or so years, that in many cases the landlord can re-lease at a higher rent than the failing tenant was paying anyway. Debtwire's latest Restructuring Insights report found bankruptcy filings jumped 58% in 2023, climbing from 179 in 2022 to 282. "The 58% spike in bankruptcies in 2023 signaled a major shift in lenders' attitudes, unwilling to prolong support for struggling companies," said Catherine Corey, Debtwire's global head of restructuring data. "A convergence of challenges, including the post-pandemic withdrawal of government support, inflation, rising interest rates, supply chain disruptions, global unrest, and stricter lending requirements, created a perfect storm." #retailrealestate #bankruptcy #cre https://lnkd.in/g2xg3fbP
Loved the part where it said, 'fortunately' landlords will be able to charge higher rents on new tenants despite so little actually having been done to raise the value of those retail properties -- yes, how 'fortunate.'
The BIDEN ECONOMY is working for everyday americans!
Event Sales and Services Professional
2moThese times we are in will make history, as it's hard to comprehend all this negative activity during a red hot economy...