Depressed Valuations Pose Added Challenge to Retail Reorganizations
The tumultuous state of the retail industry has become increasingly difficult to ignore. Store closings this year are expected to surpass that of 2008. However, contrary to 2008, consumer spending is still growing. Instead of solely focusing on the retail sector’s casualties, attention should also be on retailer’s depressed market valuations.
In a recent American Bankruptcy Institute Journal article, Chuck Carroll, a Senior Managing Director, and John Yozzo, a Managing Director, draw attention to depressed market valuations for healthy retailers – a topic that has not been a part of distress headlines to date.
They argue why this needs to become a part of the conversation and how it will affect the future retail landscape.